S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Selection of comparable-Software development services and sale of software products-Cannot be comparable-Employee cost filter-Matter remanded to the Tribunal.[S. 92CA(3), 254(1), 260A]

S. 80IA : Industrial undertakings-Enterprises engaged in infrastructure development-Tribunal is right in coming to the conclusion that the permission obtained from the customs authority by the assessee vide a letter dt. 1st Feb., 2013 is deemed to be the approval granted by the competent authority of the Central Government-Entitled to deduction under S. 80IA(4)(i).[S.80IA(4)(i), 260A]

S. 54 : Capital gains-Profit on sale of property used for residence-Capital gains-Temporary structure-Putting together a structure of plywood sheets cannot be construed as constructing a residential house-Inspector had also reported that there was no electricity or water connection on the land and electricity was used by genset-Order of Tribunal rejecting the exemption is affirmed. [S. 45, 260A]

S. 49 : Capital gains-Previous owner-Cost of acquisition-Family settlement-Father acquired a property prior to 1-4-1981 and after his death said property was given to assessee by way of family settlement in 2003-Sale of property in 2007-Computing capital gain, indexed cost of acquisition was to be worked out with reference to 1-4-1981 and not with reference to date on which assessee acquired property by family arrangement, i.e., in 2003.[S. 45, 48]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Advance from a party against project to be carried out Project could not be implemented and amount is not returned due to financial constraints-Never received any benefit or enjoyed money that it had received as an advance, provisions of section 41(1) would not be applicable.[S.28(iv)]

S. 17(2) : Salary-Perquisite-Employees stock purchase scheme-Lock in period-Shares which are subject to a lock-in stipulation and could not be sold in the open market owing to a complete embargo on the sale of those shares-The FMV could not have been recognized to exceed the face value of the shares. [S. 2(22B), 15, 17(2)(iiia), 260A]

S. 14A : Disallowance of expenditure-Exempt income-Binding precedent-Tribunal is not justified in holding that the judgment of Delhi High Court is not binding upon it-Said conduct of the members of the Tribunal is liable to be condemned-Explanation inserted to section 14A vide Finance Act, 2022 is prospective in nature. [S. 254(1), R.8D]

S. 14A : Disallowance of expenditure-Exempt income-Interest-No exempt income-Income of an assessee has both taxable and non-taxable elements, it would be principle of apportionment of expenditure relating to non-taxable income which would have to be identified for purpose of making disallowance under section 14A-No disallowance can me made-Explanation in S. 14A came to be inserted by virtue of the 2022 Act, w.e.f. 1st April, 2022 will apply in relation to the asst. years. 2022-23 and subsequent assessment years. [S. 260A, R.8D]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-No conflict between provision of DTAA between India and Netherlands-Non-discrimination and there was no ambiguity in classification and rates of tax, assessee, which is not a ‘domestic company’, is liable to tax at rates prescribed for a company ‘other than a domestic company’-DTAA-India-Netherlands. [S. 2(17), 2(23A), 90, Art. 24(2)]