S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Comparables, functional similarity-Software products and services-Selected company dealt in software product and high-end technical services which fell under umbrella of knowledge Process Outsourcing (KPO) services, said company had to be excluded from array of comparables as assessee was rendering software development services-No substantial question of law.[S. 260A]

S. 80P : Co-operative societies-Primary society engaged in supplying milk to federal society-AO is directed to re-examine the issue in the light of the definition of the Tamil Nadu Co-operative Societies Act, 1983 and to pass a fresh order in the light of the definition contained in that Act, within a period of six months from the date of receipt of a copy of this order by the AO. [S.80P(2)(b)(i), 260A]

S. 80IA : Industrial undertakings-Enterprises engaged in infrastructure development-Market value-Captive power plant-Power supplied to own units-Rate to be adopted at which assessee supplies surplus power to State Electricity Board-Not determined in normal course of Trade and competition but under statutory contract. [S. 80IA ((4) (iv) 80IA(8), Electricity (Supply) Act, 1948, S. 43, 43A 44]

S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation-Amalgamation –Capital gains-Exemption-When the scheme is expired no modification of the Scheme could be sanctioned requiring the Income Tax Department to give further concessions without the Department consenting to grant such an extension; neither the order dt. 26th Feb., 2013 nor the impugned order indicate that the BIFR had examined the transactions, which had led to the capital gains arising in the hands of the company or the context in which additional concessions were sought; impugned order therefore cannot be sustained. [S. 45, 74, Insolvency and Bankruptcy Code, 2016, S. 242, Sick Industrial Companies ( Special Provisions) Act, 1985, S. 17, 18, 19, 25, Art. 226]

S. 45 : Capital gains-Holding period of shares-Date of transfer-Acquisition of the dematerialised shares is to be taken as the date of purchase when the broker issued his contract note and not the date of entry in the demat account-Circular Nos. 704, dated 28-4-1995 and 768, dated 24-6-1998 apply equally to securities held in physical as well as in dematerialised form. [S. 10(38) 45(2A), 260A]

S. 40(a)(ia): Amounts not deductible-Deduction at source-Non-resident-Shipping business-Where agents act on behalf of non-resident ship-owners or charterers, they would step into shoes of principal and hence, provision of section 172 would apply and not provision of sections 194C and 195-Not liable to deduct tax at source.[S. 171, 194C, 195, 260A]

S. 37(1) : Business expenditure-Web designing expenses –Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Professional fees-Statement of the recipient during search-Affidavit filed-Subsequent statement-Failure to provide opportunity of cross examination-Allowable as deduction. [S. 132(4)]

S. 36(1)(iv) : Contribution towards a recognized provident fund-Contribution being neither towards an initial contribution nor towards an ordinary annual contribution, ceiling fixed of 27 per cent under rules 87 and 88 would not apply-Order of Tribunal is affirmed.. [R. 87, 88]

S. 32 : Depreciation-Option-No requirement of particular mode of exercising option-Option To Be Exercised Before Filing Return Or At Time Of Filing Return-Department Not Justified In Reducing Depreciation On Ground Assessee Had Not Specifically Opted For Written Down Value Method. [S. 139(1), Rules, 5(1)(IA)]