S.139: Return of income-Limitation-Where assessment order was passed and consequential demand raised by treating return and audit reports as belated without considering CBDT Notification dated 31-12-2020 extending time limits due to COVID-19 under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, the order was unsustainable-Return and audit reports filed on 14-02-2021 were within extended time up to 31-03-2021-Assessment order and demand set aside and Department directed to open e-portal to enable assessee to upload reports, if any. [Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, Art.226]

S.92BA : Transfer pricing-Specified domestic transaction-Arm’s length price-Market value of electricity-Indian Energy Exchange not comparable to supply by State Electricity Boards-Comparable uncontrolled price method not applicable in case of material dissimilarity-Deletion of transfer pricing adjustment justified. [S.80-IA(8), 92B, 92BA, 92C, 92F, 260A]

S. 92B : Transfer pricing-International transaction-Arm’s length price-Avoidance of tax-Corporate guarantee-Tribunal remanding matter to Assessing Officer for reference to Remand of order confined only to extent of examining whether undertaking of corporate guarantee constituted international transaction-The principal direction of remit by the Tribunal and a de novo exercise was liable to be undertaken by the Assessing Officer, the order of the Transfer Pricing Officer and the consequent draft assessment order also stood set aside [S.92CA, 260A]

S. 69C : Unexplained expenditure-Bogus purchases-Accommodation entries-Business of import and export and trading of diamonds-Information from Investigation Wing-Tribunal restricting disallowance to six per cent. based on assessee’s turnover and net profit justified-No question of law arose.[S. 147, 260A]

S. 68 : Cash credits-Trading in shares-Claim of long-term capital gains-Shares of company suspended by stock exchange Cannot be reason to make additions in absence of any material to suggest that purchase and sale of such shares were bogus-Deletion of addition by the Tribunal is affirmed. [S. 10(38), 45, 260A]

S. 43D : Public financial institutions-State financial corporation Interest on bad debts-Mercantile system of accounting-Cash basis-Interest of bad debts on cash basis-Order of Tribunal affirmed. [S. 145, Income-tax Rules, 1962, R. 6EA.]

S. 11 : Property held for charitable purposes-Organising cultural event-Income from ticket sales by organising dance events and food stalls-Not business activity-Denial of exemption was not justified.[S. 2(15), 12, 13(8), 260A.]

S. 11 : Property held for charitable purposes-Organising cultural event-Income from ticket sales by organising dance events and food stalls-Not business activity-Denial of exemption was not justified-SLP of revenue dismissed.[S. 2(15), 12, 13(8), Art. 136]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Non-resident-Use of equipment-Right to use-Source code of licensed software not provided to customers who had no right to exploit assessee’s intellectual property rights-Receipts not royalty or fees for included services-DTAA-India-United States of America [S. 144C(13) 147, Art. 12(3), 12(4)(b)]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Non-resident-Permanent establishment-Disposal test-Fixed place PE-High Court correct in concluding that assessee’s ability to enforce compliance, oversee operations, and derive profit-linked fees from hotel’s earnings demonstrated clear and continuous commercial nexus and control with hotel’s core functions which satisfied conditions necessary for constitution of fixed place permanent establishment Income received under strategic oversight services agreement attributable to such permanent establishment and taxable in India-DTAA-India-United Arab Emirates (1994) 205 ITR 49 (St). [S. 9(1)(iv), 9(1)(vi), 9(1)(vii), Art. 4, 5(1), 12]