S. 143(3) : Assessment-Limited scrutiny-Disallowance of deduction not subject matter of limited scrutiny-Addition deleted-Interest expenditure-No loan taken during year-Interest disallowance is not valid when no disallowance was made in earlier years or subsequent years. [S. 57]

S. 143(3) : Assessment-Search-Merely because a hard disk belonging to assessee was found and seized from business premises of assessee, gives no ground for addition to the AO, when no incriminating or corroborative documents have emanated therefrom or otherwise. [S. 132, 292]

S. 143(2) : Assessment-Notice-Failure to issue notice-Reassessment is bad in law-Monetary limit-Information from Sales tax department falls with in the exception-Appeal is maintainable. [S. 147, 148, 268A]

S. 143(2) : Assessment-Notice-Non-issuance of notice u/s 143(2) is a jurisdictional defect and cannot be cured by section 292BB-Reassessment is held to be bad in law. [S. 147, 148, 292BB]

S. 92CA : Reference to transfer pricing officer-Additional ground-Limitation-Time-limit specified under section 92CA(3A) is mandatory-TPO is bound by time-limit for passing of order under section 92CA (3), failing which the order is invalid. [S. 92CA(3A), 254(1)]

S. 92C : Transfer pricing-Arm’s length price-Provision of software consultancy services-Adjustment to be restricted to amount retained by associated enterprise. [S. 92CA(3)]

S. 92C : Transfer pricing-Arm’s length price-Comparables-Functionally dissimilar companies cannot be taken as comparable–Government owned company taken as comparable on ground of functional similarity-Low turnover for particular year cannot be ground to exclude company functionally similar-Matter remanded.

S. 92C : Transfer pricing-Arm’s length price-Business support services-No finding that services not rendered-Directed to benchmark transactions adopting Transactional Net Margin Method-Held to be proper.

S. 92C : Transfer pricing-Arm’s length price-Reclassifying from a marketing and sales service provider to technical and business service provider-Held to be not proper-Matter remanded [S.92CA]

S. 92C : Transfer pricing-Arm’s length price-Comparable-Since working capital adjusted margin of assessee had already been factored in delay in receivables, and further assessee was not charging interest on overdue debts from third parties, and was also not paying any interest to creditors, no adjustment was further warranted-When the TPO could not controvert the independent reports of valuation furnished by the Assessee and followed no prescribed method of determining ALP, yet made additions, the same was termed untenable-With primary adjustment being rejected, consequent secondary adjustment fails too-If an Indian entity has satisfied the TNMM i.e., the operating margins of the Indian enterprise are much higher than the operating margins of the comparable companies, no further separate adjustment for Royalty expenditure is warranted.