S. 92C : Transfer pricing-Arm’s length price-Comparable-Software Development Services (SWD)-If a company is involved in more than one segment and no segmental information is made available then such a company cannot be taken as a comparable-If a company is engaged in a diverse range of IT Solution Services and it was not a full-fledged software development company then it should be excluded from comparability analysis for a software development service provider-If activities of selected company comprised of high-end hardware and software product and development activities, which differed from routine SWD activities, it should not be selected as comparable-If turnover of selected company was far higher than turnover of assessee and the said company was giant in software development and also had high brand value as compared to assessee, it should be excluded from comparable list-If selected company was engaged in rendering outsourced product development as against software development services, it was not comparable to assessee-ITes-If selected company was not only a provider of high-end services but was also engaged in development of software products for healthcare segment, and further owned significant intangibles, it should be excluded from comparable list-If selected company enjoyed huge brand value and had also made significant investments in creating intangibles and owned several intellectual properties as compared to assessee, it could not be selected as comparable. [S. 92CA]

S. 92C : Transfer pricing-Arm’s length price-Comparable-Turnover-When the AO had applied lower turnover filter of Rs. 1 crore and rejected companies with turnover less than Rs. 1 crore from list of comparable companies, he ought to have excluded companies with high turnover from list of comparable companies, i.e., companies having turnover of Rs. 200 crores and above as well. [S.92CA]

S. 92BA : Transfer pricing-Specified domestic transactions-Reference to Transfer Pricing Officer after provision omitted-Not valid-Assessing Officer to examine claim of expenditure in terms of Section 40A(2)-Trade credits-Matter remanded. [S. 40A(2), 68]

S. 90 : Double taxation relief-Stay less than 182 days-Salary from foreign employer-Option to choose either DTAA or provisions of Act whichever beneficial-DTAA-India-USA. [S. 5, Art. 16(1)]

S. 80M : Inter corporate dividends-Fifty Per Cent. of average cost of borrowing considered as proportionate to earning of income from dividend out of borrowed funds-Proportionate interest expenditure alone to be disallowed-No disallowance of management expenses.

S. 80IB(10) : Housing projects-One unit in project admeasuring more than 1,500 Sq. Ft.-Entitled to proportionate deduction.

S. 74 : Losses-Capital gains-Set off of brought forward long term capital loss against share premium account in balance sheet pursuant to Corporate debt restructuring-When there was no change in shareholding will not affect the claim of such set off under the Act. [S. 79]

S. 69C : Unexplained expenditure-Additions cannot be made when the Assessee has discharged his onus of providing all the genuine details within his ambit to prove the genuineness of a transaction. [S. 133(6)]

S. 69A : Unexplained money-Search of third party-Noting extracted from computer file-Addition cannot be made on presumptions.

S. 69 : Unexplained investments-Search and seizure-Estimate of unaccounted sales-Merely on the basis of statement of clerk and Assistant General manager without corroborative documentary evidence, addition cannot be made. [S. 69A, 132]