Checklist for Internal Audit of Purchases and Inventory Management

Purchase and inventory department is very sensetive department of any organization. Approval, Vendor validation, Quality assessment , communication are important part of Purchase process 

 Inventory audit is based on inventory information and policies, inventory levels, and inventory monitoring.

	Purchase & Inventory Management
	Particulars	Concerned Person	Checked By	Remarks
A	Material Control
	Check proper records for-
1	Availability of materials
2	Control over the investment in material
3	Reasonable Prices
4	Wastage Control
5	Control over the spoilage and obsolescence
B	Purchase
1	There should be at least two personnel for the purchase department with rights and duties as per the Purchase Policy
2	All the purchases are properly authorised as per the policy
	Upto Rs 5000/- Purchase Manager
	Revenue purchase > Rs 5000/- Unit Head
	Capital purchase > Rs 25000/- BOD
C	Requirements
1	Requirement of the Stores Department is in accordance with the production schedule and on the basis of need of the particular item whether it is capital or revenue item is forwarded through Purchase Indent in 2 copies
D	Vendor Registration
1	The Purchase department registers the potential suppliers according to the required items in the prescribed format.
2	Check proper maintenance by Purchase manager of master list of the suppliers
E	Selection / Assessment of the suppliers
1	Check for following aspects while selection of suppliers-
•	Quality
•	Price
•	Terms / Conditions (availability etc.)
•	Transportation Cost
•	Discount
•	Credit Facilities
2	Final selection is vetted by a Team consisting of Purchase Manager, respective departmental head, finance / accounts person and if required the technical person of the company.
3	Tender is raised in the specified format for specific purchases along with terms & conditions of the company
	If any other method is followed, mention it-
4	Proper analysis of the quotations invited in the prescribed format
5	Proper explanatory note is prepared to state the reason for selection of particular supplier by the selection committee
6	Documentation of the analysis summary sheet with the PO
F	Execution of Emergency Purchase
1	Check for following points-
•	Reasons / Conditions
•	Time Basis
•	Price
•	Dealers
•	Others – Credit Terms, Transportation, Taxation etc.
2	Finalised by a Committee comprising of-
•	Purchase Officer
•	Finance / Accounts Officer
•	Respective Department Head
G	Purchase Order
1	PO is prepared in 2 copies in the prescribed manner and is duly authorised
2	Regular follow up of PO for timely receipt of materials
H	Master List for Purchase
	Check proper maintenance by Purchase manager of following master list of the suppliers
I	Receiving and Inspection of the Material :
1	All supplies at receiving department.
2	Check against Purchase Orders.
3	Inspection of material
4	Proper delivery of goods to the concerned department / store.
5	Proper authorization by the receiving authority.
6	All returns, shortage, rejection must be informed to the purchase as well as to the accounts department so that the payment to / debit notes on the suppliers should be made / raised accordingly.
7	Goods Receipts Notes (GRN) should be endorsed to accounts and sent to purchase department.
8	Purchase orders file should be maintained properly.
9	Receiving, unloading and unpacking the material delivered by the suppliers under delivery challans/ Invoices.
10	Checking quality of the material received by the Quality control department.
J	Stores/Inventory Management
1	Proper counting of the material received and recording and classification of the same.
2	After receiving of the required material the invoice should be supported with the Material Inspection Report and sent to the accounts department.
3	Proper authorization and verification of the MIR by the purchase manager as well as the higher authority.
4	Control measures i.e. stock taking & supervision of the material received should be done on periodic basis (Monthly / fortnightly / weekly).
5	Separate authority for purchase and stock taking.
6	Continuous stock verification.
7	Shortage/excess of the material is reported to the purchase as well as the production department.
8	Any discrepancies / damages must be recorded and reported to the concerned authority.
9	There should be a proper control over the Scrap / Wastages / Damages/ Defectives etc.
K	Classification & Coding of Material
1	Proper classification as construction material, consumable stores, spare parts, tools etc.
2	Authentic code no. is allotted for proper distinction / description
L	Material Control System :
	Analysis of Material / inventory according to their value, movement, quantity i.e.
	·        ABC ( High : Medium : Low value )
	·        FSN ( Fast : Slow : Non moving )
M	Inventory Records:
1	Daily Updation of Stores Ledger
2	Check Stores Ledger for proper stock keeping, recording material receipts, issues and balances
3	Issue of material from stores in proper format
4	In case of material transfer from one job to another job, the material transfer note will be prepared in 2 copies
5	Scrap / wastage should be recorded and reported in a proper format

Internal Audit Checklist for Production

Production includes  raw material process, including various stages like job method,, batch methods, flow methods etc and  packing material, testing processes. Wastages etc.

Internal auditor have important role to check  production planning document, production data sheet and instructionss,  capacity of machines, availability of raw material, co-ordination with lab department for sending sample and get approval for continuing production. Internal auditor check necessary documents of all the production process.

Here is the Checklist for Internal audit of Production department.

	Production
	Particulars	Checked By	Remarks
A	General
	Check that
1	Proper reporting is done by assistants to respective division in charge & further reporting by in charge to immediate boss
2	Proper listing of products with their respective codes and brand names
3	The record for no. of labour required to work at each machine for standard production is maintained as per given format
4	Calculation of idle time is done on percentage basis and in case the idle time exceeds 25% the reporting of the same to the higher management on daily/weekly basis with proper reasons
5	Calculation of overtime and recording of the same is done by the Production Manger and he further reports it monthly to the Unit head and the HR coordinator of the unit.
6	The total area covered by the production floor with its utility including storage for raw and finished goods is recorded in prescribed format.
B	Machinery
	Check that
1	Fixed Assets Register is maintained & updated in the prescribed format
2	Proper coding for each capital asset
3	New Machinery-
a	The requirement of new machines can arise due to following reasons:
·	Increase in demand
·	Change in technology
·	Change in product line
·	Increase in production
b	Proper assessment is done by Production Manager/In charge approved by the Unit Head
c	Requisition to the purchase department is sent for further processing as per purchase and inventory policy of the Company based on Quotation Analysis.
d	The new machines is properly installed in supervision of the Technical person and the Unit Head and the reporting of the same is done to the higher management after installation.
4	Capacity Analysis of machines is done in the prescribed format
5	The upkeep and maintenance of machine is done on regular basis so as to increase their life and proper track of the machine overhauling is maintained in the prescribed format.
6	Separate machine log book is maintained and updated
7	User manual/instruction kit of machines is displayed through charts and hoardings at various places of factory.
8	Machine maintenance chart is displayed and updated for each machine near by the machine itself.
9	Proper reporting of machine breakdown/shout down is done by production in charge to unit head with valid reasons
10	Shut down for more than 3 hours is reported to Unit Head which further reports to higher management
C	Raw material
	Check that
1	Need assessment is done by the Store-keeper and the authorization is done by the Production Manager/In charge.
2	Purchase of raw material is done as per the Purchase Policy
3	The Quality Controller properly verifies the quality of the raw material by taking samples and records the same in prescribed format.
4	In case the quality of the raw material is not of good quality, the reporting of the same is done to the Unit Head and higher Management .The whole lot of raw material is stored separately and Material Return Form is filled by the Store keeper, duly verified by the Quality Controller.
5	The raw material to the production is issued by the storekeeper/store in-charge after signing the issue slip. The production in-charge give its receiving through its initials on the issue slip after properly weighing the material issued.
6	The issue of raw material for production is on the basis of production plan which is based on demand & availability.
D	PROCESS
	Method of production followed by Company-
·	Job Method
·	Batch Method
·	Flow/Process Method
·	Uniform Method
E	Finished Goods
	Check that
1	The production Manager verifies the final product according to the standard production plan and records the same with deviations, if any in respect of quality and quantity both.
a	Quantity Analysis is done by the Production Manager as set out in master chart of the particular product.
b	Quality Analysis is done by the Quality Controller for the finished goods. The Master Card for the quality check is pasted at each such place where the production process is carried on.
2	Samples taken for above purpose are recorded in the quality check register. Verify the no. of samples taken per lot of production.
3	The finished goods inventory is maintained as per the Purchase and Inventory Policy of the Company.
F	Wastage
	Check that
1	Proper classification of wastage is done into Normal & Abnormal.
2	Classification as abnormal is done if wastage is occurred due to the following:
·	Error in machine
·	Raw material quality issues
·	Power cut with prior information
·	Labour mistake
·	All other wastage which is not normal
2	The wastage is properly recorded in the wastage register/sheet on daily basis along with proper reasons and it is shown in the production MIS in the prescribed format.
3	The monthly average wastage is properly calculated and if the wastage exceeds the standard wastage than necessary steps to reduce the wastage are taken.

வேர்ட் டிப்ஸ்

டேப்பின் இடைவெளி அமைக்க: வேர்ட் ரூலர் நமக்குப் பல வழிகளில் உதவுகிறது. வழக்கமாக டேப்களை நாம் செட் செய்கிறோம். ஒவ்வொரு டேப்பிற்கும் இடையே உள்ள தூரத்தினை ரூலர் மூலம் அறிந்து கொள்கிறோம். ஆனால் ஒரு டேப் பாய்ண்ட் ரூலரின் இடது புறம் இருந்து எவ்வளவு தூரத்திலிருந்து உள்ளது என்றும் அதே போல வலது புறத்திலிருந்து எவ்வளவு தூரத்திலிருந்து உள்ளது என்றும் அறியலாம். இதற்கு ரூலரில் டேப் உள்ள இடத்தில் கர்சரைக் கொண்டு வைக்கவும். இப்போது இடது பக்க மவுஸ் பட்டனை அழுத்தவும். அதனை விட்டுவிடாமல் வலது பக்கம் மவுஸ் பட்டனையும் அழுத்தவும். இப்போது குறிப்பிட்ட டேப் இரு புறத்திலிருந்தும் எவ்வளவு தூரத்திலிருந்து உள்ளது என்று காட்டப்படும்.

நீளவரியை மடக்கி அமைக்க: வேர்ட் டாகுமெண்ட் ஒன்றை அமைக்கையில், பல வேளைகளில், நீளமான இணைய முகவரி ஒன்றை அமைக்க வேண்டிய சூழ்நிலை ஏற்படும். இணைய முகவரிகளுக்கான லிங்க் எப்போதும் ஒரே சொல் போல நீளமாக இருக்கும். இது வலது மார்ஜின் அருகே வருகையில், அதனை ஒரு சொல்லாக எடுத்துக் கொண்டு, வேர்ட் புரோகிராம், அந்த இணைய முகவரி முழுவதையும், அடுத்த வரிக்குக் கொண்டு செல்லும். இதனை Word Wrapping எனக் கூறுகிறோம். 
இதனால் வலது மார்ஜினில் அழகின்றி ஒரு இடைவெளி ஏற்படும். இரண்டு பக்கமும் அலைன் மெண்ட் எனில், முதல் வரியில் எழுத்துக்களுக்கிடையே அழகற்ற இடைவெளி ஏற்படும். இந்த சிக்கலின்றி அமைக்க வேர்ட் ஓர் ஆப்ஷன் தந்துள்ளது. அதனைத் தேர்ந்தெடுத்து அமைத்துவிட்டால், இணைய முகவரி அல்லது மிக நீளமான சொல் தேவைப்பட்ட இடத்தில் பிரிக்கப்பட்டு அமைக்கப்படும். 
டாகுமெண்ட்டைத் திறந்து கர்சரை எந்த இடத்தில் இணைய முகவரியைப் பிரிக்க வேண்டுமோ, அந்த இடத்தில் கொண்டு செல்லவும். பொதுவாக ஸ்லாஷ் எனப்படும் சாய்வு கோட்டின் அருகே பிரிக்க விரும்புவோம். இந்த இடத்தில் கர்சரைக் கொண்டு சென்று நிறுத்தவும். அடுத்து Insert டேப்பில் கிளிக் செய்திடவும். அடுத்து Symbols குருப்பில் Symbol என்பதில் கிளிக் செய்திடவும். பின்னர், More Symbols என்பதைத் தேர்ந்தெடுத்தால், Symbols டயலாக் பாக்ஸ் திறக்கப்படும். வேர்ட் 2003ல், Insert மெனுவிலேயே Symbol பிரிவினைப் பெறலாம். இதனை அடுத்து, Special Characters என்ற டேப்பினைத் தேர்ந்தெடுக்கவும். தொடர்ந்து என்ற பிரிவைத் தேர்ந்தெடுக்கவும். அடுத்து No Width Optional Break என்பதில் கிளிக் செய்திடவும். 
இவ்வாறு பிரித்துவிடப்பட்டுள்ளதா என்று நீங்கள் யு.ஆர்.எல். முகவரியை ஸ்கிரீனில் பார்த்து சொல்ல முடியாது. ஆனால் பிரிக்கப்பட்டிருக்கும். இதனைக் கட்டாயம் பார்க்க வேண்டும் என எண்ணினால், பாராகிராப் பிரேக் காட்டுவதற்கான ஆப்ஷனைத் தேர்ந்தெடுத்தால், அனைத்து பாரா மார்க்கர்களுடன், இந்த பிரித்த இடமும் காட்டப்படும். பிரித்த இடத்தில் சிறிய நீள் கட்டம் தெரியும். இணைய முகவரி தான் என்றில்லை. எந்த நீள சொல்லையும் இது போல பிரித்து அமைக்கலாம். 
Ctrl + Shift + Spacebar: பிரிக்க முடியாத ஸ்பேஸ் ஒன்றை சொற்களுக்கு நடுவே தருகிறது. இந்த இடைவெளியினை டெக்ஸ்ட் ராப்பிங் போன்ற பார்மட் வழிகள் எடுக்க முடியாது. 
Ctrl + Shift + Hyphen: பிரிக்க முடியாத சிறிய இடைக்கோட்டினை அமைக்கிறது. இதனால் ஹைபன் அமைக்கப்பட்ட இரு சொற்களும் பிரிக்கப்பட மாட்டா. 
Ctrl + T: பாராக்களை ஒரு ஹேங்கிங் இன்டென்ட் எனப்படும் முன் இடைவெளியிட்டு அமைக்கிறது. 
Ctrl + Shift + T: மேலே சொன்ன பாரா ஹேங்கிங் இன்டென்ட் இருப்பின் அதனை நீக்குகிறது.

No ‘royalty’ from sale of software, HC ignores amended Sec. 9 as DTAA more beneficial; Samsung’s case distinguished

The Delhi High Court upheld the order of the Tribunal that amount received by the assessee under the license agreement for allowing the use of the software would not be royalty under the DTAA.

The Delhi High Court held as under:

1) What was transferred was neither the copyright in the software nor the use of the copyright in the software, but what was transferred was the right to use the copyrighted material or article which was distinguishable from the rights in a copyright;

2) It further held that the right that was transferred was not a right to use the copyright but was only limited to the right to use the copyrighted material and the same would not give rise to any royalty income and would be business income;

3) The Delhi High Court expressed its disagreement with the decision of the High Court in the case of CIT v. Samsung Electronics Co. Ltd. (2011) 203 Taxman 477 (Kar.) that right to make a copy of the software and storing the same in the hard disk of the designated computer and taking backup would amount to copyright work – DIT v. Infrasoft Ltd. (2013) 39 taxman 88 (Delhi)

Assistance in financial and risk management is a ‘technical service’; FTS under India-US DTAA

Where assessee-company was making use of advice, input, experience and assistance rendered by US based company in its decision making process of financial and risk management, etc., services so rendered would be technical services under India-US DTAA.

Facts:

a) The assessee-company, engaged in providing software development services to the customers in India, claimed deduction of payment made to US based company (‘foreign company’) towards management services rendered by it;

b) In course of assessment, the Assessing Officer opined that the payment made by the assessee to foreign company would come within the ambit of consultancy fees and, therefore, the it was liable to deduct tax on these payments under section 195;

c) Since assessee failed to deduct tax at source, the Assessing Officer disallowed payments made by assessee by invoking provisions of section 40(a)(ia). Further, the CIT (A) confirmed said disallowance. The aggrieved-assessee filed the instant appeal.

The Tribunal held in favour of revenue as under:

1) The assessee was making use of the advice, input, experience and assistance rendered by the foreign company in its decision making process of financial and risk management, etc;

2) The foreign company was also giving training to the assessee's employees in making use of the inputs, experience, experimentation, assistance and advice rendered by them for taking a better possible decision in order to achieve the desired objectives;

3) Decision making process is a highly complicated and technical one, unless the assessee gets a technical input and advice from financial and risk management experts it may be difficult to select a right process for the growth of the company;

4) It was not the case of the assessee that in given set of facts/problem, the foreign company gave its solution or advice. The solution or decision was, admittedly, taken by the assessee on the basis of the advice/service rendered by the foreign company;

5) Therefore, the technical knowledge, experience, skill possessed by the foreign company with regard to financial and risk management was made available in the form of advice or service which was used by the assessee in the decision making process not only in management affairs but also in financial matters;

6) Therefore, such service rendered by the foreign company was technical in nature as per India-USA treaty - US TECHNOLOGY RESOURCES (P.) LTD. V. ACIT (2013) 39 taxman 23 (Cochin - Trib.)

Sale of business in lieu of shares under an amalgamation scheme not a ‘slump sale’; in sync with Bharat Bijilee’s case

Where no monetary consideration was involved in transfer of manufacturing division along with all its assets and liabilities under amalgamation scheme, same could not be considered as slump sale under section 50B

Facts:

a) The assessee transferred its manufacturing division to NIL under a scheme of amalgamation as per which all the assets and liabilities of the assessee were vested in NIL;

b) The assessee in return received certain investments held by NIL besides allotment of equity shares to the shareholders of the assessee;

c) The Assessing Officer held that the transfer of the manufacturing division to NIL would tantamount to a 'slump sale' attracting liability of capital gains under section 50B;

d) On appeal, the CIT(A) deleted the order of Assessing Officer. The aggrieved revenue filed the instant appeal.

The Tribunal held in favour of assessee as under:

1) To qualify as slump sale two conditions have to be satisfied, viz., (A) there must be transfer of one or more undertakings as a result of sale, and (B) the sale should be for a lump sum consideration without values being assigned to the individual assets and liabilities;

2) In the instant case it was not disputed that there was no monetary consideration involved for transfer of the assets and liabilities of the manufacturing division to NIL, though there might have been transfer of an undertaking;

3) Since there was no monetary consideration involved in transferring the manufacturing division under scheme of amalgamation approved by the High Court, it couldn’t be considered to be a slump sale so as to attract the liability of the capital gain under section 50B – ITO V. ZINGER INVESTMENTS (P.) LTD (2013) 38 taxman 388 (Hyderabad - Trib.)

Revenue exempted from disclosing info obtained from Financial Intelligence Unit justifying search operations

Preparation of satisfaction note on information collected from Financial Intelligence Unit to be treated as unpublished document for which privilege under Evidence Act could be validly claimed.

Facts:

a) The assessee was a leading importer and exporter of bullion, platinum bars and other precious metals;

b) The search and seizure operations under section 132 were carried out against assessee on basis of information received from Financial Intelligence Unit (‘FIU’) that heavy cash amounts were deposited in bank accounts of assessee and its sister concern on a regular basis;

c) The assessee filed writ challenging the search and seizure operations and claimed its right to examine satisfaction note to assail validity and bona fides of search and seizure operation;

d) On other hand, revenue filed an application claiming privilege of unpublished material in public interest under the Evidence Act

The High Court held in favour of revenue as under:

1) It couldn’t be denied that the FIU, reporting directly to the Finance Ministry, was responsible for receiving, processing, analyzing and disseminating information related to suspected financial transactions;

2) It was also responsible for coordinating with and strengthening the efforts of national and international agencies, investigation into it in pursuance of global efforts against money laundering, terrorist financing and related crimes;

3) The preparation of the satisfaction note on such information could be treated as unpublished documents for which the revenue has validly claimed privilege under sections 123 and 124 of the Evidence Act;

4) A large amount of accounted black money is floating in the market which poses a serious threat to the national economy. The Government of India has adopted several methods to discouraging the parallel economy being run by unscrupulous persons;

5) The FIU is engaged in collecting such information against the money laundering, terrorist financing and related crimes. The sources and methods of the organization collecting and processing such sensitive information couldn’t be subjected to public scrutiny to jeopardize the interest of the organization and national interest.

6) Thus, the application filed by the Income-tax department was to be allowed - M.D. OVERSEAS LTD. V. DIRECTOR GENERAL OF INCOME-TAX (2013) 38 taxman 433 (Allahabad)

Time Table of Study

Time table of study is the main part of your study habit. Some students want to know what time, they should learn, so that they will get merit in examination. Some students may also think about which time should they study which book?  Time table of study may not be equal to every class and every subject. For example study of CA need more time for solving problems than 10+2 Commerce. So, no student can fix study time for every class. 

Gold time of study is morning time. After 6 to 7 hours rest, human brain is more alert at the time of morning. So, if you have to study those learning material which your remember life time, then it must be learnt at just beginning of morning. Get up at 4:00 A.M. After fresh, you can study 4:00 A.M. to 5:00 A.M.

After one hour rest, you should take rest and refresh by drinking water or eating fruit or juice or walking in park. If examinations are near, you can fix days for each book. Suppose, your examination will have to start in next month. You have 30 days for study and revise your 5 books. After dividing 30 days with 5, you calculate 6. It means, now, you have6 days to study each subject. Open your book from beginning to end. Study it 3 hours in morning and 3 hours in evening and rest time, you should enjoy. You must leave some time for checking your progress after study. Suppose, if you study at morning time, then provide 1/2 hrs for taking your own test daily. 

1/2 revision time will be the revolution of your 6 hours study time. When you spend your study money for revising, you will definitely shoot your examination target. Remember, good time table of study is helpful to shine you in the field of education. 

{Know complete time table of student from morning to night at here. }

How to Save Time for Studying

Studying and success in the education should be your real target. But when you will study, you may disturb with lots of thinking or other work. So, we are providing you some tips for saving your time for studying. How, you will write it in your notebook.

1. Make the List of Things Which Disturb You in Your Study

When you disturb from anything during the time of study. Write it in your list. Write also all the things which disturb you to study. When you will make this list, you can find the solutions. Without written list, you will just wonder in the sky because written is the proof. Otherwise when you bring your mind from one thing, your mind will carry to other thing for disturbing you. You can not debate with your mind. If you have the written list. You can start debate with your mind. For example,

a) I am lazy for cleaning my office.
b) I do not do the work on the time and work late night for completing my work.

In my case, I have written two problems. So, I can solve this problem because, I am knowing my weakness. Laziness is the wastage of time. Not to do the work at the proper time is not also good. I have taken the determination, I will not to do this in the future. Like me, you can also take promise not to waste the time on the listed things which disturbs your concentration.

2. Think Study as Your Investment 

Time is the great investment of the world. It is the time who made a simple person to the great scientist. It is the time who made great sportsmen, great writers, great teachers, great artists and great leader. No one can become great if he do not invest his time in the study. Your brain will become zero if you will not give the water of new knowledge. It can only be possible through study. So, remember it all the time, investment your time in the study will give better return than any other investment. This will make your thinking big. For example, you are college going student. You are still going on your bicycle due to limited source of your father income. You are demanding the new bike from your father and your father have rejected your demand. At the time of studying, you are still thinking this. But when you are thinking this. Think again and think, what you are studying is nothing but it is the investment. To buy a new bike of Rs. 50,000 or Rs. 60,000 is a very very small demand. Your concentration on the study is the great investment who will give you millions of bikes within the second. So, do not worry and keep study.

Proof. : We can give the proof of Google Inc. which is the creation of Larry Page, Sergey Bri who are the founder of Google Inc. Now, his company is giving US$ 12.76 billion income per year because they both invested their time to study when they can achieve this through time investment, then you can also get anything from your study.

3. To Do other Work with Full of Passion

For saving the time for your studying, you have to do other work with full of passion and fastly. With this, you can save many time. For example, you have to make your food. Make it with full of passion. It will become fastly. You are washing your clothes. Wash with full of passion. When you will do all the work for passion. Your energy will increase. Your laziness will go and it will increase your speed. With this energy and speed, you can save time for your study.

E-homes with pre-fitted gadgets akin to other residential units; their developer isn’t dominant player

E-homes with facilities like wifi, finger print security cannot be said to be different from other residential units

Facts:

a) The informant, allottee of e-homes, filed information alleging abuse of dominance by Opposite Party (‘OP’) for adopting anti-competitive practices for the allotment of their e-homes;

b) He alleged that the e-homes developed by OP were likely to attract buyers who wanted to buy homes pre-fitted with hi-tech gadgets like wifi, finger print security system, parkings lots, etc;

c) He also contended that the OP created the special category of e-homes and had acquired a 100% dominant status for being the only real estate developer to design and develop such e-homes in Delhi/NCR;

d) As a result of the dominance enjoyed by OP, it started demanding high premiums and forced allottees to sign an Allotment Agreement.

The Competition Commission held as under:

1) The argument of informant that 'the provision for services of e-home' was a distinct product having separate market for itself, does not seem to be convincing because the facilities being provided by the OP like prefitted hi-tech gadgets, i.e., wifi, finger print security system, parking lots, etc., could easily be installed in any house without much structural modifications and alterations;

2) Thus, e-homes in question couldn’t be deemed as different products from other residential flats;

3) There has been no information in the public domain to prove that the OP was a dominant real estate developer in the relevant market and it had been abusing its position of dominance;

4) As per the information in public domain, there were several upcoming residential projects in Delhi/NCR and OP was not the only real estate developer in the relevant geographical market;

5) Therefore, the OP did not, prima facie, appear to be a dominant player in the relevant market. In the absence of dominance of OP in the relevant market, there was, prima facie, no reason for abuse of dominance in that market - ACHYUT P. RAO V. DESIGNARCH INFRASTRUCTURE (P.) LTD. (2013) 38 taxman 380 (CCI)