S. 2(ea) : Asset- Agricultural land–Capital gains-Measurement of distance -Distance of land from municipal limits aerially, not by road, and which have been substituted by Finance Act, 2013 with effect from 1-4-2014 are prospective in operation-Conversion of land from Agricultural use to non agricultural use though the land was converted into non-agricultural purposes, cultivation of the land for agricultural purposes till the date of sale continued unabated and as such, the land should be treated as agricultural land-Not liable to wealth tax. [S. 17, 2(14)(iii)(b)]

S. 271D : Penalty–Takes or accepts any loan or deposit-Business of civil construction-Adjustment of loan towards sale of flat– Provision is held to be applicable–levy of penalty is held to be justified. [S.269SS, 269T]

S. 271AAB : Penalty-Search initiated on or after 1st day of July 2012-Disclosure of undisclosed income-Disclosed manner of earning of income and paid tax along with interest-liable to pay penalty at 10% and not at 30%. [S. 132(4)]

S. 269T : Repayment of loans and deposits-Otherwise than by account payee cheque or account payee bank draft–Provision is applicable in case of adjustment of loan towards sale of flats- Payment of interest in cash provision is not applicable. [S. 271E]

S. 145 : Method of accounting-Survey-In the course of survey incriminating material was found indicating unaccounted sale of flats -Rejection of books of account and estimation of income at 11 percent of gross sales is held to be justified. [S.69]

S. 54B : Capital gains-Land used for agricultural purposes -Purchase of agricultural land prior to sale of agricultural land – Exemption is not available-Stamp duty paid is to be considered as part of cost of purchase of agricultural land. [S. 45]

S. 48 : Capital gains–Indexation-Cost of improvement-Expenditure on levelling of agricultural land for purpose of irrigation from canal, benefit of indexed cost of improvement was to be granted. [S. 45]

S. 45 : Capital gains-Joint Development Agreement (JDA)-Mere licence to builder to enter property for purpose of carrying out development- Cannot be regarded as transfer – Capital gain tax is not leviable. [S.2(47)(v), Transfer of Property Act, 1882, S. 53A]

S. 45 : Capital gains-Business income-Redemption of units of mutual fund -No borrowed capital- Only 15 transactions – Shown as investment in books of account-Assessable as capital gains and not as business income. [S. 28(i)]

S. 43B : Deductions on actual payment-Electricity duty-Disallowance cannot be made in respect of liability of State Electricity Board with regard to amount of electricity duty and surcharge collected by it as an agent of State of Kerala. [Electricity Supply Act, 1948]