S. 45 : Capital gains-Transfer- Year of taxability-Sale deed was executed on 31-03 2009–Full payment of sale consideration was received–Registration was done on 1-04-2009-Capital gain tax is chargeable in assessment year 2009-10 and not in 2010-11. [S. 2(47)(v), 45, 147, Registration Act, S.47, Transfer of property Act, 1982, S.53A]
S. 45 : Capital gain-Transfer of immoveable property-Date of execution of registered document is relevant and not date of delivery of possession or date of registration of document-Matter remanded – Method of accounting-AO is to be directed to bring said income to tax on basis of percentage completion method having regard to principles of AS-9. [S. 2(47), 145]
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits–Agricultural produce-Failure to produce farmers-No disallowances can be made. [R. 6DD(e)]
S. 37(1) : Business expenditure-Partner cannot separately claim expenses against income received from partnership firm. [S.28(v), 10(2A)]
S. 28(i) : Business income–Purchase of residential housing plot scheme–Providing for common infrastructure and internal road on the said land -Income arising from sale of plots of land is assessable as business income and not capital gains. [S. 2(13), 45]
S. 28(i) : Business income-Short term capital gains-Land dealings -Purchase of agricultural land–Conversion in to no agricultural for commercial purposes–Transaction of purchase and sale is assessable as business income and not as short term capital gains. [S. 2(13), 45]
S. 11 : Property held for charitable purposes–Skill development project of clients/donors for upliftment of rural poor–Denial of exemption is held to be not valid. [S. 2(15), 11(1), 12AA]
S. 10(26) : Schedule Tribes–Partnership firm–Not member of schedule Tribe-Not entitle to exemption. [S.10(26A), Constitution of India, Art. 366]
S. 22 : Professional or other misconduct–Decision of Director discipline of ICAI to not to entertain complaint and decision of board of discipline of ICAI to concur with director discipline’s opinion could not be faulted-Petition was dismissed with cost of Rs. 1 lakh was directed to be deposited with the Delhi High Court Legal Services Committee with in a period of two weeks.
S. 22 : Professional or other misconduct–Auditor-No objection certificate-Only requirement is communication from the Chartered accountant who accepts position as an auditor.