S. 54 : Capital gains – Profit on sale of property used for residence -Exemption cannot be denied when the property was purchased in the joint name of assessee and others [ S.45 , 54F ]

S.50CA: Capital gains- Full value of consideration for transfer of share other than quoted shares – Validity of Section 49, 50CA, 56 of Income-tax Act,1961 read with Rule 11U, 11UA etc challenged before Bombay High court. [ S. 49 56 , Rule 11U 11UA ]

S. 37(1) : Business expenditure –Wholly and exclusively – Salary paid to director- Held to be allowable though the payment made was voluntary .

S. 37(1) : Business expenditure – Service charges to employees- Held to be allowable as business expenditure – The Assessing Officer should not have used the expression “modus operandi” to mean that the assessee had adopted dubious tactics to inflate its expenditure.

S. 35 : Scientific research -Donation- When a valid registration exists while donation was given by the assessee and if at a later point of time such registration is cancelled with retrospective effect , no disallowance can be made [ S.35(1) (ii) ]

S. 10AA : Special economic zones – Profit of eligible unit should be allowed without set off of loss of other units [ S.72 ]

S. 10(37) : Capital gains – Agricultural land – Interest received on enhanced consideration as per Land acquisition Act, 1894 is held to be not taxable [ S .4, 56(2) (viii) Land Acquisition Act , 1894 , S 4, 28, 34 ]

S. 4: Charge of income tax – Capital or revenue- Business income-Receipts from Construction company – Netting of receipts and payments- Receipts from the Construction Company being intrinsically connected with construction of assessee’s plant, would be considered as a capital receipt and not income of assessee from any independent source-Amounts received by the assessee would go to reduction of cost of construction. [S, 28(i), 56, 145]