S. 45: Capital gains-Transfer –General Power of Attorney-Assessee executed GPA authorising agent to deal with land-Agent sold portion thereof to a company-Mere execution of GPA did not constitute transfer under section 2(47) in favour of agent-Only actual sale consideration received for transfer was taxable in assessee’s hands, not any sum received by power agent.[S. 2(47)]

S.45: Capital loss-Sale of shares-Securities transaction tax–loss was allowable as a capital loss.

S. 45: Capital loss-Advance for purchasing a commercial plot-Cancellation of forfeited amount paid in earlier years-Allowable as capital loss. [S. 2(14) 2(47)(ii)]

S. 45: Capital gains-Slump sale-Set-off of long-term loss against long-term gain from slump sale. [S.2(29B), 2(42C), 50B]

S.43CA: Transfer of assets-other than capital assets-full value of consideration-stock in trade-Agreement value-Stamp valuation-Registration agreement at a later date-Transaction was completed in an earlier year and offered to tax-Addition cannot be made in the year of registration. [S. 2(47)(v), S.50C, Transfer of Property Act, 1882, S.53A]

S. 43(5): Speculative transaction-Derivative trading loss-Set off against business income-Failure to produce broker’s note-The matter was remanded to the Assessing Officer to examine whether trades met requirements of Explanations 1 & 2 to section 43(5).[S. 73]

S. 41(1): Profits chargeable to tax-Remission or cessation of trading liability-Advances from customers against sales-shown as liabilities in its balance sheet-Not written off-Addition cannot be made.

S. 40A(3): Expenses or payments not deductible-Cash payments exceeding prescribed limits-Salary to employees-No finding that payment on particular date exceeded limit-Disallowance was deleted.

S. 40A(3): Expenses or payments not deductible-Cash payments exceeding prescribed limits-Payment to supplier on Saturday at around 5:30 P.M. after closure of banking hours-Payment was made on a day when the bank was observing half-day working-Rule 6DD(j) could not be invoked-Disallowance upheld. [R.6DD (j)]

S. 40A(2): Expenses or payments not deductible-Excessive or unreasonable-Cash payment to partners-No legal bar on cash payment to partners-Genuineness of payment was not doubted-Addition was deleted. [S.40A(b)(v)]