S. 56 : Income from other sources–Share premium-Valuation of shares-Fair Market Value–Valuation considers various factors and not only balance sheet–Rejection of evidence is held to be not valid. [S. 56(2)(viib), R11UA]

S. 56 : Income from other sources-Issue of shares at premium-Provisions require the value of assets to be at FMV regardless of the book entries–Valuation of share premium on issue of unquoted equity shares by closely held company basis such FMV justified. [S. 56(2)(viib)]

S. 54F : Capital Gain–Hindu Undivided Family (HUF)-Property purchased in the name of individual for convenience–Part of the common pool–Protected assessment attains finality-Same income cannot be taxed twice again.

S. 54F : Capital gains-Investment in a residential house-Assessee Incurring Expenditure within stipulated period and constructing house incurring cost of construction-Rejection of claim without enquiry to verify actual cost of construction and period of construction of house is not justified. [S. 45]

S. 54F : Capital gains-Investment in a residential house– Deduction under 54 and 54F can be claimed on the sale of one property. [S. 45, 54]

S. 50C : Capital gains–Full value of consideration–Stamp valuation –FMV to be determined based on prevailing rate in the area as well as comparable sale instances–Matter remanded [S. 45]

S. 48 : Capital gains-Computation-Cost of acquisition-Indexation benefit on debt instruments-Government securities different from bond and debenture for purpose of third proviso to S.48-Benefit of indexation should be granted to assessee on redemption of government securities. [Public Debt Act, 1944. S. 2(a)(i)]

S. 45 : Capital gains-Gains from equities-Entire documentary evidence not disputed and no rebuttal to explanation of assessee-no adverse materials against assessee-No proper enquiry conducted on documentary evidence filed-Assessee entering into genuine transaction of sale and purchase of shares-Entitled to exemption. [S. 10(38), 68, 115BBE].

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Copy editing, indexing and proof reading requiring only knowledge of language and not expertise in subject matter of text-Services rendered by Non-residents not Technical Services-Not liable to deduct tax at source-No disallowances can be made. [S. 195(6)]

S. 40(a)(ia) : Amount not deductible-Deduction of tax at source–Payments to Non-resident–Services rendered outside India– Payments outside India-Not taxable in India-No disallowance can be made.0 OECD Model Convention – Art, 7 [S. 5, 9, 195]