S. 68 : Cash Credits-Addition on basis of statement of person who retracted it later-No opportunity of cross-examination given to assessee-Neither Assessing Officer nor Investigating Authorities bringing on record any incriminating documents to suggest assessee holding unaccounted income brought back as loans and advances-Mere suspicion cannot be reason for making additions-It cannot replace the evidence on record placed by assessee supporting its explanation.

S. 68 : Cash Credits-Assessee set up her own sewing machines in her home and gave contract to tailor–Received orders from customers and tailor stitching the cloth-Assessee and tailor sharing the receipts in ratio of 35 : 65-Assessee’s offer to demonstrate her claim on test check basis declined-Cash book and vouchers of day not examined-AO directed to verify sums reflected by assessee as her income of a specific day is 35 per cent. of sum total of receipts of vouchers of specific date.

S. 68 : Cash credit–Bank statement–Books of account-credit in bank statement not credited in books of account, no cash deposits recorded in books of account-Transactions outside books of account- Addition as cash credit is held to be not justified.

S. 56 : Income from other sources–Definition of relative–Includes Adopted child – “blood relative” is not mandatory. [S. 56(2)(vi)]

S. 56 : Income from other sources-Immovable property-Power of attorney executed in assesses favour-Assessee transferred full rights in respect of a plot without any consideration–Power of attorney was executed to maintain the property–N o transfer of property. [S. 56(2)(vii)(b)]

S. 54F : Capital gains-Investment in a residential house-Developer failed to delivered possession-Delay in construction is not attributable to the assessee-Entitled to exemption. [S. 45]

S. 54 : Capital gains-Investment in a residential house-Assessee constructing nursing home and residential house on land purchased from sale proceeds-Exemption not available in respect of entire land but only on portion of land on which residential house constructed and appurtenant thereto-Authorities failing to compute vacant land appurtenant to residential house-Assessing officer to consider all these aspects for purpose of computing exemption-Assessee entitled to benefit of indexation.[S. 45]

S. 54 : Capital gains-Profit on sale of property used for residence-No requirement that residential house should be constructed in a particular manner-Only requirement is residential use as against commercial use-Assessee constructing ground floor, first floor and second floor-Assessee keeping rights of ground floor and second floor with roof rights of first floor-Entitled to exemption. [S. 54F]

S. 50C : Capital gains-Full value of consideration-Stamp valuation-The payment of higher stamp duty by the vendee did not affect any rights of the assessee-Sale consideration disclosed jointly was far more than the value sought to be adopted for the purpose of stamp duty-Addition is deleted. [S. 45]

S. 48 : Capital gains-Cost of improvement of property-Merely making entries in books of account and producing deficient bills-Not sufficient to discharge initial burden of proof on assessee-Failing to establish genuineness of its claim–Claim is rejected. [S. 45]