S. 50C : Capital gains-Full value of consideration-Stamp valuation-When an assessee objects for stamp valuation–AO is bound to make reference to DVO for determination of value of property-Matter remanded. [S.45, 50C(2)]

S. 45 : Capital gains-Land and building -Right in the lease hold land– Building-Lease hold right assessable under normal provisions of the capital gains-Building being depreciable asset capital gain to be computed as short term u/s.50 of the Act. [S. 2(11), 2(29A), 2(29B), 2(42A), 50]

S. 45 : Capital gains-Transfer–Conversion-AOP converted in to a company limited by shares-New company never remained in existence simultaneously–Not liable to capital gain tax. [S.2(47)]

S. 45 : Capital gains-Sale of shares-investigation wing report- Shares were dematerialized and sales had been routed from de-mat account and consideration had been received through banking channels- Addition cannot be made as cash credits. [S. 10(38), 68]

S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable–Payment of interest at 15% to HUF-Payment made to related parties-AO has not established that the payment was excessive and unreasonable-Addition is held to be not valid.

S. 37(1) : Business expenditure–Business came to halt–Dormant-Expenditure in respect of rent, professional charges, audit fees, property tax, etc., was incurred by assessee for purpose of maintaining its legal status and for disposing its assets-Held to be allowable.

S. 37(1) : Business expenditure-Motor car and telephone expenses–Failure to maintain log book-Ad-hoc disallowance of 10% of expenses is held to be justified.

S. 36(1)(va) : Any sum received from employees–Deposited EPF and ESI contribution late but before due date of filing return-Entitle to deduction- Binding precedent-When decision of jurisdictional High Court is available on issue -Non jurisdictional High Court cannot be followed. [S.139(1), Art.227].

S. 36(1)(va) : Any sum received from employees–Failure to deposit entire amount towards employees contribution on account of PF and ESI with concerned department on or before due date prescribed under relevant statutes- Not entitle to deduction. [S.2(24)(x), 139(1)]

S. 11 : Property held for charitable purposes-Accumulation of income –Merger with another society–Revenue failed to bring any evidence on record to establish accumulation of profit-Order of the AO is set aside.[S. 10(21)]