S. 56 : Income from other sources–Share premium-Amount received in excess of fair market value of shares – S. 56(2)(viib) which seeks to tax amount received in excess of fair market value of shares is applicable only from assessment year 2013-14. [S. 56(2)(viib), 68]
S. 56 : Income from other sources–Capital gains-Income chargeable under specific head cannot be assessed under residuary head as income from other sources. [S. 45, 47(iii)]
S. 54F : Capital gains-Investment in a residential house-Belated construction or possession would not be a ground to deny claim of exemption-Two separate flats purchased by assessee had two separate entrances, treated as one residential house – Entitle to exemption. [S. 45]
S. 50 : Capital gains-Depreciable assets-Block of assets-Brought forward business loss and long term capital loss can be set off against short term capital gain computed under section 50 on sale of factory building being depreciable asset. [S. 72, 74]
S. 47 (iii) : Capital gains-Transaction not regarded as transfer–Gift -Transfer of shares made as gift without consideration are not taxable under provisions of capital gains-Income chargeable under capital gains tax cannot be assessed as income from other sources. [S. 45]
S. 45 : Capital gains–Transfer-Transaction could not be materialised–Possession of land was in dispute-No profit or gain arose – Not liable to tax as capital gain. [S. 2(47)]
S. 36(1)(iii) : Interest on borrowed capital–Investment in group concern–Commercial expediency–Allowable as deduction.
S. 14A : Disallowance of expenditure-Exempt income–Not earned any dividend income-No disallowance can be made. [R. 8D]
S. 11 : Property held for charitable purposes–Application of income more than its gross total income-Accumulation at rate of 15 per cent is not required-voluntary donations towards corpus fund would be capital receipts hence not includible in its income. [S.11(1)(a), 12]
S. 10(46) : Body or authority-Maharashtra State Board of Technical Education falls under definition of ‘State’ as per Article 12 of Constitution and its income is eligible for exemption. [Art. 12, 289]