S. 54F : Capital gains-Investment in a residential house-Date of transfer of land was date of joint development agreement and on this date no flats owned by assessee-Bar does not apply. Acquisition of new residential house can be more than one-More than one unit of residential house eligible for exemption. [S. 45]

S. 54 : Capital gains-Profit on sale of property used for residence-No requirement that construction of house should have been completed within specified time-Matter remanded for verification. [S. 45]

S. 54 : Capital gains-Profit on sale of property used for residence-Purchase of residential house-Land purchased admeasuring 4973.125 square Feet-Building constructed of 150 square feet-only 25 per cent. of total plot area to be considered as land appurtenant thereto. [S. 45]

S. 48 : Capital gains–Computation–Cost of acquisition-Accrued-Value of equity share capital-All other items of balance-sheet other than equity capital and free reserve be considered in net asset value of equity shares-Capitalisation of interest cost-Not part of cost of acquisition. [S. 45, 50C, 50D, 55(2)(aa), 56(2)(x)]

S. 45 : Capital gains–Business income–Selling three flats and parking lot-Flats appearing in the balance sheet as investments–Assessable as capital gains and not as business income.[S. 28 (i)]

S. 43B : Deductions on actual payment-Employees’ contribution to provident fund and employees’ state insurance fund-Payment was made before due date of filing of return–Entitle to deduction. [S. 139(1)]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits–Cash paid for labour charges and purchases-Business in a remote area-Disallowance is held to be not valid-Machine hire charges–less than Rs. 20000 per day–AO is directed to verify and decide. [S. 40(a)(ia)]

S. 40(b)(iii) : Amounts not deductible-Working partner– Remuneration–Interest-Rejection of books of account and assessment adopting 8 Per cent. of gross turnover as net profit-Separate deduction towards interest on partner’s capital account and remuneration to partner is to be allowed, when net profit is estimated from gross receipts. [S. 133A]

S. 40(a)(ia) : Amounts not deductible-Deduction at source–Service rendered by foreign agent–Contradictory finding–New workmen-Should be regular workmen employed in financial year relevant to assessment year–Matter remanded to the AO. [S. 80JJA, 195,254(1)]

S. 37(1) : Business expenditure-Consultancy fee-Failure to submit original bills cannot be a ground for making disallowance– Disallowances cannot be made on ad-hoc basis. [S. 145]