S. 54 : Capital gains-Profit on sale of property used for residence-Deduction is available when the construction of flat is completed with in three years from the date of sale of property and not from the date of commencement of construction. [S. 45]

S. 50C : Capital gains-Full value of consideration-Stamp valuation- Sale of inherited residuary right in the property-No transfer of land or building -Provision of S.50C is not applicable-Cost of acquisition to be taken at nil.[S. 45]

S. 49 : Capital gains – Previous owner – Cost of acquisition – Shares received on dissolution of Trust – Period of holding of the previous owner i.e. the Trust to be considered -Sale consideration received on sale of shares has to be assessed as long term capital gains [S. 45, 49(1)(iii)(b), 54F, 68 ]

S. 37(1) : Business expenditure- Capital or revenue -Purchase of software- Held to be revenue expenditure.

S. 272A : Penalty-Failure to file return with in prescribed time period -Penalty provision will attract automatically irrespective income determined in the course of assessment. [S.139(4A), 272(2)(e), 275(1)]

S. 147 : Reassessment-After the expiry of four years-Two house properties – Annual value -Deemed let out- All relevant facts were brought on record at time of assessment–Reassessment is bad in law. [S. 22, 23(1), 148]

S. 145 : Method of accounting-Cash system-Tax deduction at source-Mismatch of professional receipts appearing in form no 26AS-Credit for tax deduction at source was claimed-Corresponding professional receipts cannot be assessed to tax if such receipts were otherwise not assessable as income for the relevant year. [S. 194A, 194J, 199 R.37BA, form 26AS]

S. 143(2) : Assessment–Service of notice to manager is a valid service as the assessee has appeared before the Assessing Officer without taking any objection. [S. 292BB]

S. 73 : Losses in speculation business – Business of manufacturing and trading of soya premier nutrition and dairy products- Hedging of forward trading – No specific details shown by the assessee to demonstrate that to guard against loss through price fluctuation which might arise from contracts for delivery of goods- loss from alleged contracts did not fall under proviso (a) of section 43(5) of the Act. [ S.43(5)]

S. 56 : Income from other sources -Share holder -Close relatives -Transactions between close relatives provisions of S 56(2) (vii)(c) is not applicable-Revision on the basis of audit objection is held to be not valid [S. 56 (2) (vii)(c), 263]