S. 54: Capital gains – Profit on sale of property used for residence – Where the construction of new house was commenced before sale of the original asset the Assessee was eligible to claim deduction in respect of payments made before such sale – Assessee was eligible to claim deduction in respect of amount deposited in capital gain scheme beyond due date of filing return u/s 139(1) but before time limit allowed u/s 139(4) [ S.45, 139(1) , 139(4) ]

S. 50C : Capital gains – Full value of consideration – Stamp valuation-Agricultural land– Land situated within 8 km. of local Municipal limits-Addition under head capital gain applying the provision of S.50C is justified . [ S. 2(14)(iii), 45 ]

S. 50B : Capital gains – Slump sale-Transfer of business division to subsidiary against shares, same was not a ‘slump sale’ but an ‘exchange’; thus, provisions of S. 50B is not applicable .[ S. 2(42C), 45 50C ]

S.50 : Capital gains – Depreciable assets – Block of assets – Land on which staff quarters were situated – Staff quarters depreciation was claimed – No depreciation was claimed on land- Profit on sale of land is assessable as long term capital gains .[ S.2(11),45 ]

S.48 : Capital gains – Computation- Portfolio Management Scheme (PMS) – Deduction of PMS fee is not allowable as it is not a transfer fee, nor cost of acquisition/improvement.[ S.45 ]

S. 48 : Capital gains –Property inherited on death of husband – cost of acquisition to be applied from the year when the previous owner first held asset and not when the assessee inherited the property. [S.55A]

S. 48 : Capital gains – Computation -Shares held as investment -brokerage is held to be allowable as deduction – Demat charges is held to be not allowable as deduction while computing capital gains .[ S.45 ]

S. 45 : Capital gains- Business income -Investment in shares – Just because assessee has purchased and sold number of shares does not by itself make it business income when the AO accepted the scripts as investment in the balance sheet and books of account are accepted. [ S.28(i) ]

S. 45: Capital gains- For the purpose of computation of capital gains, AO could not substitute full value of sales consideration with any notional or hypothetical value.[ S.48]

S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits -Purchase of land -Capital expenditure is charged to profit and loss account -Disallowance cannot be made .