S. 50C : Capital gains-Full value of consideration- Stamp valuation- Form v/s Substance -Security deposit was rightly apportioned between short term and long term capital gains- Interest-free security deposit cannot be treated as ‘full value of consideration- The amendment to include assessable value as full value consideration was inserted w.e.f. 01/10/2009 and, thus, the value assessable as per stamp value authority cannot be applied for taking full value consideration of the property for the year under consideration. Accordingly the question of referring the matter to the Valuation Officer in terms of section 50C(2) also does not arise. [S. 2(14, 45 ]

S. 23 : Income from house property – Annual value – Notional interest on interest-free security deposit cannot be added while computing annual value [ S.23(1) (b), 23(1)(ii) ]

S. 10(20) :Local authority – Urban improvement Trust constituted under Rajasthan Urban Improvement Act , 1959 is not local authority , hence not entitle to exemption – The functional test” as laid down in UOI v. R.C. Jain, (1981) 2 SCC 308 is not applicable after amendment of section 10 (20) of the Act by Finance Act , 2002 . [ S.10(20A ]

S. 2(22)(e):Deemed dividend- Merely because the shares are held by the minor son of the assessee and the loan is received by the assessee it cannot be established that assessee is the beneficial shareholder of 10% or more –Loan cannot be assessed as deemed dividend- Alternatively the amount received was advance rent in the Course of business hence cannot be assessed as deemed dividend .

S. 54 : Capital gains – Profit on sale of property used for residence-Purchased new residential house before sale of another residential house owned -Investment is made within the stipulated period and the investment was more than the capital gains earned- Entitle to exemption. [ S.45,54F ]

S. 45 : Capital gains –Long term capital loss- Shares sold to a group concern in off market transaction at same price as was quoted on stock exchange on relevant date, loss incurred from said sale transactions was to be allowed as long term capital loss.[S.2(29B ]

S. 35 : Scientific research expenditure – Retrospective cancellation of approval, donor’s claim of deduction could not be denied as at the time of receipt of donation institute was benefitted by the approval as per S.35(1)(ii). [ S. 35(1)(ii) ]

S. 14A : Disallowance of expenditure – Exempt income –Net of interest-Benefits of netting of interest under rule 8D(2)(ii) be allowed without even emphasising on need of having any inextricable link between interest earned and interest paid prior to 2-6-2016. [ R.8D(2)(ii) ]

S. 11 : Property held for charitable purposes – -Sports association- – Merely because some sponsorship was accepted from a private company for Asian games and Youth Olympic games, exemption cannot be denied .[ S.2(15) ]

S. 254(1) : Appellate Tribunal- Additional ground on question of law can be raised before Tribunal even in second round of appeal – Royalty received from overseas subsidiary from Egypt shown as taxable in the original return of income – Though the issue of taxability was not raised in the first round of appeal, additional ground was raised before the Tribunal in the second round of appeal – Tribunal allowed the claim and set aside the matter for verification- DTAA-India – Egypt [ Art. 13 ]