S. 45(2) : Capital gains-Conversion of a capital asset in to stock-in-trade-Date of conversion of capital asset into stock-in-trade has to be determined either on basis of entry passed in books of account of assessee or intention of assessee to exploit capital asset as stock-in-trade for its business purpose. [S. 45]

S. 45 : Capital gains-Long term capital gains- Lease –Entire consideration was paid when site was originally allotted in 2001- Date of holding to be computed from the date of allotment and not from the date of absolute conveyance was made and entitle to deduction u/s. 54F of the Act. [S. 2(42A), 2(47), 54, 54F]

S. 45 : Capital gains-Lease hold rights–Assessable as capital gain –Cannot be claimed as exempt on the ground that it was in respect of agricultural land–Market value on allotment of land. [S.48, 50C ]

S. 45 : Capital gains-Penny Stocks-It is intriguing is that the company had meagre resources and reported consistent losses. The astronomical growth of the value of company’s shares naturally excited the suspicions of the Revenue-The company was even directed to be delisted from the stock exchange-The assessee’s argument that he was denied the right to cross-examine the individuals whose statements led to the inquiry and ultimate disallowance of the long term capital gain claim is not relevant in the wake of findings of fact. [S. 68, 260A]

S. 43B : Deductions on actual payment–Interest–Disallowance made without making enquiries from State Finance corporation was deleted.

S. 36(1)(vii) : Bad debt-Suspension of trading activity on NSEL plat form- Receivable from unrealised contract in commodities-Failure to produce documents to show that transactions undertaken by assessee were delivery based–loss is held to be speculative which cannot be set off against business income- Matter remanded to AO to examine a fresh. [S. 37(1), 43(5)]

S. 32 : Depreciation-Plant and machinery installed by city development authority for water supply project would be eligible for 100 per cent depreciation-Road developed by city development authority for water supply project would be eligible for 10 per cent depreciation. [S. 80IA(4)(1), R. 5]

S. 14A : Disallowance of expenditure-Exempt income-Sufficient interest free funds to meet its investments yielding exempt dividend income- Disallowance is held to be not justified. [R. 8D]

S. 11 : Property held for charitable purposes – Registration granted to assessee cricket association, cancelled earlier, had been restored- Exemption cannot be denied- Amounts received by cricket association under TV subsidy from Board of Cricket Control of India (BCCI) being under a resolution which specifically stated that TV subsidies were towards corpus funds and not under any legal obligation were to be treated as corpus donations-Depreciation on capital asset is to be allowed as application of income. [S. 11(1)(d), 12AA, 32]

S. 250 : Appeal-Commissioner (Appeals)–Delay in filing appeals- Delay was condoned and the CIT(A) was directed to hear the appeal with in three months. [S. 10(23C)(iiiab), 11]