S. 5 : Scope of total income – Accounting Standard 9 -Accrual- Since agreement was valid for a period of five years and assessee had to carry on certain activities throughout period of five years by taking participation into management of business affairs of Vibes clinic among other responsibilities, assessee was justified in deferring income over a period of five years. [ S.145 ]

S. 151 : Reassessment – Sanction for issue of notice – If the CIT merely states “Yes, I am satisfied” while granting sanction to the reopening, it means that the sanction is merely mechanical and he has not applied independent mind. There is not an iota of material on record as to what documents he had perused and what were the reasons for his being satisfied to accord the sanction to initiate the reopening of assessment- Order was quashed and held to be void ab-initio .[ S.147, 148 ]

S.147: Reassessment-After the expiry of four years-If there is nothing in the recorded reasons to suggest that the income chargeable to tax which has escaped assessment is Rs. one lakh or more, the notice issued u/s 148 of the Act beyond four years of the end of the relevant assessment year is invalid [ S.148 ]

S. 50C : Capital gains-Full value of consideration- stamp valuation-Provision being a deeming provision and applies only to the transfer of land or building. It does not apply to the transfer of “booking rights” and to right to purchase flats in a building [ S.45 ]

S. 48 : Capital gains – Computation -Portfolio Management Scheme (PMS) fees paid by the assessee to the PMS Manager neither falls under the category of transfer fees nor cost of acquisition/improvement. Consequently it is not deductible while computing capital gains from sale of the shares [ S.45 ]

S. 23 : Income from house property – Annual value – Stock in trade –Unsold flats which are held by a builder as stock in trade cannot be brought to tax under the head ‘income from house property’. They are only assessable as business profits when sold. [ S.22 ]

S. 263 : Commissioner – Revision of orders prejudicial to revenue –Change in share holding of more than 51 %-Holding company of assessee, had transferred its shareholding in assessee-company to another company which was again its subsidiary company – On facts, even after transfer of shares by assessee’s ultimate holding company to another subsidiary, beneficial ownership of assessee-company –Revision is not held to be valid and provisions of S. 79 would not apply [ S. 79 ]

S. 199 : Deduction at source – Credit for tax deducted – Credit for tax deducted at source has to be given in assessment year in which income has actually been assessed/offered to tax and not in year of deduction itself.

S. 50C : Capital gains-Full value of consideration- Stamp valuation-Even after applying provisions of S.50C, difference in capital gain declared by assessee and figure adopted by AO did not even exceed 10 per cent of stamp duty valuation, addition was deleted. [ S.45 ].

S. 37(1) : Business expenditure –Notional addition- Sale at discounted price to retailers was to increase volume of sales through e-commerce – Where a trader transfers his goods to another trader at a price less than market price and transaction is a bona fide one, taxing authority cannot take into account market price of those goods, ignoring real price fetched to ascertain profit from transaction-Revenue cannot bring to tax hypothetical income accordingly the addition was deleted- [ S. 2(24) ,4, 28(1), 40(A)(2)(a),145 ]