S. 47(iv) : Capital gains – Transaction not regarded as transfer – Subsidiary – A subsidiary of a subsidiary (step-down subsidiary) is also a subsidiary of the parent. Consequently, transfers between the holding company and the step-down subsidiary are not “transfers” which can give rise to capital gains or loss. [ S.45 , 48, Companies Act , S. 4(1)( c ), 108 ]

S. 45(4) : Capital gains – Distribution of capital asset – Revaluation of assets on retirement – On retirement the accounts are settled of retiring partners without distribution of capital assets , provisions of S. 45(4) cannot be invoked.Capital gains cannot be levied on the firm [ S. 2(47),45 ]

S. 45:Capital gains — Transfer — Development agreement- Capital gains is taxable in the year in which possession was handed over and not in the year in which the project was completed [ S. 54, 54F ]

S. 45: Capital gains- Cash credits- Penny stocks – When the identity and genuineness of transaction is established merely because , the investigation department has alleged that there is a modus operandi of bogus Long term capital gains scheme is not relevant if the same is not substantiated [ S.10(38), 68 ]

S. 45: Capital gains-Cash credits- Share capital-Shares were issued at premium- Identity and PAN was furnished addition cannot be made as undisclosed income . [ S. 68, 133(6) ]

S. 45: Capital gains- Set off of capital loss-Sham transaction”/ “Colourable device”- Sale of shares to son cannot be held to held to be colourable device if the transaction is with in the four corners of law and valid

S. 45: Capital gains -Index cost -Family arrangement- Family settlements entered into bona fide to maintain peace and harmony in the family are valid and binding on the authorities- Consideration received as part of family arrangement cannot be assessed as income from other sources [ S. 48, 49 ,54 ,56 ]

S. 45: Capital gains-Penny stocks- Merely because appreciation in value the capital gains cannot be assessed as income from undisclosed sources [ S. 69 ]

S. 45: Capital gains — Transfer — Power of attorney was executed in the year 1993 -94 but actual possession was given in the year AY. 2003 -04, capital gain was held to be taxable in the year of handing over of possession . [ S. 27(v), Transfer of Property Act, 1882, S.53A ]

S. 45: Capital gains- Search – Additions cannot be made on the basis of statement of third parties, when no incriminating documents were found in the course of search action on the assesse. [ S. 132(4), 158BA ]