45(5) : Capital gains – Compulsory acquisition of land – Accrual – Enhanced compensation – Interest – Taxable in the year of receipt and not to be spread over – Individual v. Association of Persons [S. 2(31), Land Acquisition Act, 1894, S. 28]

S.45 : Capital gains- Income from other Sources – A receipt that is capital in nature cannot be assessed under the head income from other source- Tenancy right is a capital asset the surrender of which would attract capital gains – Amount is not taxable under capital gains as cost of acquisition of tenancy right is indeterminate [ S 10(3) 14, 48 ,56 ]

S. 45: Capital gains – Goodwill — Initially generated goodwill — cannot be regarded as ‘Asset’ – Transfer does not give rise to capital gains tax [S. 2(14), 2(47), 48, 49, 50 , 55]

S. 45: Capital gains – Retirement of a partner – Amount received in respect of his share in the partnership including goodwill – Amount not taxable as capital gains [S. 2(14), 2(47) ,48]

.S. 45: Capital gains – Conversion of proprietary business into firm – Amounts to transfer of interest in property to other partners – No consideration received – No capital gains tax [S. 2(47), 48]

45: Capital asset- Personal effects – Capital gains- Sovereigns and silver coins which were customarily used for puja purposes and other ritual purposes could not be designated as effects meant for personal use [ S.2(14) , Indian Income-Tax Act, 1922 , S. 2(4A), 12B]

S. 45: Capital gains –Transfer – Extinguishment of rights – Not limited to transfer – Extends to extinguishment of rights independent of or otherwise than on account of transfer. [S. 2 (47) (ii), 47(ii) , 47(vii), 49(2), Companies Act , 1956 , S 391(2) , 394 ]

S. 44AB: Audit of accounts – Only Chartered Accountants can audit accounts of business of an assessee – Income Tax Practitioners do not have the same expertise – Section does not violate Article 14 and 19 of the Constitution of India – Constitutionally validity of provision upheld [S. 288(2), Constitution of India, 1950: Art. 14 , 19]

S. 43B : Certain deductions on actual payment-Tax, duty, cess or fee-Proviso clarifying that sums paid after accounting year but before due date for submission of return deductible is to be treated as retrospective. [ S. 43B ]

S. 41(2) : Profits chargeable to tax – Balancing charge – Slump sale – Business as going concern – Gain is liable to tax u/s 41(2) on itemized basis if slump price is determined on valuation of each asset/liability – Body of individuals – Where firm has sold its business as a going concern, surplus arising out of transaction has to be assessed in status of BOI and not as a firm . [ S. 2(31)(iv) , 2(31)(v), 2(42C ) 4, 45 , 50B ]