S. 145: Method of accounting – On money – Project competition method – unaccounted cash receipts as found recorded in the seized documents. The Assessee followed project completion method of accounting and offered it to tax in the year of completion of project. [ S. 4 , 5 ]

S. 45(3) : Capital gains – Transfer of capital asset to firm – AOP – I Introduction of development rights by way of capital contribution- Even though a transfer but it is not a sale because there neither any receipt nor any accrual of any consideration- Provisions of section 50C of the Act could not be applied to sale development rights – When there is inconsistency in special provision and general provision – Special provision will prevail .[ S.50C ]

S. 50 : Capital gains–Slump sale- Deemed” short term capital gains -Undertaking is sold as a running business with all assets and liabilities for a slump price, no part of the consideration can be attributed to depreciable assets-If the undertaking is held for more than three years, it constitutes a “long-term capital asset” and the gains are assessable as a long-term capital gain- Sale of entire business as running concern which qualifies to be long term capital asset is different from sale of one or more block of assets used in business as such. Assessee’s treatment of offering the gains as long term capital gains with consequential benefits under section 48(2) upheld . [S. 45, 48,50(2), 50B]

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 ]