S. 45 : Capital gains-Conversion of capital asset into stock in trade-MOU with co-owners is notarised-Not submitted accounting entry Conversion of land as stock-in-trade is not proved-Sale is treated as capital asset Liable to capital gains tax-Amendment in third proviso to section 50C would be applicable retrospectively-The AO is directed to consider valuation difference of 10% of tolerance limit while computing the capital gains. [S .44AB,45(2), 50C]

S. 45 : Capital gains-Agricultural land-Joint development agreement-Licence to enter property for purpose of carrying out development-Capital gain offered in the year 2013-14-Assessing the capital gain in the year 2011-12 was deleted. [S. 2(47)(v), 48, Transfer of Property Act, 1882, S. 53A]

S. 45 : Capital gains-Oral agreement-No oral agreement can outweigh the registered document as per provisions of Section 93 of the Indian Evidence Act-The capital gain is taxable in the year of the registered sale deed. [S. 2(47(v), 269UA(d), Indian Evidence Act, 1872, S. 93)

S. 44BBB : Foreign companies-Civil construction-Turnkey power projects-Not engaged in turnkey project-Provisions not applicable-Section 44BBB(2) overrides 44BBB(1)-Maintains books of accounts u/s. 44AA which are audited-AO could not have estimated NP @10%-44BBB(1) not applicable-DTAA-India-Italy. [S. 44AA, 44BBBB, Art. 5, 7]

S. 44BB : Mineral oils-Computation-Vessels to be used in Seismic support duties and transport of coated pipes in India-Receipts are covered under section 44BB-Excluded from the definition. of royalty-DTAA-India-Singapore. [S. 9(1)(vi), Explantion 2(via), 115JA, Art. 12]

S. 44AD : Tax on presumptive basis-Demonetisation-Unexplained cash deposits during demonetisation period-Cash deposits explained-Held, addition is unsustainable. [S. 68,69A]

S. 44AD : Presumptive basis-Dissolution of partnership firm-Partner carried on business in capacity as proprietor-Amount taxed in the assessment of firm-Matter set aside to AO for verification of facts. [S. 44ADA, 194 J, Form No. 26AS]

S. 43CA : Transfer of assets-other than capital assets-Full value of consideration-Stock in trade-Agreement value-Stamp valuation-Benefit of proviso available retrospectively, Addition to be determined on the basis of fair market value determined by DVO.[S. 50C]

S. 43(5) : Speculative transaction-Foreign exchange fluctuation-Hedging-loss arising on forwards contract cancelled by the assessee prior to the date of settlement-Not speculative-Allowable as business loss. [S. 28(i), 43(5)(a)]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors outstanding for more than three years-Credit not written off in assessee’s books-Not to be treated as income. [S. 4, 28 (i)]