S. 54F : Capital gains-Investment in a residential house-Constructed residential buildings comprising of two rooms, kitchen, toilet having electricity and water connection which was being used as residential unit-Denial of exemption is not justified-Cost of improvement-Documentary evidence not filed-Disallowance is affirmed. [S. 45, 48, 55]

S. 54F : Capital gains-Investment in a residential house-One house in his name and two properties jointly with his family members-Jointly held property cannot be said to be owner of the property-Entitle to deduction-Other expenses-Matter is remanded to the Assessing Officer. [S. 37(1), 45]

S. 54EC : Capital gains-Investment in bonds-Investment in NHAI bonds before sale of property out of advance money received-Entitle to deduction. [S. 45]

S. 54B : Capital gains-Land used for agricultural purposes-Mistakenly offered as taxable income-Assessing Officer accepted the return-Appeal filed before the CIT(A) on the ground that the income was shown mistaken belief that the same is taxable-CIT(A) dismissed the appeal-Held that dismissal of appeal is not justified-Article 265 of Constitution of India prohibits tax to be collected without authority of law.[S. 2(14)(iii), 139(1), 246A, 250, Art. 265]

S. 48 : Capital gains-Mode of Computation-Indexed cost of construction/improvement of certain amount Cost of construction-Failure to produce bills-Matter remanded to examine the valuation report.[S. 45]

S. 45 : Capital gains-Co-owner-Transfer-Development agreement-AIR information-Reassessment is valid- Transferred development rights in the year 2008 and handed over the passion-Sale deed executed in 2010-Capital gains cannot be taxed in the Assessment year 2010-11 [S. 2(47), 147, 148]

S. 45 : Capital gains-Immovable property-Compensation to get property registered in his name-Capital asset-Taxable under the head capital gains-Initial paid amount should be treated as cost of acquisition. [S. 2(14), 48, 56]

S. 43(5) : Speculative transaction-Trading in derivatives-Not speculative transactions-Entitle to set off loss in respect of trading derivatives against normal business income. [S.70]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Waiver of loan-Amount of loan was never claimed as expenditure nor as trading liability in any previous year-Waiver of such loan would not attract provisions of section 41(1) or section 28(iv). [S.28(iv),36(1)(iii), 41(1)(a)]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Rice trading-Failure to demonstrate any business expediency-Directed to estimate profit on disputed purchases at 10 per cent and make additions.[R.6DD]