S. 68: Cash credits-Difference between amount of loan shown in audit report and confirmation-Filed confirmation-two separate account-Deletion of addition was affirmed.

S. 68: Cash credits-Share application money-On account of convertible equity warrants from companies which are operated by an entry operator –AO was justified in treating the amount as unexplained income of the assessee. [S. 131(IA) 132(4),133(6)]

S. 56: Income from other sources-Fair market value of shares acquired by assessee from AE-The assessee purchased the shares of ETL at Rs. 14.30 per share, which is higher than its FMV-Even if the assessee has obtained the valuation report at a later date, as long as it is able to demonstrate that the FMV has been ascertained in accordance with R. 11UA(1)(c) based on audited balance sheet drawn up on the valuation date, said report cannot be rejected for being obtained post the date of transaction-CIT(A) was justified in deleting the addition made under s. 56(2)(x)[S.56(2)(x), R.11UA(1)(c)]

S. 56: Income from other sources-Issue of shares at a premium-DCF method-Addition was deleted. [S. 56(2)(vii), R.11UA]

S. 56: Income from other sources-Issues of shares at premium-The valuation of share determined by the chartered accountant at Rs. 15.23 per share was held to be correct and the addition made by the AO under s. 56(2)(viib) was deleted. [S.56(2)(viib)]

S. 56: Income from other sources-Receipt of bonus shares-Provisions of s. 56(2)(vii)(c) are not attracted on receipt of bonus shares.[S.56(2)(vii)(c)]

S.54F: Capital gains-Investment in a residential house-Owing to the Death of the mother of the assessee, she received 25 per cent of the share in the property in New Delhi-Merely because the assessee had the right to receive the rent w.e.f. 11th July, 2015, the position does not change-Absolute ownership was acquired by the assessee only after mutation. The assessee is the 25 per cent owner of the property; he cannot be held to be the absolute owner of the second property-entitled to exemption. [S. 45]

S. 54: Capital gains-Profit on sale of property used for residence-Co-owners-New residential property jointly purchased by assessee and his wife-Actual contribution towards the purchase of the new house is a relevant factor while determining the eligible exemption-AO is directed to verify the proportion of investment made by the assessee and allow the exemption accordingly-Cost of improvement-The assessee has provided the best available documentary evidence in the form of contractor bills and work details, the claim for indexed cost of improvement is allowed to the assesse. [S. 45, 48]

S. 50C: Capital gains-Full value of consideration-Stamp valuation-The stamp duty paid on the transaction showed a higher stamp duty valuation-No request was made for referring to DVO-The CIT(A) has rightly applied the provisions of S. 50C by adopting the stamp duty value as the full value of consideration in place of the sale deed value.[S. 45]

S. 45: Capital gains-Agreement of sale-Registration-Assessee handed over the land to the buyer and also received the sale consideration in asst. yr. 2008-09-Provisions of IT Act apply on the basis of real income and not based on notional income-No provision for increasing sale consideration by notional interest.[S. 48]