S. 54F : Capital gains -Profit on sale of property used for residence -Registered in the name of the parents -Payment made through assessee’s bank account -Registered property gifted to the assessee by parents -Rule of purposive construction -Deduction is allowed.[S. 45, 54]

S.54EC: Capital gains-Investment in bonds -Investment in bonds -Sale of office premises -Depreciable assets -Six months mentioned in section 54EC is to be recorded as six British calendar months -Eligible for deduction in respect of both investments. [S. 2(11), 45, 50]

S.54: Capital gains -Profit on sale of property used for residence-Purchase of new house in name of spouse -Eligible for deduction.[S. 45, 54F]

S. 48 : Capital gains -Cost of improvement –Selective reading of sale agreement could not necessarily lead to disallowance- Expenses incurred to make house habitable allowable as deduction. [S. 45, 54, 54F]

S. 48: Capital gains -Mode of computation -Denial of indexed cost of improvement for the property sold -Expenses incurred for the renovation of house property –Merely because there is no written agreement expenses incurred cannot be disallowed. [S. 45]

S. 45:Capital gains- Short term capital loss -Sale of shares -Alleged bogus sales -Shares traded on BSE -No independent enquiry conducted by AO regarding rigging up of the price of shares by the Assessee or his broker –Loss is allowed to be set off against capital gains.

S. 44AD: Presumptive basis -Sale of milk – Computation of Profits and gains of business on presumptive basis- Return not filed -Below taxable income -Directed to add 8 % of the turnover. [S.139(1)]

S.43B: Deductions on actual payment – Deductions under the section for interest paid on loans to banks are allowable if the payments are made by the due date for filing income tax returns. [S.37(1), 139(1)]

S. 36(1)(iii) :Interest on borrowed capital – Addition made are unjustified as the balances reflect business transactions, & not loans and advances. [S.37(1)]

S. 35DD: Amortisation of expenditure -Amalgamation -merger expenses -whether the year in which the High Court order was received can be treated as the 1st year from which the merger expenses can be claimed u/s 35DD and allow to claim the said expenses in next 4 AYs -Held yes.