S. 80G: Donation-Charitable or religious trust]-Registration-Rejection of application-CIT (E)-Failure to deal with the material placed on the record-Order of CIT(E) is set aside.[S.80G(5)]

S.71: Set off of loss-One head against income from another-Set off of business loss against capital gains-Sub-s. (2) of s. 71 does not provide any particular mode to set off the loss that should be followed-the assessee is entitled to set off the business loss against any head of income, including long-term capital gains.[S.45, 70, 71(2)]

S. 69: Unexplained investments-Income from undisclosed sources-Alleged bogus purchases-Vendor appeared before the Assessing Officer]-Produced delivery stock register, detailing the movement of goods-Addition of 25 % of total purchases was deleted. [S. 131]

S. 68: Cash credits-Amounts not credited in the books of the assessee-loss resulted in an outgo and depletion of funds-Addition was deleted.

S. 68: Cash credits]-Share transactions]-Long-term capital gains-Share price of KAF Ltd. had been manipulated by seven entities-Dealy was condoned-Matter remanded to the file of the Assessing Officer. [S. 10(38), 45, 254(1)]

S. 68: Cash credits]-Income chargeable to tax-Revaluation of assets]-Member’s capital account-Revaluation of stock-in-trade in the books of accounts of AOP to recognise its present value does not trigger any tax liability either in the hands of AOP or any of its members-Addition was deleted.[S. 4]

S.54F: Capital gains-Investment in a residential house-Purchase of land]-Construction of house]-Investment within time limit-Gift of property-It is irrelevant whether the assessee has constructed a building on the entire portion of the land or has only utilised a portion of the land for a residential house and kept the remaining land vacant-Eligible for exemption.[S. 45, 139(1)]

S. 54: Capital gains-Profit on sale of property used for residence-Buildings or lands appurtenant thereto-Purchase of property consisting of four shops and one room-Presence of a single room at the first floor of the commercial structure does not alter the dominant character of the property as the same is expected to be used for incidental and ancillary activities/for commercial purposes-The investment in the said new property does not qualify for exemption.[S.45]

S.47(xiiib): Transaction not regarded as transfer-Capital gains-Conversion of firm into LLP]-Cash credit-Transfer of share capital and reserves of the company to the partners accounts upon conversion to LLP-No credits found in the assessee’s books of accounts-The AO erred in making the addition in the hands of the assessee-Assuming that there was transfer, it is the credit in the partners’ accounts and not in the assessee’s account-Addition was deleted. [S.45, 47(xiiib)(f), 68]

S. 45: Capital gains-Sale of joint property-Only 50 per cent of sale consideration can be taken-AO is directed to recompute the capital gain.[S. 48]