S. 68 : Cash credits-Capital gains-Penny stock-Purchased shares of HPC Biosciences Ltd for Rs. 5 per share and sold for Rs 591-74-Genuineness is doubted-Denial of exemption is affirmed-Purchased in the Assessment year 2013-14 alleged expenditure on commission is deleted. [S.10(38), 45, 69C]

S. 68 : Cash credits-Interest-free unsecured loan-Un secured interest free loan from NRI-Not taken approval from competent authority-No formal agreement-Violation of certain other statute cannot be used to draw inference against the assessee-Discharged primary by furnishing various documents-Addition is deleted.

S. 56 : Income from other sources-Purchase of land-Violation of principle of natural justice-Show cause notice proposing additions was received after assessment order was passed- Order is set aside. [S. 50C, 56(2)(vii)]

S. 56 : Income from other sources-Valuation of shares-Two methods-NAV or DCF-Choice with the assessee-The Assessing Officer cannot question valuation per se. [R.11UA]

S. 56 : Income from other sources-DCF method for valuation-Method could not be rejected without brining any defect in methodology of valuation. [S. 56(2)(viib)]

S. 56 : Income from other sources-Purchase of property by participating in e. tender, being highest / successful bidder-Considered as fair market value for the purpose of stamp duty. [S. 45, 50C, 56(2)(x)]

S. 56 : Income from other sources-Market value of shares-Discounted Cash Flow method(DCF)-No defect is pointed out-Option is with the assessee-The Assessing Officer cannot change the valuation. [S. 56(2)(viib), R. 11UA 2(a), 11UA(2))(b)]

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]