S. 50C : Capital gains – Full value of consideration – Stamp valuation – Stamp duty value of the property – Date of agreement – The AO is directed to consider the stamp duty value of the property, as on the date of agreement i.e. 03.06.2002/19.06.2002, as mentioned in the sale deed itself and recompute the capital gain/tax liability accordingly .[S.45 ]

S. 50 :Capital gains – Depreciable assets – Block of assets – Rate of tax – Deeming fiction is to be confined only to section 50 and it could not convert short term capital asset into long term capital asset and vice versa for other purpose of Act – Rate of tax would be in terms of section 112 at rate of 20 percent and not 30 percent .[ S. 2(29AA) 2(29B ), 2( 42A) , 45 , 48,49, 112(1) ]

S. 47(vi) : Transaction not regarded as transfer – Capital gains – Amalgamation – When transaction specifically falls under the said section – Addition under section 56(2)(x) is not valid-Capital reserve arising out of amalgamation cannot be treated as an Income under section 28(iv). [ S. 28(iv) , 56(2)(x ) ]

S. 45: Capital gains – Capital loss – Assessee, a Foreign Portfolio Investor incorporated in United Kingdom – entered into Forward Foreign Exchange contracts (FCC) with a bank to hedge amounts invested in Indian securities – loss incurred on rollover/cancellation of FCC was in nature of short-term capital loss eligible for carry forward under head ‘capital gains’ .[ S.74 ]

S.45 : Capital gains -Long-term capital gains from equities – Penny stock – Accommodation entries – Failure of the Revenue to bring on record any materials linking assessee in any of the dubious transactions – Addition as cash credit is deleted .[ S. 10(38, 68 , 147 , 148 ]

S. 44C: Non-residents – Head office expenditure – Double taxation relief – Article 7(3) of the DTAA between India and UAE – Asessee claimed deduction u/s. 44C – AO allowed only 5% of the adjusted total income as deduction – Held, Art. 7(3) cannot be applied retrospectively – Held, deduction allowed without imposing restriction u/s. 44C- Expenditure incurred outside India exclusively for operations of Indian branches would not fall within ambit of section 44C hence allowable in full – DTAA -India – Dubai . [ S. 90 ,Art.7(3), 25(1) ]

S.43CA: Transfer of assets- other than capital assets- Full value of consideration- stock in trade- Agreement value – Stamp valuation – Date of agreement fixing value of consideration and date of registration of such transfer not same – Stamp duty value as on date of agreement for sale should be considered as full value of consideration for purpose of computing profits and gains from transfer of flat – Addition is deleted . [ S. 45 ]

S. 43B: Interest tax liability for AYs:1993-94 to 1997-98 arose to assessee during relevant assessment year 2018-19 by way of order giving effect to order of High Court – liability was discharged by assessee during relevant year allowable as business expenditure. [ S. 37( 1) ]

S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits -Business expediency – If the payment is necessary for business operations and is not made with fraudulent intent, disallowance u/s. 40A(3) may not be required, even if the payment exceeds the prescribed limit.

S. 40(a)(ia): Amounts not deductible – Deduction at source – Books of Accounts rejected – Separate addition under 40(a)(ia) not valid.
Disputed income under litigation – Shown as other income – Cannot be included in turnover when books are rejected- Income does not accrue until litigation is finally terminated, especially if liability is not admitted by the other party. [ S. 4, 5 , 144 145 ]