S. 56 : Income from other sources-Share premium-Conversion of CCDs in to equity shares-Provision is applicable-Receipt of any consideration which could not be limited to receipt of money-Provision is not applicable to with respect to share premium amount received from non-resident angel investors for issuance of equity shares-DCF method for valuation-Assessing Officer was not empowered to disregard DCF valuation. [S. 56(2)(viib), R. 11UA]
S. 54 : Capital gains-Profit on sale of property used for residence-Property purchased in the name of married daughter-Exemption from capital gains tax is not available. [S. 45]
S. 50C : Capital gains-Full value of consideration-Stamp valuation-Option deposit-Option agreement for sale of twenty (20) flats in its residential project with its group entity-Addition on sale of those flats to third parties to sales value declared were unjustified. [S. 28(i)]
S. 48 : Capital gains-Computation-Debentures of company-Bonus debentures-Reinvested-Reinvested out of dividend would be considered as cost of acquisition of debentures. [S. 2(22)]
S. 43B : Deductions on actual payment-Leave encashment-constitutional validity of section 43B(f) had been upheld by Supreme Court-Disallowance is up held. [S. 43B(f)]
S. 43B : Deductions on actual payment-Business of micro-financing-Acquired loan from three banks-Interest was not paid before due date of filing of return-Disallowance is held to be justified. [S. 43B(e), 139(1)]
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors-Burden is on Revenue-Order of CIT(A) is affirmed.
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Hived off its hire purchase and leasing business to a special purpose vehicle (SPV)-Assigned corresponding receivables together with bank liabilities to SPV at book-Liable to repay-Not chargeable to tax-Bank claimed as bad debt-No outstanding due from Bank in the books of account-Addition cannot be made. [S. 145]
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Civil contractor-Material purchase and labour payments-Payment in excess of Rs. 20,000-Failure to prove exception-Disallowance is justified. [S. 263, R. 6DD]
S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Addition was deleted by CIT(A) in earlier year-Revenue has not challenged the order of earlier year-Addition was deleted. [S. 254(1)