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 ]

S. 40(a)(ia): Amounts not deductible – Deduction at source –
Interest, etc., paid to a resident without deduction of tax at source -Non-furnishing of Form 15G/15H – Form filed before the Tribunal – Matter remanded to the Assessing Officer for limited purpose of verification. [ Form 15G , 15H ]

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident –Depreciation- Fixed asset -Capitalised the expenditure – Disallowance is deleted . [ S. 32 ]