S. 56 : Income from other sources-Issue of shares at premium-Merchant banker on the basis of DCF method-No valuation by DCF method at the time of issuance of shares-Valuation report was obtained in the course of assessment proceedings-The AO is justified in determining the fair market value of shares by applying R. 11UA(2) and making addition by invoking section 56(2)(vib) of the Act. [S. 56(2)(vib), R.11UA(2)]

S. 54B : Capital gains-Land used for agricultural purposes-Agricultural land purchased in the name of wife-Not entitle for exemption. [S.45]

S. 48 : Capital gains-Mode of Computation-Cost of acquisition-Fair market value of land as on 1st April, 1981-Sale transaction through open auction in nearby Village Bhatauli, where the Ministry of Defence, Government of India purchased land on 3rd Nov., 1981 would be a better determinant of the fair market value of the land that was sold by the assessee-AO is directed to adopt the said value of the land for the purposes of determining the cost of acquisition and resultant indexed cost of acquisition while computing the capital gains in the hands of the assessee-[S.2(14), 45, 55(2)(b)]

S. 45 : Capital gains-Cost of acquisition-Slump sale-Adjustment of business impairment loss on land purchased as part of slump sale of business-Indexed cost of acquisition has to be calculated from the actual cost of land acquired by the assessee-Fixed assets schedule pprepared for Comoanies Act has no relevance, no depreciation can be allowed on free hold land-In the absence of proper details, the additions made by the AO are sustained. [S. 32, 48, 50B]

S. 44B : Shipping business-Non-residents-Computation-GST-Section 44B overrides the provisions of S. 29-Section 145A is not applicable for computing deemed income-GST not to be included Book profit-Income offered income under deeming provision-Provsion of book profit is not applicable-DTAA-India Hing Kong. [S. 29,90, 115JB, 145A, Art.8]

S.37(1): Business expenditure-Contributions to the Investors Service Fund is mandatory-Club membership fees of directors-Allowable as business expenditure.

S.37(1): Business expenditure-Corporate Social Responsibility expenditure-Allowable as deduction. [37(2) Explanation.]

S. 36(1)(iii) :Interest on borrowed capital-Interest-free advances given to farmers-Commmercial expediency-Allowable as deduction.

S.37(1): Business expenditure-Seizure of Truck-Penalty, fine, etc.-Levy of penalty under State VAT law-Issue pending before Commr. of Commercial Taxes-Not allowable as deduction-Liberty is given to the assessee to file application under s. 154 in case the issue pending before the first appellate authority is decided in favour of the assessee or it is adjudicated as compensation or compounding.[S. 37(1), Explantion 1, 154]

S.14A : Disallowance of expenditure-Exempt income-salaries paid to the employees of the treasury department-Allocaation of eexpenses on the basis of area occupied by the department-Held to be reasonable-Book profit-Adjustment of disallowance under s. 14A is not required to be made in the book profit for MAT liability. [S.115JB, R.8D]