S. 48: Capital gains –Mode of Computation-Investment in mutual fund-JM Balanced Fund-Short-term capital loss-Supported by proper documents and recorded in books-Disallowance by Assessing Officer based on suspicion of manipulation was unsustainable-There was no SEBI action or direct evidence of collusion-Short-term capital loss was allowable. [S.45, 94(7), 133A]

S. 48 : Capital gains –Mode of Computation-Indexed cost-1/4th co-owner-Matter was to be remanded back to the file of Assessing Officer with a direction to work out the correct LTCG derived on sale of asset.[S. 45]

S. 45: Capital gains-Transfer –General Power of Attorney-Assessee executed GPA authorising agent to deal with land-Agent sold portion thereof to a company-Mere execution of GPA did not constitute transfer under section 2(47) in favour of agent-Only actual sale consideration received for transfer was taxable in assessee’s hands, not any sum received by power agent.[S. 2(47)]

S.45: Capital loss-Sale of shares-Securities transaction tax–loss was allowable as a capital loss.

S. 45: Capital loss-Advance for purchasing a commercial plot-Cancellation of forfeited amount paid in earlier years-Allowable as capital loss. [S. 2(14) 2(47)(ii)]

S. 45: Capital gains-Slump sale-Set-off of long-term loss against long-term gain from slump sale. [S.2(29B), 2(42C), 50B]

S.43CA: Transfer of assets-other than capital assets-full value of consideration-stock in trade-Agreement value-Stamp valuation-Registration agreement at a later date-Transaction was completed in an earlier year and offered to tax-Addition cannot be made in the year of registration. [S. 2(47)(v), S.50C, Transfer of Property Act, 1882, S.53A]

S. 43(5): Speculative transaction-Derivative trading loss-Set off against business income-Failure to produce broker’s note-The matter was remanded to the Assessing Officer to examine whether trades met requirements of Explanations 1 & 2 to section 43(5).[S. 73]

S. 41(1): Profits chargeable to tax-Remission or cessation of trading liability-Advances from customers against sales-shown as liabilities in its balance sheet-Not written off-Addition cannot be made.

S. 40A(3): Expenses or payments not deductible-Cash payments exceeding prescribed limits-Salary to employees-No finding that payment on particular date exceeded limit-Disallowance was deleted.