S. 45(3) : Capital gains – Transfer of capital asset to firm –Capital contribution —Amount recorded in books of account of firm deemed to be full value of consideration — Deeming fiction provided in S. 50C cannot be extended to compute full value — One deeming section cannot be extended by importing another deeming section [ S.45, 48 50C]

S.45: Capital gains — Long-term capital gains —Allotment letter – – Subsequent letter and premises ownership agreement — Improvement in rights which already created — Date of acquisition of right not date of registration but date of allotment letter — Holding of property more than 36 months — Assessable as long term capital gains – Entitled to Indexation benefit —Entitled to exemption on reinvestment in new flat [ S. 2(42A),54 , 54F ]

S. 45 : Capital gains – Long-term capital gains — Transfer of land — Fair market value —As on 1-4 1981 was directed to be adopted .

S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits – General remark that payment made in cash due to business exigencies is held to be not acceptable.[ R.6DD ]

S. 40(a)(ia): Amounts not deductible – Deduction at source – Professional fees-Recipient paying tax on payment made – Disallowance is held to be not justified .

S. 40(a)(ia): Amounts not deductible – Deduction at source – Failure to deduct tax on interest paid on loan- Recipient had declared the interest in the return- The assessee is directed to substantiate that recipient has shown the interest in his return. [ S.194A, 201(IA) ]

S.37(1): Business expenditure — Defective goods – Addition based on presumptions and suspicions- Held to be not justified – Appeal – Commissioner (Appeals) -Power of enhancement- Enhancement of assessment had to be considered in the context of each issue raised in the appeal before the Commissioner (Appeals). [ S.251(2) ]

S.37(1): Business expenditure — Real estate development — Selling and administrative costs — Selling expenses – Revenue expenses after setting up of business is held to be allowable although revenue was not yet earned —Accounting Standard 7 .

S. 37(1) : Business expenditure -Payment to contractors benevolent Fund —Allowable subject to verification -Penalty- Delayed contract – Assessing Officer is directed to verify nature of default . 37(1) Explanation ]

S.37(1): Business expenditure — Labour charges — Road construction business -Some labour contractors not having complete knowledge of contract and looked after by their husbands — Disallowance is not justified .