S. 56 : Income from other sources – Sale of shares to non-resident – Valuation of shares- Share premium in excess of value of shares as determined under rule 11UA cannot be assessed as income of the assesseee. [ S.56(2) (viib) ,R.11UA ]

S.56: Income from other sources – Market value of shares -Share premium- Discount cash flow method (DCF ) –Valuation by merchant banker – Revenue authorities cannot evaluate accuracy of valuation at time of assessment-Addition was deleted .[ 56(2)(viib) , R.IIUA ]

S.54F : Capital gains- Investment in a residential house -Two bungalows located adjacent to each other and used as one residential unit – Entitle to exemption [ S. 45 ]

S. 47(xiv) : Capital gains – Transaction not regarded as transfer – Sole proprietary concern succeeded by a company – Full value of consideration received on sale were same figure, no capital gains had accrued or were received- Capital gains cannot be levied- Provisions of section 56(2)(vii)(c) are not applicable when subject matter of transfer is immovable property. [ S.45 56(2)(vii) (c ) Rule 11U ]

S.45: Capital gains- Sale of shares – STT paid – Sale of shares through a registered share broker in a recognised stock exchange – Addition cannot be made as cash credits – Entitle to exemption [ S.10(38) 68 ]

S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits – Truck drivers and agents – After banking hours at a village there was no banking facilities – Disallowance is held to be not justified [ R.6DD ]

S. 40(a)(ia): Amounts not deductible – Deduction at source – Principal to Principal- Supply of cellular mobile phones, benefit extended to distributors could not be treated as commission liable for withholding tax under S, 194H or u/s 194J of the Act . [ S.194H, 194J ]

S. 40(a)(ia): Amounts not deductible – Deduction at source – Interest other than interest on securities -Form 15G/15H- Procedural defects – Disallowance is held to be not justified .[ S.194A, Form No 15G/15H ]

S. 40(a)(ia): Amounts not deductible – Deduction at source – Provision for expenses – Specific provision ascertained amount – Liable to deduct tax at source [ S.37(1) 145 ]

S.37(1): Business expenditure – Referral fees – Hospital, paid referral fee to doctors for referring their patients to assessee’s hospital- Regulations of Indian Medical Council was not applicable to pharmaceutical company or allied health sector industries- Entitled to deduction