S. 54 : Capital gains-Profit on sale of property used for residence- Additional cost of construction incurred within stipulated time though not deposited in capital gains account—Entitled to deduction. [S. 45, 54F, 264, Art.226]

S. 45 : Capital gains–Transfer of land to developer-No Objection Certificate obtained in June 1994-Built-up area handed over in financial year relevant to AY. 2001-02-Transfer took place when agreement for development of land was approved-Cost of construction referred in the agreement is held to be reasonable-Developer providing rent free accommodation is not assessable as capital gains-Sale of land and residential house to developer-Construction of residential house by developer-Entitled to exemption. [S. 2(47)(v), 54, 54F, 269UL, Transfer of Property Act, 1882, S. 53A]

S. 44C : Non-residents-Head office expenditure-Entire expenditure was for purposes of head office-No restrictions in terms could be imposed-Order of Tribunal is affirmed. [S. 260A]

S. 44BB : Mineral oils–Computation-Unabsorbed depreciation-Carried forward from earlier year-Cannot be set off against while computing the profits and gains of eligible business u/s. 44BB of the Act. [S. 32(2)]

S. 43CA : Transfer of assets-other than capital assets-Full value of consideration-stock in trade-Agreement value–Stamp valuation-Provision introduced with effect from 1-4-2014 for deeming consideration received on sale of goods/assets on basis of stamp duty valuation would be applicable prospectively-Rejection of books of account is held to be not justified. [S.50C, 145]

S. 43B : Certain deductions on actual payment –Bonus-Allowable as deduction in the year of payment.[ S.37(1) ]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability – Matter remanded to the AO consider the evidences and pass the order. [S. 260A]

S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable-Payment made by the assessee firm to three sub-contractors out of 21 work contracts given by it was to the relatives of the partners of the firm-20% disallowance is held to be justified. [S. 37(1), 40A(2)(b)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Second proviso to S.40(a)(ia) inserted by the Finance Act, 2012 is declaratory and curative in nature and it has retrospective effect from 1st April 2005, being the date from which sub-cl.(ia) of S. 40(a) was inserted–No disallowance can be made for failure to deduct tax at source. [S. 201(1), 271C]

S. 40(a)(ia) : Amounts not deductible-Deduction at source– Subsidiary company-Reimbursement of expenses-Not liable to deduct tax at source-No disallowance can be made. [S. 195]