S. 68 : Cash credits – Capital gains- Penny stocks – Transactions were genuine and duly supported by various documentary evidences- Opportunity of cross examination was not provided – The AO has not discharged the onus of controverting the documentary evidences furnished by the assessee and by bringing on record any cogent material to sustain the addition- Addition as cash credit and addition of 2% as commission was deleted – Assessed as long term capital gains and exemption is allowed [ S.10(38) 45 , 69 ]

S. 45 :Capital gains – Accrual -Protective assessment – Rule of consistency – Department not bound by rule of consistency – Lease- Completion of transfer with vesting of land in the Government essentially correlates with taking over of possession of the land under acquisition by the Government- However, where possession is taken over before arriving of the relevant stage for such taking over, capital gains shall be deemed to have accrued upon arrival of the relevant stage and not before.- To be more specific, in such cases, capital gains shall be deemed to have accrued: (a) upon making of the award, in the case of ordinary acquisition referable to Section 16; and (b) after expiration of fifteen days from the publication of the notice mentioned in Section 9 (1), in the case of urgency acquisition under Section 17 [ Land Acquisition Act, 1984 , S ,4,6 ,16 ,17,Transfer of Property Act, 1882, . 108(q), 111(a), 116 ]

S. 147 : Reassessment – After the expiry of four years- Share capital – At the stage of re-opening, only a reason to believe should exist with regard to escapement of income. Definite conclusion would be drawn after raising queries upon the assessee in the light of S. 68 of the Act- Reopening is held to be justified -Sanction -Not required to provide elaborate reasons while approving the sanction -Succession – No requirement to issue two separate notices in name of amalgamated company as successor-in-interest of amalgamating company and to amalgamating company in its individual capacity, [ S.68, 148 ,151 170, Art , 226 ]