S. 54F : Capital gains-Investment in a residential house–Capital Gains Scheme Account -Bank account was opened only for the purpose of depositing compensation received in his hand and the amount was utilised for purchase of plot of land and partial construction thereon–Entitle to exemption. [S. 45]

S. 50B : Capital gains–Slump sale-As per sale deed, possession of only land and building was handed over and there was no transfer of furniture, fixtures and other equipment’s- Transaction cannot be regarded as slump sale. [S. 45, 50C]

S. 45(4) : Capital gains-Distribution of capital asset–Retiring partner-The revaluation of asset being land held by the partnership firm which results into enhancement of value of asset and this enhanced amount credited in capital account of partners and when a retiring partner takes amount in his capital account including enhanced value of asset, it does not give rise to Capital gains.[S. 2(14), 45]

S. 45(4) : Capital gains-Distribution of capital asset-Retirement of partner -If new partners come into the partnership and bring cash by way of capital contribution and the retiring partners take cash and retire, the retiring partners are not relinquishing their interest in the immovable property. What they relinquish is their share in the partnership- As there is no transfer of a capital asset, no capital gains or profit can arise. [S. 45]

S. 45(2) : Capital gains-Conversion of a capital asset in to stock-in-trade-Date of conversion of capital asset into stock-in-trade has to be determined either on basis of entry passed in books of account of assessee or intention of assessee to exploit capital asset as stock-in-trade for its business purpose. [S. 45]

S. 45 : Capital gains-Long term capital gains- Lease –Entire consideration was paid when site was originally allotted in 2001- Date of holding to be computed from the date of allotment and not from the date of absolute conveyance was made and entitle to deduction u/s. 54F of the Act. [S. 2(42A), 2(47), 54, 54F]

S. 45 : Capital gains-Lease hold rights–Assessable as capital gain –Cannot be claimed as exempt on the ground that it was in respect of agricultural land–Market value on allotment of land. [S.48, 50C ]

S. 45 : Capital gains-Penny Stocks-It is intriguing is that the company had meagre resources and reported consistent losses. The astronomical growth of the value of company’s shares naturally excited the suspicions of the Revenue-The company was even directed to be delisted from the stock exchange-The assessee’s argument that he was denied the right to cross-examine the individuals whose statements led to the inquiry and ultimate disallowance of the long term capital gain claim is not relevant in the wake of findings of fact. [S. 68, 260A]

S. 43B : Deductions on actual payment–Interest–Disallowance made without making enquiries from State Finance corporation was deleted.

S. 36(1)(vii) : Bad debt-Suspension of trading activity on NSEL plat form- Receivable from unrealised contract in commodities-Failure to produce documents to show that transactions undertaken by assessee were delivery based–loss is held to be speculative which cannot be set off against business income- Matter remanded to AO to examine a fresh. [S. 37(1), 43(5)]