S. 54F : Capital gains – Investment in a residential house – Though new asset purchased within prescribed period had been let out would still be entitled to claim deduction. [S. 45]

S. 50C : Capital gains – Full value of consideration – Stamp valuation-Valuation of property submitted by the Assessee was rejected and referred the matter to DV0-Value adopted by the DVO is binding on the Assessing Officer. [S. 45]

S. 45 : Capital gains-Cold storage–Destruction by fire-Insurance claim-Insurance claim received was Rs.1.35 crores and reconstruction / renovation expenses incurred was Rs.3.55 crores-Amount received as claim cannot be assessed as short term capital gains. [S.45 (IA)]

S. 45 : Capital gains-Transfer-Capital asset-Deemed transfer-Amount received on assignment of by virtue of unregistered agreement of lease hold rights – After the amendment Act 2001 -Not liable to capital gains tax. [S. 2(14), 2(47(v), Transfer of Property Act, 1882 S.53A, Registration Act, 1908, S.17, 49]

S. 40A(3) : Expenses or payments not deductible – Cash payments exceeding prescribed limits -Payments were made during public holidays -No disallowance could be made – Payments to agents- No disallowance can be made. [R.6DDJ, 6DDK ]

S. 37(1) : Business expenditure-Real estate developer–Advertising and business promotion-Corporate brand identity exercise, logo design etc is allowable as deduction as it is not attributable to any particular project -Amount spent on Liaisoning work in relation to a particular project has to be capitalised to concerned project -Method of accounting–AS-7 or AS 9 or ICAI guidance note on accounting for real estate transactions, 2006 cannot be said to be either cash system of accounting or mercantile system of accounting , only up to AY. 2012-13. [S. 145]

S. 36(1)(iii) : Interest on borrowed capital – Loan for reconstruction or renovation of its existing cold storage which was destroyed by fire, could not be considered as acquisition of an asset- Interest is held to be allowable .

S. 36(1)(iii) : Interest on borrowed capital – Interest bearing funds were applied for making investment in equity shares and alleged investment was for non-business purposes-Disallowance of interest is held to be justified. [S. 14A, R. 8D]

S. 23 : Income from house property–Annual value-Municipal rateable value – Municipal rateable value is a recognised basis for determination of ALV, the AO cannot disregard the municipal rateable value and substitute some expected rent to be received. [S. 22]

S. 23 : Income from house property – Annual value – Vacancy allowance -Due to fall in property prices failed to let out same year after year because of which property remained vacant-Entitle to vacancy allowance. [S. 22, 23(1)(c)]