S. 54F : Capital gains-Investment in a residential house-Capital asset-Receipt on relinquishment of assessee’s share in firm-Liable to capital gains-Reinvestment on residential flat allowable deduction. [S. 2(14), 45]

S. 50C : Capital gains-Full value of consideration-Stamp valuation Long-term capital gains-Sale of immovable property-Difference in registered sale deed price and stamp duty valuation price of property sold-Rectify mistake new gift deed has been made on 15-2-2016, wherein mentioned that land transferred without any consideration-Gift deed, a self-serving document and could not be accepted-Addition is justified. [S. 45, 47(iii),56(2)(vii)]

S. 50C : Capital gains-Full value of consideration-Stamp valuation-Order set aside and matter restored to Assessing Officer for adjudication De novo after seeking valuation report from Valuation Officer.[S. 45,48, 50C(2)]

S. 45 : Capital gains-Sale of land-Cost of improvement-Encroachments on land-Compensation for removal of encumbrance-Entitled to deduction.[S. 48]

S. 43B : Deductions on actual payment-Bonus-Pre-existing liability paid in previous year-Not allowed in earlier years-Allowable in the year of payment. [S. 139, 145]

S. 69C : Unexplained expenditure – Bogus purchases – Information from sales tax Department – Sales not doubted – Books of account not rejected – Order of Tribunal affirming the estimate of profit at 12. 5% of alleged bogus purchases are affirmed – Court also observed that , it is the solemn obligation and duty of the Income Tax Authorities and more particularly of the A.O. to undertake all necessary enquiry including to procure all the information on such transactions from the other departments / authorities so as to ascertain the correct facts and bring such transactions to tax. [ 133(6), 145 (3)]

S. 37(1) : Business expenditure-Salary, Daily Allowance And Festival Expenses And Expenses On Telephone, Vehicle, General, Travelling, Business, Promotion, Staff Labour Cost Of Uniform-Estimate at 10 Per Cent is held to be reasonable-Failure to produce evidence-Disallowance is proper.[S.80C]

S. 37(1) : Business expenditure-Bad debts and investment-Written off-Investment and loans and advances to subsidiary-Failure to establish commercial and business expediency for making investment in subsidiary-Disallowance is affirmed. [S. 36(1)(vii)]

S. 37(1) : Business expenditure-Paying sponsorship fees to college in terms of agreement-Logo used on stationery items and books-Commercial wisdom-Expenditure allowable.

S. 37(1) : Business expenditure-Co-Operative Society-Banking business-Transfer of monies to funds-Overriding statute-Matter remanded to the Assessing Officer-Provision for standard assets-Allowable as deduction. [S. 36(1)(viia)]