S. 69C : Unexplained expenditure -Bogus purchases – Payments were made to suppliers through banking channels – Paintings were reflected as a part of closing stock – Addition is held to be not justified.

S. 69: Income from undisclosed sources — Unexplained investments -Gross profit is higher than earlier years -Additions cannot be made

S. 68: Cash credits- Unsecured loan- Furnished names and addresses of concerned parties, their PAN and confirmation with bank account and their Income tax returns, and AO had not carried out any investigation to show that those companies did not exist but were paper companies- Addition cannot be made . [ S.131 ]

S. 68 : Cash credits – Income from undisclosed sources – Amount received in cash in respect of sale of immovable property – Sale deed registered in the name of buyer company – Addition if at all to be made in the hands of buyer and not in the hands of the assessee.

S. 57:Income from other sources-Where assesse received membership fee from various members which were kept in FDRs and interest earned thereon was brought to tax under section 56, in view of fact that assessee failed to establish nexus between expenditure incurred under various heads and earning of said interest income, its claim for deduction under S.57 was to be rejected. [ S. 56,57(iii) ]

S. 57 : Income from other sources – Deductions – Dividend income – taxable under head ‘Income from other sources’ – Any expenditure incurred to earn dividend income including finance charges allowable as deduction .[ S. 57(iii) ]

S. 54F : Capital gains – Capital gains on sale of house properties can be invested in construction of house property more than once for same new property, if cost of property is within capital gains that arose to the assessee. [ S.45 ]

S. 54: Capital gains – Profit on sale of property used for residence – Where the construction of new house was commenced before sale of the original asset the Assessee was eligible to claim deduction in respect of payments made before such sale – Assessee was eligible to claim deduction in respect of amount deposited in capital gain scheme beyond due date of filing return u/s 139(1) but before time limit allowed u/s 139(4) [ S.45, 139(1) , 139(4) ]

S. 50C : Capital gains – Full value of consideration – Stamp valuation-Agricultural land– Land situated within 8 km. of local Municipal limits-Addition under head capital gain applying the provision of S.50C is justified . [ S. 2(14)(iii), 45 ]

S. 50B : Capital gains – Slump sale-Transfer of business division to subsidiary against shares, same was not a ‘slump sale’ but an ‘exchange’; thus, provisions of S. 50B is not applicable .[ S. 2(42C), 45 50C ]