S. 56 : Income from other sources-Receipt of shares of closely held company for inadequate consideration or without consideration-Amalgamation-Shares received by assessee-company on account of amalgamation for price lower than fair market value-Not within ambit of specific exclusions-Charge attracted-Matter of valuation remanded-Receipt of shares does not stipulate transfer of shares-Interpretation of taxing statutes-Specific charging provision-General provision will give way to specific Provision-Assessment-Protective or Precautionary addition permissible. [S. 2(IB), 2(14) 47(vi), 56 (2)(viia)]

S. 45 : Capital gains-Entity forming consortium with equal shares-Assessee transferring shares in consortium-Cost indeterminate Deleting addition-Order of CIT(A) deleting the addition is affirmed.

S. 45 : Capital gains-Business income-Sale of flats-Intention to hold the same as investment-Income chargeable to tax as capital gains and not business income-Unsold flat generating rental income cannot be treated as stock-in-trade-Res Judicata-No material changes in facts and law-Revenue is not permitted to take different view in subsequent years. [S. 28(i)]

S.43B : Deductions on actual payment-Provision for leave encashment-Disallowance is upheld.[S.43B(f)]

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Tax includes Cess-Education cess is not deductible.

S.37(1) : Business expenditure-Interest paid on excess refund of duty drawback-Not penalty or fine-Allowable as deduction. [S. 37, Expln. 1,145, Customs And Central Excise Duties Drawback Rules, 2017, R. 17]

S. 36(1)(iii) : Interest on borrowed capital-Investments in special purpose vehicles-Interest is allowed as deduction-Bad debt-Additional claim first time in the course of assessment-Allowed as deduction.[S. 36(1)(vii), 251]

S. 32 : Depreciation-Rate of depreciation-Computer servers, software and networking equipment-Depreciation is allowable at 60 Per Cent.

S.14A : Disallowance of expenditure-Exempt income-Interest-Sufficient non interest bearing funds-Administrative expenses the Assessing Officer is directed to restrict the disallowance under rule 8D(2)(iii) of the Rules to the extent of 0.5 per cent. of the average of exempt income yielding investments. [S. 36(1)(iii), R. 8D(2)(iii)]

S.14A : Disallowance of expenditure-Exempt income-Interest expenses-Not maintaining separate books for investments-Disallowance by the Assessing Officer is affirmed. [R.6D]