S.68: Cash Credits-Genuineness of Loans-Established the identity, creditworthiness and genuineness of the lenders-Addition was deleted.

S. 56: Income from Other Sources-Interest on enhanced compensation under section 28 of the Land Acquisition Act-Taxable on a receipt basis. The amended provisions constitute a complete code and prevail over the character assigned to such receipts under the Land Acquisition Act or under judicial precedents rendered under the pre-amendment law. [S 2(28A), 14, 45(5), 56(2)(viii),145B(1), Land Acquisition Act, 1894, S. 28]

S.56: Income from Other Sources-Share Premium-DCF Method-Unrealistic and unverified projections, ignored the ICAI Technical Guide-addition was affirmed. [S. 56(2)(viib), R.11UA (2)(b)]

S. 54: Capital gains-Profit on sale of property used for residence-Exemption-Purchase of new residential house jointly with son-in-law-Deduction cannot be restricted to co-ownership share-Fair market value as on 1-2-2001-Valuation cannot be rejected. [S.45, 48, 55(2)(b)]

S. 50C: Capital gains-Full value of consideration-Stamp valuation-Income from Other Sources-Slump sale-Section 50C cannot be applied-If the value of the land and building is lower than the stamp duty value, the provisions of section 56(2)(vii)(b) may apply after valuation by the DVO. The matter was restored to the Assessing Officer for fresh determination.[S. 2(42C), 56(2)(vii)(b), 50B]

S. 48: Capital gains-Mode of Computation-Payment made to settle a rival title claim and remove an encumbrance is deductible while computing capital gains. Amount directly paid by the purchaser to banks for discharge of mortgage is deductible and cannot be taxed in the hands of the assessee. [S. 45, 48(1)]

S. 37(1): Business expenditure-Settlement of patent dispute-Compensation paid for settlement of civil litigation is allowable business expenditure and not hit by Explanation 1 to section 37(1). [S. 37(1), Explns. 1 & 3]

S.37(1): Business expenditure-Royalty-Use of land-Power of attorney-Allowable as a deduction. [S.2(47)(vi)]

S. 32: Depreciation-Non-compete fee not eligible for depreciation [S. 32(1)(ii)]

S. 32: Depreciation-Goodwill arising on slump sale-The matter was restored to the Assessing Officer to obtain valuation from the DVO, determine the value of land and building, attribute the balance consideration to goodwill and allow depreciation thereon. [S. 2(42C), 32(1)(ii), 50B, 56(2)(vii)(b)]