S. 56 : Income from other sources-Allotment of shares at premium-Fair market value of shares-Neither Assessing Officer, nor Commissioner (Appeals) had determined fair market value of shares in accordance with rule 11UA-Matter remanded to the Commissioner (Appeals) to determine fair market value of shares by following any of prescribed methods. [S. 56(2)(viib), R. 11UA]

S. 56 : Income from other sources-Share premium-Valuation report-Apart from determination of FMV of shares under rule 11UA, intrinsic value is also one of prescribed method as per section 56(2)(viib)(a)(ii), but higher of valuation as per section 56(2)(viib)(a)(i) or (ii) has to be considered by Assessing Officer before applying those provisions Section 56(2)(viib) is applicable in year of issue of shares and not in year of receipt of premium. [S. 56(2)(viib), R. 11UA]

S. 54 : Capital gains-Profit on sale of property used for residence-Purchase-Under construction building-Date of registration-If possession was taken within period of 2 years from sale of existing residential house, even if same was not purchased from sale proceeds of existing property entitle to exemption. [S. 45]

S. 54 : Capital gains-Profit on sale of property used for residence Capital Gain Account Scheme-Entire sale consideration was invested for purchasing new residential flat and said investment was within stipulated time limit-Eligible to claim deduction. [S. 54(4), 54F, 139]

S. 56 : Income from other sources-Gift-Capital or revenue-Consideration-Suit properties-Sum received by for giving up his rights to contest will could not be said to have been received without consideration and hence, could not have been brought to tax-Sum received is capital receipt cannot be taxed as capital gains. [S. 4, 45, 56(2)(vii)(a)]

S. 54B : Capital gains-Land used for agricultural purposes-Purchase of land-Failure to purchase the land in her name-Not eligible to claim exemption. [S. 45]

S. 45 : Capital gains-Conversion of asset into stock-in-trade-Land converted in to stock in trade-Capital gains was to be computed upto date of conversion into stock-in-trade and for period thereafter sales realization of stock-in-trade over fair market value of land was to be assessed as business income. [S. 28(i), 45(2)]

S. 45 : Capital gains-immovable property-Agreement to sell-transfer-Possession was not given-Not liable to capital gains tax. [S. 2(47)]

S. 43B : Deductions on actual payment-Provident Fund contributions-Employee’s share of contribution is made on or before due date for furnishing return of income under section 139(1), assessee would be entitled to claim deduction-Explanatory memorandum to Finance Act, 2021 proposing amendment in section 36(1)(va) as well as section 43B is applicable prospectively with effect from 1-4-2021. [S. 36(1)(va), 139]

S. 43B : Deductions on actual payment-Employees’ contribution of PF and ESI before due date of filing return-Entitled to deduction. [S. 36(1)(va), 139(1)]