S. 54 : Capital gains-Profit on sale of property used for residence-Joint development agreement-Co-owner-Entitle to the exemption to extent assessee’s share of 42.5 per cent as specified under JDA on the cost of one flat only. [S. 45]

S. 49 : Capital gains-Previous owner-Cost of acquisition-Settlement deed-inherited property from grandfather-Entitled to benefit of indexation from date of his grandfather’s acquisition of said property. [S. 45, 49(1)(iii)(a)]

S. 48 : Capital gains-Computation-Full value of consideration-Joint development agreement-Co-owner-Indexation was allowed-Consideration plus the cost of two flats was considered as the full value of the consideration received from the transfer of property. [S. 45, 54]

S. 44AD : Presumptive taxation-Cash credit-Bank deposits in cash-Turnover-Submitted memorandum Trading and Profit and Loss account and Balance Sheet-Addition was deleted. [S. 68]

S. 43B : Deductions on actual payment-Employees contribution towards PF & ESI-Paid before due date filing of return-Allowable as a deduction-Amendment to provisions of sections 36(1)(va) and 43B vide Finance Act, 2021 were applicable prospectively in relation to the assessment year 2021-22 and subsequent years. [S. 2(24)(x), 36(1)(va), 139(1), 143(1)(a)(iv)]

S. 43(5) : Speculative transaction-Trading in commodity derivatives-Chargeable to commodities transaction tax-Recognised associations-Cannot be assessed as deemed speculative transactions-loss arising from derivatives can be set off against profit of medical derivatives business of assessee. [S. 70, 73]

S. 41(2) : Profits chargeable to tax-Balancing charge-Asset continued to hold-losses arising from impairment in the value of assets-Impairment in value of the asset was calculated on registered valuer report-Provision is not applicable-Loss not allowable as a deduction. [S. 41(1)]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Payments to contractors-Transactions were genuine and parties identifiable-Disallowance is upheld. [R. 6DD(k)]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Stock in trade-Insistence of seller-Matter remanded for verification. [R. 6DD(g), 6DD(j]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Rent-Payment to each party less than Rs. 1,50,000-Not liable to deduct tax at source-Directed to delete the disallowance. [S. 194I]