Section 49 of the Income Tax Act

For capital assets acquired by gift or will, the indexed cost of acquisition under Section 48 is computed with reference to the year the previous owner first held the asset. The period of holding for determining if an asset is long-term also includes the previous owner's holding period, as per Section 2(42A).

The deeming fiction in Section 50, which treats capital gains from depreciable assets as short-term, applies only for the purpose of computing capital gains under that section. For other provisions, such as set-off of losses under Section 74 or deductions under Section 54E/54EC, the asset's original character (long-term or short-term) is to be considered.

A statute prescribing a procedure using negative language (e.g., 'in no other manner') imposes absolute requirements, and failure to comply will invalidate the entire proceeding.

Only the ratio decidendi of a judgment, which is the principle of law that decides the dispute, can be relied upon as precedent, not obiter dicta or casual observations. A court's decision must be read as a whole and its observations considered in light of the questions before the court.

A court decision can only be relied upon for its ratio decidendi, which is the principle of law that decides the dispute. Obiter dicta or casual observations are not binding precedents. A decision cannot be cited to support the proposition that it did not decide something.

Goodwill arising on amalgamation is an asset and eligible for depreciation under Section 32(1) of the Income Tax Act, 1961. The actual cost of such goodwill in the hands of the amalgamated company is the same as it would have been in the hands of the amalgamating company.

Land classified as agricultural by the District Collector is considered agricultural land for tax purposes, regardless of the owner's intention to use it for industrial purposes or the absence of agricultural operations.