S. 147 : Reassessment–After the expiry of four years–The assessment framed by AO who had not issued notice u/s. 148 of the Act is void-ab-initio –Notice was issued by the AO who had no jurisdiction- Reassessment is held to be bad in law . [S. 2(7A), 148]
S. 147 : Reassessment-After the expiry of four years- Re-opening Reopening merely on the basis of information received from investigation wing without application of mind is not valid. [S. 148]
S. 143(3) : Assessment–Order giving effect to revision order– Assessing Officer is bound to follow the directions provided in the order u/s. 263 by the CIT. [S. 263]
S. 133A : Power of survey – Statement recorded u/s. 133A of the Act does not hold any evidentiary value without any corroborative evidence-Deletion of addition is held to be justified.
S. 68 : Cash credits – Gain from off market trading in commodities – Statement of the broker that his company had not made any off market transactions with other clients–AO based on the statement assumed that transactions were not genuine–All details filed and even broker confirmed transactions–AO further denied set off against loss from F & O market–Addition deleted. [S. 115BBE]
S. 56 : Income from other sources-AO can scrutinize the valuation report and determine a fresh valuation either by himself or by calling from independent valuer to conform the assessee but the basis has to be DCF method.
S. 54 : Capital gains-Profit on sale of property used for residence – Exemption cannot be denied on the ground that investment in new flat is out of loan funds if other conditions are fulfilled. [S. 45]
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability–Provision can be invoked only if deduction of the very same sum is allowed in earlier years.
S. 37(1) : Business expenditure–Sales promotion expenses-Gifts to various customers-No expenditure shall be allowed as deduction in case assessee is unable to establish the nexus between incurrence of expenditure with the business activities.
S. 36(1)(iii) : Interest on borrowed capital–Interest paid on funds borrowed for the purpose of business activities are allowed as business expenditure/revenue expenditure. [S. 37(1)]