S. 147 : Reassessment-Unexplained moneys-No return of income filed-Where an assessee failed to file its return of income and did not respond in time to a notice under section 148, the Assessing Officer was justified in forming a reason to believe that income, in the form of certain receipts, had escaped assessment. [S. 139, 148, Art. 226]

S. 147 : Reassessment-After the expiry of four years-Charitable trust-No failure to disclose fully and truly material facts-Where an assessment was framed under section 143(3), a notice for reopening issued after four years is not valid if the reason to believe is based on information disclosed in the return of income, as it does not constitute a failure to disclose material facts. [S. 11, 12AA, 143(3), 148, Art 226]

S. 147 : Reassessment-After the expiry of four years-Change of opinion –Unabsorbed depreciation-Notice based on perusal of records already examined in scrutiny assessment-Invalid without failure to disclose material facts. [S. 32(2), 143(3), 148, Art. 226]

S. 144B : Faceless Assessment-Opportunity of hearing-Assessment order passed after providing only three working days to respond to draft order and denying personal hearing is violative of principles of natural justice; matter to be remanded for fresh adjudication. [S. 133(6), 142(1), 144C, Art. 226]

S. 144B : Faceless Assessment-Opportunity of hearing-Adjournment request-Portal closed without communication-Where department, without either accepting or rejecting assessee’s timely adjournment request, closed submission portal, thereby preventing it from filing its reply, subsequent assessment order was passed in violation of principles of natural justice and was liable to be quashed. [S. 143(2), 144B(1)(xiii), Art. 226]

S. 144B : Faceless Assessment-Opportunity of hearing-Inadequate time to respond to show-cause notice a violation of principles of natural justice-Assessment order set aside and matter remanded.[S. 143(3), Art. 226]

S. 69C : Unexplained expenditure-Bogus purchases-Where corresponding sales are accepted, addition is to be limited to estimated gross profit. [S. 260A]

S. 69A : Unexplained moneys-Accommodation bills-Bogus purchases-Onus of proof-Disallowance of expenditure is unsustainable where assessee discharges onus by furnishing substantial evidence to prove genuineness of transaction-Assessee is not required to produce third-party books of account. [S. 37(1), 132, 158BC, 260A]

S. 37(1) : Business expenditure –Method of accounting-Project completion method-Sales support and management expenses; Project completion method-Day-to-day business expenditure like staff salaries are revenue in nature; cannot be disallowed proportionately based on percentage of project completion. [S. 145]

S. 32 : Depreciation-Unabsorbed depreciation –Short term capital gains-Set-off-Unabsorbed depreciation pertaining to pre-amendment years (prior to AY 2002-03) is eligible for indefinite carry forward and set-off against income under any head, including capital gains, in subsequent assessment years. [S. 32(2), 70, 71, 72]