S. 147: Reassessment-Summary assessment-Assessing Officer not precluded from re-opening assessment-Appeal to Appellate Tribunal Powers of Tribunal challenging finding of Commissioner (Appeals) with regard to jurisdiction of Assessing Officer to reopen assessment-Tribunal possesses ample power to decide any issue going to the root of the subject matter-Assessee’s objection that Tribunal could not have taken upon itself to decide it not tenable [S. 56,,143(1), 148, 254(1), 260A]

S. 147: Reassessment-Interim dividend income-Mercantile system of accounting-Accrual-Right to receive interim dividend arose on 14-3-2002 in financial year 2001-2002 relevant to assessment year 2002-2003-Reassessment order was quashed-Order of Tribunal affirmed.[S.10(33), 143(3), 148, 260A]

S. 144C: Reference to dispute resolution panel-Remand by the Tribunal-Draft assessment order is mandatory-Order of single judge dismissing writ petition set aside [S.92C, 92CA, 254(1), Art. 226]

S. 144B : Faceless Assessment-Reassessment-Procedure complied with-No jurisdictional error-Alternative remedy-Writ petition dismissed-Statutory appeal period of delay due to pendency of writ petition to be condoned in application, if any, for condonation of delay. [S.144, 148, 151, Art. 226]

S. 143(2): Assessment-Notice-Expiry of prescribed period for service of notice falling on Sunday-Sunday being postal holiday notice served on subsequent day of Monday valid.[S. 2(15) 11, 13, 260A, General Clauses Act, 1897, S. 10.]

S. 119: Central Board of Direct Taxes-Circular-Concessional tax regime-Condonation of delay-Delay in filing Form 10-IC-genuine hardship-Order of Principal Commissioner rejecting application quashed and set aside. Directions issued to the Revenue to accept the assessee’s Form 10-IC and recompute tax liability accordingly.[S,.115BAA, 119(2)(b), Art. 226]

S. 115BAA: Tax on income of certain domestic companies–Concessional tax regime-Assessee company had not exercised its option to avail benefit of section 115BAA before the due date specified under section 139(1) in its return; it could not be allowed to revise its return and file Form 10-IC after the due date for filing return under section 139(1) so as to avail benefit of lower taxation under section 115BAA.[S.115BAA(5), 139(1) Art. 226]

S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation-Amalgamation-Agricultural income-tax Loss-The only provision applicable was section 12 of the Kerala Agricultural Income-tax Act, 1991, which did not authorise set-off in this case, the assessee was rightly found to be ineligible for the benefit by the Tribunal-Further, the assessee had not made the claim before the Income-tax Officer under the 1961 Act in the computation of income from manufacture of rubber under rule 7A of the 1962 Rules and that Officer had no occasion to consider the tenability of the claim-Revision application was dismissed. [Kerala Agricultural Income-tax Act, 1991, S. 2(7), (20), 3, 12, 48, 54, 60]

S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation-Amalgamation-Agricultural income-tax Loss-The only provision applicable was section 12 of the Kerala Agricultural Income-tax Act, 1991, which did not authorise set-off in this case, the assessee was rightly found to be ineligible for the benefit by the Tribunal-Further, the assessee had not made the claim before the Income-tax Officer under the 1961 Act in the computation of income from manufacture of rubber under rule 7A of the 1962 Rules and that Officer had no occasion to consider the tenability of the claim-Revision application was dismissed by High Court-Order of High Court affirmed. [Kerala Agricultural Income-tax Act, 1991, S. 2(7), (20), 3, 12, 48, 54, 60 Art. 136.]

S. 56: Income from other sources-Pre-operative expenses: raising loan from its directors-Technical fee and other expenses inclusive of payment for land paid out of loan-Funds not immediately required deposited in bank-Interest earned thereon adjusted against project expenditure and deficit transferred to pre-operative expenses carried forward. Funds not lying as surplus but earmarked to facilitate balance payment for plant and machinery, etc.-Funds inextricably linked to setting up of business of assessee-Interest from bank deposits not taxable as income from other sources.[S. 4, 35D]