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]

S. 17(2) : Salary-Perquisite-Constitutional validity-Amendment by Finance Act, 2007-Challenge to amendment-Outcome of writ petition to be governed by adjudication in similar petitions pending at Principal Seat.[S. 15, Art. 226]

S. 11 : Property held for charitable purposes-Business incidental to main objects-Surplus from a pharmacy operated by a hospital trust for its patients is ancillary to the main charitable object of medical relief and not taxable as business income.[S.2(13),10(23C)(via),11(4A),260A]

S. 4 : Charge of income-tax-Interest on compensation-Motor accident claims-Deduction at source-Interest other than interest on securities-Interest awarded from date of claim petition until judgment of Court is not ‘income’ and, thus, not exigible to tax; no TDS deductible. [S. 2(28A), 194A]

Direct Tax Vivad se Vishwas Act, 2020

S. 4: Filing of declaration-Pending revision-A revision application under section 264 of the Income-tax Act, 1961, filed with a request for condonation of delay, is considered ‘pending’ for the purposes of the DTVSV Act until it is disposed of by the CIT-An AO cannot reject the declaration on the basis that the revision is time-barred-The Assessing Officer was directed to process declaration of assessee and pass such order as required in accordance with law. [S. 2, Income-tax Act, 1961, S. 264, Art. 226]