S. 10A: Free trade zone – Mere higher profit margin vis-à-vis comparable companies or sister concerns, without any material establishing an arrangement to inflate profits between the assessee and its associated enterprise, does not justify invocation of s. 10A(7) r.w.s. 80-IA(10) for restricting deduction- The provisions can be invoked only where there is evidence of an arrangement resulting in more than ordinary profits. [S. 10A(7) ,80IA(10) ]

S. 254(1): Appellate Tribunal – Duties-–Respondent can support order of CIT(A) on any legal ground without filing cross-objection or cross-appeal – Tribunal erred in refusing to consider jurisdictional grounds.[ S. 143(2) 158BC , 260A)

S. 158BC: Block assessment – Notice under section 143(2) is mandatory – Non-issuance of notice renders block assessment void- Addition can be made only on the basis of incriminating material found during search – Material gathered during post-search investigation cannot form the basis of block assessment. [S.. 143(2), 260A ]

S. 263: Commissioner – Revision of orders prejudicial to revenue – Search assessment – In respect of unabated assessment years, where no addition is made except on the basis of incriminating material found during search, the Principal Commissioner cannot invoke section 263 to revise the assessment.[ S.153A , 260A ]

S. 11: Property held for charitable purposes – Delay in filing Form No. 10BB – Audit report filed before processing of return under section 143(1) – Delay is procedural – Exemption cannot be denied. [ S. 12, 12AA ,139(1), 143(1), R. 17B, Form No. 10BB ]

S. 148A: Reassessment – Conducting inquiry, providing opportunity before issue of notice – Notice issued after three years solely on the basis of information available on ITBA/INSIGHT Portal – Property jointly purchased – Assessee’s share below ₹50 lakh – Failure to verify registered sale deed before issuing notice – Reassessment held to be without jurisdiction- CBDT Circular F. No. 299/10/2022-Dir(Inv.III)/647, dated 22-08-2022)[ S. 119, 147,148 , 148A(b), 148A(d) , 149(1)(b) ]

S. 68: Cash credits – Long-term capital gains on sale of shares –Penny stocks- Sunrise Asian Ltd. (formerly Santoshima Tradelinks Ltd.) Exemption cannot be denied merely on suspicion – Purchase and sale through banking channels, demat account and recognised stock exchange – In absence of evidence connecting assessee with alleged accommodation entries, addition under section 68 not sustainable.[ S. 10 (38), 45, 69C ]

S.80IA: Industrial undertakings – Enterprises engaged in infrastructure development -Initial assessment year – Assessee entitled to choose first year for claiming deduction – Earlier years’ unabsorbed depreciation already absorbed cannot be notionally brought forward-CBDT Circular No. 1/2016 [ S.80IA(2), 80IA(5), 119, 260A ]

S. 4: Charge of income-tax -Capital or revenue receipt – Pre-commencement receipts – Income earned during trial runs and sale of scrap before installation of project – Receipts inextricably connected with setting up of project – Capital receipts – Not taxable.[ S. 28(i), 80IA, 145 , 260A ]

S.144C. Assessment – Eligible assessee – Non-resident – Draft assessment order mandatory – Failure to issue draft order before passing final assessment order renders assessment void ab initio- Best judgment assessment – Return filed and notices substantially complied with – Invocation of section 144 invalid – Jurisdiction – Non-resident assessee – Assessment completed by officer lacking jurisdiction – Objection not barred by section 124(3) in faceless assessment proceedings- Reassessment – Addition based on erroneous information in Form 26AS – Assessee explaining duplicate reporting and source of investment – Assessment completed without considering evidence – Order quashed without remand. [S. 56 , 69, 124(3), 144,144C(1), 144C(15)(b)(ii), 147, 148A(b), 148A(d), Art. 226 ]