S. 147 : Reassessment–Reassessment proceedings initiated without any application of mind and examination of information received from investigation wing amounts to borrowed satisfaction–Notice is quashed. [S. 148]

S. 147 : Reassessment–Legal representatives-Notice issued in name of deceased assessee-No subsequent notice issued on legal heirs of deceased assessee-Reassessment is not valid. [S. 148, 159]

S. 147 : Reassessment-Jurisdiction of authorities-No specific order passed by principal CIT under section 120(4)(B) authorising Joint Commissioner to act as an AO-Reassessment Order passed by Joint Commissioner liable to be quashed. [S. 2(7A), 120(4)(b), 148]

S. 147 : Reassessment-After the expiry of four years-AO should record ‘reason to believe’ that certain income chargeable to tax has escaped assessment–This belief should be based on independent enquires/application of mind and not on borrowed satisfaction ie basis information from Investigation Wing- Sanction-Sanction granted by the CIT under S. 151 by simply writing “Yes, I am satisfied” is also invalid. [S. 147, 148]

S. 147 : Reassessment-After the expiry of four years–No scrutiny assessment–Reopening solely based on information from Investigation Wing–No independent application of mind– Reassessment is held to be invalid. [S. 148]

S. 145 : Method of accounting-Adjustment on account of MODVAT credit has to be made in respect of closing stock, opening stock, purchases and sales.

S. 145 : Method of accounting-Rejection of books of account-No allegation from department that books of account of assessee either incorrect or incomplete-Gross profit ratio of one year not be applied to another year for determining profit of some of transactions of another year-Rejection of books is not justified. [S. 144]

S. 144C : Reference to dispute resolution panel–Draft assessment order passed in the name of amalgamating company, a non-existent entity on the date of passing such order–entire assessment proceedings based on such invalid draft assessment order are void ab initio and deserve to be quashed. [S. 292B]

S. 143(2) : Assessment–Notice-Notice issued by officer who was neither AO of assessee on the basis of address in PAN application nor AO of assessee as per address mentioned in return-Notice issued illegal. [S. 127, 143(3)]

S. 115JAA : Book profit-Deemed income-Tax credit–Demerger of SEZ units–Tribunal Order-MAT credit needs to be allowed to the assessee-not to the demerged company (SEZ units) even though the same arose on account of SEZ units. [Companies Act, S.391]