S. 68: Cash credits- Penny stock – NCL Research & Financial Services Ltd- Long-term capital gain on sale of listed shares cannot be treated as bogus merely on the basis of a general Investigation Wing report or abnormal rise in share price when the assessee has established the genuineness of the transactions through documentary evidence such as purchase bills, contract notes, demat statements, bank statements and payment of STT.–Addition under section 68 cannot be sustained in the absence of any material specifically implicating the assessee. [S.10 (38), 45 , 69C, 147, 148 ]

S. 80-IB(10): Housing projects- Deduction cannot be denied merely because audit report in Form No. 10CCB was not filed along with the return or within the due date prescribed under section 139(1), if the audit report was furnished before processing of the return under section 143(1)- Filing of Form No. 10CCB is a procedural requirement and substantial compliance before completion of the assessment/processing is sufficient- Tribunal distinguished PCIT v. Wipro Ltd(2021) 446 ITR (SC) [S. 143(1), Rule 18BBB, Form No. 10CCB ]

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 ]