“Section 10(26)”

Revenue expenditure incurred after a business is set up and ready to commence, but before its actual commencement, is allowable as a deduction even if no income is earned in that period. The previous year for a business begins from the date it is set up.

Reassessment proceedings cannot be initiated solely for the purpose of making a protective addition. Such proceedings are not valid in the eyes of law.

Low profits alone, or minor defects such as the non-maintenance of a stock register, do not justify the rejection of regularly maintained books of account under Section 145, nor do they permit additions to income without proving specific errors.

A payment made to eliminate competition is a capital expenditure, not a deductible business expense, as it secures an enduring benefit.

A protective assessment is permissible when the assessing officer has doubt regarding who is in receipt of income, but a recovery based on a protective assessment is not allowed. If an assessment is intended to be protective, it must be clearly stated as such.

When reopening an assessment, the assessing officer must provide the assessee with a copy of the superior officer's approval, including their comments, name, designation, and date, not merely state the reasons in a letter. This ensures transparency in the reassessment process.

A statement recorded under section 132(4) by a third party, without any corroborating incriminating material, cannot be the sole basis for making additions under section 153A or 153C.

Section 68 creates a presumption against the assessee for unexplained credits, but this presumption is rebuttable. The initial burden to rebut the presumption lies with the assessee, which shifts to the revenue once the assessee establishes the genuineness of transactions with creditors.