“Section 42(3)”

For cash credit additions under Section 68, establishing the 'identity' of a creditor requires more than just producing PAN or assessment particulars; it necessitates demonstrating their actual business operations, place of work, staff, and public recognition. This rigorous standard ensures the assessee proves the identity, creditworthiness, and genuineness of the transaction.

Rental income from immovable property owned by an assessee must be assessed under the head 'Income from House Property' (Section 22), even if the assessee is engaged in the business of real estate or property development and leasing. This emphasizes the mandatory classification of income under its specific statutory head.

A transaction, even if appearing to be in the capital field or recorded as such, can constitute an 'adventure in the nature of trade,' leading to taxable income from business rather than capital gains.

The retrospective insertion of an Explanation to Section 80IB(9) of the Income Tax Act is unconstitutional. Blocks licensed under a single contract cannot be treated as a single undertaking for the purpose of deduction under Section 80IB(9).

A CBDT notification issued under section 90(3) of the Income-tax Act is clarificatory in nature and effective from April 1, 2004, the date section 90(3) was introduced.

Cash sales and their corresponding cash deposits are a regular feature of business activities for an assessee, even if buyer details are not consistently recorded on invoices.

The Assessing Officer must record reasons for not being satisfied with a suo motu disallowance made by an assessee under section 14A, and this satisfaction must be based on the assessee's accounts.

The Supreme Court may reconsider the issue of eligibility for deduction under Section 80-IA where the assessee has incurred losses in earlier years and claims the deduction in the year it became profitable. The court also deliberated on the allowability of certain expenses claimed by the assessee.