“Section 203(1)”

The Commissioner cannot revise an assessment order under Section 263 merely because they hold a different opinion or believe a deeper inquiry was warranted if the Assessing Officer has applied their mind and conducted some inquiry. Revision under Section 263 is permissible only in cases of a complete lack of inquiry or non-application of mind by the Assessing Officer, not for merely inadequate inquiry.

Section 14A(2) and (3) read with Rule 8D are constitutionally valid. Rule 8D applies prospectively from Assessment Year 2008-09, and for prior assessment years, the Assessing Officer must determine the expenditure related to exempt income under Section 14A(1) using a reasonable basis.

An assessee's consistently followed accounting method, if previously accepted by the Department, cannot be rejected by the tax authorities unless they establish that it distorts the true profits. The doctrine of consistency applies.

If a deductor deducts TDS but does not deposit it into the government account, the assessee is not liable for that TDS.

When lending money is not the business of a company, loans or advances given to an assessee-shareholder are treated as deemed dividends under section 2(22)(e) of the Income-tax Act. The provisions of section 2(22)(e) apply to a company that has taken a loan from its subsidiary.

Additional depreciation under section 32(1)(iia) that is not claimed in the year of purchase can be allowed in a subsequent year, even if the claim is made during assessment proceedings.

Additional depreciation on machinery installed in a preceding year is an allowable claim. Balance additional depreciation for machinery installed in a preceding year must be allowed.

An Assessing Officer cannot make an addition under section 68 for share application money if the assessee has provided all documentary evidence, including share application forms, bank statements, income-tax returns, balance sheets, and board resolutions.