“Section 189(3)”

Under the unamended Section 147(b), 'information' for reopening an assessment includes material already on record that comes to the Assessing Officer's notice subsequent to the original assessment, not just material extraneous to the record.

For proceedings under section 153C to be initiated, the seized documents, books of account, or valuable articles must be of such a nature that they can persuade the Assessing Officer to reopen even closed assessments, indicating incriminating material related to undisclosed income.

Information received from the CIB (Central Information Branch) wing constitutes valid material for the assessing officer to reopen an assessment under Section 147, as a CIB letter provides fresh tangible material for initiating reassessment proceedings.

The requirement to pass a draft assessment order under Section 144C of the Act is mandatory. A final assessment order issued without such a draft order is a nullity, constituting an incurable jurisdictional error that cannot be saved by Section 292B, even in set-aside proceedings following an ITAT remand.

Expenditure incurred for the transfer of the use of licenses, without acquiring ownership rights or an enduring benefit, constitutes revenue expenditure. Such payments are allowable as a deduction if they are directly relatable to services in the revenue field.

Expenditure not allowable under Section 36(1)(iv) of the Income Tax Act may still be allowable under Section 37 of the Act, even if the Tribunal followed this decision.

This case stands for the proposition that evidence gathered during a search under section 132, particularly statements recorded under section 132(4), can be used in subsequent assessment proceedings.

An assessee is entitled to claim the balance 10% of additional depreciation in a subsequent assessment year, even before the insertion of specific provisos, if the machinery was put to use for less than 180 days in the first year.