“Section 111(2)”

A business loss is deductible if it has a direct and proximate nexus with business operations or is incidental to them, applying a commercial standard, even without an explicit statutory provision for its deduction.

Previous approval of the Additional CIT is required to pass an assessment order under Chapter XIV-B of the Income Tax Act. The Additional CIT is a competent authority to grant this approval.

When exercising revisional powers under Section 263, the Commissioner must examine the merits of the assessee's objections and establish on record how the assessment order is erroneous and prejudicial to the revenue. The Commissioner cannot merely direct a re-examination or delegate this fundamental duty.

The Assessing Officer (AO) must provide a deduction to the assessee respondent. This deduction relates to cooperative society income, as the CIT(A) has relied on case laws supporting such deductions.

Depreciation is allowed on a building used for business purposes, following the rule of consistency, especially when depreciation was allowed in earlier assessment orders. Depreciation is granted on the block of assets, not individual assets, under section 32(1).

An order appointing a person as an agent of a non-resident must be in writing, and the agent must be given an opportunity of being heard, to comply with the principles of natural justice and the procedural requirements of Section 163(2).