“Section 132(8)”

Income cannot be assessed on purely notional figures or mere suspicion; it must be based on actual evidence and supporting material demonstrating its accrual or receipt by the assessee. Assessments made without such evidence are bad-in-law.

A statute or amendment can apply retrospectively even without an express provision, if such application is a necessary implication from the language used, especially for clarificatory amendments or those intended to cure an acknowledged evil for the community's benefit.

Assessing Officers and appellate authorities must consider and grant correct deductions for fresh legal claims or revised computations made during assessment or appellate proceedings, subject to due verification.

The elementary principle of natural justice requires that an assessee must have knowledge of all material intended to be used against them in assessment proceedings, along with a reasonable opportunity to meet or rebut such material, including the right to cross-examine witnesses.

Where excess stock is found during a search, the benefit of telescoping may be allowed if additions for unrecorded sales have already been sustained and there is no evidence of other income sources.

Expenditure incurred by a company on computer software is revenue in nature and allowable as a deduction, even if it results in an enduring advantage, provided it is not capital in nature.

When undisclosed income from 'on money' in property transactions is assessed under Section 158BC, the addition should be a reasonable profit earned on the unaccounted turnover, with an 8% profit rate considered reasonable by the ITAT.

Trade advances in the nature of commercial transactions are not considered 'advances' under section 2(22)(e) of the Income Tax Act, 1961.