“Section 254(6)”

When computing deduction under Section 10A, if communication or telecommunication expenses are excluded from export turnover, they must also be excluded from total turnover to maintain consistency and apply the ordinary meaning of 'turnover' in context.

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.

Assessment orders passed by an Assessing Officer are liable to be set aside if they disregard binding instructions or circulars issued by the Central Board of Direct Taxes (CBDT), especially concerning the selection of returns for scrutiny. The CBDT circulars are binding on all officers of the Income-tax department.

For reopening an assessment, the Assessing Officer must have a reason to believe that income has escaped assessment, not merely a reason to suspect. The Assessing Officer needs tangible material to form this belief.

When a notice is sent by registered post to the correct address, it is deemed to have been served at the time it would ordinarily be delivered, unless the contrary is proven by the addressee. This principle applies even if the notice is returned unserved.

Waiver of a loan taken for trading activity results in income taxable under section 41(1). However, a loan taken for the purchase of a capital asset, which was never allowed as a deduction, does not constitute trading liabilities and its waiver is not taxable under section 41(1).

The amount treated as deemed dividend under section 2(22)(e) is calculated after deducting repayments made during the year from the amount received.

A loan taken for the acquisition of a capital asset, when subsequently waived, is not chargeable to tax.