“Section 275(2)”

A liability recognized in accordance with the Accounting Standards prescribed by the Institute of Chartered Accountants of India (ICAI) is an allowable expense for income tax purposes.

The date of issuance of a Show Cause Notice (SCN) for penalty is the relevant starting point for calculating the limitation period for passing penalty orders.

Shares held as corpus by a trust, which were a precondition for notification under Section 10(23C), cannot be deemed to forfeit exemption under Section 13(1)(d) and Section 13(2)(h).

Revisionary power under Section 263 cannot be exercised arbitrarily; it has limits and does not apply to every inadequacy in the Assessing Officer's inquiry or verification.

The principle of judicial discipline requires consistency in following prior judicial pronouncements. This case is cited as authority for adhering to established legal principles.

Appeals related to statutory limitation periods for penalty proceedings are decided by considering relevant High Court judgments.

Where an expense is incurred for the purpose of acquiring a capital asset, and that asset is subsequently sold, the expenditure must be considered as part of the cost of acquisition of that asset for the purpose of calculating capital gains. This is because the expense forms an integral part of the cost of acquiring the asset, not an expenditure of revenue nature.

Penalty under section 271(1)(c) cannot be imposed on additions made on an estimation basis. This applies when income is assessed based on estimated profit, especially if substantially reduced by higher authorities.