“Section 136(1)”

Protective assessments should not be deleted or disposed of by lower authorities, but rather allowed to remain in effect until the related substantive assessment proceedings attain finality before the High Court or Supreme Court.

A return of income filed within the period allowed under Section 139(4) is valid for claiming exemptions and deductions, including those under Sections 54, 54F, and 80AC. However, depositing the unutilized capital gains in the Capital Gains Account Scheme is a statutory and mandatory requirement for claiming exemption under Section 54F.

Reasons recorded for reopening an assessment must be linked with tangible material to suggest that income has escaped assessment, and cannot be based on mere "borrowed satisfaction."

The period of holding a flat for capital gains purposes commences from the date of the allotment letter and the first installment payment, not from the later date of possession or registration.

An assessee is entitled to a deduction under section 54 if substantial steps have been taken towards acquiring a new residential property, even if the sale deed has not yet been executed, provided the intention to purchase and invest is evident.

If the original reason for reopening an assessment under Section 147 is not sustained, the Assessing Officer cannot make an addition on a different issue.

The Assessing Officer must conduct a proper and thorough inquiry before rejecting the assessee's accounts or making additions under Section 68, as an inadequate inquiry can lead to unjustified additions.

Section 153D of the Income Tax Act, 1961, inserted by the Finance Act 2007, is applicable to proceedings initiated after its effective date of 1st June 2007, irrespective of whether prior judgments directly referred to it.