Section 251(2) of the Income Tax Act

The Commissioner of Income-tax (Appeals) cannot dismiss an appeal for non-prosecution or default in appearance. Under Section 250(6) of the Income-tax Act, the CIT(A) must decide the appeal on its merits, even in an ex parte proceeding.

The Revenue cannot take a conflicting stand from what it had earlier accepted in a previous assessment year without compelling justification. This principle of consistency applies to various issues, including the treatment of customs duty in closing inventory.

The claim of depreciation under Section 32 of the Income Tax Act for assets used by charitable trusts is permissible, affirming the Bombay High Court's view that such a claim does not amount to a 'double benefit'.

The Commissioner (Appeals) must pass a speaking order on merits, considering the grounds raised in the assessee's appeal. They cannot dispose of an appeal by simply stating the Assessing Officer's order is self-speaking and requires no interference.

A reserve set apart to meet a known liability is not a reserve for the purposes of accounting, but rather a provision for a liability. This means it cannot be considered a reserve for tax purposes.

The Commissioner of Income Tax (Appeals) can make enhancements to an assessment during appellate proceedings, provided such enhancements do not amount to introducing an entirely new head of income.

Activities are not considered to be for profit if their dominant purpose is the promotion, protection, and development of trade, commerce, and industry, even if they involve income-generating activities like conducting trade fairs or collecting fees.

An Assessing Officer cannot enhance income beyond what was originally assessed when giving effect to a set-aside order, unless specifically directed by the appellate authority. The powers of an appellate authority are confined to the subject matter of the appeal.

Depreciation is allowable on capital assets for charitable trusts even if expenditure was allowed as deduction, as long as it doesn't amount to double deduction. The principles of commercial accountancy apply when computing business income.

A liability for interest, even if accrued during the year, is not deductible unless it is certain and the amount is ascertainable in that assessment year.