Section 271AAC(1) of the Income Tax Act

The law of limitation applies to all, including the government. Condonation of delay in filing appeals requires a party to demonstrate sufficient, bona fide, and reasonable cause, as courts should not condone delays mechanically or for routine explanations, gross negligence, or inaction.

A Departmental Valuer's Report constitutes material for forming a belief of escaped income, validating reassessment proceedings.

An assessment completed under an incorrect section of the Income Tax Act is considered to be in favour of the assessee.

The Supreme Court case CIT v. General Insurance Corporation (286 ITR 232) is cited for the proposition that it dealt with the issue of bonus shares, and therefore may not be applicable to cases involving the increase of authorized share capital.

Penalty proceedings are vitiated if the Assessing Officer's satisfaction is not based on the order passed by the Assessing Officer or the CIT(A). The jurisdiction to impose penalty rests with the authority that is satisfied about the concealment or furnishing of inaccurate particulars of income.