IMPORTANT INCOME TAX CASE LAWS 18.03.2026 Relevant Act Section Case Law Title / Authority Brief Summary Citation Income Tax Act Sec 4 G.H. Reddy & Associates v. ITO Funds deposited in a bank account per a High Court interim order during an arbitral dispute are not taxable until the right to receive crystallizes upon final… Read More »

TDS Credit for Legal Heirs: Overcoming Procedural Hurdles under Rule 37BA This ruling for AY 2019-20 provides essential relief for legal heirs who often face technical rejections when claiming tax credits belonging to a deceased family member. The ITAT (Income Tax Appellate Tribunal) emphasized that substance must prevail over form in the transition of tax… Read More »

Release of Seized Jewellery: Administrative Delay and the Impact of Rising Gold Prices This ruling (delivered in late 2025/early 2026) provides a significant shield for taxpayers against arbitrary delays by the Income Tax Department. The High Court clarified that once the Department approves the release of jewellery against a Bank Guarantee (BG), it cannot later… Read More »

Taxation of Renewable Energy Certificates (RECs): Carbon Credits vs. Business Profits This dual-ruling for AY 2020-21 settles a high-stakes debate for green energy companies: Does the income from selling Renewable Energy Certificates (RECs) qualify for the 10% concessional tax rate or the Section 80IA tax holiday? The ITAT ruled in favor of the Revenue on… Read More »

Section 68 and the Challenge of High-Value Gifts: Proving the “Three Pillars” This ruling for AY 2020-21 highlights the strict evidentiary standards required when an individual receives a high-value gift—even from a spouse. The Tribunal’s decision to remand the matter for de novo adjudication emphasizes that a “Gift Deed” alone is insufficient to discharge the… Read More »

Redevelopment of Tenancy Rights: Capital Gains vs. Income from Other Sources This ruling for AY 2020-21 provides a critical shield for tenants receiving new flats under redevelopment schemes. The ITAT (Income Tax Appellate Tribunal) clarified that a flat received in exchange for surrendering tenancy rights is a Capital Gains transaction, entitling the individual to exemptions… Read More »

Tax Deductibility of Interest on Loans for Foreign Acquisitions: Section 36(1)(iii) This landmark ruling (AY 2008-09) provides a significant precedent for Indian conglomerates expanding globally. The core issue was whether interest paid on massive loans taken to acquire a foreign entity (specifically Corus by Tata Steel) is a deductible business expense or a non-deductible capital… Read More »

Trust Registration and 80G Approval: Non-Commencement of Activities Is Not a “Specified Violation” This landmark ruling (delivered in early 2026) provides a massive relief to new and dormant charitable trusts. The ITAT (Income Tax Appellate Tribunal) clarified that the Commissioner of Income Tax (Exemptions) cannot deny registration simply because a trust has not yet started… Read More »

Accrual of Income: Taxability of Interim Deposits During Pending Litigation This ruling (AY 2006-07) clarifies a fundamental principle of tax law: Income only accrues when the right to receive it is absolute and finalized. If a payment is received under an interim court order while the underlying dispute is still sub-judice, it does not constitute… Read More »