IMPORTANT INCOME TAX CASE LAWS 11.03.2026 Relevant Act Section Case Law Title / Authority Brief Summary Citation PBPT Act, 1988 Sec 2(9)(A) & 24 Smt. Radhamani A. v. ACIT Attachment is sustainable even if beneficial owners aren’t fully identified, provided the “benamidar” fails to prove a lawful source of funds. Click Here Income Tax Act… Read More »
Benami Property Transactions: Burden of Proof and the Search for the Beneficial Owner This ruling under the Prohibition of Benami Property Transactions Act (PBPT), 1988, highlights the high threshold required for an assessee to prove the “genuine source” of funds and the powers of the Initiating Officer (IO) to trace complex webs of “joint beneficial… Read More »
LTCG on Penny Stocks: When Documentation Trumps General Allegations The Legal Issue The core dispute for AY 2016-17 was whether the Assessing Officer (AO) can treat Long-Term Capital Gains (LTCG) from the sale of shares as “unexplained cash credit” under Section 68, simply because the company in question was classified as a “penny stock” by… Read More »
Reassessment and Depreciation on Goodwill: High Court and Supreme Court Ruling (AY 2018-19) The Legal Issue The central dispute for Assessment Year (AY) 2018-19 was whether the Assessing Officer (AO) could validly reopen an assessment under Section 148 to disallow depreciation on goodwill, when the underlying addition in the base year (AY 2014-15) had already… Read More »
Assessment of a Non-Existent Entity: The Finality of Corporate Mergers This case addresses a fundamental principle of tax law: the validity of a notice issued to a company that has ceased to exist due to a merger. The ruling clarifies the limits of Section 292B, which protects the Revenue against “mere technical defects.” The Legal… Read More »
Invalid Sanction and the Collapse of Revisionary Proceedings (Section 263) This ruling for AY 2018-19 highlights the strict “jurisdictional hierarchy” required for reopening tax assessments. It establishes that if the foundation (the Section 148 notice) is legally rotten, the superstructure (the Section 263 revision) cannot stand. The Legal Issue Can a Principal Commissioner (PCIT) use… Read More »
TCS on Compounding Fees: Illegal Mining vs. Legal Leases This ruling by the High Court, subsequently upheld by the Supreme Court (dismissing the SLP), clarifies the boundaries of Section 206C(1C) of the Income-tax Act regarding the collection of tax at source (TCS) by government authorities. The Legal Issue Is a District Mining Officer (the assessee)… Read More »
Revival of Revision Petitions: The Interaction Between VSV 2020 and Scheme 2024 This significant ruling addresses the “safety net” provided by Section 4(6) of the Direct Tax Vivad Se Vishwas (DTVSV) Act, 2020. It clarifies that a failed settlement under the 2020 Scheme does not leave a taxpayer in “legal limbo” but instead restores the… Read More »
Analysis of ITAT Ruling: Search Assessments (Section 153C) & Unexplained Expenditure (Section 69C) This ruling provides critical clarity on two fronts: the jurisdictional timeline for issuing search-related notices to third parties and the legal prohibition against double taxation on unaccounted business transactions. I. Section 153C: The “Date of Search” for Third Parties The Legal Issue… Read More »
Analysis of ITAT Ruling: Section 14A Disallowance and Transfer Pricing Comparables (AY 2010-11) I. Section 14A: No Exempt Income, No Disallowance The Legal Issue Whether a disallowance under Section 14A read with Rule 8D can be made if the assessee has made investments but has not actually earned any exempt income (like dividends) during the… Read More »