29 IMPORTANT INCOME TAX CASE LAWS 04.03.2025 Section Case Law Title Brief Summary Citation Relevant Act 2(15) Income-tax Officer (Exemption) v. St. John Ambulance Association Matter restored to Assessing Officer to determine if first aid training activities are charitable. Click Here Income-tax Act, 1961 2(19AA) Reckitt Benckiser Healthcare India (P.) Ltd. v. Deputy… Read More »
Mere cash receipt violating 269ST does not void underlying agreement in civil court. Section 269ST Violation Does Not Void Agreement; Unjust Enrichment Prevented Issue: Whether a cash payment made in violation of Section 269ST of the Income-tax Act, 1961, renders the underlying collaboration agreement void and precludes a civil court from entertaining a suit for… Read More »
Assessee Directed to Appeal Rectification Order Under Section 154: This case deals with the appropriate recourse for an assessee when a rectification order under Section 154 is passed, correcting an earlier assessment order made under Section 147 (reassessment). Issue: Whether the assessee, who filed a writ petition against a rectification order under Section 154, should… Read More »
AO must grant time for reply if assessee requests adjournment under 148A(b) This case highlights the crucial aspect of providing a reasonable opportunity to be heard in reassessment proceedings under Section 148A. Here’s a summary: Issue: Whether an Assessing Officer (AO) is required to grant time to an assessee to file a reply to a… Read More »
Combined order of objections and assessment under 80-IA violates natural justice. This case deals with the procedural irregularities in reassessment proceedings under Section 148, specifically concerning the handling of objections and the issuance of a combined order. Here’s a summary: Issue: Whether the Assessing Officer (AO) erred by issuing a combined order that disposed of… Read More »
Cancellation of 80G approval unjustified if FCRA funds are utilized as per statutory requirements. This case addresses the cancellation of 80G approval for a charitable trust and focuses on the proper utilization of funds. Here’s a summary: Issue: Whether the Commissioner (Exemption) was justified in cancelling the 80G approval of the assessee-trust. Facts: The Commissioner… Read More »
Addition under 69A for unexplained cash deposits is valid if notices were served. Issue: Whether the assessment order adding Rs. 1.76 crores as unexplained money under Section 69A was valid, particularly regarding the initiation of reassessment proceedings under Section 148. Whether the writ jurisdiction could be invoked to challenge the assessment. Facts: The assessee was… Read More »
Gift addition upheld due to lack of disclosed source by donor (Grandmother). I. Section 153A (Search Assessments) & Section 132 (Search and Seizure): Revenue Wins Issue: Validity of assessments under Section 153A following a search and seizure operation. Facts: A search revealed substantial undisclosed income and investments. The investigation uncovered undisclosed income from activities related… Read More »
Revision justified for loan verification needed but not done by AO. I. Section 194-I (TDS on Rent) & Section 263 (Revision): Revenue Wins Issue: The assessee failed to deduct TDS on the full amount of rent paid. PCIT’s Action: Found the Assessing Officer’s (AO) order erroneous for not verifying TDS compliance on the total rent… Read More »
Section 44AD Presumptive Taxation Applied to Nursing Home ; Partner’s Statement Not Sole Basis for Addition Issue: Whether the Assessing Officer (AO) was justified in adding back undisclosed income based solely on a partner’s statement when the assessee, a partnership firm running a nursing home, had declared its income under the presumptive taxation scheme of… Read More »