19 IMPORTANT INCOME TAX CASE LAWS 24.02.2025 Section Case Law Title Brief Summary Citation 9 Sun Pharmaceutical Industries Ltd. v. Income-tax Officer Interest/premium paid on capital borrowed outside India is not taxable in India. Click Here 11 Sai Baba Sansthan Trust v. Deputy Commissioner of Income-tax (Exemption)-2(1) Accumulation under section 11(1)(a) has to be computed… Read More »
Penalty Under Section 271D Deleted for Agent Receiving Cash in Real Estate Transaction Issue: Whether an agent who receives cash exceeding the prescribed limit on behalf of their principal in a real estate transaction can be held liable for penalty under Section 271D of the Income-tax Act, 1961, for violation of Section 269SS. Facts: The… Read More »
Penalty under Section 270A Not Leviable for Estimated Income; Commissioner (Appeals) Order Upheld Issue: Whether a penalty under Section 270A of the Income-tax Act, 1961, for underreporting and misreporting of income is leviable when the Assessing Officer (AO) estimated the assessee’s income under Section 145(3) and did not specify the specific limb of Section 270A… Read More »
I. Extension of Time Limit for Sale of Attached Immovable Property Valid Issue: Whether the extension of the time limit for the sale of attached immovable property, due to the absence of bidders during the initial auction, is valid under Rule 68B of the Second Schedule of the Income-tax Act, 1961. Facts: The assessee’s property… Read More »
Assessee Entitled to Section 80-IA Deduction as a “Developer” of Infrastructure Issue: Whether the assessee, engaged in executing civil and development contracts for road widening as part of a highway project, is entitled to a deduction under Section 80-IA of the Income-tax Act, 1961, as a “developer” of infrastructure. Facts: The assessee was awarded a… Read More »
Reassessment Proceedings Against Deceased Assessee Quashed Issue: Whether reassessment proceedings initiated under Sections 147 and 148 of the Income-tax Act, 1961, in the name of a deceased assessee are valid. Facts: The assessee, a doctor, passed away on July 10, 2017. His legal heir (wife) filed the income tax return for the assessment year 2017-18.… Read More »
I. Computation of Long-Term Capital Gain (LTCG) – Ownership Share Determination Remanded Issue: Whether the LTCG should be computed based on the assessee’s claimed 25% share of the surrendered property, or the Assessing Officer’s (AO) 50% share, and whether the AO’s determination of ownership was correct. Facts: The assessee and other co-owners entered a Joint… Read More »
License Fee for Goodwill Use Allowed as Business Expenditure Issue: Whether the license fee paid by a law firm to a partnership firm for the use of goodwill is allowable as a deduction under Section 37(1) of the Income-tax Act, 1961. Facts: The assessee, a law firm, paid a license fee to a partnership firm… Read More »
I. Delayed Deposit of Employee Contributions (PF/ESIC) Not Deductible Issue: Whether delayed payment of employee’s contributions towards PF and ESIC can be allowed as a deduction under Section 37(1) of the Income-tax Act, 1961. Facts: The assessee delayed the deposit of employee’s contributions towards PF and ESIC. Decision: The court held that Section 36(1)(va) mandates… Read More »
Profit from Share Trading Treated as Business Income, Not Short-Term Capital Gains Issue: Whether the profit derived from the purchase and immediate sale of shares, using borrowed funds, should be treated as business income or short-term capital gains under the Income-tax Act, 1961. Facts: The assessee-company, incorporated for investment counseling, borrowed Rs. 104.10 crores from… Read More »