Improtant Income Tax Case Law 20.05.2025 Section Case Law Title Brief Summary Citation Relevant Act 2(11) (Black Money Act) Additional Commissioner of Income-tax v. Himanshu Gupta Addition deleted; assessee had already disclosed foreign shareholding in return. Click Here Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 3 (Black Money Act)… Read More »
TDS Credit Dispute Remanded for Factual Verification by Commissioner (Appeals) Issue: Whether the Centralized Processing Centre (CPC) and subsequently the Commissioner (Appeals) can reduce an assessee’s claimed Tax Deducted at Source (TDS) credit solely based on a discrepancy between gross receipts in Form 26AS and income reported in the return, without verifying the assessee’s explanatory… Read More »
Penalty Under Section 271E Not Leviable if Reasonable Cause and Bona Fide Transaction Proven for Cash Loan Repayment Issue: Whether penalty under Section 271E of the Income-tax Act, 1961, for cash repayment of a loan exceeding the prescribed limit (in violation of Section 269T), should be imposed if the assessee demonstrates a “reasonable cause” for… Read More »
Commissioner (Appeals) Must Conduct Inquiry and Formulate Points for Determination Even if Assessee Fails to Appear Issue: Whether the Commissioner (Appeals) can dismiss an appeal and uphold an addition under Section 69A (unexplained money) simply because the assessee failed to respond to notices and appear, without conducting the necessary inquiry and formulating points for determination… Read More »
Foreign Shareholding Duly Disclosed Not Taxable Under Black Money Act; Debit Note Not Undisclosed Asset/Income Issue: Whether a foreign shareholding, acquired and duly disclosed in a prior assessment year’s income tax return, can be subsequently taxed as an “undisclosed foreign asset” under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act,… Read More »
Rental Income from Day-to-Day Lettings Treated as Business Income; Unexplained Property Investment Taxed Under Section 69 Issue: Whether rental income from premises given on day-to-day basis, with additional facilities provided, should be treated as “income from house property” or “business income.” Whether an undisclosed portion of the consideration for an immovable property, admitted during a… Read More »
Assessee Allowed Foreign Exchange Loss, Club Expenses, and Loss on Closure of Stores Issue: Whether a foreign exchange loss arising from a pre-existing liability, where the encashment of the cheque occurred in the relevant year, should be allowed as business expenditure in that year. Whether club expenses incurred for business purposes by a company’s director… Read More »
Unsubstantiated Ad Hoc Disallowance Under Section 40A(2) Deleted. Whether an ad hoc disallowance of expenditure under section 40A(2)(a) by the Assessing Officer, based on a mere suspicion that payments made by a society to related companies for services were excessive and unreasonable, is sustainable without any evidence or comparable data. Facts: For the assessment year… Read More »
Undervaluation of Property (Section 50C) to be Re-evaluated by DVO on Remand; Estimated Commission Income on Cash Deposits (Section 69A) Upheld as Reasonable. Issue: Whether the Commissioner (Appeals) can reject an assessee’s request to refer a matter to the Departmental Valuation Officer (DVO) for determining the fair market value (FMV) under section 50C, simply because… Read More »
Collection of Donations by Individual Taxable Under Section 56(2)(x) and Subject to Section 175 Due to Personal Use of Funds. Issue: Whether the provisions of section 175 of the Income-tax Act, 1961 (assessment of persons likely to transfer property to avoid tax), are applicable to an individual who collects donations through crowdfunding platforms, mixes these… Read More »