IMPORTANT INCOME TAX CASE LAWS 22.05.2025 Section Case Law Title Brief Summary Citation Relevant Act 5 Deputy Commissioner of Income-tax v. Rare Enterprises Interest income from NPA company not taxable on accrual basis if no chance of recovery.No TDS Credit can be Taken Click Here Income-tax Act, 1961 10(38) Principal Commissioner of Income-tax 9 v.… Read More »
Capitation Fee by Educational Trust: Not a Charitable Object, Exemption Denied Issue: Whether a charitable trust engaged in education, specifically running a Dental Science College, is entitled to the benefit of exemptions under Sections 11 and 12 of the Income-tax Act, 1961, if it collects unaccounted “capitation fees” from students for management seats. Facts: For… Read More »
Prosecution Sanction for Delayed TDS Deposit: Not Justified if Voluntarily Deposited with Interest Before Show Cause Notice Issue: Whether a delayed deposit of TDS, even with interest, is sufficient grounds for the Commissioner (TDS) to grant sanction for prosecution under Section 276B of the Income-tax Act, 1961, against the assessee and its directors, especially when… Read More »
Consequence of Failure to Deduct or Pay TDS: Notice Under Section 201 Invalid if Lower Deduction Certificate Obtained Issue: Whether a notice issued under Section 201 of the Income-tax Act, 1961, for failure to deduct or pay TDS, is valid when the assessee had deducted tax at a lower rate based on a certificate obtained… Read More »
Credit for TDS: AO Directed to Accept Company’s Verification and Grant Credit Despite TRACES Data Unavailability Issue: Whether an assessee-firm can be denied credit for TDS for Assessment Year 2007-08 (Financial Year 2006-07) merely because the TDS data is not available on the TRACES portal (which commenced from FY 2007-08), even if the deducting company… Read More »
Reassessment of Cooperative Bank: Invalid if Based on Change of Opinion and No New Material Facts Issue: Whether a reopening notice issued after four years (beyond the four-year limit for cases where original assessment was completed under Section 143(3) and no failure to disclose material facts is alleged) to a cooperative bank for issues related… Read More »
Cash Credit Addition on Share Capital Not Involving Cash: Deleted Issue: Whether an addition under Section 68 of the Income-tax Act, 1961, can be made on account of unexplained cash credits in the form of share capital and share premium, when the assessee-company received shares of other private limited companies in lieu of its own… Read More »
Capital Gains on Property Received in Company Liquidation: FMV at Distribution Date as Cost of Acquisition Upheld Issue: Whether, upon receipt of an immovable property by an assessee during the liquidation of a company in proportion to its shareholding, the cost of acquisition for computing capital gains on the subsequent sale of that property should… Read More »
I. Black Money Act Penalty for Undisclosed Foreign Asset: Life Insurance Policy Not Owned by Assessee Issue: Whether an assessee is liable to penalty under Section 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, for not disclosing a foreign life insurance policy in Schedule FA of the… Read More »
I. Charitable Trust Registration: Cancellation for Community-Specific Object Not Justified Due to Consistency Rule Issue: Whether the Commissioner (Exemption) was justified in cancelling the registration of an assessee-trust, established in 1930, on the ground that it was set up to impart religious education to a particular caste/community (Marwari Brahmin and Maheshwari Vaishyas), thereby deeming it… Read More »