IMPORTANT INCOME TAX CASE LAW 19.05.2025 Section Case Law Title Brief Summary Citation Relevant Act 2(15) Maharashtra Cricket Association v. ACIT(E) Matter remanded to Commissioner (Appeals) for fresh adjudication on trust’s exemption claim, in view of Supreme Court’s Ahmedabad Urban Development Authority ruling. Click Here Income-tax Act, 1961 9 Derewala Industries Ltd. v. ACIT/DCIT Commission… Read More »
Cancellation of Trust Registration and Charitable Nature of Sports Activities: Remanded for Fresh Adjudication. Issue: Whether the activities of a trust primarily focused on promoting physical education and sports, particularly cricket, can be considered charitable under the amended provisions of section 2(15) of the Income-tax Act, 1961, when the trust’s registration under section 12A has… Read More »
Reopening of Assessment for Penny Stocks Set Aside Due to Lack of Tangible Material. Issue: Whether a reopening notice issued under section 147 of the Income-tax Act, 1961, based on the assessee’s alleged investment in penny stocks and taking accommodation entries in the form of bogus Long Term Capital Gains (LTCG), is valid if the… Read More »
Bona Fide Error in ITR Not to Deny Section 11 Exemption if Trust Status and 12A Registration are Evident. Issue: Whether a charitable trust should be denied deduction under section 11(1)(a) of the Income-tax Act, 1961, solely because of a bona fide error in not mentioning section 12A details while filing the Income Tax Return… Read More »
Registration of Charitable Trust Remanded for Re-evaluation Due to Lack of Confrontation and New Evidence. Issue: Whether registration under section 12AB of the Income-tax Act, 1961, should be denied to a charitable trust based on alleged non-utilization of funds for the trust’s objects, particularly when the assessee was not confronted with the adverse findings of… Read More »
Registration Under Local Public Trust Act Not Required for Section 12AB Registration; Incomplete Application to be Reconsidered After Opportunity of Hearing. Issue: Whether registration under the Rajasthan Public Trust Act, 1959, is an essential requirement for obtaining registration under section 12AB of the Income-tax Act, 1961. Whether an application for registration under section 12AB can… Read More »
Charitable Trust’s Exemption Restored Despite High-Interest Loans from Specified Persons Due to Financial Hardship. Issue: Whether a charitable trust providing education should be denied exemption under sections 11 and 12 of the Income-tax Act, 1961, if it takes loans from specified persons at interest rates higher than the prevailing market rate, specifically concerning the violation… Read More »
Funds Provided to Sister Concerns: Differentiating Investment from Loan for Interest Disallowance. Issue: Whether an interest-free amount provided to a sister concern, which is subsequently converted into share application money and then share allotment, should be treated as a loan for the purpose of disallowing interest under section 36(1)(iii) of the Income-tax Act, 1961. Whether… Read More »
Commission Payments to Non-Resident Agents Not Taxable in India, No Disallowance Under Section 14A for Absence of Exempt Income, and CSR Expenses Disallowance Upheld. Issue: Whether commission payments made to non-resident agents for services rendered outside India are chargeable to tax in India, thereby requiring TDS deduction by the assessee. Whether disallowance under section 14A… Read More »
I. Cost of Acquisition Based on Books Post-Amalgamation to Be Considered for Capital Gains. Issue: Whether the cost of acquisition of land and building for computing capital gains should be the value recorded in the books of the assessee-company after amalgamation, or the significantly lower value recorded by the transferor company before a slump sale,… Read More »