IMPORTANT INCOME TAX CASE LAWS 10.06.2025 Section Case Law Title Brief Summary Citation Relevant Act 11 ACIT (Exemptions) v. K.C. Social Welfare Trust Matter remanded for fresh adjudication; AO erred in denying full exemption and CIT (Appeals) in not analytically examining notional interest on interest-free loans. Click Here Income-tax Act, 1961 45, 45(5)(b), 271(1)(c) Percival… Read More »
I. Enhanced Compensation and Interest Taxable Only Upon Final Order of High Court, Not Interim Withdrawal Issue: Whether enhanced compensation and interest received by an assessee on compulsory acquisition of land, pursuant to an interim order of the High Court (where the amount is withdrawn subject to bank guarantee and indemnity bond), is taxable in… Read More »
Notional Interest on Interest-Free Loans by Charitable Trust: Matter Remanded for Analytical Examination Issue: Whether a charitable trust imparting education, which has advanced interest-free loans to related parties, can have “notional interest” on such loans added to its income, and whether the Commissioner (Appeals) was correct in deleting this addition solely on the ground of… Read More »
Remand for Fresh Opportunity to Assessee for Capital Gains Claim on Land Development Agreement, After Ex-Parte Dismissal by CIT(A) Issue: Whether, after the Commissioner (Appeals) dismisses an appeal ex-parte (due to the assessee’s non-appearance or non-filing of submissions) in a reassessment case involving capital gains on a land development agreement, the matter should be remanded… Read More »
Assessment Order Valid: Assessee’s Partial Participation and Knowledge of Proceedings Attract Section 292BB, Precluding Service Objections Issue: Whether an assessment order passed under Section 143(3) of the Income-tax Act, 1961, is valid, despite the assessee claiming that the Section 142(1) notice was sent to an incorrect email ID, when the assessee had partially replied to… Read More »
Penalty under Section 271(1)(c) Not Leviable Merely for Disallowed Expenditure Claim Issue: Whether a penalty under Section 271(1)(c) of the Income-tax Act, 1961, for furnishing inaccurate particulars of income, can be levied solely because an assessee’s claim for expenditure (incurred towards boundary wall, pillars, and road work on plots of land) was disallowed by the… Read More »
ITAT Ex-Parte Dismissal for Non-Appearance to be Recalled, Matter Remanded for Merits Issue: Whether an ex-parte dismissal of an assessee’s appeal by the Income Tax Appellate Tribunal (ITAT) due to non-appearance, where the Tribunal specifically noted the non-appearance and disposed of the appeal without giving an opportunity of being heard on merits, should be recalled… Read More »
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