IMPORTANT INCOME TAX CASE LAWS 25.09.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 4 Roomag Motors & Controls (P.) Ltd. v. Deputy Commissioner of Income-tax Interest income disputed by the payer and not accounted for in the relevant A.Y. 2014-15 was taxed in A.Y. 2017-18 upon resolution. Held: Based on the doctrine… Read More »
A long delay in filing an appeal can be condoned if the original assessment order being challenged was passed ex-parte and without proper service of notice. Issue Should a significant delay in filing a statutory appeal be condoned when the taxpayer argues that the original assessment and penalty orders they are appealing were themselves passed… Read More »
Costs were imposed on the revenue department for the negligent assessment of a non-existent entity that had already undergone a merger. Issue What are the consequences when the tax department, due to an over-reliance on its internal software systems and a lack of independent verification, passes an assessment order in the name of a non-existent… Read More »
An assessee shouldn’t be penalized for an incorrect updated return that can’t be revised. Issue What is the legal remedy for a taxpayer who is subjected to an unfairly high tax liability due to an inadvertent and significant error made in an “updated return” filed under Section 139(8A) of the Income-tax Act, 1961, given that… Read More »
A delay in filing Form 10-IC doesn’t deny the 115BAA benefit if intent is clear. Issue Should a company be denied the benefit of the concessional tax rate under Section 115BAA of the Income-tax Act, 1961, for a procedural delay in filing the required Form 10-IC, especially when its intention to opt for the scheme… Read More »
A fresh application filed under a beneficial circular to correct an error is valid. Issue Is a taxpayer entitled to the benefit of a CBDT circular that extends the time for filing a fresh application to correct a “wrong section code,” even if their original, incorrect application was ultimately rejected by the tax department for… Read More »
Writ court won’t interfere with a fact-based reassessment notice. Issue Should a High Court, in its writ jurisdiction, quash a reassessment notice that is based on tangible information from a search and seizure operation, especially when the taxpayer’s defense involves disputed questions of fact that require verification? Facts The tax department conducted a large-scale search… Read More »
Expenses are deductible from “Income from Other Sources” only if a direct nexus between the expense and the income is proven by the taxpayer. Issue Can general maintenance and operational expenses be deducted against income chargeable under the head “Income from Other Sources,” such as interest and rent, and what is the extent of proof… Read More »
The court extended the tax audit due date, citing portal glitches and delayed utilities. Issue Should the statutory due date for furnishing Tax Audit Reports (TARs) under Section 44AB of the Income-tax Act, 1961, be extended when taxpayers and professionals face persistent technical glitches on the e-filing portal and significant delays in the release of… Read More »
An accountant’s medical emergency is a reasonable cause for condoning a filing delay. Issue Is the unforeseen medical emergency of a key staff member, such as an accountant, a “reasonable cause” that warrants the condonation of a short delay in the filing of the mandatory audit report in Form 10B for a charitable trust? Facts… Read More »