IMPORTANT INCOME TAX CASE LAWS 21.11.2025 Section of Act Case Law Title Brief Summary Citation Relevant Act Section 11 Lakhi Trust v. Income-tax Officer Exemption Ward – 1 (4) Delay in filing mandatory Form No. 9A for claiming deemed application of income by a charitable trust was condonable under genuine hardship, as it was subsequently… Read More »
IMPORTANT INCOME TAX CASE LAWS 20.11.2025 Section / Notification No. Case Law Title Brief Summary Citation Relevant Act Notification No. 162/2025 N/A (CBDT Notification) CBDT authorized 19 banks (including HDFC Bank, ICICI Bank, Axis Bank, City Union Bank, etc.) to receive deposits and maintain accounts under the Capital Gains Account Scheme, 1988. Click Here Income-tax… Read More »
Revision Quashed as AO Took Plausible View on Goodwill Depreciation; Re-opening on Mere Disagreement Invalid. Issue Whether the Principal Commissioner (PCIT) can invoke Section 263 to deny depreciation on goodwill (representing excess consideration paid for a business acquisition) on the ground that the Assessing Officer (AO) failed to examine the impact of amended provisions, when… Read More »
Reassessment Quashed: JAO Lacks Jurisdiction to Issue Section 148A/148 Notices Under Faceless Scheme Issue Whether the reassessment proceedings initiated by a Jurisdictional Assessing Officer (JAO)—including notices under Section 148A(b) and Section 148—are valid in law, considering the mandate of Section 151A of the Income-tax Act which requires such proceedings to be conducted by a Faceless… Read More »
Valid Conversion of Limited to Complete Scrutiny Based on System Records Issue Whether an assessment proceeding can be treated as a “Complete Scrutiny” despite the notice under Section 143(2) initially categorizing it as “Limited Scrutiny” on specific issues, particularly when internal auto-generated records demonstrate the case was selected for complete scrutiny and the issues examined… Read More »
Insight Portal Info Must Be Verified; Reopening Dropped After GST Dept Exonerates Assessee Issue Whether the Income Tax Department (Jurisdictional Assessing Officer) is legally obligated to independently verify information flagged on the Insight Portal (sourced from external agencies like DGGI) before initiating reassessment proceedings under Section 148A, and whether proceedings should be dropped if the… Read More »
Bogus Purchases Addition Restricted to 3% Profit; Sales and Stock Were Accepted Issue Whether the Assessing Officer (AO) can make an addition of 8% on alleged bogus purchases from “accommodation entry providers” when the assessee has maintained proper quantitative details and the sales/closing stock have been accepted, or if the Commissioner (Appeals)’s decision to restrict… Read More »
Gift from Brother-in-Law via NRE Account Exempt; Formal Gift Deed Not Mandatory. Issue Whether a gift received from a “relative” (brother-in-law) through banking channels can be taxed as “Income from Other Sources” under Section 56 solely because a formal gift deed was not executed in India or did not bear the recipient’s signature. Facts The… Read More »
AO Must Recompute Capital Gains, Not Just Add Section 50C Difference; Matter Remanded Issue Whether the Assessing Officer (AO) can simply add the difference between the stamp duty value (Jantri rate) and the actual sale consideration to the assessee’s income under Section 50C, without re-computing the Capital Gains by deducting the indexed cost of acquisition… Read More »
Compensation Paid to Terminate Development MoU Not Deductible Transfer Expense Absent Legal Obligation. Issue Whether an amount paid to a third party (UI) to terminate a Memorandum of Understanding (MoU) for land development can be claimed as a deduction under Section 48(i) as expenditure incurred for the transfer, when the original MoU contained no stipulation… Read More »