IMPORTANT INCOME TAX CASE LAWS 30.12.2025 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 10AA Cummins India Ltd. v. ACIT Denial of SEZ deduction was unjustified where the return was filed with a marginal delay due to portal glitches, but the audit report was filed on time. Click Here Income-tax… Read More »
Reassessment Proceedings Upheld: Writ Petition Challenging Section 148 Notice Not Maintainable After Participation and Speaking Order Rejection ISSUE Whether a Writ Petition under Article 226 challenging a notice under Section 148 is maintainable when the assessee has already participated in the proceedings (filed return and objections) and the Assessing Officer (AO) has disposed of the… Read More »
Transfer Pricing: TPO Cannot Segregate Royalty for Separate Benchmarking if TNMM for Manufacturing Activity was Accepted by HC in Earlier Years ISSUE Whether the Transfer Pricing Officer (TPO) is justified in segregating the payment of Royalty from the manufacturing segment and benchmarking it separately, when the assessee had bundled it under TNMM (Transactional Net… Read More »
Housing Loan Interest Deduction Denied: Bank Statement Insufficient Without Specific Interest Certificate and Sanction Letter ISSUE Whether the Assessing Officer (AO) was justified in disallowing the deduction of interest on borrowed capital under Section 24(b) when the assessee failed to produce the specific loan sanction letter or interest certificate from the bank proving the loan… Read More »
Provision for Interest on State Government Loan Held Allowable u/s 37(1); Liability is ‘Ascertained’ Under Mercantile System Even if Repayment Has Not Commenced ISSUE Whether interest provided in the books of account regarding a loan from the State Government constitutes an “ascertained liability” allowable under Section 37(1), even if the assessee has not commenced repayment… Read More »
Transfer Pricing: Re-characterization of Software Developer as ‘Contract R&D Provider’ Rejected; BAPA and Past TPO Orders Confirm ‘Software Development’ Status ISSUE Whether the Transfer Pricing Officer (TPO) was justified in re-characterizing the assessee as a “Software Research/R&D Service Provider” (instead of a “Software Development Service Provider”) based on US tax documents, despite a signed Bilateral… Read More »
Reassessment Invalid: Notice u/s 148 for AY 2015-16 Issued After April 2021 Held Time-Barred ISSUE Whether a notice under Section 148 for Assessment Year 2015-16, issued after 01-04-2021, is valid in law, considering the limitation period prescribed under the Act. FACTS The Default: The assessee, an individual, did not file his original return for AY… Read More »
TDS Default Quashed: Rate of 10% (Section 112) Applicable on Purchase of Unlisted Shares from Non-Resident, Not 20% ISSUE Whether an assessee is liable to be treated as an “assessee-in-default” under Section 201 for deducting tax at 11.54% (concessional rate) instead of 23.072% (general rate) on payments made to non-residents for the acquisition of… Read More »
Addition u/s 56(2)(vii)(b) Deleted: Allotment Letter Treated as Valid ‘Agreement’ for Determining Stamp Duty Value Date ISSUE Whether an Allotment Letter issued by a builder can be treated as an “Agreement” for the purpose of the proviso to Section 56(2)(vii)(b), allowing the assessee to adopt the Stamp Duty Value (SDV) on the date of… Read More »
Angel Tax Inapplicable to Subsidiary of Public Company: Deemed ‘Public Company’ Status under Section 2(18) Overrides Private Ltd Status ISSUE Whether a private limited company, which has become a subsidiary of a public limited company, is treated as a “company in which the public are substantially interested” under Section 2(18), thereby exempting it from… Read More »