IMPORTANT INCOME TAX CASE LAWS 18.11.2025 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 2(47) (Transfer) DCIT v. Mathikere Ramaiah Seetharam Entering into a Joint Development Agreement (JDA) where the owner receives a revenue share does not convert the asset into stock-in-trade. No transfer of property occurs under 2(47)(v) or (vi)… Read More »
DENIAL OF CROSS-EXAMINATION OF WITNESS ‘H’ VIOLATES NATURAL JUSTICE; 153C ASSESSMENT SET ASIDE ISSUE Whether the denial of the assessee’s request to cross-examine a third party (‘H’), whose statement (recorded under Section 132(4)) and seized material were used as the basis for assessments under Section 153C read with Section 153A, amounts to a violation of… Read More »
SECTION 148 NOTICE AFTER 3 YEARS INVALID WITHOUT SANCTION FROM PRINCIPAL CHIEF COMMISSIONER ISSUEWhether a reassessment notice issued under Section 148 after the expiry of three years from the end of the relevant assessment year is valid if the sanction under Section 151 was obtained from the Principal Commissioner (PCIT) instead of the Principal… Read More »
SECTION 68 ADDITION: ADMISSION OF NOTICES PRECLUDES “NATURAL JUSTICE” DEFENSE ISSUE Whether an assessment order treating land advances as unexplained cash credit under Section 68 can be challenged on the ground of violation of principles of natural justice, when the assessee admittedly received multiple show-cause notices but failed to furnish complete details (PAN, creditworthiness)… Read More »
SECTION 54F DEDUCTION CLAIM REMANDED: JOINT OWNERSHIP WITH SPOUSE & STAMP DUTY VALUE DISCREPANCY ISSUE Whether the Assessing Officer was justified in disallowing the deduction under Section 54F (Capital Gains exemption) by making an addition based on the difference between the ready reckoner value and stamp duty paid for the new asset, and ignoring… Read More »
SECTION 263 REVISION: PCIT CAN REVISE REASSESSMENT ORDERS INDEPENDENTLY ISSUE Whether the Principal Commissioner of Income Tax (PCIT) has the jurisdiction under Section 263 to revise a reassessment order passed under Section 147, treating it as a separate and distinct order from the original assessment order, especially regarding issues not touched upon in the… Read More »
SECTION 80-IB(9): EACH OIL WELL TREATED AS A SEPARATE UNDERTAKING ISSUE Whether each oil well operated by an assessee engaged in oil exploration under a Production Sharing Contract (PSC) constitutes a separate “undertaking” eligible for deduction under Section 80-IB(9), or if all wells under a single contract must be aggregated as one undertaking. FACTS… Read More »
SECTION 80-IB DEDUCTION ON INTER-UNIT TRANSFER OF CHILLED MILK ISSUE Whether the profits derived by a dairy company’s eligible chilling units from the inter-unit transfer of chilled milk to its processing units must be computed at Market Value (as per Section 80-IA(8)) or at Cost (as proposed by the TPO), and whether such profits… Read More »
TRANSFER PRICING: FUNCTIONAL DISSIMILARITY IN SOFTWARE SERVICES (SECTION 92C) ISSUE Whether a company engaged in high-end global business consulting and diversified IT services solutions can be selected as a valid comparable for determining the Arm’s Length Price (ALP) of an assessee engaged purely in software development services. FACTS Assessment Year: 2017-18. Assessee’s Profile: The… Read More »
SECTION 80JJAA: ENTIRE CLAIM CANNOT BE REJECTED IF ONLY SOME EMPLOYEES FAIL THE 240-DAY TEST SUITABLE TITLE Deduction under Section 80JJAA Remanded for Employee-Wise Verification of 240-Day Tenure ISSUE Whether the Assessing Officer was justified in rejecting the entire claim for deduction under Section 80JJAA solely because “most” of the new employees had worked for… Read More »