IMPORTANT INCOME TAX CASE LAWS 27.12.2025 Relevant Act Section Case Law Title / Press Release Brief Summary Citation / Source Income-tax Act, 1961 Press Release (Compliance) CBDT NUDGE Campaign for AY 2025-26 CBDT has identified cases of bogus donations to RUPPs and ineligible deductions via risk analytics. Taxpayers are “nudged” to file revised returns by… Read More »
REASSESSMENT ORDER PASSED IN NAME OF DECEASED ASSESSEE IS INVALID; MATTER REMANDED TO IMPLEAD LEGAL HEIRS ISSUE Whether an assessment order passed under Section 147 in the name of a deceased assessee is sustainable in law when the notice under Section 148 was validly issued while the assessee was alive, but he died during the… Read More »
CONDONATION OF DELAY DENIED: PROFESSIONAL STATUS & 9-MONTH GAP NEGATE ‘GENUINE HARDSHIP’ ISSUE Whether the Principal Commissioner (PCIT) was justified in rejecting an application under Section 119(2)(b) for condonation of delay in filing a revised return, where the assessee (a Non-Resident running a hospital) claimed the delay was due to COVID-19 and “fresh advice” regarding… Read More »
I. SECTION 80G APPROVAL REMANDED TO CONSIDER RESOLUTION ON DISSOLUTION CLAUSE SUITABLE TITLE Rejection of Final 80G Approval Set Aside; Remanded to Verify Dissolution Clause Resolution ISSUE Whether the Commissioner (Exemption) was justified in rejecting the assessee’s application for final approval under Section 80G(5) on the ground that the trust deed lacked a “Dissolution Clause”… Read More »
I. SECTION 70 ALLOWS ASSESSEE TO CHOOSE SET-OFF SEQUENCE FOR STCL TO MAXIMIZE TAX BENEFIT SUITABLE TITLE Assessee Can Set Off Short-Term Capital Loss Against Higher-Taxed Non-STT Gains First ISSUE Whether an assessee is entitled under Section 70 to choose the sequence of setting off current year Short-Term Capital Losses (STCL) against different streams of… Read More »
I. THIRD-PARTY STATEMENT & EXCEL SHEET INSUFFICIENT TO PROVE CASH PAYMENT FOR JEWELLERY SUITABLE TITLE Addition u/s 69A Deleted: Uncorroborated Third-Party Statement Cannot Override Assessee’s Denial and Purchase Bills ISSUE Whether an addition under Section 69A (Unexplained Money) can be sustained solely on the basis of an Excel file and a statement recorded from an… Read More »
I. FOREIGN INVESTMENTS IN MINORS’ NAMES DISCLOSED IN ITR ARE NOT UNEXPLAINED (SECTION 69) SUITABLE TITLE Section 69 Addition Deleted: Investments in Minors’ Names Disclosed in Schedule FA Are Not Unexplained ISSUE Whether investments made by the assessee in the names of his minor daughters in a foreign company can be treated as “Unexplained Investments”… Read More »
I. ADVANCE FOR MATERIAL WRITTEN OFF IS A TRADING LOSS, NOT CAPITAL LOSS SUITABLE TITLE Unrecovered Advance for Goods is Allowable Business Loss Even if Project Revenue is Deferred ISSUE Whether an advance of Rs. 1.50 Crore paid for the supply of ready-mix concrete (RMC) which became irrecoverable is to be treated as a Revenue… Read More »
REGISTRATION U/S 12AA CANNOT BE DENIED ON VAGUE ALLEGATIONS OF CAPITATION FEE WITHOUT EVIDENCE ISSUE Whether the Principal Commissioner (PCIT) is justified in rejecting the registration of a trust under Section 12AA on grounds of collection of capitation fees and diversion of funds for personal use of trustees, when no specific evidence, names, or documents… Read More »
ENTREPRENEURSHIP DEVELOPMENT IS ‘GENERAL PUBLIC UTILITY’; EXEMPTION ALLOWED IF TRADE RECEIPTS < 20% ISSUE Whether a society engaged in nurturing entrepreneurship through networking and mentoring falls under the charitable category of “Advancement of any other object of General Public Utility” (GPU) or constitutes a commercial business, and whether it is eligible for exemption under Section… Read More »