IMPORTANT INCOME TAX CASE LAWS 20.12.2025 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 2(15) Federation of European Business in India v. CIT (Exemption) Promoting trade between the EU and India through policy advocacy (trade policy, investment protection) qualifies as an object of General Public Utility. Assessee is eligible for… Read More »
YOGA TRAINING QUALIFIES AS ‘EDUCATION’; FEES/TDS DO NOT IMPLY PROFIT MOTIVE ISSUE Whether a trust providing practical and theoretical training in Yoga falls under the category of ‘Education’ under Section 2(15), and whether the receipt of course fees/donations from corporates (subject to TDS) alters its charitable nature to a profit-oriented activity. FACTS Assessment Year:… Read More »
INTEREST FROM CO-OP BANK ELIGIBLE FOR DEDUCTION U/S 80P(2)(d) ISSUE Whether a Co-operative Society is eligible for deduction under Section 80P(2)(d) on interest and dividend income earned from investments made with a Co-operative Bank, and whether such a bank qualifies as a “Co-operative Society” for the purpose of this section. FACTS Assessment Year: 2017-18.… Read More »
SECTION 153A JURISDICTION INVALID WITHOUT INCRIMINATING MATERIAL; ABHISAR BUILDWELL APPLIED1 ISSUE Whether the Tribunal was correct in quashing additions made under Section 153A (Search Assessment) on the ground that no incriminating material was found during the search, and whether any substantial question of law arises when the Tribunal’s order is based on settled Supreme Court… Read More »
PENALTY U/S 270A CANNOT BE LEVIED FOR EXCESS FTC CLAIM IF ASSESSED INCOME EQUALS RETURNED INCOME ISSUE Whether the Assessing Officer (AO) is validly entitled to levy a penalty under Section 270A for “under-reporting” or “misreporting” of income based on an alleged excess claim of Foreign Tax Credit (FTC), when the Assessed Income under… Read More »
MECHANICAL APPROVAL U/S 153D FOR 63 CASES IN ONE DAY VITIATES SEARCH ASSESSMENT ISSUE Whether the approval granted by the Joint Commissioner under Section 153D is a mere administrative formality or a mandatory quasi-judicial function requiring independent application of mind, and whether a “common approval” for 63 assessment orders on a single day without… Read More »
HSBC LIST “BASE NOTE” RECEIVED POST-SEARCH CANNOT SUSTAIN SECTION 153A ADDITION ISSUE Whether an addition under Section 69 (Unexplained Investment) regarding alleged foreign bank accounts can be made in a search assessment under Section 153A, relying solely on a “Base Note” received from foreign authorities after the search, when no incriminating material was actually… Read More »
PAYMENT TO LABOUR UNION TO BUY PEACE & ENSURE SMOOTH BUSINESS IS ALLOWABLE EXPENDITURE ISSUE Whether a payment of Rs. 26.60 lakhs made by the assessee-company to a labour union to reach a settlement with workers is an allowable business expenditure under Section 37(1), or if it should be disallowed as not being incurred wholly… Read More »
Strategic Classification: ‘Education’ vs. ‘General Public Utility’ (GPU) The Trap: Assessing Officers often try to classify Yoga or similar training under the residual category of “General Public Utility” (GPU). If classified as GPU, the trust loses its exemption if commercial receipts (fees) exceed 20% of total receipts (proviso to Section 2(15)). The Shield: This judgment… Read More »
SECTION 2(22)(e) DOES NOT APPLY TO COMMERCIAL TRANSACTIONS (TIME SHARE PURCHASE) ISSUE Whether outstanding payables by the assessee to its wholly-owned subsidiaries for the purchase of time share weeks, involving service tax and regular clearing of accounts, constitute “Deemed Dividend” under Section 2(22)(e) or are genuine commercial transactions. FACTS Business: The assessee is engaged in… Read More »