IMPORTANT INCOME TAX CASE LAWS 07.01.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 10(23BBA) Madhur Sree Madanantheswara Vinayaka Temple v. ITO Exemption under Section 10(23BBA) is available only to the statutory “Body or Authority” established to administer religious institutions (e.g., Devaswom Boards), not to the individual temples or religious… Read More »
Search Assessment Invalid Without Incriminating Material; Relief on Profit Estimation and Seized Cash Issue Validity of Reopening (Search Cases): Can the Assessing Officer (AO) reopen assessments for pre-search years (AY 2014-15 to 2019-20) using the “deeming fiction” of Section 148 without finding specific incriminating material? Profit Estimation (Section 145): Can the AO estimate net… Read More »
CSR Donations Eligible for 80G; Steam Generation Not ‘Power’ for 80-IA; Guarantee Fee Benchmarked at 0.5% Issue CSR & Section 80G: Can a company claim a tax deduction under Section 80G for donations made to meet its mandatory Corporate Social Responsibility (CSR) obligations? Steam vs. Power (Section 80-IA): Does the generation of high-pressure steam… Read More »
Long-Term Capital Gains from “Penny Stocks” Accepted as Genuine Due to 7-Year Holding Period and Lack of Adverse Evidence Issue Whether sale proceeds from shares alleged to be “penny stocks” can be treated as unexplained cash credit under Section 68, particularly when the shares were held for a long period (over 7 years), sold through… Read More »
CSR Donation Valid for 80G; Section 50 Blocks Capital Loss if Asset Remains; Excess Stock Explained by Timing Difference Issue CSR & Section 80G: Can an assessee claim a deduction under Section 80G for donations made as part of mandatory Corporate Social Responsibility (CSR) expenditure, even though CSR is not allowable as a business expense?… Read More »
PCIT’s Revision Order Quashed: AO’s View on Goodwill Depreciation and Loss Carry Forward Upheld Issue Scope of Section 263 (Revision): Can the Principal Commissioner of Income Tax (PCIT) invoke Section 263 to set aside an assessment order as “erroneous and prejudicial” if the Assessing Officer (AO) has already conducted inquiries and taken a plausible view?… Read More »
Exemption Under Section 10(23BBA) Applies to Statutory Administrative Bodies, Not the Temples Themselves Issue Whether the exemption under Section 10(23BBA) of the Income-tax Act, 1961 extends to the income of public religious institutions (such as temples, maths, gurdwaras, wakfs, and churches) themselves, or is restricted strictly to the income of the statutory bodies or… Read More »
ITAT Chandigarh Allows Section 87A Rebate on Long-Term Capital Gains from Debt Mutual Funds The Income Tax Appellate Tribunal (ITAT), Chandigarh, in a significant ruling on December 10, 2025, allowed a taxpayer to claim a rebate under Section 87A of the Income-tax Act, 1961, on Long-Term Capital Gains (LTCG) arising from debt mutual funds… Read More »
Karnataka HC Quashes ECL Blocking Without Hearing & Reasons S. A. Enterprises v. The Assistant Commissioner of Central Tax Karnataka High Court October 17, 2025 27868 of 2025 Core Issue The central issue was whether GST authorities can block a taxpayer’s Electronic Credit Ledger (ECL) under Rule 86A of the CGST Rules via a simple… Read More »
Tripura HC: Bona Fide Purchaser Not Liable for Supplier’s Default to Deposit GST M/S. Sahil Enterprises v. Union of India and others High Court of Tripura January 06, 2026 Core Issue: Can a genuine (bona fide) purchaser be denied Input Tax Credit (ITC) under Section 16(2)(c) of the CGST Act simply because the supplier failed… Read More »