IMPORTANT INCOME TAX CASE LAWS 30.01.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 80-IA(4) PCIT v. Montecarlo Ltd. [Developer vs Contractor] Deduction u/s 80-IA(4) is available to an assessee acting as a Developer (assuming financial risk and investment) and not merely executing a Works Contract. Click Here Income-tax Act,… Read More »
Penalty for Under-reporting of Income Upheld: Withdrawal of Bogus Political Donation Claim Not “Suo Moto” 1. The Core Dispute: Bogus Political Donations (Section 80GGC) The assessee originally filed a return of income claiming a deduction under Section 80GGC for donations made to a political party. The Trigger: The Income Tax Department received specific information that… Read More »
Reassessment Quashed: Use of Incorrect “Specified Authority” for Sanction After Three Years 1. The Core Dispute: Who Has the Power to Sanction? The case centered on the validity of the jurisdiction assumed by the Assessing Officer (AO) to reopen an assessment for AY 2016-17. The AO issued a notice under Section 148 on July… Read More »
Delayed Filing of Return Costs Co-operative Society its Section 80P Deduction 1. The Core Dispute: Timely Filing as a Pre-condition for Deductions The assessee, a co-operative society, claimed a deduction under Section 80P (which provides relief on income from providing credit facilities to members, etc.). However, the society failed to file its Return of Income… Read More »
Tribunal Deletes Penny Stock Additions: SEBI Clearance and Document Trail Override Revenue Suspicion 1. The Core Dispute: Penny Stock vs. Genuine Investment The Revenue challenged the legitimacy of Long-Term Capital Gains (LTCG) earned by the assessee. The Department characterized the transaction as a “Penny Stock” arrangement used to launder money. AO’s Action: Treated the… Read More »
Supreme Court Dismisses Revenue’s SLP: Eligibility for Section 80-IA Deduction Confirmed for Road Developers 1. The Legal Dispute: Developer vs. Works Contractor The core issue centered on the interpretation of Section 80-IA(4) of the Income-tax Act. This section provides a deduction for profits derived from “developing, operating, and maintaining” infrastructure facilities like roads and… Read More »
HIGHLIGHTS: ECONOMIC SURVEY 2025-26 Posted On: 29 JAN 2026 2:18PM by PIB Delhi FIRST ADVANCE ESTIMATE PROJECTS REAL GDP GROWTH AND GVA GROWTH FOR FY26 TO 7.4 AND 7.3 PER CENT RESPECTIVELY POTENTIAL GROWTH FOR INDIA ESTIMATED AT AROUND 7 PER CENT, WHILE REAL GDP GROWTH FOR FY27 PROJECTED AT 6.8-7.2 PER CENT CENTRE’S REVENUE… Read More »
CBIC Advisory: HSNS Cess Registration and Payment (Effective Feb 2026) The Central Board of Indirect Taxes and Customs (CBIC) has issued Advisory No. 01/2026 (dated January 28, 2026) to guide taxpayers on the implementation of the Health Security se National Security (HSNS) Cess, which officially begins on February 1, 2026. 1. Portal Functionality All… Read More »
Protective Addition Cannot Stand Once Substantive Addition is Settled in the Hands of Others 1. The Legal Conflict The core dispute involved the taxability of entries found in “Diary No. SGF-XIV” impounded during a survey at the premises of the assessee society. Substantive Addition: The Assessing Officer (AO) added the amounts found in the diary… Read More »
ITAT Chandigarh: Royalty/Commission Paid Between Milk Cooperative Societies Held Legitimate Business Expenditure 1. The Dispute: Commission vs. Royalty The core issue across several years was the disallowance of payments made by the Ropar District Cooperative Milk Producers Union to other milk unions (Patiala, Hoshiarpur, and the Punjab State Federation). The Payment: The assessee paid amounts… Read More »