IMPORTANT INCOME TAX CASE LAWS 19.03.2026 Relevant Act Section Case Law Title / Authority Brief Summary Citation PBPT Act, 1988 Sec 2(8) & 24 Sanjay Sancheti v. Initiating Officer Property is Benami if the title holder lacks financial capacity and the beneficial owner exercises dominion and receives sale proceeds. Click Here Income Tax Act Sec… Read More »
Lower TDS Certificates: Arbitrary Rejection Based on Disputed Demands Quashed This ruling (delivered in early 2026) for AY 2026-27 reinforces the principle that the Revenue cannot mechanically reject a Section 197 application for a lower tax withholding certificate. The High Court clarified that the Assessing Officer (AO) must evaluate the specific statutory parameters under Rule… Read More »
TDS on Common Area Maintenance (CAM) Charges: Section 194C vs. 194I In a significant ruling (delivered in late 2025/early 2026), the Supreme Court of India dismissed a Special Leave Petition (SLP) filed by the Revenue, thereby affirming the long-standing position that Common Area Maintenance (CAM) charges attract TDS under Section 194C (contractual services) and not… Read More »
Co-operative Societies: Interest on Statutory Bank Deposits as Business Income This ruling for AY 2020-21 and 2022-23 provides a major victory for co-operative credit societies. The ITAT (Income Tax Appellate Tribunal) clarified that interest earned from bank deposits is not “passive income” if those deposits are maintained to satisfy regulatory requirements for the society’s core… Read More »
Adjudicating Business Expenditure: Section 133(6) Notices and the Daily Limit for Cash Payments This multi-issue ruling (covering AY 2008-09 and AY 2013-14) provides a critical defense for transport and logistics companies. The Tribunal clarified that a “wholesale disallowance” of expenses cannot be made simply because third-party vendors failed to respond to government notices, especially when… Read More »
Multi-Issue Corporate Tax Ruling (AY 2021-22): Transfer Pricing, R&D, and Section 80-IA This comprehensive ruling for Assessment Year 2021-22 addresses several critical areas of corporate taxation, ranging from the international tax implications of subsidiary write-offs to the procedural requirements for R&D deductions. I. Transfer Pricing: Disallowance of Loan Write-off to Foreign Subsidiary The Legal Dispute… Read More »
Government-Aided Universities: Defining “Substantially Financed” and the “Profit” Motive This ruling (covering AYs 2006-07 to 2011-12) provides a landmark interpretation of Section 10(23C)(iiiab). The Court clarified that the financial support from the government isn’t just about cash transfers for salaries; it includes the very land and infrastructure that allow a university to function. The Legal… Read More »
Maximum Marginal Rate (MMR) and Surcharge: The “Threshold” Rule for Private Trusts This ruling (delivered in early 2026) settles a frequent dispute between taxpayers and the Revenue regarding the computation of tax for Private Discretionary Trusts. The Court clarified that the “Maximum Marginal Rate” (MMR) is a tax rate, not a “package” that automatically includes… Read More »
Benami Property Transactions: Power of Attorney and the “Beneficial Owner” Test This ruling (delivered in early 2026) clarifies the scope of Section 2(8) and 2(9)(A) of the Benami Act, specifically how “control” over a property and the “source of funds” determine the true nature of a transaction. The Adjudicating Authority/Tribunal ruled in favour of the… Read More »
Non-Resident Salary and TDS Credit: Limits on CIT(A)’s Power to Enhance Assessment This ruling for AY 2018-19 addresses the complex tax implications for Indian employees on international assignments. It clarifies that while the Department can verify the global taxability of salary, the Commissioner (Appeals) cannot arbitrarily increase a taxpayer’s income without following the mandatory “Show-Cause”… Read More »