IMPORTANT INCOME TAX CASE LAWS 23.03.2026 Relevant Act Section Case Law Title / Authority Brief Summary Citation Income Tax Act Sec 2(15) Micro Finance Industry Network v. CIT(E) A self-regulatory organization for NBFCs providing financial literacy and grievance redressal cannot be denied charitable status as “General Public Utility” without proof of commercial trade or business.… Read More »
Taxability of Consultancy Fees and Foreign Investments of Non-Resident Individuals (India-UAE DTAA) Facts The Assessee: A non-resident individual and UAE resident who served as a Director and 100% shareholder in foreign companies, DAR and TIL. The Search & Reopening: Following a search operation, an email from a client (GFH) suggested that substantial payments were made… Read More »
Eligibility of Self-Regulatory Organizations (SROs) as Charitable Entities under “General Public Utility” (Section 2(15)) Facts The Assessee: A society recognized by the RBI as a Self-Regulatory Organization (SRO) for NBFC-MFIs (Microfinance Institutions). Charitable Claim: The society sought registration under Section 12AB, asserting its objects were for “General Public Utility” (GPU). It highlighted activities such as… Read More »
Condonation of Inordinate Delay (2345 Days) and the Standard of ‘Sufficient Cause’ under Section 254 Facts The Assessment: For AY 2012-13 and 2014-15, the Assessing Officer (AO) made significant additions under Section 68 regarding unexplained unsecured loans and credits. First Appeal: The Commissioner (Appeals) confirmed these additions because the Assessee failed to appear or produce… Read More »
Eligibility of Section 80G Deduction for CSR Expenses (PM & CM Relief Funds) Facts The Assessee: A corporate entity (Company) that incurred expenditure towards Corporate Social Responsibility (CSR) as mandated under Section 135 of the Companies Act, 2013. The Donations: During the Financial Year 2019-20 (AY 2020-21), the company made donations to the Prime Minister’s… Read More »
Eligibility for Section 54F Exemption when New Property is Registered in a Relative’s Name Facts The Transaction: The Assessee, an NRI, sold five villas for approximately Rs. 5.26 crores and invested the proceeds into a new residential house to claim exemption under Section 54F. The Registration: Due to his inability to travel to India at… Read More »
Validity of Section 54 Exemption Based on Possession via Unregistered Agreement to Sell (Section 53A of TOPA) Facts The Transaction: The Assessee sold a residential property and claimed a deduction under Section 54 of the Income-tax Act by investing the proceeds into a new residential house. The Acquisition: The new property was acquired through an… Read More »
Set-off of Excess Application of Earlier Years and Requirements of Form 9A for Charitable Trusts Facts The Assessee: A charitable trust registered under Section 12A/12AA of the Income-tax Act. The Claim: For Assessment Year 2017-18, the trust reported surplus income but claimed it was “applied” by setting off excess expenditure (over-application) incurred in previous years.… Read More »