INCOME TAX DAILY CASE LAWS 20.05.2026 Section Case Law Title Brief Summary Citation Relevant Act Section 2(9)(A) Smt. Sheetal Chandna vs. Initiating Officer, ACIT Benami Prohibition Unit Handing over cash to a third party post-demonetisation for deposit into their account, followed by a retransfer back to the appellant, satisfies the criteria of a benami transaction.… Read More »
Transfer pricing adjustments must account for extraordinary events while itemized asset sales escape slump sale rules. Issue Whether the Transfer Pricing Officer (TPO) is bound to consider well-substantiated extraordinary events, such as the sudden shutdown of a primary anchor client, when evaluating distress sales to an Associated Enterprise (AE) using the Transactional Net Margin Method… Read More »
Concessional tax rate cannot be denied when Form 10-IC is submitted before the assessment order. Issue Whether the revenue authorities were justified in rejecting an application for condonation of delay and denying the concessional tax rate under Section 115BAA to a domestic company that filed its income tax return within the due date and submitted… Read More »
Routing Demonetized Cash Through Third Parties Is a Benami Transaction, but Attachment Must Reflect PMGKY Disclosures Issue Whether depositing demonetized currency into a third party’s bank account for subsequent routing back via banking channels qualifies as a Benami transaction involving “property” under the Benami Act. Whether the Adjudicating Authority was justified in confirming a provisional… Read More »
Compensation Paid Pursuant to a Court-Ordered Land Acquisition Mediation Agreement Is Exempt From TDS Issue Whether a compensation payout finalized through a court-referred mediation agreement for compulsorily acquired land—which settled long-pending litigation—is legally exempt from the deduction of tax at source (TDS) under the Income-tax Act. Facts The Dispute: A writ petition was filed challenging… Read More »
Subsequent Section 80G application is valid after an unappealed rejection and requires fresh objective consideration. Issue Whether the Commissioner of Income Tax (Exemptions) [CIT(E)] was legally justified in treating a fresh Form 10AB application for Section 80G approval as non est and void ab initio solely because the trust had failed to appeal an earlier… Read More »
Upfront time-share membership fees coupled with long-term obligations are taxable over the contract period. Issue Whether the entire upfront time-share membership fee received by an assessee is taxable in the year of receipt, or if a portion of it can be deferred and recognized over the membership tenure due to continuing contractual obligations. Facts The… Read More »
Penalty under Section 272A(1)(d) cannot be levied if subsequent compliance leads to acceptance of returned income. Issue Whether a penalty under Section 272A(1)(d) for initial non-compliance with Section 142(1) notices is legally sustainable when the assessee subsequently furnishes all required details and the Assessing Officer completes the assessment under Section 143(3) by accepting the returned… Read More »
Delay condoned and amortization recomputed using actual termination date while deleting concealment penalty Issue Whether a 685-day delay in filing an appeal should be condoned given the overseas management and termination of operations of a Build-Operate-Transfer (BOT) Special Purpose Vehicle (SPV). Whether the Assessing Officer (A.O.) was justified in calculating the amortization period of a… Read More »
Reversal of Previously Disallowed Securitisation Provisions Cannot Be Taxed Upon Being Written Back Issue Whether the Assessing Officer was justified in reopening the assessment and adding back reversed securitisation provisions to the assessee’s income, when those exact provisions had already been disallowed and taxed in the initial year they were made. Facts The Assessee: The… Read More »