INCOME TAX CASE LAW 03.06.2026 INCOME TAX CASE LAW Relevant Act Section Case Law Title Citation Brief Summary Income-tax Act, 1961 Section 2(24) PREMAL P. PANDYA v. Deputy Commissioner of Income-tax Click Here A whistleblower reward received from the US SEC after systematically collecting evidence of FCPA violations and active assistance with expectation of reward… Read More »
Failure to specify the charge of concealment or inaccurate particulars in a notice vitiates the penalty. Issue Whether a penalty levied under Section 271(1)(c) for furnishing inaccurate particulars of income is legally sustainable if the Assessing Officer fails to specify the exact limb of the charge (either concealment of income or furnishing inaccurate particulars) in… Read More »
Turnover recorded in accepted books cannot be taxed again as unexplained cash credits. Issue Whether a sum of ₹55.12 lakhs representing recorded business sales can be treated as unexplained cash credit under Section 68 or subjected to additional profit estimation following a reopening of assessment based on allegations of accommodation entries, when the books of… Read More »
Cash sales during demonetization cannot be taxed under Section 68 if books are accepted. Issue Whether cash deposits made during the demonetization period from documented cash sales can be treated as unexplained cash credit under Section 68, when the Assessing Officer has accepted the assessee’s books of account and the Specified Bank Notes (SBNs) were… Read More »
Disciplinary action cannot be initiated against quasi-judicial tax orders passed without mala fide intent. Issue Whether disciplinary proceedings and penalties can be initiated against an Income Tax Officer for a quasi-judicial assessment order that followed judicial precedents but deviated from the Department’s ongoing appellate stand, in the absence of any proof of corrupt motives, personal… Read More »
Adjudication on merits deems additional evidence admitted, making date of allotment determinative for capital gains. Issue Whether the Commissioner (Appeals) can legally decline the formal admission of additional evidence under Rule 46A after already evaluating and adjudicating that identical evidence on its merits. Whether the stamp duty valuation as on the date of the allotment… Read More »
Revised Code of Ethics Ethical Standards Board The Institute of Chartered Accountants of India 30th May, 2026 Announcement Sub. Revised Code of Ethics (13th edition) The revised Code of Ethics (13th edition)- Volume-I, II & III is applicable with effect from April 01, 2026 except for the s.no. (xxxi). The s.no. (xxxi) “Assessment and evaluation of… Read More »
Whistleblower Reward Earned via Systematic Assistance and Profit Motive Is Taxable as Income from Other Sources Whistleblower Reward Earned via Systematic Assistance and Profit Motive Is Taxable as Income from Other Sources Issue Whether a substantial monetary reward received by an employee from the US SEC under a statutory whistleblower scheme—following a systematic collection of… Read More »