INCOME TAX CASE LAWS 22.07.2026 Section Case Law Title Brief Summary Citation Relevant Act Section 2(14) Sonu Grover v. Income-tax Officer Verification of actual distance from municipal limits using Tehsildar’s certificate and Google Maps was required to determine whether land sold was a rural agricultural land exempt from capital gains; matter remanded for fresh adjudication.… Read More »
Tribunal cannot rely on subsequent assessment order passed under Section 263 to justify PCIT’s revisionary jurisdiction. Issue Whether the Tribunal, while deciding a challenge to the PCIT’s invocation of revisionary jurisdiction under Section 263, erred in relying upon a subsequent assessment order passed pursuant to that very Section 263 direction. Facts Section 263 Revision: For… Read More »
Reopening under Section 148 is valid if initial information indicates income escaping tax exceeds 50 lakh rupees. Reopening under Section 148 is valid if initial information indicates income escaping tax exceeds 50 lakh rupees. Issue Whether a notice issued under Section 148 after 3 years but within 5 years is valid based on initial information… Read More »
In the interest of justice, foreign bank unexplained cash credit addition is remanded for fresh consideration. In the interest of justice, foreign bank unexplained cash credit addition is remanded for fresh consideration. Issue Whether the addition made under Section 68 of the Income-tax Act, 1961 towards unexplained credits in a foreign bank account should be… Read More »
Section 54F Exemption Is Allowable For All 50 Flats Received Under Pre-2015 JDA Capital Gains Assessment Issue Whether an assessee who entered into a Joint Development Agreement (JDA) prior to April 1, 2015, is eligible for Section 54F deduction across all 50 residential flats received as consideration against long-term capital gains computed on the execution… Read More »
Section 54 Exemption Applies to Multiple Residential Properties Transferred When Capital Gains Reinvested in Equal or Fewer Houses Issue Whether an assessee who transfers multiple residential houses and incurs long-term capital gains is entitled to claim exemption under Section 54 for investing in a corresponding number of new residential houses (not exceeding the number of… Read More »
Lump-sum addition replaces full cash credit, while creditor proofs and input VAT are allowed. Lump-sum addition replaces full cash credit, while creditor proofs and input VAT are allowed. Issue Whether an addition under Section 68 read with Section 115BBE for cash deposits made during the demonetization period is justified when cash sales are recorded in… Read More »
Multiple floors form one residential house under Section 54 and ad-hoc valuation rejection is invalid. Issue Whether multiple reconstructed floors (basement, ground, and third floor) acquired by an assessee under a property redevelopment collaboration agreement qualify together as “one residential house” for Section 54 capital gains exemption. Whether the Assessing Officer (AO) can reject a… Read More »
TPO cannot apply domestic CUP for benchmarking export sales without geographic market adjustments. Issue Whether domestic sales prices can be adopted as CUP to benchmark export sales without making suitable adjustments for differences in geographic locations and market conditions under Transfer Pricing provisions. What is the appropriate interest rate for benchmarking delayed realization of export… Read More »
Subsisting Section 12AB registration cannot be treated as invalid for non-production of earlier registration certificate. Issue Whether the Principal Commissioner / Commissioner of Income Tax (Exemption) [CIT(E)] is justified in treating a subsisting provisional/five-year registration granted under Section 12AB (in Form 10AC) as invalid merely due to the non-production of an earlier Section 12A/12AA registration… Read More »