29 IMPORTANT INCOME TAX CASE LAWS 04.03.2025
| Section | Case Law Title | Brief Summary | Citation | Relevant Act |
| 2(15) | Income-tax Officer (Exemption) v. St. John Ambulance Association | Matter restored to Assessing Officer to determine if first aid training activities are charitable. |
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Income-tax Act, 1961 |
| 2(19AA) | Reckitt Benckiser Healthcare India (P.) Ltd. v. Deputy Commissioner of Income-tax | Transfer of treasury unit assets without liabilities is a taxable capital gain, not a demerger. | Click Here | Income-tax Act, 1961 |
| 4 | Trends Pharma v. Income-tax Officer-24(3)(4)C-11 | Disallowing short-term capital loss from sham share transactions does not raise a substantial question of law. | Click Here | Income-tax Act, 1961 |
| 14A | Reckitt Benckiser Healthcare India (P.) Ltd. v. Deputy Commissioner of Income-tax | No further interest disallowance under 14A if assessee has sufficient interest-free funds. | Click Here | Income-tax Act, 1961 |
| 32 | Ammann India (P.) Ltd. v. Assistant Commissioner of Income-tax | Tribunal’s deletion of addition without dealing with merits is not valid information for reopening assessment.
Reopening Notice for Depreciation on Goodwill Quashed; No Escapement of Income |
Click Here | Income-tax Act, 1961 |
| 36(1)(va) | Checkmate Services (P.) Ltd. v. Deputy Commissioner of Income-tax | Late deposit of employee contributions to PF/ESI is treated as assessee’s income. | Click Here | Income-tax Act, 1961 |
| 37(1) | Reckitt Benckiser Healthcare India (P.) Ltd. v. Deputy Commissioner of Income-tax | Provisions for sales return based on scientific basis are allowable. | Click Here | Income-tax Act, 1961 |
| 37(1) | Reckitt Benckiser Healthcare India (P.) Ltd. v. Deputy Commissioner of Income-tax | Product registration expenses are capital expenditure. | Click Here | Income-tax Act, 1961 |
| 37(1) | Jubilant Foodworks Ltd. v. DCIT | Issuance of shares at discount is allowable expenditure.
ESOP Discount Allowed as Business Expenditure Under Section 37(1) |
Click Here | Income-tax Act, 1961 |
| 37(1) | Indus Biotech Ltd. v. ACIT | Expenditure on abandoned IPO is revenue expenditure. | Click Here | Income-tax Act, 1961 |
| 40(a)(ia) | Mahaonline Ltd. Directorate of Information Technology v. Commissioner of Income-tax (Appeals) | Disallowance under 40(a)(ia) is unsustainable for payments to government and properly TDS compliant payments.
Section 40(a)(ia) Disallowance Quashed; Payments to Government and Unpaid Amounts Exempt from TDS |
|
Income-tax Act, 1961 |
| 44AD | Kety Medicare Centre v. ACIT CC-2, Thane | Nursing home turnover should not include separately declared doctors’ fees.
Section 44AD Presumptive Taxation Applied to Nursing Home ; Partner’s Statement Not Sole Basis for Addition |
Click Here | Income-tax Act, 1961 |
| 68 | Hari Enterprise v. Principal Commissioner of Income-tax | Revision upheld for loan genuineness not examined by AO. | Click Here | Income-tax Act, 1961 |
| 68 | Hari Enterprise v. Principal Commissioner of Income-tax | Revision justified for loan verification needed but not done by AO. | Click Here | Income-tax Act, 1961 |
| 68 | Kumar Suman Singh v. ACIT | Gift addition upheld due to lack of disclosed source by donor. (Grandmother). | Click Here | Income-tax Act, 1961 |
| 69A | Awadh Kishor Singh v. National Faceless Assessment Centre | Addition under 69A for unexplained cash deposits is valid if notices were served. | Click Here | Income-tax Act, 1961 |
| 69C | Kumar Suman Singh v. ACIT | Addition for unexplained household expenses sustained. | Click Here | Income-tax Act, 1961 |
| 80G | Tiger Research an Conservation Trust v. Income Tax Officer, Ward-1 Exemption | Cancellation of 80G approval unjustified if FCRA funds are utilized as per statutory requirements. | Click Here | Income-tax Act, 1961 |
| 80-IA | Kesar Terminals & Infrastructure Ltd. v. Deputy Commissioner of Income-tax | Combined order of objections and assessment under 80-IA violates natural justice. | Click Here | Income-tax Act, 1961 |
| 80-IC | Reckitt Benckiser Healthcare India (P.) Ltd. v. Deputy Commissioner of Income-tax | 40(a)(ia) disallowance does not increase 80-IC deduction. | Click Here | Income-tax Act, 1961 |
| 80-IC | Reckitt Benckiser Healthcare India (P.) Ltd. v. Deputy Commissioner of Income-tax | Scrap income from manufacturing unit is eligible for 80-IC deduction. | Click Here | Income-tax Act, 1961 |
| 80-IC | Reckitt Benckiser Healthcare India (P.) Ltd. v. Deputy Commissioner of Income-tax | Profit from entire manufacturing process, including sales, is eligible for 80-IC. | Click Here | Income-tax Act, 1961 |
| 143 | Checkmate Services (P.) Ltd. v. Deputy Commissioner of Income-tax | No specific auditor observation required for expenditure disallowance under 143(1). | Click Here | Income-tax Act, 1961 |
| 145A | Hari Enterprise v. Principal Commissioner of Income-tax | Revision order unjustified if assessee’s closing stock valuation explanation is not considered. | Click Here | Income-tax Act, 1961 |
| 148A | Pratul Krishnakant Shroff v. Deputy Commissioner of Income-tax | AO must grant time for reply if assessee requests adjournment under 148A(b). | Click Here | Income-tax Act, 1961 |
| Section | Case Law Title | Brief Summary | Citation | Relevant Act |
| 153A | Kumar Suman Singh v. ACIT | 153A proceedings valid based on valid information and undisclosed investments. | Click Here | Income-tax Act, 1961 |
| 154 | Vadodara Bharuch Tollway Ltd. v. Income-tax Officer | Assessee allowed to challenge rectification order and assessment order within 30 days.
Assessee Directed to Appeal Rectification Order Under Section 154 |
Click Here | Income-tax Act, 1961 |
| 194-I | Hari Enterprise v. Principal Commissioner of Income-tax | Revision upheld for AO’s failure to verify TDS on rent under 194-I. | Click Here | Income-tax Act, 1961 |
| 194J | Hari Enterprise v. Principal Commissioner of Income-tax | Revision unjustified as TDS under 194J was properly addressed by AO. | Click Here | Income-tax Act, 1961 |
| 269ST | Birmala Projects (P.) Ltd. v. Ashwani Ahluwalia | Mere cash receipt violating 269ST does not void underlying agreement in civil court. | Click Here | Income-tax Act, 1961 |
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