IMPORTANT INCOME TAX CASE LAW 19.05.2025
| Section | Case Law Title | Brief Summary | Citation | Relevant Act |
| 2(15) | Maharashtra Cricket Association v. ACIT(E) | Matter remanded to Commissioner (Appeals) for fresh adjudication on trust’s exemption claim, in view of Supreme Court’s Ahmedabad Urban Development Authority ruling. | Click Here | Income-tax Act, 1961 |
| 9 | Derewala Industries Ltd. v. ACIT/DCIT | Commission paid to non-resident agents outside India for services rendered outside India not taxable. | Income-tax Act, 1961 | |
| 10(23C) | Indian Institute of Management v. Commissioner of Income-tax (E) | Approval granted to Centrally funded institute as an old institute despite technical mistake in registration. Provisional registration u/s 10(23C) can not denied even if he assessee had already started its activities | Click Here | Income-tax Act, 1961 |
| 10(38) | Pradip Kumar Jajodia (HUF) v. ITO | Reopening notice set aside; information about penny stock trading already on record. | Click Here | Income-tax Act, 1961 |
| 11, 13 | Deputy Commissioner of Income-tax v. Jaymahakali Shikshan Sanstha | Denial of entire trust exemption for reduced rent to Managing Trustee was incorrect; maximum marginal rate to be levied on contravening income. | Income-tax Act, 1961 | |
| 11, 11(5) | Deputy Commissioner of Income-tax v. Jaymahakali Shikshan Sanstha | Investment in immovable property for trust development allowable; no breach of section 11(5). | Income-tax Act, 1961 | |
| 11, 12A | Seth RB Moondhra Memorial Charitable Trust v. Commissioner of Income-tax Exemption -1 | Trust’s deduction claim allowable despite not mentioning section 12A details in ITR, as benefit was allowed in other years. | Click Here | Income-tax Act, 1961 |
| 12AB | Happiness Acts Trust v. Commissioner of Income-tax (Exemptions) | Denial of trust registration remanded; Commissioner (Exemptions) to reconsider after confronting evidence of genuineness. Registration of Charitable Trust Remanded for Re-evaluation Due to Lack of Confrontation and New Evidence. | Click Here | Income-tax Act, 1961 |
| 12AB | Dhapi Devi Tormal Seva Samiti Dhandhan v. CIT Exemption | Registration under Rajasthan Public Trust Act not essential for section 12AB registration. | Income-tax Act, 1961 | |
| 12AB | Dhapi Devi Tormal Seva Samiti Dhandhan v. CIT Exemption | Application for registration restored; Commissioner (Exemption) directed for fresh decision after hearing assessee. | Click Here | Income-tax Act, 1961 |
| 13, 11, 12 | Educate India Society v. Deputy Commissioner of Income-tax, Exemption | Trust exemption allowed; higher interest on loans from specified persons due to financial difficulties not a violation aimed at benefit transfer. | Click Here | Income-tax Act, 1961 |
| 14A | Derewala Industries Ltd. v. ACIT/DCIT | No disallowance under section 14A as no exempt income earned from equity investments. | Click Here | Income-tax Act, 1961 |
| 36(1)(iii) | Kamineni Health Services (P.) Ltd. v. ACIT | Advances to sister concern treated as loan for one day; interest to be levied for that period. | Click Here | Income-tax Act, 1961 |
| 36(1)(iii) | Kamineni Health Services (P.) Ltd. v. ACIT | Disallowance of interest on funds invested in sister concern as share application money was incorrect. | Click Here | Income-tax Act, 1961 |
| 37(1) | Derewala Industries Ltd. v. ACIT/DCIT | CSR expenses disallowed for failure to prove exclusive business purpose. | Click Here | Income-tax Act, 1961 |
| 41(1) | PLR Textiles Ltd. v. Assistant Commissioner of Income-tax | Waiver of loan amount by bank (principal or interest) not taxable under section 41(1). | Income-tax Act, 1961 | |
| 48 | PLR Textiles Ltd. v. Assistant Commissioner of Income-tax | Cost of acquisition as per transfer deed to be considered for capital gain computation despite transferor’s taxability issue. | Income-tax Act, 1961 | |
| 54F | Arvindbhai Ramniklal Raval (HUF) v. Income-tax Officer | Section 54F relief granted; ‘Agreement of Sale with Possession’ within time sufficient. Section 54F Exemption Allowed on Purchase Agreement with Possession even if a registered sale deed is not executed. | Income-tax Act, 1961 | |
| 56(2)(x) | Arvindkumar Jagjivandas Thakkar v. Income-tax Officer | Addition under Section 56(2)(x) Deleted Due to Immaterial Difference in Value. Addition under section 56(2)(x) not sustainable; marginal difference in stamp duty value. | Income-tax Act, 1961 | |
| 56, 115BB | Surendra Ram Bharti v. I.T.O., Ward 2(2), Dhanbad | Matter remanded to Assessing Officer to adjudicate whether bike won via scratch card is gift or lottery winning. | Income-tax Act, 1961 | |
| 56(2)(viib), Rule 11UA(2)(b) | People Care Hospitals (P.) Ltd. v. ITO | Rejection of valuation report for share premium unjustified; no contrary material furnished. | Income-tax Act, 1961; Income-tax Rules | |
| 68, Rule 11UA(2)(b) | People Care Hospitals (P.) Ltd. v. ITO | Addition for share premium deleted; identity, creditworthiness, and genuineness proved with valuation certificate. | Click Here | Income-tax Act, 1961; Income-tax Rules |
| 68, 143(3) | Income-tax Officer v. Hemanshu Ramniklal Shah | SLP dismissed; reopening based on already available information is change of opinion. | Income-tax Act, 1961 | |
| 69, 148A(b), 143(3) | Pranav Ramesh Parikh v. Deputy Commissioner of Income-tax | Reassessment notices quashed; reopening based on incorrect assumptions about sham transactions. | Click Here | Income-tax Act, 1961 |
| 69A | Deputy Commissioner of Income-tax v. Jaymahakali Shikshan Sanstha | Section 69A not applicable; source of interest income on unsecured loan was known. | Click Here | Income-tax Act, 1961 |
| 69A, 147 | Pradeep Kumar Agrawal v. Income-tax Officer | Reassessment set aside; beyond four years and all material facts disclosed. | Click Here | Income-tax Act, 1961 |
| 80P | Income-tax Officer v. Cooperative Cane Development Union Ltd. | Commission on Sugarcane Marketing by Cooperative Society Constitutes Business Income Eligible for Section 80P Deduction. | Click Here | Income-tax Act, 1961 |
| 144B | Hasmukhbhai Girdharilal Chopra v. National Faceless Assessment Centre, Govt. of India | Reassessment order quashed; Assessing Officer passed order without considering assessee’s detailed reply.
| Click Here | Income-tax Act, 1961 |
| 148, 148A(b) | Dharmistha Yogesh Joshi v. Deputy Commissioner of Income-tax | Notices under sections 148A(b) and 148 quashed; issued against deceased person. Notice Issued to Deceased Person Invalid When Legal Heir Details Available. | Click Here | Income-tax Act, 1961 |
| 194C | Infoobjects Software India (P.) Ltd. v. Deputy Commissioner of Income-tax | Section 194C not applicable to catering expenditure subjected to GST. | Click Here | Income-tax Act, 1961 |
| 194C | Infoobjects Software India (P.) Ltd. v. Deputy Commissioner of Income-tax | Hotel room booking expenses not liable to TDS under section 194C; not ‘work’. | Click Here | |
| 201 | Ravi Shree Narayan Transport v. Assistant Commissioner of Income-tax, TDS | Opportunity Should Be Given Before Deeming Assessee in Default for Non-Deduction of TDS. Matter remanded; Assessing Officer to consider if deductee paid tax on interest income. | Income-tax Act, 1961 | |
| 220 | BMW India (P.) Ltd. v. DCIT | Stay on the recovery of outstanding demand if Assessee deposited 20% of demanded tax Partial stay granted on outstanding demand; prima facie case made out. | Click Here | Income-tax Act, 1961 |
| 263 | Principal Commissioner of Income-tax v. Halmira Estate Tea (P.) Ltd. | Revisionary order set aside; due verification already done by Assessing Officer. | Click Here | Income-tax Act, 1961 |
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