IMPORTANT INCOME TAX CASE LAWS 24.09.2025

By | September 25, 2025
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IMPORTANT INCOME TAX CASE LAWS 24.09.2025

SectionCase Law TitleBrief SummaryCitationRelevant Act
Section 10(1)Principal Commissioner of Income-tax v. Nuziveedu Seeds Ltd.Income from the production and sale of hybrid seeds, where the assessee engaged farmers and exercised control and supervision over the cultivation process, was rightly treated as agricultural income and eligible for exemption.Click HereIncome-Tax Act, 1961
Section 32Dynaspede Integrated Systems (P.) Ltd. v. Deputy Commissioner of Income-taxThe matter regarding the claim of depreciation on goodwill arising from amalgamation was remanded back to the Commissioner (Appeals) for fresh consideration, as the initial appeal was dismissed without a specific finding and without requiring the necessary documents.Click HereIncome-Tax Act, 1961
Section 36(1)(va)Pramod Telecom (P.) Ltd. v. Deputy Commissioner of Income-tax/ACITDisallowance of employees’ contribution to ESI/EPF was justified under Section 43B read with Section 36(1)(va) because the contributions were made after the due date prescribed under the respective Acts.Click HereIncome-Tax Act, 1961
Section 37(1)Smt. Sudha Loyalka v. Income-tax OfficerThe Tribunal ruled that while sales were accepted, due to unverifiable sundry creditors/purchases, the expenditure could not be entirely disallowed under Section 41(1); instead, 25% of the unverifiable purchases was to be disallowed as non-genuine business expenditure.Click HereIncome-Tax Act, 1961
Section 40A(7)Pramod Telecom (P.) Ltd. v. Deputy Commissioner of Income-tax/ACITA demand raised under Section 143(1)(a) (Intimation) on the issue of gratuity was required to be modified, as the claim had already been allowed by the Assessing Officer in a scrutiny assessment under Section 143(3).Click HereIncome-Tax Act, 1961
Section 56Devaraya Pillai Subramanian v. Income-tax OfficerInterest on enhanced compensation for the compulsory acquisition of agricultural land situated beyond 8 km of municipal limits constitutes accruals to principal compensation and is to be treated as capital gains eligible for exemption under Section 10(37), not ‘Income from Other Sources’.Click HereIncome-Tax Act, 1961
Section 68Assistant Commissioner of Income-tax, Central v. Agrawal Infrabuild (P.) Ltd.The Assessing Officer was justified in treating share application money as an unexplained cash credit under Section 68, as the investor company had no business activity/infrastructure, was untraceable, and the money trail showed the funds originated from the assessee’s group itself.Click HereIncome-Tax Act, 1961
Section 68Principal Commissioner of Income-tax v. Vinod Premjibhai GanganiThe Assessing Officer was not justified in making an addition on LTCG on the sale of shares as an unexplained cash credit, as the assessee had furnished complete evidence (contract note, demat details, bonus shares) and no adverse evidence was presented by the Revenue.Click HereIncome-Tax Act, 1961
Section 80GShree Fofaria Family Charitable Trust v. Commissioner of Income-tax (Exemption)The rejection of an application for approval under Section 80G was remitted for fresh consideration because the assessee had inadvertently selected a wrong section code in Form 10-AB, and the rejection without an opportunity of being heard violated natural justice.Click HereIncome-Tax Act, 1961
Section 143Pramod Telecom (P.) Ltd. v. Deputy Commissioner of Income-tax/ACITThe Assessing Officer was within his rights to make a disallowance under Section 143(1)(a) (Intimation) for the late deposit of employees’ contribution to ESIC and EPF while processing the return.Click HereIncome-Tax Act, 1961
Section 271(1)(c)Principal Commissioner of Income-tax v. Colo Colour (P.) Ltd.The levy of a penalty for concealment of income under Section 271(1)(c) was not sustainable where the additions were made on bogus purchases merely on an estimate basis and by relying upon Sales Tax Department information that was not furnished to the assessee.Click HereIncome-Tax Act, 1961

For More :- Read IMPORTANT INCOME TAX CASE LAWS 23.09.25