IMPORTANT INCOME TAX CASE LAW 07.10.2025
| Section | Case Law Title | Brief Summary | Citation | Relevant Act |
| 1 | Krishna Nursing Home vs. Income-tax Officer | ITAT set aside CIT(A)’s ex parte dismissal of appeal and remanded for fresh hearing, as the assessee missed notices due to severe financial crisis and seizure of business premises, violating principles of natural justice. | Click Here | Income-tax Act, 1961 |
| 2 | Sarangpur Talia’s Pole Punch Trust vs. Income-tax Officer | ITAT held that the Finance Act, 2022 amendment restricting the utilization period for accumulated trust income to five years under Section 11(3) is prospective. Thus, for accumulation from FY 2016-17, the trust had a six-year period (till 31-3-2023) to utilize the income under the old law. | Click Here | Income-tax Act, 1961 (specifically Section 11(2), 11(3)) |
| 3 | Harshi Tripathi vs. Income-tax Officer | ITAT remanded the matter concerning Section 69A addition (unexplained money/cash deposit) to grant the assessee a final opportunity to submit evidence (cash book, bank statement) to substantiate the claim that the cash was deposited by her parents and relatives. | Click Here | Income-tax Act, 1961 (specifically Section 69A) |
| 4 | Principal Commissioner of Income-tax vs. Hamlet | HC held that no addition under Section 68 (cash credits) could be made for loss on share sale where the Tribunal found transactions genuine after examining bank statements and net worth of purchaser-companies, as the findings were factual. | Click Here | Income-tax Act, 1961 (specifically Section 68) |
| 5 | SEW Foundation vs. Income-tax Officer (Exemptions) | ITAT allowed exemption for corpus donations under Section 11(1)(d) for AY 2017-18, as the amended provisions (requiring investment in Section 11(5) modes via Explanations 3A and 3B) are not applicable for that assessment year. | Click Here | Income-tax Act, 1961 (specifically Section 11(1)(d), 11(5), Explanations 3A & 3B) |
| 6 | Krishnamoorthy Vijayaraghavan vs. Income-tax Officer | ITAT ruled that deduction under Section 54 is allowable if the investment in a new residential asset (purchase/construction) is made within three years, even if the unutilized sale consideration was not deposited in the Capital Gains Account Scheme before the return due date. | Click Here | Income-tax Act, 1961 (specifically Section 54, Capital Gains Account Scheme) |
| 7 | Yashaswini Gruha Nirmana Sahakara Sangha Niyamitha vs. Income-tax Officer | HC set aside the ex-parte order passed under Section 144, as the notice was sent to an email ID that was not in use by the assessee (a cooperative society), resulting in a lack of proper notice. | Click Here | Income-tax Act, 1961 (specifically Section 144) |
| 8 | Philips India Ltd. vs. Deputy Commissioner of Income-tax | ITAT ruled in a Transfer Pricing case that a company engaged in diversified and engineering services is not comparable to an assessee-company rendering software development services. | Click Here | Income-tax Act, 1961 (Transfer Pricing provisions) |
| 9 | Shree Vardhman Samaj Utkarsh Fund vs. Commissioner of Income-tax (Exemption) | ITAT set aside the rejection of Section 80G approval and remanded the matter, as the CIT(E) failed to verify whether the 5% threshold for private religious expenditure under Section 80G(5B) had been breached, despite audit reports showing no such expenditure. | Click Here | Income-tax Act, 1961 (specifically Section 80G(5), 80G(5B)) |
| 10 | Sanmar Group Corporate Finance vs. Assessment Unit | HC set aside the AO’s order and remanded the matter, as the AO proposed variations/additions ignoring sufficient evidence (financial capability, flow of funds) placed on record by the partnership firm to explain capital contributions from partners. | Click Here | Income-tax Act, 1961 |
| 11 | Deputy Commissioner of Income-tax vs. Sahajanand Medical Technologies Ltd. | ITAT held that notional exchange gain arising from the conversion of a foreign currency loan (capital loan) advanced to a foreign subsidiary cannot be treated as the assessee’s income. | Click Here | Income-tax Act, 1961 |
For More :- Read IMPORTANT INCOME TAX CASE LAWS 05.10.2025