Important Income Tax Case Law 08.10.2025
| Section | Case Law Title | Brief Summary | Citation | Relevant Act |
| 4 | Deputy Commissioner of Income-tax v. Aarti Industries Ltd. | Status Holder Incentive Scrips (SHIS) subsidy and fertilizer subsidy were capital receipts and not chargeable to tax. | Click Here | The Income-Tax Act, 1961 |
| 12AA | Advantage India v. Principal Commissioner of Income-tax | Cancellation of a society’s registration was valid due to fund laundering and non-charitable activities, but the cancellation could only be effective from the year such activities began. | Click Here | The Income-Tax Act, 1961 |
| 12AB | ZLS Foundation v. Commissioner of Income-tax, Exemption | A trust’s registration application was remanded for a fresh decision because a final opportunity to be heard was not provided, even though its objects appeared to be for a specific religious community. | Click Here | The Income-Tax Act, 1961 |
| 14A | Deputy Commissioner of Income-tax v. Aarti Industries Ltd. | Section 14A disallowance does not apply when computing book profit under Section 115JB. | Click Here | The Income-Tax Act, 1961 |
| 14A | Deputy Commissioner of Income-tax v. Aarti Industries Ltd. | For Rule 8D(2)(iii) disallowance, only investments that yielded exempt income during the year should be considered in the average value. | Click Here | The Income-Tax Act, 1961 |
| 32 | Deputy Commissioner of Income-tax v. Aarti Industries Ltd. | If an asset is used for less than 180 days, the balance of additional depreciation can be claimed in the subsequent year. | Click Here | The Income-Tax Act, 1961 |
| 35 | Deputy Commissioner of Income-tax v. Aarti Industries Ltd. | Weighted deduction for R&D expenditure under Section 35(2AB) was allowed based on the principle of consistency, as it was allowed in previous years despite procedural defects. | Click Here | The Income-Tax Act, 1961 |
| 36(1)(vii) | Deputy Commissioner of Income-tax v. Ispat Infrastructure India Ltd. | The issue of bad debt disallowance was remanded because the Commissioner (Appeals) deleted the addition without verifying if the conditions of Section 36(2) were met. | Click Here | The Income-Tax Act, 1961 |
| 37(1) | Deputy Commissioner of Income-tax v. Mahindra Homes (P.) Ltd. | For a real estate developer, pre-construction expenses must be capitalized as Work-in-Progress (WIP), while general administrative and selling expenses can be allowed as revenue expenditure. | Click Here | The Income-Tax Act, 1961 |
| 37(1) | Deputy Commissioner of Income-tax v. Ispat Infrastructure India Ltd. | Deletion of an addition for operator expenses was unjustified as the assessee failed to provide any supporting documentary evidence. | Click Here | The Income-Tax Act, 1961 |
| 37(1) | Deputy Commissioner of Income-tax v. Ispat Infrastructure India Ltd. | Disallowance of motor car and telephone expenses was remanded for fresh consideration as the assessee failed to provide supporting details at any stage. | Click Here | The Income-Tax Act, 1961 |
| 43A | Deputy Commissioner of Income-tax v. Aarti Industries Ltd. | Depreciation on capitalized foreign exchange loss was allowed, following the consistent view taken by the Tribunal in the assessee’s own case in earlier years. | Click Here | The Income-Tax Act, 1961 |
| 54F | Sneh Gupta v. ACIT | Exemption under Section 54F cannot be denied just because the construction of a new house was completed beyond the statutory period due to delays in obtaining permissions. | Click Here | The Income-Tax Act, 1961 |
| 68 | Dairy India (P.) Ltd. v. ACIT | An addition under Section 68 was not justified as the cash deposited during the demonetization period was almost equal to the cash sales made during that period. | Click Here | The Income-Tax Act, 1961 |
| 80-IA | Deputy Commissioner of Income-tax v. Aarti Industries Ltd. | The Assessing Officer cannot selectively accept the TPO’s order for international transactions while ignoring it for Specified Domestic Transactions (SDTs). | Click Here | The Income-Tax Act, 1961 |
| 92C | Deputy Commissioner of Income-tax v. Mahindra Homes (P.) Ltd. | Benchmarking of Compulsorily Convertible Debentures (CCDs) was remanded as both the assessee’s and TPO’s methods failed to make appropriate adjustments for comparability. | Click Here | The Income-Tax Act, 1961 |
| 127 | Advantage India v. Principal Commissioner of Income-tax | When a case is transferred under Section 127, the new authority gains jurisdiction over all statutory functions, including the power to cancel registration under Section 12AA. | Click Here | The Income-Tax Act, 1961 |
| 132 | Raj Krishan Gupta v. Principal Director of Income-tax (Investigation) -1 | A search was held to be lawful and seized valuables were not released because the authorities had recorded valid ‘reasons to believe’ and followed all procedural requirements. | Click Here | The Income-Tax Act, 1961 |
| 143 | Sneh Gupta v. ACIT | In a limited scrutiny case, the Assessing Officer cannot expand the scope to verify other claims without obtaining prior permission to convert it into a complete scrutiny. | Click Here | The Income-Tax Act, 1961 |
| 151 | Amaan Naeem Akhtar Ansari v. Income-tax Officer | An order passed under Section 148A(d) was held to be a nullity because the required approval was taken from the PCIT instead of the PCCIT, as mandated by law for cases beyond three years. | Click Here | The Income-Tax Act, 1961 |
| 226 | Asst. Commissioner of Income-tax v. State | Money seized during a search, which was allegedly defrauded from investors, cannot be appropriated by the Income-tax Department for tax liability until the trial under the PMLA is concluded. | Click Here | The Income-Tax Act, 1961 |
For More :- Read IMPORTANT INCOME TAX CASE LAW 07.10.2025