IMPORTANT INCOME TAX UPDATE 03.11.2025
| Section | Case Law Title | Brief Summary | Citation | Relevant Act |
| Section 2(15) | Marwadi Navyuvak Vachanalaya v. Commissioner of Income-tax (Exemption) | Rental income from letting out shop spaces by an assessee-trust engaged in educational/philanthropic activities, used to fund charitable objects, will not attract the proviso to section 2(15), and registration under section 12A cannot be denied. | Click Here | ITA, 1961 |
| Section 11 | Income-tax Officer (Exemption) v. Seth Damji Laxmichand Jain Dharma Sthanak | Belated filing of Form No. 10B (audit report) before the completion of assessment is a procedural irregularity, and exemption under section 11(2) cannot be denied to the assessee-trust. | Click Here | ITA, 1961 |
| Section 11(3) | Income-tax Officer (Exemption) v. Seth Damji Laxmichand Jain Dharma Sthanak | Unutilized accumulated income donated to other trusts instead of being used for the specified purpose within the permissible period constituted a violation, justifying an addition under section 11(3)(d). | Click Here | ITA, 1961 |
| Section 11(3) | Yuvak Pratishthan v. Income-tax Officer | An addition made under section 143(1) based on an inadvertent arithmetical error in Form 10BB regarding deemed income under section 11(3) must be deleted if corrected through a revised form. | Click Here | ITA, 1961 |
| Section 11 | Yuvak Pratishthan v. Income-tax Officer | For the Rs. 5 crore threshold (Rule 17B), only gross receipts from charitable activities are relevant; the effect of section 11 (deductions or deemed income) is not considered, thus the Form 10BB audit report was valid. | Click Here | ITA, 1961 |
| Section 12A | Pata Trans Himalayan Empowerment Society v. Income-tax Officer | Delay in filing an appeal against rejection of registration under sections 12A and 80G, if due to a bona fide mistake based on counsel’s advice, is to be condoned. | Click Here | ITA, 1961 |
| Section 12A | Pata Trans Himalayan Empowerment Society v. Income-tax Officer | Rejection of an application for registration under section 12A without providing an opportunity of hearing to the assessee requires the matter to be remanded for fresh adjudication. | Click Here | ITA, 1961 |
| Section 35 | Malwa Oxygen & Industrial Gases (P.) Ltd. v. Income-tax Officer, NFAC, Delhi | If scientific research satisfies the definition under section 43(4)(iii), the assessee is entitled to 100% deduction of revenue expenses under section 35(1)(i) and depreciation on R&D assets under section 32(1), even if the higher weighted deduction claim was withdrawn. | Click Here | ITA, 1961 |
| Section 56 | Mamta Agarwal v. PCIT | Revision by PCIT based on an unsustainable change of opinion, treating a variation within the 10 per cent permissible limit between sale consideration and DVO-determined FMV of an immovable property as taxable income under section 56, was not supported by law. | Click Here | ITA, 1961 |
| Section 68 | Deputy Commissioner of Income-tax v. Arihant Suresh Jain | Addition under section 68 for alleged bogus LTCG from share transactions is unsustainable if the assessee has prima facie discharged the onus by substantiating purchases/sales through contract notes, demat, and bank statements, and no defect or price rigging was established. | Click Here | ITA, 1961 |
| Section 69 | Sahyog Corporation v. Assistant Commissioner of Income-tax | A reassessment initiated solely on the basis of a DVO valuation report, without the Assessing Officer conducting any independent enquiry under section 148A(a), is invalid, and the reopening order/notice must be quashed. | Click Here | ITA, 1961 |
| Section 80 | Balaji Landmarks LLP v. Central Board of Direct Taxes (CBDT) | Delay in filing a loss return due to inadequate professional advice on a complex tax issue, and not negligence, is considered bona fide and should be condoned, treating the return as filed under section 153(1B). | Click Here | ITA, 1961 |
| Section 80P | West Bengal State Co-Operative Agriculture & Rural Development Bank Ltd. v. Deputy Commissioner of Income-tax | Interest earned by a cooperative society from investing its floating funds in short-term bank deposits is eligible for deduction under section 80P(2)(a)(i), as the amount deposited was not a liability to members. | Click Here | ITA, 1961 |
| Section 80P | West Bengal State Co-Operative Agriculture & Rural Development Bank Ltd. v. Deputy Commissioner of Income-tax | Interest income on personal loans extended to members (Class D individuals) is eligible for deduction under section 80P, but interest on house building loans to staff is not eligible. | Click Here | ITA, 1961 |
| Section 245 | Megha Engineering and Infrastructure Ltd. v. Income-tax Settlement Commission | Settlement applications validly filed before the ITSC before the Finance Act, 2021 was promulgated shall be treated as pending applications to be considered by the Interim Board. | Click Here | ITA, 1961 |
| Section 254 | Buckeye Trust v. Registrar | A writ petition seeking to restrain the Tribunal from continuing with proceedings on the basis that the matter was being heard by an allegedly AI-driven bench became infructuous after the matter was assigned to a different bench. | Click Here | ITA, 1961 |
For More :- Read IMPORTANT INCOME TAX CASE LAW 02.11.2025