IMPORTANT INCOME TAX CASE LAW 04.11.2025

By | November 5, 2025
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IMPORTANT INCOME TAX CASE LAW 04.11.2025

 

SectionCase Law TitleBrief SummaryCitationRelevant Act
Section 11Shantanu Vidhyapeeth Society v. ITO, NFAC, DelhiAn assessee-society that got section 12AA registration in 2021 could invoke the first proviso to section 12A(2) for AY 2018-19 and claim exemption under sections 11/12 (subject to AO verification), even after initially claiming exemption under section 10(23C)(iiiad).Click HereIncome-tax Act, 1961
Section 14ADeputy Commissioner of Income-Tax v. Reliance Power Ltd.Disallowance under section 14A (for expenses related to exempt income) cannot exceed the exempt income itself and cannot be added back to book profits under section 115JB. The AO was directed to re-compute, considering only investments that yielded exempt income.Click HereIncome-tax Act, 1961
Section 37Gujarat Energy Development Agency v. Deputy Commissioner of Income-tax (Exemption)Impairment loss on wind turbines and abnormal loss on spares claimed by a trust were capital in nature, not allowable under section 37(1). They must be dealt with under the block of assets regime; sections 11 and 12 do not apply.Click HereIncome-tax Act, 1961
Section 43BTelangana Power Generation Corporation Ltd. v. Deputy Commissioner of Income-taxA disallowance under section 43B was remanded for reconsideration because the assessee gave contradictory explanations for a notional IND AS-109 entry, treating it as both notional and an actual interest payment.Click HereIncome-tax Act, 1961
Section 43BTelangana Power Generation Corporation Ltd. v. Deputy Commissioner of Income-taxWhere the assessee made contributions to a pension and gratuity trust via RTGS, reported in Form 3CD, the matter was remanded to the AO to verify the claim and delete the addition.Click HereIncome-tax Act, 1961
Section 44ABCommissioner of Police Coimbatore City Tamilnadu Police Canteen v. Income-tax OfficerAn assessee operating canteens for police personnel based on mutuality, transacting only with members, was not conducting a ‘business or profession’. Thus, section 44AB (tax audit) did not apply, and the section 271B penalty was deleted.Click HereIncome-tax Act, 1961
Section 50Deputy Commissioner of Income-Tax v. Reliance Power Ltd.When a helicopter (part of a block of assets) was sold and gains were computed under section 50, the asset was still treated as a long-term capital asset for section 74 (set-off) and taxed at 20% under section 112.Click HereIncome-tax Act, 1961
Section 54BIncome-tax Officer v. Nitinbhai Kanubhai PatelThe matter of section 54B exemption (for agricultural land) was restored to the Commissioner (Appeals) because the assessee failed to provide verifiable records of cultivation, and the C(A) had wrongly allowed the exemption by merely relying on a co-owner’s case without verifying facts.Click HereIncome-tax Act, 1961
Section 151Alag Property Construction (P.) Ltd. v. ACITAn order under section 148A(d) passed beyond three years was quashed because approval was obtained from the PCIT instead of the specified authority required under the amended section 151(ii), vitiating the jurisdiction.Click HereIncome-tax Act, 1961
Section 270AGujarat Energy Development Agency v. Deputy Commissioner of Income-tax (Exemption)A penalty for misreporting under section 270A was cancelled because the AO failed to specify which specific clause of section 270A(9) was attracted.Click HereIncome-tax Act, 1961
Section 276BIncome-tax Officer v. Great Indian Nautanki Co. (P.) LtdAn assessee was held guilty under section 276B for delaying TDS deposits, as an unsubstantiated plea of financial hardship was not a ‘reasonable cause’. However, since the TDS and interest were paid and the company was in liquidation, the fine was modified to an admonition.Click HereIncome-tax Act, 1961

For More :- Read IMPORTANT INCOME TAX UPDATE 03.11.2025