IMPORTANT INCOME TAX CASE LAWS 20.01.2026

Relevant Act	Section	Case Law Title	Brief Summary	Citation
Income-tax Act, 1961	Section 2(15)	CIT (Exemptions) v. Gujarat Industrial Development Corporation	[Charitable Purpose] The development of industrial estates, roads, and drainage by a state corporation is a charitable activity. The sale of plots is incidental to this main object and does not constitute “trade/commerce” under the proviso to Section 2(15).	Click Here
Income-tax Act, 1961	Section 14A / 115JB	Bank of India v. ACIT	• Section 14A: No disallowance on shares held as stock-in-trade. • MAT: Section 115JB is not applicable to “Corresponding New Banks” (nationalized banks) as they are not companies under the Companies Act for this purpose.	Click Here
Income-tax Act, 1961	Section 36(1)(viia)	Bank of India v. ACIT	[Bad Debts Deduction] For computing the deduction limit under Section 36(1)(viia) (7.5% of Total Income), “Total Income” must be calculated before deducting Chapter VI-A deductions and brought forward losses.	Click Here
Income-tax Act, 1961	Section 37(1)	Kalpataru Projects International Ltd. v. DCIT	[Merger & Bogus Purchases] Ad-hoc disallowance (12.5%) of purchases made by a merging entity (JMC) prior to the merger was deleted. The Revenue failed to provide incriminating material to prove the pre-merger transactions were non-genuine.	Click Here
Income-tax Act, 1961	Section 45	Smt. Neha Jain v. ITO	[GPA ≠ JDA] A General Power of Attorney (GPA) executed by joint owners does not automatically equate to a Joint Development Agreement (JDA). Without evidence of “transfer” (possession/consideration) under Section 2(47), no Capital Gain arises.	Click Here
Income-tax Act, 1961	Section 69	Sharanam Square LLP v. Assessment Unit	[Natural Justice] Assessment order passed without considering the assessee’s detailed reply and documents regarding property purchase was quashed for violation of natural justice principles.	Click Here
Income-tax Act, 1961	Section 127	Bhupinder Singh v. PCIT	[Transfer of Case] Transfer of jurisdiction from Chandigarh to Goa was upheld for coordinated investigation, as the assessee had interlinked transactions with a Goa-based liquor group subjected to search.	Click Here
Income-tax Act, 1961	Section 148 / 151A	Krishnaveni Kokkula v. ITO	[JAO vs. FAO] After the 2022 Scheme, notices under Section 148 can only be issued by the Faceless Assessing Officer (FAO). Notices issued by the local Jurisdictional AO (JAO) are bad in law.	Click Here
Income-tax Act, 1961	Section 153C	Virat Alloys (P.) Ltd. v. ACIT	[Undated Satisfaction Note] Proceedings under Section 153C (Search on 3rd party) were quashed because the “Satisfaction Note” recording the link was undated and supplied belatedly, vitiating the assumption of jurisdiction.	Click Here
Income-tax Act, 1961	Section 264	Swaminarayan Mandir Trust v. CIT (Exemptions)	[Revision for Errors] An assessee can invoke Section 264 (Revision) to correct bona fide “punching errors” in the return (which led to denial of S. 11 exemption). The Commissioner is obliged to grant relief even for the assessee’s own mistakes.	Click Here

For More :- Read IMPORTANT INCOME TAX CASE LAWS 17.01.2026