IMPORTANT INCOME TAX CASE LAWS 03.02.2026
| Relevant Act | Section | Case Law Title | Brief Summary | Citation |
| Income-tax Act, 1961 | Section 43(1) | Puri Oil Mills Ltd. v. ACIT/DCIT | [Subsidy ≠ Cost Reduction] Capital subsidy received for setting up a small hydro power project is a financial support for industrial expansion. It cannot be reduced from the “Actual Cost” of assets for computing depreciation. | Click Here |
| Income-tax Act, 1961 | Section 10(26AAA) | Roshan Agarwal v. DCIT | [Sikkim Exemption] Old settlers of Sikkim (domiciled prior to 26.04.1975) are entitled to the tax exemption at par with Sikkim Subject certificate holders. Membership in an Old Settlers Association is a valid proof. | Click Here |
| Income-tax Act, 1961 | Section 36(1)(va) | Jyotiben Niranjan Jani v. DCIT | [Audit Report Correction] Where a CA mistakenly reported PF/ESI figures belonging to another client, the assessee has a right to file a revised audit report. AO must verify the correction before making disallowances. | Click Here |
| Income-tax Act, 1961 | Section 41(1) | CIT v. Tamil Nadu State Transport Corp. | [Equity Conversion] Converting outstanding interest payable to the Government into Equity Share Capital is not a “remission or cessation” of liability. It is a change in the form of capital and not taxable as profit. | Click Here |
| Income-tax Act, 1961 | Section 50 | Amit Bholanath Mishra v. ACIT | [Depreciation is Optional] If no depreciation was ever claimed or allowed on a motor car, the AO cannot forcibly recompute a higher WDV using Explanation 6 to Section 43(6) to deny a loss set-off upon its sale. | Click Here |
| Income-tax Act, 1961 | Section 220 | Fork Media Group (P.) Ltd. v. CPC | [Excess Refund Adjustment] AO cannot adjust more than 20% of a disputed demand against a refund without specific directions from the Principal Commissioner. Blanket adjustments of full refunds are illegal. | Click Here |
For More :- Read IMPORTANT INCOME TAX CASE LAWS 31.01.2026