IMPORTANT INCOME TAX CASE LAWS 17.02.2026

Section	Case Law Title	Core Ruling / Summary	Citation
Section 11	ACIT v. Anandilal & Ganesh Podar Society	[Applied Income] Provisions for gratuity and leave encashment on an actuarial basis constitute the “application of income” u/s 11, even without immediate cash outflow.	Click Here
Section 54F	Mahesh Shrivastava v. ITO	[Exemption Limit] The deeming fiction of Section 50C applies only for computing gains; for Section 54F, “net consideration” is determined by the actual amount reinvested.	Click Here
Section 151	Arvindbhai Khatri Sons v. ACIT	[Sanction Defect] Reopening notices beyond 3 years require sanction from the Principal Chief Commissioner. Approval by a lower authority quashes the proceeding.	Click Here
Section 194A	Motor & General Sales Ltd v. ITO	[Jewellery Schemes] Discounts given to customers at the end of an installment-based jewellery scheme are commercial discounts, not “interest.” No TDS required.	Click Here
Section 276B	Jyotsana Investments v. R.K. De	[Compounding] Once a compounding fee is paid and accepted for a TDS default, continuing criminal prosecution is an abuse of process and must be quashed.	Click Here