Important Income Tax Case Laws 18.04.2026

Section	Case Law Title	Key Judicial Ruling	Citation
Sec 2(47)	N. G. Chandra Reddy (HUF)	JDA Transfer: An irrevocable license/possession via GPA is a “transfer.” However, if consideration was taxed in later years, it cannot be taxed again in the year of transfer (No double taxation).	Click Here
Sec 10(10B)	Bajirao Shankar Jagdale	VRS Ex-gratia: Compensation under BSNL VRS-2019 is “Retrenchment Compensation.” It is a fully exempt capital receipt, not limited by the Sec 10(10C) cap.	Click Here
Sec 12AB	Gramonnati Trust	Registration vs. Exemption: Registration cannot be rejected just because Sec 2(15) is triggered. Rejection/Cancellation and denial of annual exemption are different legal stages.	Click Here
Sec 12AB	Livesurge Medical Trust	Non-commencement: Registration for a new trust cannot be denied merely because full activities haven’t started, provided objects are charitable.	Click Here
Sec 37(1)	Samira Realty Projects	Revenue vs. Project Cost: Ads and business promotion are revenue expenses. However, loan processing and security are project-specific and must be added to Work-in-Progress (WIP).	Click Here
Sec 56(2)(x)	PCIT v. Globe Capital	Share Buy-back: A buy-back is an extinguishment of shares, not an “acquisition of property.” Difference in FMV cannot be taxed as deemed income.	Click Here
Sec 56(2)(x)	Smt. Sarita Satyendra Singh	Valuation Mandate: If an assessee objects to the Stamp Duty Value, the AO must refer the matter to a Valuation Officer before adopting that value.	Click Here
Sec 115JB	DIC Fine Chemicals	MAT Principles: AO cannot increase book profit directly in the computation sheet without prior discussion in the SCN or assessment order.	Click Here
Sec 153A	PCIT v. Maneesh Pharma	Search Additions: For completed assessment years, no addition can be made under Sec 153A unless incriminating material was found during the search.	Click Here
Sec 270A	GM Modular (P.) Ltd.	Penalty Shield: Penalty for under-reporting is unsustainable if the disallowance was already part of the Sec 143(1) intimation and merely repeated in the order.	Click Here