Important Income Tax Case Laws 29.04.2026

Relevant Act	Section	Case Law Title	Citation	Brief Summary
Income Tax	Sec 2(1A)	Bombay Super Hybrid Seeds Ltd. v. DCIT/ACIT	Click Here	Seed Production: Income from hybrid seeds produced on leased land under company supervision is “Agricultural Income,” not business income.
Income Tax	Sec 2(22)(e)	Ashwinikumar Ramkumar Poddar v. ACIT	Click Here	Deemed Dividend: In a running account, interest accrued during credit periods must be set off against debit balances before computing deemed dividend.
Income Tax	Sec 10(4)	Abhinav Jain v. Income-tax Officer	Click Here	NRE Interest: Exemption requires proof of RBI permission for the account; failure to produce documentation makes reassessment valid.
Income Tax	Sec 11	Vanita Samaj v. Income-tax Officer	Click Here	Trust Income: Letting out property or earning royalty for charitable purposes is not “commercial activity” per se; exemption is allowable.
Income Tax	Sec 37(1)	Tata Motors Body Solutions Ltd. v. DCIT	Click Here	Defined Benefits: Provisions for unfunded employee schemes based on actuarial valuation (Ind AS 19) are “ascertained liabilities” and fully deductible.
Income Tax	Sec 40(a)(i)	Tata Motors Body Solutions Ltd. v. DCIT	Click Here	TDS Disallowance: Provisions for salary (TDS u/s 192) and purchases are not subject to disallowance at the “provisioning” stage; remanded for verification.
Income Tax	Sec 48	Kailas Kalyan Creators (P.) Ltd. v. ITO	Click Here	Encroachment: Compensation paid to encroachers to vacate land is a valid “Cost of Improvement” for computing Capital Gains.
Income Tax	Sec 69B	M. Ravindran v. Income-tax Officer	Click Here	Undisclosed Investment: Addition is justified if the DVO’s estimate reveals higher investment than disclosed, following rejection of faulty books.
Income Tax	Sec 80-IA	JSW Energy Ltd. v. ACIT	Click Here	Infrastructure: Deduction must be computed on the aggregate profits; losses of all eligible units must be set off before claiming the deduction.
Income Tax	Sec 92C	JSW Energy Ltd. v. ACIT	Click Here	TP – Power: ALP for captive power sales should be the selling tariff of the distribution licensee, not the lower purchase rate of the State utility.
Income Tax	Sec 143 / 153A	Triple S. Stock and Shares (P.) Ltd. v. Delhi	Click Here	Assessment Merger: An original assessment u/s 143(3) merges into a subsequent search assessment u/s 153A, which becomes the prevailing order.
Income Tax	Sec 145B(3)	Bando India (P.) Ltd. v. Income-tax Officer	Click Here	Duty Drawback: Explicitly taxable on a receipt basis only; AO cannot tax it on an accrual basis.
Income Tax	Sec 194-IA	Artha Real Estate Corp. Ltd. v. DCIT	Click Here	TDS Default: TDS must be deducted on the entire consideration of immovable property; partial deduction leads to “assessee-in-default” status.

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