INCOME TAX CASE LAW 27.05.2026
| Section | Case Law Title | Brief Summary | Citation | Relevant Act |
| Section 10(23C) | St. Marks School Society v. Deputy Commissioner of Income-tax (CPC) | Following judicial discipline, Revenue cannot restrict exemption benefits to AY 2019-20 when the Tribunal had already directed approval from AY 2018-19 in earlier proceedings. |
2026
|
Income-tax Act, 1961 |
| Section 28(i) | Bharat Associates v. ACIT(OSD) | Income surrendered during survey assessable as business income under Sec 28 (not under Sec 68, 69A-C); hence, high tax rates under Section 115BBE are not applicable. |
2026
|
Income-tax Act, 1961 |
| Section 37(1) | Bharat Associates v. ACIT(OSD) | Disallowance of construction expenses against surrendered income was justified as no supporting evidence was provided or claimed during the survey. |
2026
|
Income-tax Act, 1961 |
| Section 37(1) | Joint Commissioner of Income-tax (OSD) v. Knight Riders Sports (P.) Ltd. | Travel, vehicle hire, and lodging expenses for celebrities/VIPs invited to IPL matches to boost ticket sales are wholly for business; ad-hoc disallowances are unsustainable. |
2026
|
Income-tax Act, 1961 |
| Section 37(1) | Joint Commissioner of Income-tax (OSD) v. Knight Riders Sports (P.) Ltd. | Club entrance and subscription fees incurred for holding business meetings and smooth operations constitute allowable business expenditure. |
2026
|
Income-tax Act, 1961 |
| Section 37(1) | Joint Commissioner of Income-tax (OSD) v. Knight Riders Sports (P.) Ltd. | Food, nutrition, boarding, and lodging expenses for actors and VIPs to enhance IPL sponsorship revenue are fully allowable under Section 37(1). |
2026
|
Income-tax Act, 1961 |
| Section 37(1) | Joint Commissioner of Income-tax (OSD) v. Knight Riders Sports (P.) Ltd. | Website design charges facilitate business operations without creating an enduring capital asset and are hence allowed as revenue expenditure. |
2026
|
Income-tax Act, 1961 |
| Section 37(1) | Joint Commissioner of Income-tax (OSD) v. Knight Riders Sports (P.) Ltd. | Annual franchise fee paid to BCCI for IPL participation is a recurring revenue payment (no asset created) and is fully deductible. |
2026
|
Income-tax Act, 1961 |
| Section 40(b) | Bharat Associates v. ACIT(OSD) | Book profits must be recomputed by adding back confirmed disallowances/additions to calculate allowable partners’ remuneration. |
2026
|
Income-tax Act, 1961 |
| Section 43B | Joint Commissioner of Income-tax (OSD) v. Knight Riders Sports (P.) Ltd. | Disallowance of employee salary and bonus is unsustainable where provisions were created under the mercantile system, TDS was deducted, and payment was made before the ITR due date. |
2026
|
Income-tax Act, 1961 |
| Section 54F | Dilip Prasad ACIT v. Alap Somabhai Patel | Connected claim of Sec 54F exemption restored for fresh consideration since the principal issue regarding non-deposit in the Capital Gains Accounts Scheme was remanded. |
2026
|
Income-tax Act, 1961 |
| Section 68 | Dilip Prasad ACIT v. Alap Somabhai Patel | Matter remanded for de novo consideration as Revenue challenged CIT(A)’s relief on the ground that the transfers were linked to land sales rather than loans. |
2026
|
Income-tax Act, 1961 |
| Section 69 | Dilip Prasad ACIT v. Alap Somabhai Patel | Assessee granted one more opportunity to substantiate source of excess search jewellery where contemporaneous documents were missing. |
2026
|
Income-tax Act, 1961 |
| Section 69 | Rahul Purswani v. Income-tax Officer | No addition for unexplained investment can be made in AY 2015-16 if full payments and the Agreement for Sale took place in FY 2013-14, even if registration happened later. |
2025/2026
|
Income-tax Act, 1961 |
| Section 69 | Rahul Purswani v. Income-tax Officer | Reassessment notice under Sec 148 is void ab initio if issued beyond limitation without verifying previous registered agreements or deeds. |
2025/2026
|
Income-tax Act, 1961 |
| Section 69A | Anuradha v. Income-tax Officer | Peak cash deposits of Rs. 5.61 lakhs deleted as unexplained money since they were fully covered by the assessee’s yearly agricultural receipts from 30 acres of land. |
2026
|
Income-tax Act, 1961 |
| Section 69A | Dilip Prasad ACIT v. Alap Somabhai Patel | Loose paper addition for alleged “on-money” remanded as CIT(A) failed to fully analyze the material or Sec 132(4) statements regarding its nature as a projection sheet. |
2026
|
Income-tax Act, 1961 |
| Section 69A | Dilip Prasad ACIT v. Alap Somabhai Patel | Unexplained cash additions remanded for de novo adjudication alongside connected appeals to allow assessee to submit proof of household savings/gifts. |
2026
|
Income-tax Act, 1961 |
| Section 69C | Kamlesh Kukreja v. Income-tax Officer | Reassessment for alleged bogus purchases over Rs. 50 lakhs initiated beyond 3 years was quashed because approval was taken from the PCIT instead of the higher authority required under Sec 151. |
2026
|
Income-tax Act, 1961 |
| Section 144C | LX Pantos India (P.) Ltd. v. NFAC, Delhi | AO is bound by mandatory DRP directions under Section 144C(10). Additions made contrary to DRP’s instruction (not to add under Sec 40(a)(i) if preceding years weren’t appealed) are unsustainable. |
2026
|
Income-tax Act, 1961 |
| Section 153C | Dilip Prasad ACIT v. Alap Somabhai Patel | Assessments are not time-barred merely because the AO is common; however, the AO must still record separate, statutory satisfaction regarding seized material for the “other person”. |
2026
|
Income-tax Act, 1961 |
| Section 156 | Swastik Ceracon Ltd. v. Office of the DCIT Circle-4(1)(1) | Reassessment and demand notices for pre-CIRP periods lack jurisdiction and are quashed if an NCLT-approved resolution plan under the IBC has extinguished all past liabilities. |
2026
|
Income-tax Act, 1961 |