INCOME TAX CASE LAW 03.06.2026
INCOME TAX CASE LAW
| Relevant Act | Section | Case Law Title | Citation | Brief Summary |
| Income-tax Act, 1961 | Section 2(24) | PREMAL P. PANDYA v. Deputy Commissioner of Income-tax | Click Here | A whistleblower reward received from the US SEC after systematically collecting evidence of FCPA violations and active assistance with expectation of reward is taxable as income from other sources, not as a windfall gain or capital receipt. |
| Income-tax Act, 1961 | Section 2(29A) | Maniti Jayesh Shah v. Income-tax Officer | Click Here | The period of holding for an immovable property is to be reckoned from the date of the allotment letter (which confers enforceable rights and substantial payment), not the registration date, making the gain a long-term capital gain. |
| Income-tax Act, 1961 | Section 10B | Union of India v. N.P. Arora | Click Here | Disciplinary proceedings against an Assessing Officer are unjustified when an exemption under section 10B was allowed in a bona fide exercise of quasi-judicial functions following existing Tribunal and Supreme Court decisions. |
| Income-tax Act, 1961 | Section 56 | Maniti Jayesh Shah v. Income-tax Officer | Click Here | Where office premises are purchased via allotment and part payment is made through banking channels, the stamp duty valuation as on the allotment date must be adopted under Section 56(2)(x)(b)(B). |
| Income-tax Act, 1961 | Section 68 | Soger Malleshappa Manjunath v. Commissioner of Income-tax (Appeals) NFAC | Click Here | Deposited Specified Bank Notes (SBNs) during demonetization cannot be treated as unexplained cash credits if substantiated by cash books, VAT returns, and registers, as SBNs remained valid tender for bank deposits. |
| Income-tax Act, 1961 | Section 68 | Vikramkumar Kishanlal Mehta v. Deputy Commissioner of Income-tax | Click Here | Entire sale consideration cannot be added under section 68 when sales to an alleged accommodation entry provider are fully recorded in books, disclosed in GST returns, and routing happened through banking channels. |
| Income-tax Act, 1961 | Section 68 | Income-tax Officer v. Ashok Amritlal Nayak | Click Here | Receipts from sales alleged to be accommodation entries cannot be treated as unexplained cash credit if they are part of book turnover, profits have been offered to tax, and the books of accounts have not been rejected. |
| Income-tax Act, 1961 | Section 251 | Maniti Jayesh Shah v. Income-tax Officer | Click Here | If the CIT(A) adjudicates an issue on merits using additional evidence (allotment letter/bank statements), it is deemed admitted, and a formal refusal to admit the same under Rule 46A is legally unsustainable. |
| Income-tax Act, 1961 | Section 271(1)(c) | Deputy Commissioner of Income-tax v. Akc Retailers (P.) Ltd. | Click Here | Failure of the Assessing Officer to specify the exact charge (whether concealment of income OR furnishing inaccurate particulars) in the penalty show-cause notice vitiates the proceedings and invalidates the penalty. |