| Income Tax Act, 1961 |
Section 192 & Section 201 |
State Bank of India vs. ITO, TDS |
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The assessee-bank was held liable as an “assessee in default” under section 201 because it failed to deduct TDS under section 192 on Leave Fare Concession (LFC) payments made to employees whose travel itineraries included a foreign leg, rather than being strictly restricted within India. |
| Income Tax Act, 1961 |
Section 69A |
Bose Saravanan vs. Deputy Commissioner of Income-tax |
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An addition made under section 69A for large bank deposits was deleted. The assessee, a Chartered Accountant, successfully explained that the credits were client funds meant for tax payments, backed by matching debits to tax challans, proving he merely acted as a conduit. |
| Income Tax Act, 1961 |
Section 40(a)(ia) |
ACIT vs. Bharat Sanchar Nigam Ltd. |
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Disallowance under section 40(a)(ia) was held unsustainable. Discounts allowed by the telecom company to its distributors/franchisees do not attract TDS provisions, and therefore, cannot be disallowed under this section. |
| Income Tax Act, 1961 |
Section 11 & Section 12 |
Spreading Smiles vs. ITO-Ward exemption |
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The trust was granted tax exemption under section 11. Applying the “doctrine of relating back,” the trust was held eligible for the exemption because it secured regular registration for overlapping years post-Tribunal remand, despite holding only provisional registration when filing the disputed return. |
| Income Tax Act, 1961 |
Section 254 & Section 50C |
BE Pharmaceuticals (P.) Ltd. vs. Assistant Commissioner of Income-tax, Circle 2(1) |
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In a dispute regarding asset valuation for a goodwill depreciation claim, the High Court ruled that the Tribunal has powers under section 254 to direct a reference to the Departmental Valuation Officer (DVO), as appellate proceedings are a continuation of assessment proceedings. |
| Income Tax Act, 1961 |
Capital Gains (Cost of Acquisition) |
Rathinavel Sukumar vs. Income Tax Officer |
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For computing long-term capital gains on an inherited property (originally acquired via settlement from the mother in 1974), the assessee is entitled to adopt the Fair Market Value (FMV) as of 01.04.1981, which must be accepted in the absence of contrary evidence from the Revenue. |
| Income Tax Act, 1961 |
Section 153C, Section 153D & Section 292BC |
Max City Developers (P.) Ltd. vs. Deputy Commissioner of Income-tax |
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Section 292BC cannot retrospectively cure statutory approval defects for pre-01.04.2021 cases. The JCIT’s “Technical Approval” under section 153D was granted mechanically without evaluating seized documents, thereby vitiating the entire assessment. |
| Income Tax Act, 1961 |
Service Law / Pay Scale Anomaly |
Union of India vs. Income-tax Gazetted Officer Association Rajasthan |
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The Supreme Court dismissed the Revenue’s Special Leave Petition (SLP), affirming that pay stepping-up was rightly granted to senior officers to eliminate a pay anomaly where junior officers were earning higher salaries due to advance increments earned after passing departmental exams. |
