INCOME TAX CASE LAW DIGEST 12.6.2026
INCOME TAX CASE LAW DIGEST 12.6.2026
Case Law Analysis Summary
| Relevant Act | Section(s) | Case Law Title | Brief Summary | Citation |
| Income-tax Act, 1961 | Sec. 119(2)(b) | Shree Chandraprabha Medical Trust vs. Commissioner of Income-tax (Exemptions) | A 113-day delay in e-verifying Form 10B during the COVID-19 period was condoned. The delay was deemed bona fide as it was the first year of the preponed due date and fell within the lockdown timeline extensions. | Click Here |
| Income-tax Act, 1961 | Sec. 44AB, Sec. 69 | Kavita Pahuja vs. Income-tax Officer | Reassessment was quashed because the Assessing Officer (AO) made final additions based on initial investments and share purchases, completely deviating from the original recorded reasons for reopening (which was to estimate profit on turnover). | Click Here |
| Income-tax Act, 1961 | Sec. 14A, Rule 8D | Huhtamaki India Ltd. vs. Deputy Commissioner of Income-tax | Non-current investments in a subsidiary that did not generate exempt income cannot be included in the average value of investments when computing disallowances under Rule 8D. Only investments yielding actual exempt income count. | Click Here |
| Income-tax Act, 1961 | Sec. 69A | Dhaval Patel vs. ACIT | An addition for unexplained money based solely on a seized WhatsApp message stating “50 lacs given…” was deleted. The message lacked evidence of a cash payment, and the assessee successfully backed the transaction using regular ledger and bank details. | Click Here |
| Black Money Act, 2015 | Sec. 43 (read with Sec. 139 & 153A of IT Act) | Additional Commissioner of Income-tax vs. Ansul Darshan Shah | Penalty for non-disclosure of foreign assets was deleted because the assets (earned while non-resident) were voluntarily disclosed in post-search returns under Sec. 153A, which legally substitute original returns. No deliberate tax evasion was established. | Click Here |
| Black Money Act, 2015 | Sec. 11 | Smt. Bindu Todi vs. DDIT(Inv) 1 Gurgaon | Assessment under the Black Money Act was quashed as time-barred. The court held that TOLA (2020) and CBDT deadline extensions apply only to the Income-tax Act and Benami Act, not to the Black Money Act. | Click Here |
| Income-tax Act, 1961 | Sec. 271(1)(c) | Laxmi Narayan Mittal vs. Income-tax Officer, Central | Concealment penalty cannot be sustained if it is based purely on estimated gross profits from alleged unaccounted sales or unsubstantiated loose-sheet entries. Penalty deleted due to lack of solid incriminating evidence. | Click Here |
| Income-tax Act, 1961 | Sec. 69 | Sonepal Singh Kohli vs. Income-tax Officer (Int-Tax) | An ex parte assessment treating an NRI’s time deposits and forex purchases as unexplained investments was remanded back to the AO for a fresh, de novo adjudication to give the assessee a fair opportunity to explain the sources. | Click Here |