INCOME TAX CASE LAWS 12.08.2026

Relevant Act	Section	Case Law Title	Citation	Brief Summary
Income-tax Act, 1961	Section 9	Principal Commissioner of Income-tax v. Cholamandalam	Click Here	SLP dismissed; TDS is not deductible on survey fees paid to non-resident surveyors outside India as services were entirely rendered outside the country.
Income-tax Act, 1961	Section 9	Principal Commissioner of Income-tax v. Cholamandalam	Click Here	SLP dismissed; reinsurance premium paid to non-resident reinsurers via independent facilitator brokers does not attract TDS, avoiding section 40(a)(i) disallowance.
Income-tax Act, 1961	Section 14A	Principal Commissioner of Income-tax v. Vardhman Chemtech (P.) Ltd.	Click Here	SLP dismissed as withdrawn; Section 14A disallowance is not attracted unless exempt income is actually received during the relevant assessment year.
Income-tax Act, 1961	Section 14A	Principal Commissioner of Income-tax v. Cholamandalam	Click Here	SLP dismissed; Section 14A disallowance does not apply to the computation of profits and gains of insurance businesses under Section 44 read with Rule 5 of First Schedule.
Income-tax Act, 1961	Section 32	Principal Commissioner of Income-tax v. Cholamandalam	Click Here	SLP dismissed; UPS is eligible for depreciation at the higher rate of 60%.
Income-tax Act, 1961	Section 36(1)(vii)	Kennametal India Ltd. v. Deputy Commissioner of Income-tax	Click Here	Where CPC made a double addition for bad debts previously offered to tax, the issue was remanded to the AO for proper examination and decision on merits.
Income-tax Act, 1961	Section 37(1)	Maersk India (P.) Ltd. v. Joint Commissioner of Income-tax	Click Here	Allowability of year-end provisions for professional expenses remanded to AO for fresh adjudication based on new breakdown particulars submitted by assessee.
Income-tax Act, 1961	Section 37(1)	Linde Engineering India (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	ESOP expense reimbursed by Indian subsidiary to foreign parent for options exercised by employees is allowable as employee compensation expenditure.
Income-tax Act, 1961	Section 40(a)(ia)	Maersk India (P.) Ltd. v. Joint Commissioner of Income-tax	Click Here	Where TDS on professional fees was deposited in a subsequent year, deduction is allowed only in the year of tax deposit/deduction, not the default year.
Income-tax Act, 1961	Section 40(a)(ia)	Maersk India (P.) Ltd. v. Joint Commissioner of Income-tax	Click Here	Pure pass-through reimbursement of legal fees to an association (which had already deducted TDS when paying professionals) does not attract Section 40(a)(ia) disallowance.
Income-tax Act, 1961	Section 40A(3)	Bharti Enterprise v. Income-tax Officer	Click Here	Disallowance of salary expenditure under section 40A(3) restored to AO for verification against voluminous supporting documents establishing genuineness.
Income-tax Act, 1961	Section 44	Principal Commissioner of Income-tax v. Cholamandalam	Click Here	SLP dismissed; profit on the sale of investments earned by an insurance company is not taxable in India.
Income-tax Act, 1961	Section 50C	Aroumougam Pragalanadane v. Deputy Commissioner of Income-tax	Click Here	Denial of Section 50C provisos solely because the agreement to sell was unregistered was unwarranted when consideration was received via banking channels prior to registration.
Income-tax Act, 1961	Section 50C	Aroumougam Pragalanadane v. Deputy Commissioner of Income-tax	Click Here	Retrospective benefit of curative provisos to Section 50C applies to agreements executed prior to their insertion by Finance Act, 2016, if consideration was received via RTGS.
Income-tax Act, 1961	Section 69A	ACIT v. Ram Kapoor	Click Here	Addition under section 69A was unsustainable where inflated proprietor capital arose from an audit error treating F&O sauda value as closing stock.
Income-tax Act, 1961	Section 69A	Digambhar Ananda Thoke v. ACIT	Click Here	Matter remanded to CIT(A) to provide another opportunity to the assessee to substantiate cash deposit evidence following an ex-parte dismissal.
Income-tax Act, 1961	Section 69C	Siddhivinayak Buildcon v. Assistant Commissioner of Income-tax	Click Here	Reassessment on alleged inflation of closing WIP unsustainable as reducing closing WIP increases profit and cannot result in income escaping assessment.
Income-tax Act, 1961	Section 80P	Allamlprabhu Credit Co-operative Society v. Income-tax Officer	Click Here	Reassessment notice issued beyond three years for unexplained cash deposits was without jurisdiction when final order only disallowed Section 80P deduction without adding cash deposits.
Income-tax Act, 1961	Section 92C	Kennametal India Ltd. v. Deputy Commissioner of Income-tax	Click Here	Rejection of working capital adjustment was unjustified when significant differences existed in receivables, payables, and inventory under TNMM.
Income-tax Act, 1961	Section 92C	Kennametal India Ltd. v. Deputy Commissioner of Income-tax	Click Here	TPO must use statutory powers to collect capacity utilization data of comparables from public/private sources before deciding on capacity underutilization adjustment.
Income-tax Act, 1961	Section 92C	Kennametal India Ltd. v. Deputy Commissioner of Income-tax	Click Here	Fixed overhead costs (salaries/depreciation) incurred during COVID-19 lockdown should be treated as non-operating expenses for computing operating margins under TNMM.
Income-tax Act, 1961	Section 92C	Kennametal India Ltd. v. Deputy Commissioner of Income-tax	Click Here	Transfer pricing adjustments determined under TNMM must be strictly restricted to international transactions with AEs and cannot extend to non-AE transactions.
Income-tax Act, 1961	Section 115BB	Arakere Channappa Vishwanath v. Income-tax Officer	Click Here	Gross wallet credits cannot be taxed as online gaming winnings under Section 115BB; only net winnings (after accounting for buy-ins) are taxable.
Income-tax Act, 1961	Section 115JB	Principal Commissioner of Income-tax v. Cholamandalam	Click Here	SLP dismissed; book profit provisions under Section 115JB (MAT) do not apply to insurance companies.
Income-tax Act, 1961	Section 143	Linde Engineering India (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Processing return under section 143(1) post notice under section 143(2) is valid from AY 2017-18; doctrine of merger applies only to issues actually examined under 143(3).
Income-tax Act, 1961	Section 144	Shivpur Dudh Utpadak Sahakari Mahila Mandali Ltd. v. Income-tax officer	Click Here	Ex-parte assessment set aside and remanded to AO to grant another opportunity after assessee demonstrated improper service of notices and evidence of replies.
Income-tax Act, 1961	Section 148	Asro Arcade v. Income-tax Officer	Click Here	SLP dismissed; a Section 148 notice carrying officer’s name and designation without a digital/physical signature fulfills Section 282A(2) authentication requirements.
Income-tax Act, 1961	Section 149	Geeco Enercon (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Reassessment notice under Section 148 issued in August 2024 was time-barred as the 6-year limitation period under the old regime had expired on 31.03.2022.
Income-tax Act, 1961	Section 153C	Rajib Mukhopadhyay v. Deputy Commissioner of Income-tax	Click Here	Section 153C notices quashed as recording satisfaction 10 months post searched person’s assessment failed the mandatory requirement of recording satisfaction “immediately.”
Income-tax Act, 1961	Section 194D	Principal Commissioner of Income-tax v. Cholamandalam	Click Here	SLP dismissed; insurance companies are not liable to deduct TDS on commissions paid to other insurance companies for reinsurance premiums received.
Income-tax Act, 1961	Section 245HA	Shriniwas Machine Craft (P) Ltd. v. Income-tax Settlement Commission Bombay	Click Here	SLP granted against High Court order affirming rejection of settlement application where assessment proceedings had expired by efflux of time prior to filing.
Income-tax Act, 1961	Section 250	Bhaskar Laxman Porje v. ACIT	Click Here	Ex-parte dismissal by CIT(A) set aside and remanded for fresh adjudication on merits to afford the assessee a fair hearing opportunity.
Income-tax Act, 1961	Section 268A	Principal Commissioner of Income-tax v. Smita Jhawar	Click Here	SLP dismissed; Revenue appeal is non-maintainable if the tax effect is below the monetary limit and no substantial question of law arises.
Income-tax Act, 1961	Section 270A	Ennore Tank Terminals (P.) Ltd. v. Addl /Jt./Dy. / Asstt. CIT/ITO NFAC CENTRE Delhi	Click Here	Penalty order under Section 270A set aside as neither the notice nor the final order specified grounds/reasons for alleging misreporting of income.