INCOME TAX CASE LAW 15.05.2026
| Section | Case Law Title | Brief Summary | Citation | Relevant Act |
| Section 5 | Commissioner of Income-tax v. Sterling Holiday Resorts (India) Ltd. | Upfront membership fees with continuing contractual service obligations over time cannot be taxed entirely in the initial year; deferred revenue recognition per AS-9 is justified. | Click Here | Income-tax Act, 1961 |
| Section 14A | SRF Ltd. v. Assistant or Deputy Commissioner of Income-tax, Circle 10(1) | No disallowance under Section 14A read with Rule 8D can be made if the assessee did not earn any exempt income during the relevant assessment year. | Click Here | Income-tax Act, 1961 |
| Section 36(1)(iii) | EM Pee Motors Ltd. v. Assistant Commissioner of Income-tax | Interest on borrowed funds attributable to capital work-in-progress or assets not yet put to use must be capitalised per the proviso to Section 36(1)(iii). | Click Here | Income-tax Act, 1961 |
| Section 36(1)(iii) | EM Pee Motors Ltd. v. Assistant Commissioner of Income-tax | Proportionate interest disallowance is warranted when interest-free advances are extended to related entities from a mixed pool of funds without proving commercial nexus. | Click Here | Income-tax Act, 1961 |
| Section 36(2) | Federal Mogul Goetze (India) Ltd. v. ACIT | Claim for write-off of advances, EMD, and security deposits as bad debts/business losses remanded to AO due to failure to discharge primary onus with complete details. | Click Here | Income-tax Act, 1961 |
| Section 37(1) | Kariganur Mineral Mining Industry v. Joint Commissioner of Income-tax | Ad hoc disallowance of business expenses is impermissible when the assessee produces proper supporting documentation (bills, registers) and no specific defects are found. | Click Here | Income-tax Act, 1961 |
| Section 37(1) | Kariganur Mineral Mining Industry v. Joint Commissioner of Income-tax | Ad hoc 20% disallowance of transportation expenses is unjustified when backed by bills, vouchers, and confirmations without proof of inflation. | Click Here | Income-tax Act, 1961 |
| Section 37(1) | Kariganur Mineral Mining Industry v. Joint Commissioner of Income-tax | Infrastructure sharing charges paid to a private company for a fully serviced office to run local operations are allowable as wholly and exclusively for business. | Click Here | Income-tax Act, 1961 |
| Section 37(1) | Kariganur Mineral Mining Industry v. Joint Commissioner of Income-tax | Substantial repairs to rented storage premises without acquiring ownership or enduring benefit are allowable as revenue expenditure despite being high relative to rent paid. | Click Here | Income-tax Act, 1961 |
| Section 37(1) | Kariganur Mineral Mining Industry v. Joint Commissioner of Income-tax | Expenditure incurred on constructing houses for flood victims under a government scheme is deductible as business expenditure, impacting Section 10B calculations. | Click Here | Income-tax Act, 1961 |
| Section 37(1) | Em Pee Motors Ltd. v. Assistant Commissioner of Income-tax | Land use conversion charges paid for third-party land create no depreciable asset or ownership in the assessee’s hands, disallowing both revenue deduction and depreciation. | Click Here | Income-tax Act, 1961 |
| Section 37(1) | Metal One Corporation India (P.) Ltd. v. Deputy Commissioner of Income-tax | Corporate club membership fees incurred wholly and exclusively for business operations are allowable as revenue expenditure. | Click Here | Income-tax Act, 1961 |
| Section 40(a)(ia) | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | Disallowance under Section 40(a)(ia) is unsustainable for equipment purchases/foreign payments absent an explicit finding of chargeability to tax in India. | Click Here | Income-tax Act, 1961 |
| Section 40(a)(ia) | Em Pee Motors Ltd. v. Assistant Commissioner of Income-tax | Failure to deduct TDS on interest paid/payable to NBFCs attracts Section 40(a)(ia) disallowance regardless of whether the sum is paid or remains outstanding at year-end. | Click Here | Income-tax Act, 1961 |
| Section 40(a)(ia) | Kariganur Mineral Mining Industry v. Joint Commissioner of Income-tax | Furnishing transporter PANs exempts payments from TDS disallowance; mere non-filing of Form 26Q/Rule 31A statements cannot justify disallowance. | Click Here | Income-tax Act, 1961 |
| Section 41(1) | Kariganur Mineral Mining Industry v. Joint Commissioner of Income-tax | Outstanding customer advances unfulfilled due to an export ban remain liabilities; mere passage of time or delay does not equate to remission/cessation of liability. | Click Here | Income-tax Act, 1961 |
| Section 43B | Kariganur Mineral Mining Industry v. Joint Commissioner of Income-tax | Crystallized customs duty liability paid partly during the year and the balance before the ITR filing due date is fully deductible under Section 43B. | Click Here | Income-tax Act, 1961 |
| Section 68 | Income-tax Officer v. LS Industries Ltd. | Addition for alleged understatement of export sales is invalid where sales were correctly accounted for net of debit notes for damaged goods and prior-period invoices. | Click Here | Income-tax Act, 1961 |
| Section 69 | Gaurav Santramdas Varma v. Assistant Commissioner of Income-tax | Reassessment based on third-party broker loose papers with pre-dated entries, mismatched area/survey numbers, and unrelated names fails the live-nexus test. | Click Here | Income-tax Act, 1961 |
| Section 80-IA | SRF Ltd. v. Assistant or Deputy Commissioner of Income-tax, Circle 10(1) | Double disallowance of Section 80-IA deduction for a Captive Power Plant based on TP observations is unsustainable; statutory deductions must be verified and allowed. | Click Here | Income-tax Act, 1961 |
| Section 90 | Metal One Corporation India (P.) Ltd. v. Deputy Commissioner of Income-tax | DDT under Section 115-O on dividend payments to beneficial treaty partners (Japan & Thailand) is capped at the beneficial 10% DTAA rate. | Click Here | Income-tax Act, 1961 |
| Section 92B | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | Notional interest on delayed trade receivables cannot be benchmarked as an international transaction if the assessee is debt-free and incurred no interest cost. | Click Here | Income-tax Act, 1961 |
| Section 92BA | SRF Ltd. v. Assistant or Deputy Commissioner of Income-tax, Circle 10(1) | SEB consumer tariff rates constitute a valid internal CUP benchmark for pricing inter-unit transfer of power under domestic transfer pricing. | Click Here | Income-tax Act, 1961 |
| Section 92C | SRF Ltd. v. Assistant or Deputy Commissioner of Income-tax, Circle 10(1) | Cost-to-cost software expense allocation to AEs with separate finance cost recovery cannot be recharacterised as intra-group services to apply TNMM markups. | Click Here | Income-tax Act, 1961 |
| Section 92C | SRF Ltd. v. Assistant or Deputy Commissioner of Income-tax, Circle 10(1) | Corporate guarantee fee charged at 0.25% backed by bank quotations and historical acceptance cannot be arbitrarily increased to 0.50% by the TPO. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | Provision for doubtful debts and statutory rates/taxes are operating in nature and must be included when computing operating margins under TNMM. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | TPO cannot determine ALP at NIL for intra-group management/support charges by questioning commercial expediency without a proper CUP comparability analysis. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | In the ITeS segment, high-turnover giant entities must be excluded from the comparable set when the assessee’s turnover is substantially lower (~Rs. 4.14 Cr). | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | For software development services, the turnover filter limits comparables to within a 10x range of the assessee’s turnover to prevent skewed benchmarking. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | Entities engaged in dissimilar functions (pure KPO/accounting/staffing) must be excluded from the comparable set for pure ITeS benchmarking. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | Know-how royalty closely linked to contract manufacturing is eligible for aggregated TNMM benchmarking; determining ALP at NIL without comparable data is invalid. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | Working capital adjustments under TNMM must be computed using average levels of trade receivables, payables, and inventory for both assessee and comparables. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | R&D-heavy manufacturers and specialized medical innovators cannot be benchmarked against standard contract manufacturers due to functional divergence. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | Entities failing export filters or demonstrating functional dissimilarity must be purged from the software development segment comparable set. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | Principle of consistency dictates the continued use of Gross Margin as the Profit Level Indicator (PLI) under TNMM for the distribution segment. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | Distribution comparables must match the trading profile (medical devices); entities failing the 25% RPT threshold or with distinct business models must be excluded. | Click Here | Income-tax Act, 1961 |
| Section 92C | Wipro GE Healthcare (P.) Ltd. v. Deputy Commissioner of Income-tax | Mechanical rejection of assessee-proposed comparables solely because they did not feature in the TPO’s initial search matrix violates Rule 10B. | Click Here | Income-tax Act, 1961 |
| Section 115JAA | Federal Mogul Goetze (India) Ltd. v. ACIT | Bona fide MAT credit carry-forward claims omitted or miscalculated in the return can be raised and verified during appellate proceedings. | Click Here | Income-tax Act, 1961 |
| Section 115JB | SRF Ltd. v. Assistant or Deputy Commissioner of Income-tax, Circle 10(1) | Addition to book profit under Section 115JB for education cess is unsustainable where the assessee never debited or claimed such cess in its computation. | Click Here | Income-tax Act, 1961 |
| Section 148 | Ashok Singh Gautam HUF v. Income-tax Officer | Reassessment notices issued without jurisdiction (violating CBDT notifications designating the National Faceless Assessment Centre) are invalid. | Click Here | Income-tax Act, 1961 |
| Section 149 | Mohmedmunaf Noormohmed Cambaywala v. Income-tax Officer | Notices issued under Sections 148/148A on or after 01-04-2021 for AY 2015-16 that violate the amended limitation periods read with TOLA are time-barred and void. | Click Here | Income-tax Act, 1961 |
| Section 156 | Garg Inox Ltd. v. Union of India | Under the ‘Clean Slate’ principle of IBC, all prior statutory tax demands and claims not included in an approved NCLT Resolution Plan are extinguished. | Click Here | Income-tax Act, 1961 |
| Section 194-IA | Harvindra Singh v. ACIT CPC TDS | The Rs. 50 lakh threshold under Section 194-IA applies to each co-purchaser/transferee independently based on individual share consideration. | Click Here | Income-tax Act, 1961 |
| Section 199 | Shree G. T. Sales v. DCIT/ACIT | TDS credit mismatches must be allowed upon verification of Form 26AS/16A where the assessee proves full tax deduction and deposit by the deductor. | Click Here | Income-tax Act, 1961 |
| Section 234A | SRF Ltd. v. Assistant or Deputy Commissioner of Income-tax, Circle 10(1) | Interest under Section 234A is not leviable if the return of income was filed within the officially extended statutory due date notified by the Ministry of Finance. | Click Here | Income-tax Act, 1961 |
| Section 245 | Shaifali Steels Ltd. v. Income-tax Officer | Tax authorities cannot adjust post-resolution tax refunds against pre-CIRP tax dues that were waived and extinguished under an approved NCLT Resolution Plan. | Click Here | Income-tax Act, 1961 |