| Section 2 |
Myrah Trade and Business v. Deputy Commissioner of Income-tax (BPU-1) |
Unverified gold sale receipt of ₹25 lakh without KYC or proof of delivery was held to be a bogus arrangement to convert demonetized currency into transfer entries; attachment as benami property was upheld. |
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Prohibition of Benami Property Transactions Act, 1988 |
| Section 5 |
State Bank of India v. Deputy Commissioner of Income-tax |
Bank guarantee commission accrues fully in the year of receipt and cannot be spread over the guarantee period. |
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Income-tax Act, 1961 |
| Section 9 |
Kloeckner Desma Machinery (P.) Ltd. v. Deputy Commissioner of Income-tax |
Commission paid to non-resident agents without a PE or business connection in India for offshore services is not taxable in India merely because payment originated from an Indian resident; Section 40(a)(i) disallowance deleted. |
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Income-tax Act, 1961 |
| Section 12A |
Smai Sathal Dadi Gauri Mandir Seva Samiti v. Commissioner of Income-tax (Exemption) |
Rejection of registration without a show-cause notice or opportunity of being heard violates principles of natural justice; matter remanded. |
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Income-tax Act, 1961 |
| Section 12A |
B.D. Bansal, Public Charitable Trust v. Assessing Officer (Exemption) |
Rejection under Section 12A r.w.s. 12AB on grounds of non-genuineness without issuing an SCN or examining charitable outgo records violated natural justice; matter remanded. |
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Income-tax Act, 1961 |
| Section 14A |
Kloeckner Desma Machinery (P.) Ltd. v. Deputy Commissioner of Income-tax |
Where interest-free own funds exceed investments yielding exempt income and the AO fails to record satisfaction under Section 14A(2), no disallowance under Rule 8D can be sustained. |
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Income-tax Act, 1961 |
| Section 14A |
State Bank of India v. Deputy Commissioner of Income-tax |
Disallowance must be computed exclusively with reference to investments that actually yielded exempt income during the year, after giving credit for suo motu disallowance, and capped at total exempt income. |
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Income-tax Act, 1961 |
| Section 32 |
State Bank of India v. Deputy Commissioner of Income-tax |
Depreciation is not allowable on leased assets where lease transactions are pure financing arrangements/loans and lessees are the real owners. |
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Income-tax Act, 1961 |
| Section 32 |
ACIT v. SBI General Insurance Company Ltd. |
Capitalised expenditure on business software qualifies as ‘computer software’ eligible for the higher depreciation rate and is not classified as intangible ‘licences’ under Explanation 3(b) to Section 32(1)(ii). |
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Income-tax Act, 1961 |
| Section 35 |
Sedemac Mechatronics Ltd. v. Department of Scientific & Industrial Research |
Applications under Section 35(2AB) accompanied by timely electronic filing of Form 3CLA cannot be rejected as delayed; authority directed to determine eligible expenditure on merits. |
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Income-tax Act, 1961 |
| Section 36(1)(va) |
Sarvodaya Nagrik Sahakari Bank Ltd. v. Principal Commissioner of Income-tax |
Actuarially determined contributions to an approved LIC Group Gratuity Scheme are not restricted to the 8.33% ceiling of Rule 103 once the fund has been approved by the Commissioner. |
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Income-tax Act, 1961 |
| Section 36(1)(vii) |
State Bank of India v. Deputy Commissioner of Income-tax |
Bad debts written off relating to non-rural advances, not previously examined on merits, remanded to the AO for fresh verification. |
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Income-tax Act, 1961 |
| Section 36(1)(viia) |
State Bank of India v. Deputy Commissioner of Income-tax |
Deduction for bad debt provisions in the case of banks is not restricted solely to NPAs; it extends to provisions created for standard assets as well. |
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Income-tax Act, 1961 |
| Section 37(1) |
State Bank of India v. Deputy Commissioner of Income-tax |
Payments from an R&D Fund claimed for the first time before the Tribunal without substantiating details or business nexus are not allowable. |
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Income-tax Act, 1961 |
| Section 37(1) |
State Bank of India v. Deputy Commissioner of Income-tax |
Contributions to a Retired Employees’ Medical Benefit Scheme with direct business nexus are allowable welfare expenditures and not barred by Section 40A(9). |
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Income-tax Act, 1961 |
| Section 37(1) |
State Bank of India v. Deputy Commissioner of Income-tax |
Actuarially determined provisions for leave travel/home travel concessions, sick leave, and casual leave represent accrued liabilities and are deductible. |
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Income-tax Act, 1961 |
| Section 37(1) |
State Bank of India v. Deputy Commissioner of Income-tax |
Actuarially valued defined benefit pension provisions for past services rendered constitute accrued liabilities deductible in the current year despite future payout dates. |
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Income-tax Act, 1961 |
| Section 37(1) |
State Bank of India v. Deputy Commissioner of Income-tax |
Provisions creating a corpus for student incentive schemes without actual expenditure during the year are non-deductible contingent liabilities; actual disbursements remain allowable on verification. |
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Income-tax Act, 1961 |
| Section 37(1) |
State Bank of India v. Deputy Commissioner of Income-tax |
Provisions for Silver Jubilee Awards, Resettlement Units, and Retirement Awards constitute ascertained employee benefit liabilities and are allowable. |
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Income-tax Act, 1961 |
| Section 37(1) |
State Bank of India v. Deputy Commissioner of Income-tax |
Operational staff welfare scheme expenses incurred in the normal course of banking operations are fully allowable under Section 37(1). |
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Income-tax Act, 1961 |
| Section 37(1) |
State Bank of India v. Deputy Commissioner of Income-tax |
Classification of securities under the Held to Maturity (HTM) category per RBI mandates does not disentitle a banking company from claiming depreciation thereon. |
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Income-tax Act, 1961 |
| Section 37(1) |
State Bank of India v. Deputy Commissioner of Income-tax |
Broken-period interest paid on purchasing HTM securities is allowable as a deductible expense where broken-period interest received is taxed as business income. |
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Income-tax Act, 1961 |
| Section 37(1) |
NIIT Ltd. v. Commissioner of Income-tax (Central-II) |
Genuine, documented purchases consumed in business and paid via banking channels cannot be disallowed solely because they occurred after the formal distributorship agreement expired. |
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Income-tax Act, 1961 |
| Section 40(a)(ia) |
State Bank of India v. Deputy Commissioner of Income-tax |
Disallowance based on short deduction of TDS was restored to the AO for proper verification of payment nature and actual quantum of deduction. |
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Income-tax Act, 1961 |
| Section 41(4) |
State Bank of India v. Deputy Commissioner of Income-tax |
Taxability of bad debt recoveries under Section 41(4) requires factual verification of whether an actual write-off deduction was granted in the respective earlier year. |
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Income-tax Act, 1961 |
| Section 43B |
State Bank of India v. Deputy Commissioner of Income-tax |
Privilege leave encashment provision is allowable under Section 43B(f) strictly to the extent of payments executed on or before the due date of filing the return. |
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Income-tax Act, 1961 |
| Section 43B |
Krebs Biochemicals & Industries Ltd. v. Deputy Commissioner of Income-tax |
Deferred sales tax liability confirmed as a government loan by the Commercial Tax Officer warrants fresh examination for deduction eligibility under Section 43B. |
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Income-tax Act, 1961 |
| Section 43D |
State Bank of India v. Deputy Commissioner of Income-tax |
Unrealised interest on non-performing investments and NPAs recognized under RBI prudential norms cannot be brought to tax on an accrual basis; only real income is taxable. |
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Income-tax Act, 1961 |
| Section 44 |
ACIT v. SBI General Insurance Company Ltd. |
The AO cannot substitute his view to disallow reinsurance premiums ceded beyond 10% to a non-resident reinsurer when IRDAI approved the arrangement without regulatory objection. |
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Income-tax Act, 1961 |
| Section 48 |
Kloeckner Desma Machinery (P.) Ltd. v. Deputy Commissioner of Income-tax |
The first year of holding for indexation runs from the registration date of the conveyance deed, while transfer expenses require individualized verification of their nature and nexus. |
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Income-tax Act, 1961 |
| Section 54G |
Kloeckner Desma Machinery (P.) Ltd. v. Deputy Commissioner of Income-tax |
Additional Section 54G exemption for shifting to a rural area cannot be denied solely for lack of a revised return if the supporting facts were already on record; plant and machinery claim remanded for merits. |
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Income-tax Act, 1961 |
| Section 54GB |
Kamal Chand Jain v. Commissioner of Income-tax |
For Section 54GB(6), the company’s incorporation date under the Companies Act is the sole benchmark; subsequent business commencement or MSME registration dates cannot validate an untimely incorporation. |
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Income-tax Act, 1961 |
| Section 69C |
Ashish Gems v. Assistant Commissioner of Income-tax |
Completing a reassessment under Section 147 without disposing of the assessee’s objections via a separate speaking order vitiates the assessment, rendering it void. |
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Income-tax Act, 1961 |
| Section 80G |
B.D. Bansal, Public Charitable Trust v. Assessing Officer (Exemption) |
Where Section 80G rejection was a consequential result of a Section 12AB rejection and the 12AB order is remanded, the 80G application must also be restored for reconsideration. |
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Income-tax Act, 1961 |
| Section 80HHC |
Krebs Biochemicals & Industries Ltd. v. Deputy Commissioner of Income-tax |
Deductions allowed under Section 80-IB cannot be deducted to reduce eligible relief when computing deductions under Section 80HHC. |
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Income-tax Act, 1961 |
| Section 80-IA |
State Bank of India v. Deputy Commissioner of Income-tax |
Deduction claims for windmill undertakings not evaluated on their merits remanded to the AO for eligibility verification and correct computation. |
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Income-tax Act, 1961 |
| Section 80LA |
State Bank of India v. Deputy Commissioner of Income-tax |
Section 80LA deductions claimed without filing computation statements, primary eligibility documentation, or evidence cannot be entertained. |
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Income-tax Act, 1961 |
| Section 90 |
State Bank of India v. Deputy Commissioner of Income-tax |
Profits generated by foreign branches constituting Permanent Establishments of an Indian bank remain taxable in India under the worldwide income principle and treaty provisions. |
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Income-tax Act, 1961 |
| Section 92 |
NIIT Ltd. v. Commissioner of Income-tax (Central-II) |
Interest-free loans extended to a wholly-owned overseas subsidiary to support operations are quasi-equity/shareholder funding, precluding arm’s length interest imputations. |
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Income-tax Act, 1961 |
| Section 92C |
Kloeckner Desma Machinery (P.) Ltd. v. Deputy Commissioner of Income-tax |
Replacing an aggregated TNMM with the CUP method requires establishing the genuine comparability of the uncontrolled transactions rather than relying on unvetted database agreements. |
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Income-tax Act, 1961 |
| Section 92C |
Kloeckner Desma Machinery (P.) Ltd. v. Deputy Commissioner of Income-tax |
Royalty linked to manufacturing cannot be arbitrarily benchmarked using domestic rates as an internal CUP under Section 92C when TNMM on an aggregated basis is the appropriate method. |
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Income-tax Act, 1961 |
| Section 92C |
Barclays Securities (India) (P.) Ltd. v. Assistant Commissioner of Income-tax |
Broking services rendered to an AE vs. third parties justified an overall 25% discount to account for differences in research, marketing, and execution volume under internal CUP. |
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Income-tax Act, 1961 |
| Section 115JB |
Principal Commissioner of Income-tax v. National Dairy Development Board |
The provisions of Section 115JB do not apply to bodies established under separate statutory enactments (NDDB Act); hence, Section 14A disallowances cannot be added back to book profits. |
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Income-tax Act, 1961 |
| Section 115JB |
State Bank of India v. Deputy Commissioner of Income-tax |
Corresponding new banks constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 are outside the purview of MAT under Section 115JB. |
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Income-tax Act, 1961 |
| Section 115-O |
State Bank of India v. Deputy Commissioner of Income-tax |
Refund claims for excess Dividend Distribution Tax (DDT) remitted without merit verification restored to the AO for scrutiny and relief. |
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Income-tax Act, 1961 |
| Section 145 |
State Bank of India v. Deputy Commissioner of Income-tax |
Consistent, judicially affirmed accounting policies excluding book-accrued interest on securities from taxable income must be upheld to reflect real taxable profits. |
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Income-tax Act, 1961 |
| Section 145 |
State Bank of India v. Deputy Commissioner of Income-tax |
Valuing AFS and HFT securities on a scrip-wise lower of cost or market value basis reflects real income and prevents bringing unrealised market appreciation to tax. |
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Income-tax Act, 1961 |
| Section 149 |
Principal Commissioner of Income-tax v. Vikas Sharma |
Reassessment proceedings initiated past the limitation window after delayed supply of recorded reasons beyond Supreme Court directions are void as time-barred. |
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Income-tax Act, 1961 |
| Section 151 |
Padma Kallu v. Income-tax Officer |
Notices under Section 148 issued beyond three years require sanction from the designated authority under Section 151(ii); approval by an incompetent officer invalidates the reassessment. |
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Income-tax Act, 1961 |
| Section 153A |
Raman Kumar Aggarwal v. ACIT / DCIT |
Search assessments completed in the name of a deceased individual who ceased to exist prior to the order date are substantive nullities. |
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Income-tax Act, 1961 |
| Section 194A |
Tamil Nadu Power Finance and Infrastructure Development Corporation Ltd. v. DCIT, TDS |
Interest paid to wholly-owned government companies or statutory corporations (e.g., TWAD Board, State Universities) is exempt under Section 194A(3)(iii)(f) and relevant notifications. |
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Income-tax Act, 1961 |
| Section 194A |
Tamil Nadu Power Finance and Infrastructure Development Corporation Ltd. v. DCIT, TDS |
Interest credited on government scheme funds where recipients act strictly as custodians for welfare schemes is not the income of the recipient; hence, no TDS applies. |
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Income-tax Act, 1961 |
| Section 201 |
Tamil Nadu Power Finance and Infrastructure Development Corporation Ltd. v. DCIT, TDS |
Interest paid to temples without TDS requires AO verification of Forms 26A and 15G under the first proviso to Section 201(1) to decide assessee-in-default status. |
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Income-tax Act, 1961 |
| Section 249 |
Vijaya Ragava Sai Kumar Jannumahanty v. Income-tax Officer |
Summary dismissal under Section 249(4)(b) for non-payment of advance tax is unsustainable for a salaried employee whose entire income was subject to TDS. |
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Income-tax Act, 1961 |
| Section 263 |
Principal Commissioner of Income-tax v. Shree Nilkanth Quarry Works LLP |
A reassessment order framed under Section 147 without the statutory issuance of notice under Section 143(2) is void and non est, leaving no valid base for revisionary jurisdiction under Section 263. |
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Income-tax Act, 1961 |
| Section 263 |
NIIT Ltd. v. Commissioner of Income-tax (Central-II) |
Invoking Section 263 based on external pressure or directives rather than independent application of mind by the PCIT/CIT is invalid when the AO has already probed the issues. |
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Income-tax Act, 1961 |
| Section 270A |
Padma Kallu v. Income-tax Officer |
Penalty under Section 270A cannot independently survive when the foundation assessment order itself is quashed for invalid Section 151 sanction. |
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Income-tax Act, 1961 |
| Section 270A |
Sanjay Sharma v. Assessment Unit, Income-tax Department |
Filing returns only in response to a Section 148 notice after defaulting under Section 139(1) attracts under-reporting penalties under Section 270A(2)(b), even if returned income is accepted without change. |
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Income-tax Act, 1961 |
| Section 270A |
Vijaya Ragava Sai Kumar Jannumahanty v. Income-tax Officer |
Consequential penalty levied under Section 270A must be set aside once the underlying quantum addition is set aside and remanded by the Tribunal. |
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Income-tax Act, 1961 |
