INCOME TAX CASE LAW DIGEST 05.09.2026

Section	Case Law Title	Brief Summary	Citation	Relevant Act
Section 11	Society for Human Transformation and Research v. Income-tax Officer	Invocation of Section 40A(2)(a) and denial of Sections 11/12 exemption was unsustainable where loans were given to specified persons at lower interest from bank borrowings, as banks were not related parties and funds were utilized for charitable activities without personal benefit.	Click Here	Income-tax Act, 1961
Section 11	Society for Human Transformation and Research v. Income-tax Officer	Donations and scholarships to other charitable institutions qualified as valid application of income under Section 11 since recipient institutions held Section 12A and 80G registrations, despite non-furnishing of 80G certificates.	Click Here	Income-tax Act, 1961
Section 14A	Deputy Commissioner of Income-tax v. Uflex Ltd.	Disallowance under Section 14A read with Rule 8D was justified on exempt dividend income where the Assessing Officer recorded proper satisfaction after examining the books of account.	Click Here	Income-tax Act, 1961
Section 28(i)	Al Quresh Exports v. Assistant Commissioner of Income-tax	In cases of suppressed turnover, only the embedded profit element (estimated at a 2% net profit rate) can be brought to tax, not the entire gross sales value.	Click Here	Income-tax Act, 1961
Section 37(1)	Deputy Commissioner of Income-tax v. Uflex Ltd.	Rent paid for a farmhouse leased from the Chairman’s wife was allowable as business expenditure since it was predominantly used as a company guest house for clients and meetings, with residential use separately taxed as a perquisite.	Click Here	Income-tax Act, 1961
Section 40A(3)	Al Quresh Exports v. Assistant Commissioner of Income-tax	Blanket disallowance under Section 40A(3) was remanded for verification where the assessee provided records showing payments made to different persons or on different dates within limits, or covered under Rule 6DD exceptions.	Click Here	Income-tax Act, 1961
Section 45	Kamlesh Pukhraj Talera v. Deputy Commissioner of Income-tax	Cost attributable to surrendered land and building forms the cost of acquisition for Transferable Development Rights (TDRs); transfer of TDRs is chargeable to capital gains adopting such surrendered cost under Section 48, not NIL.	Click Here	Income-tax Act, 1961
Section 45	Viral Chandresh Virvadia v. Income-tax Officer	Inherited tenancy right is a recognized, marketable capital asset connected to identifiable immovable property; its transfer for consideration is chargeable to capital gains as computation provisions do not fail.	Click Here	Income-tax Act, 1961
Section 48	Viral Chandresh Virvadia v. Income-tax Officer	Where the assessee submitted a valuation report for tenancy rights to claim fair market value as of 01.04.2001, the Assessing Officer was directed to examine the report and compute indexed cost of acquisition.	Click Here	Income-tax Act, 1961
Section 56	Rekha Harkishan Jagwani v. Income-tax Officer	Section 56(2)(vii)(b) cannot be applied retrospectively where allotment and part payment occurred prior to its introduction; alternatively, stamp duty value on the allotment date, not registration date, must be compared.	Click Here	Income-tax Act, 1961
Section 68	Principal Commissioner of Income-tax v. J D Exim (P.) Ltd.	Advance received against sale of land in FY 2006-07 cannot be added as an unexplained cash credit under Section 68 in AY 2016-17 merely because capital gains were disclosed in the latter year.	Click Here	Income-tax Act, 1961
Section 68	India Kawasaki Motors (P.) Ltd. v. Deputy Commissioner of Income-tax	Addition under Section 68 for outstanding trade payables was deleted as the assessee provided reconciliations and the Revenue failed to bring contrary evidence or judicial precedent.	Click Here	Income-tax Act, 1961
Section 68	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Where books of account were rejected under Section 145(3), the Assessing Officer could not make separate additions under Section 68 by ignoring debits; only peak credit and telescoping benefit could be considered.	Click Here	Income-tax Act, 1961
Section 68	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Once books of account are rejected under Section 145(3), an independent addition under Section 68 in respect of a credit entry received via banking channel cannot be sustained.	Click Here	Income-tax Act, 1961
Section 68	Deputy Commissioner of Income-tax v. Uflex Ltd.	Additions under Section 68 and Section 69C were deleted where the assessee proved unsecured loans via banking channels by providing PAN, confirmations, agreements, financials, and repayment proof.	Click Here	Income-tax Act, 1961
Section 69	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Addition under Section 69 based solely on loose notings regarding investment in a plot, without any purchase deed, agreement, mutation, or payment evidence, was deleted.	Click Here	Income-tax Act, 1961
Section 69	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Addition for alleged renovation expenses based entirely on an unsigned, undated loose paper without premises identification was remanded for cross-verification with past audit reports and assessment records.	Click Here	Income-tax Act, 1961
Section 69A	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	For undisclosed beauty salon turnover discovered during survey, net profit was estimated at 12% instead of the excessive 60% adopted by the AO, considering the past disclosed profit rate of 8.5%.	Click Here	Income-tax Act, 1961
Section 69A	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Protective addition based on impounded material belonging to third parties was deleted since protective assessments cannot remain indefinitely open and must be made substantively against an entity.	Click Here	Income-tax Act, 1961
Section 69A	Deputy Commissioner of Income-tax v. Uflex Ltd.	For searches initiated on or after 01.04.2021, assessments had to be framed under Section 148, not Section 143(3); assessments completed under Section 143(3) were declared invalid and quashed.	Click Here	Income-tax Act, 1961
Section 69A	Deputy Commissioner of Income-tax v. Uflex Ltd.	Additions made under Section 69A based on material seized from a group entity were deleted for non-compliance with Explanation 2(iv) to Section 148 and lack of nexus with the assessee.	Click Here	Income-tax Act, 1961
Section 69B	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Addition for undisclosed investment in stock based solely on an estimated stock statement given to a bank for credit facilities was deleted in the absence of physical verification or corroborative evidence.	Click Here	Income-tax Act, 1961
Section 69C	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Addition for estimated proposed election expenses was deleted because the assessee never actually contested the election and no expenditure evidence was found during survey.	Click Here	Income-tax Act, 1961
Section 80-IB	Deputy Commissioner of Income-tax v. Uflex Ltd.	Deduction under Section 80-IB is allowable on scrap sales, purchase discounts, insurance claims, and liability write-backs unless the Revenue establishes they were not derived from the eligible undertaking.	Click Here	Income-tax Act, 1961
Section 90	Deputy Commissioner of Income-tax v. Uflex Ltd.	Assessing Officer was directed to verify whether foreign income was offered to tax in the relevant assessment year and grant corresponding Foreign Tax Credit (FTC).	Click Here	Income-tax Act, 1961
Section 92C	Deputy Commissioner of Income-tax v. Uflex Ltd.	Corporate guarantee commission charged at 0.40% under an interest-saving approach was reasonable and upheld over the TPO’s proposed 0.50% rate.	Click Here	Income-tax Act, 1961
Section 92C	Deputy Commissioner of Income-tax v. Uflex Ltd.	No separate adjustment for notional interest on delayed receivables from AEs is warranted where working capital and credit terms are already factored into pricing margins.	Click Here	Income-tax Act, 1961
Section 115BAA	Zenith Drugs Ltd. v. Income-tax Officer	Once the option under Section 115BAA(5) is exercised by filing Form 10-IC for AY 2023-24, it applies to all subsequent years; there is no requirement to refile Form 10-IC annually.	Click Here	Income-tax Act, 1961
Section 115BBE	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Amended, higher tax rates under Section 115BBE were held to be inapplicable to income relevant to Financial Year 2016-17.	Click Here	Income-tax Act, 1961
Section 115JB	Deputy Commissioner of Income-tax v. Uflex Ltd.	The Assessing Officer was directed to provide detailed computation workings for book profit adjustments under Section 115JB to allow the assessee to reconcile them.	Click Here	Income-tax Act, 1961
Section 143	India Kawasaki Motors (P.) Ltd. v. Deputy Commissioner of Income-tax	Reduction of business loss under Section 143(1) due to Tax Audit Report and GST refund mismatch was remanded to the AO for de novo review upon filing of additional crucial evidence.	Click Here	Income-tax Act, 1961
Section 145	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Estimation of net profit at an exorbitant rate of 60% upon book rejection was modified and restricted to 12% on gross sales after accounting for business expenditures.	Click Here	Income-tax Act, 1961
Section 149	IL & FS Pradip Refinery Water Ltd. v. Dy. Commissioner of Income-tax	Reassessment notice under Section 148 for AY 2015-16 issued after 31-03-2022 was barred by limitation under the first proviso to Section 149(1); TOLA could not extend the time limit.	Click Here	Income-tax Act, 1961 / TOLA
Section 151	Assistant Commissioner of Income-tax v. Swami Shanti Prakash Ashram Trust	SLP dismissed against High Court order quashing Section 148 notice for AY 2015-16 where sanction was obtained from Commissioner (Exemption) instead of the competent Joint Commissioner under Section 151(2).	Click Here	Income-tax Act, 1961 / TOLA
Section 153C	Assistant Commissioner of Income-tax v. Vijay Bihari Kandhari	SLP dismissed against High Court order holding that where the AO of the searched party and third party is the same, no transfer of records is involved; limitation is 12 months from the end of the FY of search under Section 153B(1).	Click Here	Income-tax Act, 1961
Section 194J	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Disallowance under Section 40(a)(ia) for non-deduction of TDS under Section 194J was deleted since purchase of standard off-the-shelf software did not constitute royalty or technical services.	Click Here	Income-tax Act, 1961
Section 220	Subhash Chander Mittal v. Director General of Income-tax	An erstwhile partner disputing interest under Sections 220(2) and 234B in a pending writ petition qualifies as an “appellant” under Section 89(1)(a) of DTVSV Scheme 2024; rejection of application was set aside.	Click Here	Income-tax Act, 1961 / DTVSV Scheme, 2024
Section 260A	Principal Director of Income-tax (Investigation) v. Prakash Nimmagadda	SLP granted against High Court order holding departmental appeal non-maintainable due to the CBDT monetary limit of Rs. 2 crores, where the tax effect arose from a Rs. 10 lakh penalty under Section 43 of the Black Money Act.	Click Here	Income-tax Act, 1961 / Black Money Act, 2015
Section 292C	Smt. Amritpreet Kaur Gill v. DCIT/ACIT	Presumption under Section 292C was rebutted and addition deleted in assessee’s hands where impounded loose sheets were proved to be integrated, accounted for, and accepted in her husband’s regular books.	Click Here	Income-tax Act, 1961