INCOME TAX CASE LAWS 11.09.2026

Section	Relevant Act	Case Law Title	Citation	Brief Summary
Section 2	Prohibition of Benami Property Transactions Act, 1988	DCIT v. R. Bharathi	Click Here	Creation of trade payables, conversion into premium, and share buy-backs known to benamidars do not constitute benami transactions under section 2(9)(C); Income-tax contradictions do not alter this.
Section 9	Income-tax Act, 1961	Solvay Specialities India (P.) Ltd. v. Principal Commissioner of Income-tax	Click Here	Payment to overseas group entities accepted by AO as non-taxable FTS without TDS requirement was a plausible view, making PCIT’s revision under Section 263 unsustainable.
Section 12A	Income-tax Act, 1961	Lala Sher Singh Memorial Jeevan Trust Society v. Principal Commissioner of Income-tax (Central)	Click Here	Section 12A renewal inquiry must be limited to the preceding 3 years’ objects and activities; rejection based on prior search material or Section 13 violations was without jurisdiction.
Section 28(i)	Income-tax Act, 1961	Bhaveshbhai Bhimjibhai Savani v. Income-tax Officer	Click Here	Reassessment based on enabling partnership deed clauses was quashed where deed was amended to negate interest/remuneration and no payments were actually received.
Section 32	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Assessee was allowed to claim higher depreciation at 60% on written down value of software in accordance with binding Tribunal precedents for later years.
Section 36(1)(iii)	Income-tax Act, 1961	Solvay Specialities India (P.) Ltd. v. Principal Commissioner of Income-tax	Click Here	Revision under Section 263 was justified to examine capitalization of ECB interest where assessee failed to demonstrate actual use of funds for working capital.
Section 36(1)(vii)	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Disallowance of bad debt write-offs was deleted because identical claims were accepted by the revenue in a subsequent assessment year.
Section 37(1)	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Absence of a revised return does not bar adjudication of doubtful loans/advances written off; matter remanded for factual verification.
Section 37(1)	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Remanded to verify if written-back provisions for customs duty and leave encashment were taxed in preceding years, to allow relief if previously taxed.
Section 37(1)	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Reversal of provision for foreseeable losses settled under Vivad se Vishwas scheme remanded to AO for factual verification and computation.
Section 37(1)	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Warranty and replacement expense disallowances deleted because identical business expenditure claims were accepted in subsequent years.
Section 37(1)	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Expenditure incurred to purchase business rights is allowable as revenue expenditure despite long-term benefit, following the Taparia Tools principle.
Section 37(1)	Income-tax Act, 1961	Solvay Specialities India (P.) Ltd. v. Principal Commissioner of Income-tax	Click Here	Section 263 revision for miscellaneous expenses is invalid where AO already conducted proper inquiry, received explanations, and accepted the claim.
Section 40(a)(ia)	Income-tax Act, 1961	Solvay Specialities India (P.) Ltd. v. Principal Commissioner of Income-tax	Click Here	PCIT directive to verify TDS on payments to statutory bodies was an impermissible roving inquiry since no specific assessment error was identified.
Section 40(a)(ia)	Income-tax Act, 1961	Deputy Commissioner of Income-tax (OSD) (TDS) v. Tata Communications Transformation Services Ltd.	Click Here	Suo-moto 30% disallowance on year-end provisions does not absolve Chapter XVII-B TDS obligations when payees are not deducted at time of provision.
Section 92C	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Import duty adjustment on account of higher import content in comparables granted to compute ALP, consistent with prior year’s treatment.
Section 92C	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Abnormal/non-recurring items (goodwill amortization, bad debts, legal costs for non-AEs) are to be excluded from operating costs under TNMM.
Section 92C	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Applying an unstatutory 50% turnover filter on general presumption to reject TNMM study was improper; fresh ALP computation ordered.
Section 92C	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Capacity utilization adjustment claim in transportation segment remanded to TPO for fresh consideration upon submission of supporting evidence.
Section 92C	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Dispute regarding entitlement to working capital adjustment in ALP determination remanded to TPO for fresh factual verification.
Section 92C	Income-tax Act, 1961	GE India Industrial (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Transfer pricing adjustments must strictly be confined to international transactions with Associated Enterprises, excluding unrelated transactions.
Section 120	Income-tax Act, 1961	Indovision Commodities Ltd. v. Income-tax Officer	Click Here	Reassessment by ITO without a valid Section 127 transfer order and lacking pecuniary jurisdiction per CBDT limits is void and quashed.
Section 153D	Income-tax Act, 1961	Vimal Ranchhodbhai Patel v. Assistant Commissioner of Income-tax	Click Here	Inability of Revenue to produce mandatory approval letters under Section 153D renders search assessment orders invalid and quashable.
Section 154	Income-tax Act, 1961	Usha Jewellers v. Income-tax Officer	Click Here	Maintaining cash deposit additions in a dissolved firm’s assessment when already taxed in the proprietor-successor’s hands is double taxation, rectifiable under Section 154.
Section 201	Income-tax Act, 1961	Deputy Commissioner of Income-tax (OSD) (TDS) v. Tata Communications Transformation Services Ltd.	Click Here	Verification of payee identity and credit details is required to determine Chapter XVII-B TDS liability on year-end estimated provisions.
Section 220	Income-tax Act, 1961	VSAIPPL-SMC(JV) v. Income-tax Officer	Click Here	Mandating a blanket 20% deposit for stay of demand based on CBDT guidelines without exercising independent statutory discretion is illegal.
Section 237	Income-tax Act, 1961	Commissioner of Income-tax – International Taxation -1 v. Dipankar Mohan Ghosh	Click Here	A return filed post-Section 148 notice due to bona fide AAR pendency is on par with a regular return; refund of prepaid taxes and interest cannot be denied.
Section 245B	Income-tax Act, 1961	DCIT v. R. Bharathi	Click Here	Settlement Commission orders holding trade payables genuine bind Income Tax proceedings only, with no overriding effect on Benami Act actions.
Section 270A	Income-tax Act, 1961	Tasneem Feroz Nalwalla v. ITO	Click Here	Unreported interest income by an elderly NR reliance on an accountant constitutes ‘under-reporting’ but not ‘misreporting’; penalty capped at 50%.
Section 271(1)(c)	Income-tax Act, 1961	Commissioner of Income-tax – International Taxation -1 v. Dipankar Mohan Ghosh	Click Here	Penalty order for concealment of income under Section 271(1)(c) cannot survive once the underlying reassessment order is set aside.
Section 271AAB	Income-tax Act, 1961	Income-tax Officer v. Vaibhav Gattani	Click Here	Surrendered loan advances based on diary entries without corroborating assets do not constitute ‘undisclosed income’; penalty under 271AAB deleted.