INCOME TAX CASE LAWS 26.09.20226

By | September 28, 2026
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INCOME TAX CASE LAWS 26.09.20226

INCOME TAX CASE LAWS 26.09.20226

 

Section Relevant Act Case Law Title Brief Summary Citation
Section 10 Income-tax Act, 1961 Asst. Commissioner of Income-tax v. Tata AIG General Insurance Co. Ltd. General insurance companies remain entitled to Section 10(34) dividend exemption despite Section 44 computation; Section 14A disallowance deleted. Click Here
Section 14A Income-tax Act, 1961 Family Health Plan Insurance TPA Ltd. v. Deputy Commissioner of Income-tax Reopening original assessment to make a fresh Section 14A/Rule 8D disallowance via Section 154 is impermissible as it exceeds the scope of rectifying mistakes apparent from record. Click Here
Section 24 Prohibition of Benami Property Transactions Act, 1988 Ashesh Nanalal Doshi v. Initiating Officer, BPU, Surat Approval for provisional attachment obtained prior to notice, leading to simultaneous issuance and attachment, invalidates the Provisional Attachment Order. Click Here
Section 36(1)(vii) Income-tax Act, 1961 Commissioner of Income-tax v. The Karur Vysya Bank Ltd. Scheduled banks are allowed full deduction for bad debts written off under Section 36(1)(vii) in addition to provisions under Section 36(1)(viia). Click Here
Section 37(1) Income-tax Act, 1961 Commissioner of Income-tax v. The Karur Vysya Bank Ltd. Broken period interest paid on purchase of securities held as stock-in-trade by a bank is allowable as revenue expenditure. Click Here
Section 37(1) Income-tax Act, 1961 G. Narayana and Brothers v. Income-tax Officer Ad hoc 10% disallowance on travel, staff welfare, and bonus expenses is justified when supported only by unverifiable self-made vouchers. Click Here
Section 37(1) Income-tax Act, 1961 Asst. Commissioner of Income-tax v. Tata AIG General Insurance Co. Ltd. Expenses incurred on computer peripherals (pen drives, cables, adapters, hard disks) are revenue in nature and allowable under Section 37(1). Click Here
Section 40 Income-tax Act, 1961 Asst. Commissioner of Income-tax v. Tata AIG General Insurance Co. Ltd. Deduction must be allowed in the year tax is paid for prior Section 40(a)(ia) disallowances upon verification to avoid permanent double disallowance. Click Here
Section 40(a)(ia) Income-tax Act, 1961 Asst. Commissioner of Income-tax v. Tata AIG General Insurance Co. Ltd. Co-insurance administration fees paid on a principal-to-principal risk-sharing basis do not constitute commission; no Section 194H TDS or Section 40(a)(ia) disallowance applies. Click Here
Section 43B Income-tax Act, 1961 G. Narayana and Brothers v. Income-tax Officer Employer’s PF contribution deduction depends solely on actual payment criteria under Section 43B before due date; remanded to AO for verification. Click Here
Section 44 Income-tax Act, 1961 Asst. Commissioner of Income-tax v. Tata AIG General Insurance Co. Ltd. For general insurance business, statutory depreciation under Section 32 applies instead of book depreciation, adjusting profit on sale of assets accordingly. Click Here
Section 44 Income-tax Act, 1961 Asst. Commissioner of Income-tax v. Tata AIG General Insurance Co. Ltd. Profits on sale of investments cannot be taxed outside the statutory computation mechanism of Rule 5 of the First Schedule. Click Here
Section 54F Income-tax Act, 1961 Kiran Kumar Grandhe v. Income-tax Officer (International Taxation) Subsequent Section 54F exemption claims raised before DRP (not in initial return) are admissible if delay is reasonably explained, subject to AO verification. Click Here
Section 56 Income-tax Act, 1961 Ramesh Seth v. National Faceless Appeal Centre (NFAC), Delhi Considerations received for assigning litigative rights/claims in suit represent capital extinguishment/right to sue and cannot be taxed as Income from Other Sources. Click Here
Section 57 Income-tax Act, 1961 Ramesh Seth v. National Faceless Appeal Centre (NFAC), Delhi Deductions against interest income require proof of direct and proximate nexus; simply claiming expenses are lower than receipts is insufficient. Click Here
Section 68 Income-tax Act, 1961 Jyoti CNC Automation Ltd. v. Assistant Commissioner of Income-tax Reassessment notices issued under Section 148 without providing underlying material or demonstrating independent mind under Section 148A are invalid. Click Here
Section 69A Income-tax Act, 1961 Kuldeep Bishnoi v. Deputy Commissioner of Income-tax Unexplained money additions cannot be sustained solely on loose search sheets/jottings without AO conducting independent corroborative inquiry. Click Here
Section 69A Income-tax Act, 1961 Kuldeep Bishnoi v. Deputy Commissioner of Income-tax Unexplained receipts recorded on loose sheets dated May 2019 are assessable in AY 2020-21, not AY 2019-20. Click Here
Section 80M Income-tax Act, 1961 Commissioner of Income-tax v. The Karur Vysya Bank Ltd. Inter-corporate dividend deduction under Section 80M must be computed on net basis; Rule 8D cannot be applied to estimate expenses when own funds are sufficient. Click Here
Section 90 Income-tax Act, 1961 Commissioner of Income-tax v. Indian Overseas Bank Claiming DTAA relief under a plausible legal interpretation (Hong Kong branch under India-China treaty) does not attract Section 271(1)(c) penalty. Click Here
Section 92B Income-tax Act, 1961 Asst. Commissioner of Income-tax v. Tata AIG General Insurance Co. Ltd. AMP expenditure incurred independently without an agreement or requirement with AE does not constitute an international transaction. Click Here
Section 148 Income-tax Act, 1961 Garima Vikas v. Union of India Search conducted prior to 1-9-2024 is governed by pre-Finance Act 2024 provisions, allowing Section 148 notice issuance without prior Section 148A(b) notice. Click Here
Section 154 Income-tax Act, 1961 Bihar State Power (Holding) Company Ltd. v. Income-tax Officer High Court will not issue a writ of mandamus for Section 154 rectification when appeals regarding the same are pending before the ITAT. Click Here
Section 220 Income-tax Act, 1961 Bihar State Power (Holding) Company Ltd. v. Income-tax Officer Direction issued to consider pending stay applications within 6 weeks, with coercive tax recovery stayed during the interim. Click Here
Section 246A Income-tax Act, 1961 Ms. Anya Traders v. Assessment Unit Income-tax Department Article 226 writ petition will not be entertained against assessment orders where statutory appellate remedies exist for factual evaluation. Click Here