| Section 17 |
South Indian Bank Employees Association v. Union of India |
A writ petition challenging the constitutional validity of Rule 3(7)(i) (treating interest-free or concessional loans as salary perquisites) was dismissed, as its validity had already been upheld by the High Court and Supreme Court. |
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Income-tax Act, 1961 |
| Section 17 |
Catholic Syrian Bank Executive Forum v. Union of India |
Taxing interest-free or concessional loans as perquisites under Rule 3(7)(i) is constitutionally valid, intra vires Section 17(2)(viii), and does not constitute excessive delegation. |
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Income-tax Act, 1961 |
| Section 28(i) |
Susneh Infrapark (P.) Ltd. v. Assistant Commissioner of Income-tax |
Unaccounted “on-money” found in seized evidence can only be taxed for identified transactions and cannot be extrapolated to all sales without reliable material; an 8% profit estimation on such receipts was held reasonable. |
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Income-tax Act, 1961 |
| Section 37(1) |
Susneh Infrapark (P.) Ltd. v. Assistant Commissioner of Income-tax |
Where subcontracting charges capitalized to Work-in-Progress were backed by primary evidence and the AO found no discrepancies or kickbacks, the entire expenditure and a 5% ad hoc disallowance were unsustainable. |
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Income-tax Act, 1961 |
| Section 37(1) |
Pelican Rotoflex (P.) Ltd. v. CIT(A), DCIT/ACIT |
Year-end warranty expenditure and free-of-cost warranty supplies (reflected in GST returns) form an integral part of regular sales transactions and cannot be disallowed. |
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Income-tax Act, 1961 |
| Section 40(a)(i) |
Pelican Rotoflex (P.) Ltd. v. CIT(A), DCIT/ACIT |
Disallowance of royalty paid to a non-resident cannot be sustained solely because the AO invoked Section 194J, when the assessee had already deducted and deposited tax under Section 195. |
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Income-tax Act, 1961 |
| Section 43CA |
Susneh Infrapark (P.) Ltd. v. Assistant Commissioner of Income-tax |
Stamp-duty value cannot be substituted under Section 43CA in years where a real estate developer has not recognized revenue for under-construction units under the Project Completion Method. |
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Income-tax Act, 1961 |
| Section 45 |
Seema Ranka v. Assistant Commissioner of Income-tax |
Income earned from investing in shares and securities through Portfolio Management Services (PMS) is taxable as capital gains rather than business income (which applies to active intraday and F&O trading). |
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Income-tax Act, 1961 |
| Section 56 |
Principal Commissioner of Income-tax v. Magnet Buildtech (P.) Ltd. |
Addition under Section 56(2)(viib) was unjustified where a wholly owned subsidiary issued CCPS to its holding company at a premium backed by a CA’s Rule 11UA(1)(c) valuation, which the AO could not reject based on subsequent losses. |
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Income-tax Act, 1961 |
| Section 80-IA |
Pelican Rotoflex (P.) Ltd. v. CIT(A), DCIT/ACIT |
Where separate books are maintained for windmill operations and profits are computed after direct expenses, general administrative or other business expenses cannot be allocated to curtail Section 80-IA deductions. |
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Income-tax Act, 1961 |
| Section 271C |
State Bank of India v. Joint Commissioner of Income-tax, TDS |
Non-deduction of TDS on foreign travel LTC reimbursements due to reliance on interim Madras High Court directions constituted “reasonable cause” under Section 273B, rendering the Section 271C penalty unsustainable. |
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Income-tax Act, 1961 |
