INCOME TAX Case Law 04.07.2026 Relevant Act Section / Authority Case Law / Notification Title Citation Brief Summary Income-tax Act, 1961 Section 10(46) Notification No. 73/2026 Click Here CBDT grants income tax exemption to Mussoorie Dehradun Development Authority (MDDA) on specified incomes (grants, leases, bank interest, etc.) retrospectively for AYs 2022-23 and 2023-24. Income-tax Act,… Read More »
Revisional order passed without granting requested personal hearing is legally unsustainable and must be remanded. Issue Whether the Principal Commissioner of Income Tax (PCIT) was legally justified in rejecting a revision application under Section 264 of the Income-tax Act, 1961, without granting the assessee a requested personal hearing and dealing with the contentions cursorily, despite… Read More »
Reassessment notice issued beyond three years is void if sanctioned by the incorrect tax authority. Issue Whether a reassessment notice issued under Section 148 after the expiry of three years from the end of the relevant assessment year is legally valid when the mandatory administrative sanction under Section 151 was granted by the Principal Commissioner… Read More »
Failure to issue Section 143(2) notice and issuing demand with draft order invalidates reassessment. Issue Whether the failure to issue a mandatory notice under Section 143(2) during reassessment proceedings, and the simultaneous issuance of a demand notice and penalty initiation along with a draft assessment order under Section 144C, renders the entire assessment exercise void… Read More »
Total deductions under Heading C cannot exceed the eligible business profits after factoring Section 80-IA reliefs. Issue Whether the restriction contained in Section 80-IA(9) requires the deduction allowed under Section 80-IA to be reduced directly from the Gross Total Income during computation, or if it merely caps the quantum of concurrent deductions claimed under Heading… Read More »
Foreign remittances with a verified banking trail cannot be taxed as unexplained investments. Issue Whether the Assessing Officer was legally justified in treating the investment in a residential property as an unexplained investment under Section 69 of the Income-tax Act, 1961, when the assessee established a clear banking trail of foreign inward remittances from her… Read More »
Inter-trust transfers out of accumulated funds are strictly taxable as deemed income regardless of project nomenclature. Issue Whether payments made out of accumulated income under Section 11(2) by a charitable trust to other Section 12AA-registered institutions for project implementation are hit by the restriction in Section 11(3)(d) and taxable as deemed income. Facts Income Accumulation:… Read More »
Inter-trust transfers out of accumulated funds are strictly taxable as deemed income regardless of project nomenclature. Issue Whether payments made out of accumulated income under Section 11(2) by a charitable trust to other Section 12AA-registered institutions for project implementation are hit by the restriction in Section 11(3)(d) and taxable as deemed income. Facts Income Accumulation:… Read More »
Trust payment from accumulated income to another registered trust is taxable as deemed income. Issue Whether the payment of funds out of accumulated income under Section 11(2) by a charitable trust to other institutions registered under Section 12AA—under the nomenclature of project implementation and services—violates Section 11(3)(d) and must be treated as the taxable deemed… Read More »
State-governed charitable trust is entitled to exemption as fund transfer for hazard mitigation equipment does not violate section 13. Issue Whether the appellant-trust, formed by the State Government for disaster mitigation, is entitled to tax exemption under Section 11 when its interest income was spent on purchasing high-end hazard mitigation computing equipment in the name… Read More »