INCOME TAX CASE LAW DIGEST 09.6.2026 INCOME TAX CASE LAW DIGEST 09.6.2026 Relevant Act Section Case Law Title Citation Brief Summary Income Tax Act, 1961 Section 153A, Section 45(5), Section 131 Assistant Commissioner of Income-tax vs. Lakkanna Durgappa Click Here Additions made on account of capital gains under Section 153A were deleted for a concluded… Read More »
Spouse’s Trading Losses Funded by Gifted Money Must Be Clubbed and Allowed for Set-Off Issue Whether trading losses incurred by an assessee’s spouse in derivative transactions, funded entirely by a monetary gift from the assessee, must be clubbed with the assessee’s income and allowed for set-off under Section 64(1)(iv) read with Explanation 3(i). Facts Assessee’s… Read More »
Writ Petition Against Jurisdictional Assessing Officer’s Reassessment Disallowed but Remanded to Pending CIT(A) Appeal Issue Validity of Notice: Whether the Jurisdictional Assessing Officer (JAO) has the legal authority to initiate reassessment proceedings by issuing a notice under Section 148, and whether subsequent orders can be passed outside the mandatory faceless assessment regime. Maintainability of Writ:… Read More »
Writ Petition Against Jurisdictional Assessing Officer’s Reassessment Disallowed but Remanded to Pending CIT(A) Appeal Issue Validity of Notice: Whether the Jurisdictional Assessing Officer (JAO) has the legal authority to initiate reassessment proceedings by issuing a notice under Section 148, and whether subsequent orders can be passed outside the mandatory faceless assessment regime. Maintainability of Writ:… Read More »
Bogus Purchase Disallowances Must Be Restricted to Gross Profit Ratio If Books of Account Are Accepted Issue Whether the Assessing Officer (AO) can disallow the entire amount of alleged bogus purchases when the overall books of account, sales figures, closing stock, and quantitative details have been accepted without invoking Section 145(3) to reject the accounts.… Read More »
Faceless Reassessment Disguised as Best Judgment Under Section 144 Can Be Remitted by CIT(A) for Fresh Determination Issue Whether the Commissioner of Income-tax (Appeals) [CIT(A)] has the legal power to set aside a faceless reassessment order and remit the matter back to the Assessing Officer (AO) for fresh adjudication, if the order—though labeled as a… Read More »
Bogus Purchase Disallowances Must Be Restricted to Gross Profit Ratio If Books of Account Are Accepted Issue Whether the Assessing Officer (AO) can disallow the entire amount of alleged bogus purchases when the overall books of account, sales figures, closing stock, and quantitative details have been accepted without invoking Section 145(3) to reject the accounts.… Read More »
Disallowances for Income Derecognition, Unpayable Energy Tax, Security Deposit Interest, and Higher UPS Depreciation Are Unsustainable Disallowances for Income Derecognition, Unpayable Energy Tax, Security Deposit Interest, and Higher UPS Depreciation Are Unsustainable Issue Derecognition of Income: Whether a disallowance can be made under Section 37(1) for the derecognition of income pertaining to the consumers’ portion… Read More »
No Additions for Capital Gains Allowable Absent Incriminating Search Material or Retrospective Application of Section 45(5A) Issue For AYs 2017-18 to 2019-20: Whether additions on account of capital gains arising from a Joint Development Agreement (JDA) can be made under Section 153A following a search, if no incriminating material was found and the relevant documents… Read More »
INCOME TAX CASE LAWS DIGEST 08.06.2026 Relevant Act Section Case Law Title Citation Brief Summary Income Tax Act, 1961 Section 192 & Section 201 State Bank of India vs. ITO, TDS Click Here The assessee-bank was held liable as an “assessee in default” under section 201 because it failed to deduct TDS under section 192… Read More »