INCOME TAX CASE LAWS 20.08.2026 Section Case Law Title Brief Summary Citation Relevant Act Section 4 Mumbai Port Authority v. ACIT (Exemption) Addition of capitalised interest (50% per loan agreement) was not sustainable since the assessee already accounted for the full interest income in its books under the mercantile system. Click Here Income-tax Act, 1961… Read More »
Proportionate Cost Allocation to Low-Pressure Steam for Section 80-IA Deduction Is Valid and Cannot Be Treated as Nil Issue Whether the Revenue can assign a nil cost to low-pressure steam generated by a captive power plant and allocate the entire process cost exclusively to electricity generation to deny a Section 80-IA deduction, despite the steam… Read More »
In incidental religious activities, CIT(E) must examine dominant objects and 5% expenditure cap before denying 80G approval. In incidental religious activities, CIT(E) must examine dominant objects and 5% expenditure cap before denying 80G approval. Issue Whether CIT(E) can deny approval under Section 80G solely because a charitable trust engages in incidental religious activities, without… Read More »
Reassessment Notice Based on Unrelated Third-Party Broker Register Without Live Nexus Is Invalid Reassessment Notice Based on Unrelated Third-Party Broker Register Without Live Nexus Is Invalid Issue Whether a reassessment notice under Section 148, alleging unrecorded “on-money” payments on a land purchase, can be sustained when it relies solely on a third-party broker’s market survey… Read More »
Supreme Court Grants SLP Against High Court Refusal to Quash Prosecution for Belated Return Filing Supreme Court Grants SLP Against High Court Refusal to Quash Prosecution for Belated Return Filing Issue Whether a Special Leave Petition (SLP) should be granted against a High Court judgment that refused to quash Section 276CC criminal prosecution complaints initiated… Read More »
Prosecution for Delayed Tax Payment Unreasonable Without Mens Rea When Full Liability with Interest Is Settled Prosecution for Delayed Tax Payment Unreasonable Without Mens Rea When Full Liability with Interest Is Settled Issue Whether criminal prosecution under Section 276C(2) for willful attempt to evade tax can be sustained when an assessee merely delays payment… Read More »
Compliance with High Court Stay Negates Assessee in Default Status and Interest for Non-Deduction of TDS on Foreign Travel LTC Issue Whether an employer-deductor can be treated as an “assessee in default” under Section 201(1) and charged interest under Section 201(1A) for non-deduction of tax at source under Section 192 on Leave Travel Concession/Leave Fair… Read More »
SBI Not Assessee in Default Under Section 201 for Non-Deduction of TDS on Overseas LTC Reimbursements Governed by High Court Stay SBI Not Assessee in Default Under Section 201 for Non-Deduction of TDS on Overseas LTC Reimbursements Governed by High Court Stay Issue Whether an employer bank can be treated as an assessee in default… Read More »
Reassessment Notice Issued Under Sanction of Principal Commissioner Instead of Specified Joint Commissioner Is Void Issue Whether a Section 148 reassessment notice issued for AY 2015-16 under the extended TOLA timeline is invalid if statutory approval was obtained from the Principal Commissioner instead of the specified Joint Commissioner under Section 151(2). Facts Assessee was issued… Read More »
Reopening Notice Under Sanction of Principal Commissioner Instead of Specified Joint Commissioner Under Section 151(2) Is Void Reopening Notice Under Sanction of Principal Commissioner Instead of Specified Joint Commissioner Under Section 151(2) Is Void Issue Whether a reassessment notice issued under Section 148 for AY 2015-16, deemed to be within four years under Section 3… Read More »