Category Archives: Income Tax

One-time settlement to contractors is fully deductible under Section 37 as revenue business expenditure

By | July 4, 2026
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One-time settlement to contractors is fully deductible under Section 37 as revenue business expenditure Issue Whether a one-time settlement paid to contractors during business restructuring can be restricted to a one-fifth deduction under Section 35DDA parity, and whether Section 14A disallowances and DDT treaty rate claims can be finalized without proper lower authority verification or… Read More »

CIT(E) cannot reject a trust’s renewal application over a technical selection mistake in Form 10AB

By | July 4, 2026
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CIT(E) cannot reject a trust’s renewal application over a technical selection mistake in Form 10AB Issue Whether the CIT(E) is legally justified in rejecting a charitable trust’s renewal application under Section 12AB simply because the trust inadvertently selected the incorrect statutory clause on the electronic form. Facts The Assessee: A charitable institution that already held… Read More »

Foreign bank operations win relief on disallowances under Section 14A, 37, and 115JA regimes

By | July 4, 2026
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Foreign bank operations win relief on disallowances under Section 14A, 37, and 115JA regimes Issue Whether the various additions and disallowances made by the Assessing Officer concerning Section 14A exempt income expenses, broken period interest on stock-in-trade, MAT applicability to banking companies, gross taxation of foreign currency loans, intra-entity transactions with the Head Office, taxability… Read More »

Disallowances under Section 14A, 37, and 115JA are deleted for foreign banks on multiple issues

By | July 4, 2026
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Disallowances under Section 14A, 37, and 115JA are deleted for foreign banks on multiple issues Issue Whether the various additions and disallowances made by the Assessing Officer concerning Section 14A exempt income expenses, broken period interest on stock-in-trade, MAT applicability to banking companies, gross taxation of foreign currency loans, intra-entity transactions with the Head Office,… Read More »

CIT(E) Cannot Cancel Hospital’s Trust Registration Retrospectively Over Self-Determined Non-Tax Violations and Premium Infrastructure

By | July 4, 2026
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CIT(E) Cannot Cancel Hospital’s Trust Registration Retrospectively Over Self-Determined Non-Tax Violations and Premium Infrastructure Issue Whether the CIT(E) is legally justified in retrospectively cancelling and refusing the renewal of a public charitable hospital’s tax registration under Section 12AB and Section 80G by self-adjudicating alleged compliance failures under the Maharashtra Public Trusts Act (Indigent Patient Fund… Read More »

INCOME TAX CASE LAWS 29.07.2026

By | July 2, 2026
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INCOME TAX CASE LAWS 29.07.2026 Relevant Act Section Case Law Title Citation Brief Summary Income-tax Act, 1961 Sec. 32 LNW India Solutions (P.) Ltd. v. Assistant Commissioner of Income-tax / TPO Click Here Depreciation on goodwill arising from an amalgamation and recognized via the pooling-of-interest method cannot be denied under Sec. 32(1)(ii) in the absence… Read More »

Cognizance of Income Tax offences taken after July 1, 2024 requires a mandatory prior hearing under BNSS.

By | July 2, 2026
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Cognizance of Income Tax offences taken after July 1, 2024 requires a mandatory prior hearing under BNSS. Issue Whether the first proviso to Section 223(1) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS)—which mandates that a Magistrate cannot take cognizance of an offence without giving the accused an opportunity of being heard—applies to criminal complaints… Read More »

Ex-parte assessment order set aside and remanded for fresh hearing after condoning a 1439-day delay.

By | July 2, 2026
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Ex-parte assessment order set aside and remanded for fresh hearing after condoning a 1439-day delay. Ex-parte assessment order set aside and remanded for fresh hearing after condoning a 1439-day delay. Issue Whether a substantial delay of 1,439 days in filing an appeal before the CIT(A) should be condoned, and the matter remanded for fresh assessment,… Read More »

Tax Cannot Be Recovered from Employee if Employer Deducts TDS but Fails to Deposit It

By | July 2, 2026
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Tax Cannot Be Recovered from Employee if Employer Deducts TDS but Fails to Deposit It Issue Whether the revenue can deny Tax Deducted at Source (TDS) credit and raise a tax recovery demand on an employee under Section 205 when their employer has deducted TDS from their salary but failed to deposit it into the… Read More »

Remanded for Tribunal to Specifically Adjudicate Mechanical Approval Challenge Under Section 153D of Income-tax Act

By | July 2, 2026
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Remanded for Tribunal to Specifically Adjudicate Mechanical Approval Challenge Under Section 153D of Income-tax Act Issue Whether the Tribunal’s order is sustainable when it failed to specifically adjudicate the assessee’s contention that the approval granted by the JCIT under Section 153D was vitiated due to a mechanical application of mind, despite the issue being properly… Read More »