INCOME TAX CASE LAWS 17.08.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 2(15) Lakhmi Chand Charitable Society v. Principal Commissioner of Income-tax Renewal under Section 12AB and approval under Section 80G were directed to be granted where no deficiencies existed in educational activities during the preceding 3 years, and… Read More »
Revision under Section 264 cannot be invoked to amend a return after the statutory time limit expires. Issue Whether a taxpayer who failed to claim a statutory deduction/tolerance limit under Section 43CA in their original return, and did not file a revised return within the prescribed statutory period, can seek to amend their income/tax liability… Read More »
ITAT rules that profits earned by a Indian bank’s foreign branches (PEs) are non-taxable in India under Article 7(1) of applicable DTAAs. ITAT rules that profits earned by a Indian bank’s foreign branches (PEs) are non-taxable in India under Article 7(1) of applicable DTAAs. Issue Whether the business profits generated by the overseas branches (Permanent… Read More »
Reassessment Notices Issued Solely on M.B. Shah Commission Report Quashed Following High Court Precedent Reassessment Notices Issued Solely on M.B. Shah Commission Report Quashed Following High Court Precedent Issue Whether reassessment notices issued under Section 148 based solely on the recommendations and findings of the Justice M.B. Shah Enquiry Commission Report on illegal mining are… Read More »
Rejection of Section 80G Approval Without Verifying Incidental Religious Expenditure Threshold Remanded for Fresh Examination Issue Whether the Commissioner of Income-tax (Exemptions) was justified in rejecting the assessee-society’s application for approval under Section 80G(5) without examining whether its religious activities were merely incidental to its charitable objects and within the permissible 5% expenditure limit under… Read More »
Reassessment Notice Quashed as Reopening Based on Original Scrutiny Records Amounts to Mere Change of Opinion Reassessment Notice Quashed as Reopening Based on Original Scrutiny Records Amounts to Mere Change of Opinion Issue Whether a reassessment notice under Section 148 based on Investigation Wing information can be sustained when the underlying transactions were fully disclosed… Read More »
Revenue Precluded From Challenging 10 Per Cent Bogus Purchase Addition Having Accepted CIT(A) Order Issue Whether the Revenue is precluded from challenging the Tribunal’s estimation of bogus purchase additions at 10% when it did not file an appeal against the CIT(A)’s order restricting the addition to 12.5%. Facts Assessment Year: The dispute relates to Assessment… Read More »
Reassessment Notice Under Section 148 Based Solely on Third-Party Seized Broker Register Quashed Reassessment Notice Under Section 148 Based Solely on Third-Party Seized Broker Register Quashed Issue Whether a reassessment notice under Section 148 alleging unexplained money under Section 69A for payment of “on-money” on land purchase can be sustained when based solely on a… Read More »
Addition for House Property Fixed at Disclosed Value, FDR Addition Restricted to Investment Amount, and Telescoping Denied Issue Whether the Tribunal was justified in estimating house property value at ₹85 lakhs over the disclosed ₹70 lakhs, denying telescoping benefit for unaccounted cash, and taxing FDR maturity values instead of actual investment amounts during block assessment.… Read More »
Cash Sales Credited to Profit and Loss Account Cannot Be Added Again as Section 68 Cash Credits Issue Whether cash received from sales and already credited to the Profit and Loss Account as part of business turnover can be added again as unexplained cash credit under Section 68 of the Income-tax Act, 1961. Facts Original… Read More »