IMPORTANT INCOME TAX CASE LAW 02.11.2025

Section	Case Law Title	Brief Summary	Citation	Relevant Act
Section 11	National Law Institute University v. Deputy Commissioner of Income-tax (Exemption)	Activity of providing hostel and mess facilities by a university, being incidental to education, is not considered ‘business’. Exemption under section 11(1)(a) is allowable at 15% on gross receipts from this activity.	Click Here	Income-Tax Act, 1961
Section 36	Kausalya Agro Farms and Developers (P.) Ltd. v. Income-tax Officer	Disallowance of interest under section 36(1)(iii) was not warranted where the underlying investments were already accepted as commercially expedient in a prior year.	Click Here	Income-Tax Act, 1961
Section 45	Basavaraju Shivakumar Holavanahalli v. Assistant Commissioner of Income-tax	Profit from the sale of a commercial building, held for six years and sold due to financial strain (forced sale), was assessable as capital gains, and exemption under section 54EC was allowable.	Click Here	Income-Tax Act, 1961
Section 68	National Law Institute University v. Deputy Commissioner of Income-tax (Exemption)	Unutilized mess account balances from earlier years, credited to reserve in the current year, cannot be assessed as current year’s income under Section 68, as each assessment year is separate.	Click Here	Income-Tax Act, 1961
Section 148A	Neena Jatin Shah v. Income-tax Officer	A notice issued under section 148 to a dead person is null and void.	Click Here	Income-Tax Act, 1961
Section 220	Dominion Diamond (India) (P.) Ltd. v. Assistant Commissioner of Income-tax	Where a High Court’s ad-interim order stayed a notice/assessment, the Assessing Officer could not convert the stayed notice into one under section 148A(b) or pass an order under 148A(d). Adjustment of refund against a stayed demand is impermissible.	Click Here	Income-Tax Act, 1961
Section 271	OPG Power Generation (P.) Ltd. v. Assistant Commissioner of Income-tax	Recovery proceedings for a penalty under section 271(1)(c) must be kept in abeyance while the assessee’s appeal against the Tribunal’s order (on the underlying addition) is pending before the High Court.	Click Here	Income-Tax Act, 1961
Section 281B	JSR Infra Developers (P.) Ltd. v. Tax Recovery Officer	The Tax Recovery Officer was directed to release attached property where additions were set aside by Commissioner (Appeals) and the entire arrears had already been paid by the assessee.	Click Here	Income-Tax Act, 1961

For More :- Read IMPORTANT INCOME TAX CASE LAW 31.10.2025