Important Income Tax Case Laws 04.05.2026

Relevant Act	Section	Case Law Title	Citation	Brief Summary
Income Tax	Sec 4 & 5	ACIT v. Aamby Valley Ltd.	Click Here	Real vs. Notional Income: Customer advances and interest-free advances to related parties cannot be taxed as hypothetical income if business transactions are genuine and settled later.
Income Tax	Sec 12A	Shri Guru Ram Dass Educational Society v. DCIT	Click Here	Jurisdiction: Renewal of registration must be adjudicated by the Commissioner (Exemptions). Rejection by PCIT (Central) based on irrelevant past search material is invalid.
Income Tax	Sec 14A	ACIT v. Aamby Valley Ltd.	Click Here	Exempt Income: Disallowance u/s 14A read with Rule 8D is not applicable if the assessee has not earned any exempt income during the year.
CA Act, 1949	Sec 23	Gaurav Aggrawal v. ICAI	Clcik Here	ICAI Meetings: For shorter notice meetings under Regulation 142, a majority of the Council is mandatory. Meetings approved by < 50% members are invalid.
Income Tax	Sec 36(1)(va)	R. K. & Company Manpower (P.) Ltd. v. DCIT	Click Here	Scope of 143(1): Disallowance for delayed PF/ESI deposits cannot be made as a “prima facie adjustment” during central processing; it is beyond the scope of Sec 143(1).
Income Tax	Sec 37(1)	ACIT v. Aamby Valley Ltd.	Click Here	Crystallized Liability: Expenses for which invoices were received in the current year are deductible even if they pertain to prior periods, as the liability was ascertained now.
Income Tax	Sec 37(1)	ACIT v. United Hitech (P.) Ltd.	Click Here	Interest on Statutory Dues: Interest paid on delayed PF, ESI, and Service Tax is compensatory in nature and allowable as business expenditure.
Income Tax	Sec 40(a)(ia)	ACIT v. Aamby Valley Ltd.	Click Here	Hospitality TDS: No TDS is required on hospitality-related payments like food, drinks, and lounge charges; disallowance u/s 40(a)(ia) is improper.
Income Tax	Sec 40A(3)	ACIT v. United Hitech (P.) Ltd.	Click Here	Cash Payments: Disallowance is only triggered if an individual payment to a person in a day exceeds ₹10,000. Aggregates of smaller payments are not hit by this section.
Income Tax	Sec 50C	Rasmeet Singh Malhotra v. DCIT	Click Here	Safe Harbour Limit: Retrospective application of the 5% safe harbour limit means stamp duty value cannot be adopted if the variation is only 1.19%.
Income Tax	Sec 54F	DCIT v. Vijay Hathising Shah	Click Here	Residential Status: Open land with no construction cannot be treated as a “residential house” to disqualify an assessee from claiming Sec 54F exemption.
Income Tax	Sec 61	ITO v. Arcil Retail Loan Portfolio Trust	Click Here	Revocable Trust: Income of a securitisation trust with revocable contributions is taxable in the hands of the SR holders, not the trust itself as an AOP.
Income Tax	Sec 68	ACIT v. United Hitech (P.) Ltd.	Click Here	Customer Advances: Credits arising from genuine business transactions/advances subsequently recorded as sales cannot be treated as unexplained cash credits.
Income Tax	Sec 80JJAA	AML Motors (P.) Ltd. v. DCIT	Click Here	Form 10DA: Delay in uploading the audit report due to technical glitches is not a ground for denial if the report was obtained within the prescribed time.
Income Tax	Sec 115BAC	Arun Gopilal Samnani v. CPC Bangalore	Click Here	New Tax Regime: Filing of Form 10-IE is directory. If the form is on record during processing, the AO must allow the new tax regime even if filed after the 139(1) date.

For More :- Read Important Income Tax Case Laws 01.05.2026