IMPORTANT INCOME TAX CASE LAWS 06.03.2026

Section	Case Law	Core Ruling & Strategic Summary	Citation
S. 9 / DTAA	Oracle Systems Corp.	[Notional Royalty] Only sums contractually receivable from an Indian sub can be taxed as royalty. AO cannot tax “Global Deal” revenue (deals signed abroad) as notional royalty in India.	Click Here
S. 9 / DTAA	Oracle Systems Corp.	[Subsidiary ≠ PE] A wholly-owned R&D subsidiary does not create a Fixed Place or Agency PE if the foreign parent has no control over the premises and the sub is paid at Arm’s Length.	Click Here
S. 9 / DTAA	Oracle Systems Corp.	[Tax Rate Cap] Tax on royalty under India-USA DTAA is capped at 15%. Surcharge and Health/Education Cess cannot be added on top of this treaty rate.	Click Here
S. 195 / 234B	Oracle Systems Corp.	[Interest Relief] For periods prior to FY 2012-13, non-residents can reduce tax deductible at source from advance tax liability while computing interest u/s 234B.	Click Here

S. 69A / 144B	Mohd. Shoaib UR Rahman	[Faceless Jurisdictional Bar] Reassessment notices issued by a Jurisdictional AO (manual/physical) after the introduction of the Faceless Reassessment Scheme are without jurisdiction and void.	Click Here
S. 194C / 201	Embassy Property Dev.	[Year-End Provisions] TDS is mandatory on “Provision for Expenses” if the liability is ascertained and the party is identifiable. Merely disallowing the expense u/s 40(a)(ia) does not stop S. 201 penalty proceedings.	Click Here
S. 250	Oracle Systems Corp.	[CIT(A) Duty] If the AO erroneously adjusts a refund to increase demand and the CIT(A) fails to adjudicate the point, the matter must be restored to the CIT(A) for a fresh look on merits.	Click Here