IMPORTANT INCOME TAX CASE LAWS 07.01.2026

Relevant Act	Section	Case Law Title	Brief Summary	Citation
Income-tax Act, 1961	Section 10(23BBA)	Madhur Sree Madanantheswara Vinayaka Temple v. ITO	Exemption under Section 10(23BBA) is available only to the statutory “Body or Authority” established to administer religious institutions (e.g., Devaswom Boards), not to the individual temples or religious establishments themselves.	Click Here
Income-tax Act, 1961	Section 32	Viacom 18 Media (P.) Ltd. v. PCIT	Depreciation on Goodwill: The amendment to Section 32 (Finance Act 2021) prohibiting depreciation on goodwill is prospective. PCIT cannot revise (S. 263) an assessment where the AO allowed depreciation for earlier years after due verification.	Click Here
Income-tax Act, 1961	Section 50	Royal Chains (P.) Ltd. v. DCIT	Block of Assets: Where a factory building was demolished and land sold, the claim for Short Term Capital Loss requires verification of whether any asset remained in the block. Mere demolition does not automatically trigger loss if the block ceases to exist.	Click Here
Income-tax Act, 1961	Section 68	PCIT-1 v. Gopalbhai T Patel (HUF)	Penny Stocks: Addition under Section 68 cannot be made solely on general unsubstantiated information about penny stocks if the assessee held shares for 7 years, paid STT, and the details were not shared/confronted.	Click Here
Income-tax Act, 1961	Section 69A	Rakesh Kumar Pandey v. ACIT	Search Cash: Addition for cash found during search was deleted as the assessee reconciled it with recorded bank withdrawals and agricultural income. S. 147 reopening based on “deeming fiction” without seized material was annulled.	Click Here
Income-tax Act, 1961	Section 80G	Royal Chains (P.) Ltd. / Tega Industries	CSR & 80G: Donations made as part of mandatory CSR expenditure (including to PM CARES) are eligible for Section 80G deduction. The “double deduction” restriction does not bar 80G relief for genuine charity.	Click Here
Income-tax Act, 1961	Section 80-IA(4)	Tega Industries Ltd. v. DCIT	Steam vs. Power: Generation of steam for captive use in manufacturing does not qualify as “generation of power” for the purpose of deduction under Section 80-IA(4).	Click Here

For More :- Read IMPORTANT INCOME TAX CASE LAWS 04.01.2026