IMPORTANT INCOME TAX CASE LAWS 07.02.2026

Relevant Act	Section	Case Law Title	Brief Summary	Citation
Informant Guidelines	2007 Scheme	Gopal Dhanjibhai Bhimani v. ITD	[Informant Rights] Reward entitlement is not a “discretionary gift.” Where an informant provided specific tax evasion data, the Revenue cannot withhold the Final Reward indefinitely. A reasoned decision must be passed by a competent committee after a personal hearing.	Click Here
Income-tax Act, 1961	Section 2(7A)	Insight Print Communications v. PCIT	[Assessing Officer Definition] The definition of “Assessing Officer” is expansive. For the purposes of jurisdiction and notices, it includes any authority defined under the Faceless Assessment Scheme (Section 144B), ensuring no procedural gap in faceless regimes.	Click Here
Income-tax Act, 1961	Section 164	Deloitte Employees Welfare Trust v. ITO	[Trust Tax Relief] Trusts created for employee welfare are carved out as exceptions u/s 164. They are taxable at AOP rates (slab-based) rather than the Maximum Marginal Rate (MMR), provided they meet specific welfare criteria.	Click Here
Income-tax Act, 1961	Section 48	Suken Suresh Mehta v. Income-tax Officer	[JDA Cost of Acquisition] In a Joint Development Agreement (JDA), the constructed area is not “free.” The value of the land share transferred constitutes the “Cost of Acquisition” for the flats received, which is allowable while computing capital gains on their subsequent sale.	Click Here
Income-tax Act, 1961	Section 50C	ACIT v. Guptajee & Company	[Lal Dora Property Valuation] For “Lal Dora” (village abadi) properties recorded as agricultural/residential, the AO cannot arbitrarily apply a high multiplicative factor (like 3). A factor of 1 must be used for stamp duty valuation purposes.	Click Here
Income-tax Act, 1961	Section 151A	Exotic Innovations (P.) Ltd. v. DCIT	[Faceless Mandate] Reassessment notices u/s 148 issued by a Jurisdictional AO (JAO) instead of a Faceless Authority are void. Section 151A mandates that the issuance of such notices must be through the faceless mechanism.	Click Here

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