IMPORTANT INCOME TAX CASE LAWS 13.02.2026

Relevant Section	Case Law Title	Core Ruling / Summary	Citation
Section 2(9) (Benami)	R. Kalaivani v. DCIT	[Prosecution vs Discharge] Non-identification of a beneficial owner is no ground for discharge under Section 2(9)(D). However, a dormant partner cannot be prosecuted vicariously without specific material showing they were in charge of firm business.	Click Here
Section 45(5A) / 54	Keshava Reddy v. DCIT	[JDA Multiple Flats] In a JDA, if an owner receives multiple flats (e.g., 44 flats) and treats them as capital assets, they are regarded as “one residential house” for the purpose of Sections 54/54F exemptions.	Click Here
Section 5A	Smt. Sharen Nitin Naik v. PCIT	[Goan Spouses Community] Income of Goan spouses is community property. If the husband settles a dispute under the Vivad se Vishwas Scheme, the wife’s application cannot be rejected for lack of a separate pending appeal.	Click Here
Section 151 / TOLA	S. S. Prakash Ashram v. ACIT	[Sanction Defect] Reopening for AY 2015-16 issued in March 2021 (under TOLA extension) requires approval from the Joint Commissioner (u/s 151(2)). Approval from a Commissioner (Exemption) is invalid.	Click Here
Section 144C	Express Freight Consortium v. AU	[DRP Copy Mandate] While an assessee must serve a copy of DRP objections on the AO, the AO’s failure to wait for DRP directions before finalizing the assessment renders the demand notice liable to be quashed.	Click Here
Section 12A / 13	Seth PannaLal Trust v. CIT(E)	At the registration stage, the Department can only examine the genuineness of objects. Patterns like fixed denomination donations or temporary loans aren’t enough to reject registration without proof of personal benefit.	Click Here

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