IMPORTANT INCOME TAX CASE LAWS 17.03.2026

Relevant Act	Section	Case Law Title / Authority	Brief Summary	Citation
Income Tax Act	Sec 2(15) & 11	D.A.V. Educational Trust v. ITO	Surplus from selling books/uniforms is incidental to educational objects. If applied to school infrastructure, the trust remains eligible for Section 11 exemption.	Click Here
Income Tax Act	Sec 12AA	Hind Charitable Trust v. PCIT	The Commissioner has no power to revoke a trust’s registration with retrospective effect based on search findings. Cancellation must be prospective.	Click Here
Income Tax Act	Sec 14A	REC Ltd. v. ACIT	Disallowance under Rule 8D must be calculated using only those investments that actually yielded exempt income during the year, not the total average investment.	Click Here
Income Tax Act	Sec 36(1)(viii)	REC Ltd. v. ACIT	Processing and upfront fees are incidental to long-term lending; thus, they qualify for deduction. Premature repayment does not change the “long-term” nature of the loan.	Click Here
Income Tax Act	Sec 69	VR Dairy (P.) Ltd. v. ITO	Cash deposits in audited books cannot be treated as unexplained if the Revenue fails to reject the books of accounts or provide evidence of unaccounted income.	Click Here
Income Tax Act	Sec 80G	REC Ltd. v. ACIT	The mandatory nature of CSR contributions does not bar a company from claiming a deduction under Section 80G for those same donations to eligible entities.	Click Here
Income Tax Act	Sec 115BBF	Surendra Himmatlal Shah v. DCIT	Taxing Patent Royalty at 30% instead of the 10% rate claimed, without assigning reasons or giving prior intimation during 143(1) processing, is invalid.	Click Here
Income Tax Act	Sec 151A	Shiv Shakti Traders v. ITO	Reassessment orders passed under the faceless regime prior to the official notification authorizing such faceless procedures (issued 29-03-2022) lack jurisdiction.	Click Here
Income Tax Act	Sec 270A/AA	Verizon Data Services v. DCIT	TP adjustments do not constitute misreporting if documentation was maintained and disclosed. Immunity from penalty under 270AA should be granted.	Click Here

For More :- Read IMPORTANT INCOME TAX CASE LAWS 16.03.2026