IMPORTANT INCOME TAX CASE LAWS 19.11.2025

Relevant Section	Case Law Title	Brief Summary	Citation	Relevant Act
Section 2(15) & 11	Agrasen Medical Relief & Research Society v. Income-tax Officer (Exemption)	Exemption under Section 11 allowed for a charitable society running a hospital, as over 85% of receipts (including corpus) were applied to charitable purposes. The Proviso to Section 2(15) did not apply as receipts from medical services (not commercial) were less than 20% of total receipts.	Click Here	Income-tax Act, 1961
Section 2(42C), 28, & 45	Commissioner of Income-tax v. Spectra Shares and Scrips Ltd.	Transfer of the entire bottling and marketing business as a going concern for a lump-sum consideration constituted a slump sale under Section 2(42C). The lump-sum consideration was taxable as a capital receipt under Section 45, not as a revenue receipt under Section 28 (compensation for termination of agency). Sections 50B and 41(2) were not attracted.	Click Here	Income-tax Act, 1961
Section 11	Agrasen Medical Relief & Research Society v. Income-tax Officer (Exemption)	Benefit of exemption under Section 11 for a charitable society could not be denied merely because the assessee could not produce the registration certificate under Section 12AA, as it had placed on record the approval certificate under Section 80G.	Click Here	Income-tax Act, 1961
Section 32	Deputy Commissioner of Income-tax v. Songwon Specialty Chemicals India (P.) Ltd.	SLP dismissed: Reopening notice under Section 148A(b) was set aside where the Assessing Officer had failed to consider the assessee’s reply and had merely reiterated the basis of audit objections regarding the claim of depreciation on goodwill.	Click Here	Income-tax Act, 1961
Section 36(1)(iii)	Commissioner of Income-tax v. Shriram Investments	SLP dismissed: Disallowance of interest paid on borrowed capital was deleted for an investment company that used the funds for further lending, as the interest payment was deemed to be in business interest or commercially expedient.	Click Here	Income-tax Act, 1961
Section 56 & 68	Savegenic E-Marketing (P.) Ltd. v. I.T.O. Ward – 4(1) New Delhi	Where shares were issued at a premium based on the DCF method under Section 56(2)(viib), the AO cannot reject the valuation without pinpointing specific inaccuracies. No addition under Section 68 for share application money was justified as the assessee discharged its initial onus regarding the identity and creditworthiness of subscribers and the genuineness of the transaction.	Click Here	Income-tax Act, 1961
Section 68	Arusuvai Food Processors -(P.) Ltd. v. ITO	Addition under Section 68 was deleted for trade receivables/payables that were: brought-forward balances (not fresh credits), consistently shown in audited financials, and/or were trade payables arising from credit purchases supported by ledgers, VAT/GST records, and statutory returns.	Click Here	Income-tax Act, 1961
Section 79	Amns Gandhidham Ltd. v. Assistant Commissioner of Income tax	Denial of carry forward of losses under Section 79 could not be upheld where the Principal Commissioner failed to file any claims or submissions during the Corporate Insolvency Resolution Process (CIRP) when the resolution plan was approved by the NCLT.	Click Here	Income-tax Act, 1961
Section 127, 149, & 153C	Deputy Commissioner of Income-tax v. Sunil Kumar Sharma	SLP dismissed: Set aside notices under Sections 127 (no reasonable opportunity before transfer), and 153C (based on loose sheets not part of books, and consolidated satisfaction note for multiple years was invalid).	Click Here	Income-tax Act, 1961
Section 149	Income-tax Officer, International Tax v. Shapoorji Pallonji Mistry	SLP disposed: No notice under Section 148 for AY 2014-15 could be issued on or after April 1, 2021, based on the first proviso to Section 149.	Click Here	Income-tax Act, 1961
Section 151A	Shankaranarayana Constructions (P.) Ltd. v. Assistant Commissioner of Income-tax, Bengaluru	The Assessing Officer lacks jurisdiction to issue a notice under Section 148, as Section 151A mandates that such notices must be issued only by the Faceless Authority as per Notification No. 18/2022.	Click Here	Income-tax Act, 1961
Section 153D	Principal Commissioner of Income-tax-7 v. Shivgori Builders (P.) Ltd.	Approval granted by the competent authority for multiple draft assessment orders through a single consolidated letter with generic directions, without referring to seized material or assessment records, was held to be invalid.	Click Here	Income-tax Act, 1961
Section 199	Sri Lakshmi General Stores v. Income-tax Officer	A commission agent/assessee is entitled to the full credit of TDS reflected in Form 26AS (deducted on total sales/interest under Sections 194Q/194A) and not merely proportionate to the commission income offered in the return, where the entire corresponding income has suffered tax in the assessee’s hands.	Click Here	Income-tax Act, 1961
Section 270A	Sabari Diamonds & Jewels v. Deputy Commissioner of Income-tax	No penalty under Section 270A could be levied where additions were based solely on loose sheets and sworn statements without corroborative evidence or providing the assessee an effective opportunity of cross-examination.	Click Here	Income-tax Act, 1961

For More :- Read IMPORTANT INCOME TAX CASE LAWS 18.11.2025