IMPORTANT INCOME TAX CASE LAWS 20.12.2025

Relevant Act	Section	Case Law Title	Brief Summary	Citation
Income-tax Act, 1961	Section 2(15)	Federation of European Business in India v. CIT (Exemption)	Promoting trade between the EU and India through policy advocacy (trade policy, investment protection) qualifies as an object of General Public Utility. Assessee is eligible for S. 12A registration.	Click Here
Income-tax Act, 1961	Section 2(15)	ACIT, Exemptions v. Vyakti Vikas Kendra India	Providing practical and theoretical yoga training is covered under the category of ‘imparting of education’, entitling the trust to exemptions under Sections 11 and 12.	Click Here
Income-tax Act, 1961	Section 2(22)(e)	DCIT v. Prestige Holiday Resorts (P.) Ltd.	Outstanding payables arising from commercial transactions (sale/purchase of timeshare weeks) with wholly-owned subsidiaries are not “loans or advances” and cannot be treated as deemed dividends.	Click Here
Income-tax Act, 1961	Section 32	DCIT v. Prestige Holiday Resorts (P.) Ltd.	Sums paid to remove encumbrances on repossessed timeshare weeks represent cost of improvement to a tangible asset (building block) and are eligible for depreciation.	Click Here
Income-tax Act, 1961	Section 32(1)	PCIT v. Aculife Healthcare (P.) Ltd.	[Landmark SC Ruling] SLP dismissed; Goodwill arising during demerger/amalgamation (difference between net assets and shares issued) is an intangible asset eligible for depreciation under Explanation 3(b) to S. 32(1).	Click Here
Income-tax Act, 1961	Section 37(1)	Alex Grinders (P.) Ltd. v. DCIT	Payment made to a labour union to facilitate a settlement with workers is allowable as business expenditure based on the test of commercial expediency.	Click Here
Income-tax Act, 1961	Section 69	PCIT, Central v. Milan Kavin Parikh	Addition based on an HSBC (Suisse) bank “base note” provided by the French Government was rejected because the note was obtained post-search and was not recovered during the actual search action.	Click Here
Income-tax Act, 1961	Section 80P(2)(d)	Vihan Vibhag Credit Co-operative Society Ltd. v. ITO	Interest income from investments made in a Co-operative Bank is eligible for deduction as the bank is a registered co-operative society.	Click Here
Income-tax Act, 1961	Section 143	DCIT v. Prestige Holiday Resorts (P.) Ltd.	An assessment order passed in the name of a non-existing company (after conversion to an LLP) is void ab initio if the AO was notified of the conversion.	Click Here
Income-tax Act, 1961	Section 153A	PCIT v. J Kumar Infraprojects Ltd.	Additions made in a search assessment (S. 153A) without finding any incriminating material during the search are invalid. No substantial question of law arises as this follows settled precedents.	Click Here
Income-tax Act, 1961	Section 153D	Minto Developers (P.) Ltd. v. ACIT, Central	Summary, mechanical approval given by the Joint Commissioner without examining draft orders vitiates the entire assessment order, which must be annulled.	Click Here
Income-tax Act, 1961	Section 270A	Srinivasa Gandhi Sampath v. ACIT	Penalty for under-reporting is unsustainable where the assessed income is identical to the returned income and the only dispute is the quantum of Foreign Tax Credit (FTC).	Click Here

For More :- Read IMPORTANT INCOME TAX CASE LAWS 19.12.2025