IMPORTANT INCOME TAX CASE LAWS 21.05.2025

Section/Notification	Case Law Title	Brief Summary	Citation	Relevant Act
Notification No. 49/2025, dated 19-05-2025	NEW ITR U	CBDT updates ITR-U form to allow filing of updated returns up to 48 months from end of relevant assessment year.	CLICK HERE	Income-tax Act, 1961
10(26)	Union of India v. Chyawan Prakash Meena B	Scheduled Tribe member posted in specified area entitled to income tax exemption under section 10(26).	CLICK HERE	Income-tax Act, 1961
11(2)	Archana Foundation v. Assistant Director of Income-tax	Trust’s claim for deduction under section 11(2) allowed despite delayed filing of return due to reasonable cause (trustees being senior citizens, Aadhaar linking issue).	CLICK HERE	Income-tax Act, 1961
12AB	Mangala Foundation v. Commissioner of Income-tax, (Exemption)	Application for registration remanded for fresh decision; CA’s busy schedule reasonable cause for not sealing/signing documents.	CLICK HERE	Income-tax Act, 1961
32	Deputy Commissioner of Income-tax v. Tata Power Delhi Distribution Ltd.	Computer accessories and peripherals (like UPS) entitled to 60% depreciation.	CLICK HERE	Income-tax Act, 1961
43B	Deputy Commissioner of Income-tax v. Tata Power Delhi Distribution Ltd.	Unpaid energy tax not payable under DMC bye-laws, thus not disallowable under section 43B.	CLICK HERE	Income-tax Act, 1961
54F, 148	Rahul Monal Chokshi v. National Faceless Assessment Centre	Matter remanded to AO for deliberating on assessee’s section 54F exemption claim, even if raised for first time in response to 148 notice.	CLICK HERE	Income-tax Act, 1961
57	Global Tradex Ltd. v. ACIT	Addition on account of interest expenses unjustified as interest from fixed deposits (security for business loan) was tax neutral.	CLICK HERE	Income-tax Act, 1961
68, 143(3)	Adani Wilmar Ltd. v. Assistant Commissioner of Income-tax Circle 1 (1)(1)	Reopening notice quashed as it was issued after four years, despite AO being satisfied with information during original assessment.	CLICK HERE	Income-tax Act, 1961
68	Ms. Sonali Dharmendra Mhatre v. Income-tax Officer	Reassessment Notice Beyond 3 Years Invalid if Escaped Income Below Rs. 50 Lakhs in final Assessment order	CLICK HERE	Income-tax Act, 1961
69	Prakash Kumar Chandnani v. Deputy Commissioner of Income Tax	Reassessment Justified When Source of Investment, Including Contribution from Mother, Remains Doubtful	CLICK HERE	Income-tax Act, 1961
69C	Prime Steel Industries (P.) Ltd. v. DCIT	Ad Hoc Disallowance for Bogus Purchases based on GST number Cancelled restrospectviely Not Sustainable if Genuineness of Production Not Doubted and Purchase Rates are Fair	CLICK HERE	Income-tax Act, 1961
80-IA	Deputy Commissioner of Income-tax v. Tata Power Delhi Distribution Ltd.	Deduction under section 80-IA admissible on enhanced profits due to disallowances (e.g., under sections 32, 40(a)(ia), 40A(3), 43B).	CLICK HERE	Income-tax Act, 1961
80P(2)(a)(i)	Nagini Co-operative Credit Society v. Income-tax Officer	Interest income from deposits with co-operative banks by co-operative society eligible for deduction under section 80P(2)(a)(i).	CLICK HERE	Income-tax Act, 1961
120	Principal Commissioner of Income-tax v. Raghvendra Mohta	Assessment Order by ACIT Quashed for Lack of Inherent Jurisdiction as Per CBDT Instructions on Nil Income.	CLICK HERE	Income-tax Act, 1961
127	Vishal Darshanlal Talreja v. Principal Commissioner of Income-tax	Transfer Order Under Section 127 Upheld: Assessee’s Non-Reply and Undenied Suspicious Transactions Justify Centralization.	CLICK HERE	Income-tax Act, 1961
145	GNG Exports v. Assistant Commissioner of Income-tax	Appellate Authority right in accepting average net profit percentage (0.77%) offered by assessee during assessment.	CLICK HERE	Income-tax Act, 1961
148	R.Deepak v. Income Tax Officer	Reopening Notices Against Struck-Off Company Quashed; Matter Remanded to Await NCLT Restoration.	CLICK HERE	Income-tax Act, 1961
199	Baderunnisa v. Deputy Director of Income-tax (CPC)	Full TDS Credit Allowed on Inherited Property Sale Despite Capital Gain Proportionality, Upholding Substance Over Technicality.	CLICK HERE	Income-tax Act, 1961