IMPORTANT INCOME TAX CASE LAWS 27.10.2025
| Section/Notification | Case Law Title | Brief Summary | Citation | Relevant Act |
| Notification | Govt. notifies revised India-Qatar DTAA effective from FY 2026-27 | Government of India notified the revised Double Taxation Avoidance Agreement (DTAA) with Qatar, effective from FY 2026-27. Revised Article 11(3) clarifies the term “State” to include RBI and EXIM Bank for India, and Qatar Investment Authority and Qatar Holding LLC for Qatar. | NOTIFICATION NO. 154/2025, DATED 24-10-2025 | Double Taxation Avoidance Agreement (DTAA) |
| Section 2(15) | Commissioner of Income-tax (Exemption) v. Khurja Development Authority | The Supreme Court remanded the case back to the High Court because the HC’s order regarding the charitable purpose registration of a development authority was cryptic and did not consider the Supreme Court’s decision in Ahmedabad Urban Development Authority (2022) on when an authority serves a charitable purpose. | Click Here | Income-tax Act, 1961 (ITA) |
| Section 10(26AAB) | Sanand Agricultural Produce Market Committee v. Income Tax Officer, Exemption | The matter was restored to the Commissioner (Appeals) where the exemption claim under Section 10(26AAB) by an APMC was denied by CPC for non-filing of Form 10B audit report, despite consistent allowance in earlier assessment orders. | Click Here | Income-tax Act, 1961 |
| Section 11 | Alternative for India Development v. Income-tax Officer, Exemption | Benefit of exemption under Section 11 could not be denied to a duly registered trust merely because the return inadvertently mentioned Section 10(23C)(iv) instead of Section 11, as the audit report in Form 10B was furnished on time. | Click Here | Income-tax Act, 1961 |
| Section 32 | Bakeri Projects (P.) Ltd. v. Deputy Commissioner of Income-tax | Depreciation on goodwill arising from the excess of consideration paid over the net assets of the amalgamated company (BEIPL) was allowed to the assessee-company post-amalgamation. | Click Here | Income-tax Act, 1961 |
| Section 43(5) | Deputy Commissioner of Income-tax v. Fiem Industries Ltd. | Loss from forward contracts entered into solely to hedge risk on account of exchange fluctuations, incidental to the main business, was held to be a normal business loss and not a speculative transaction due to the proviso to Section 43(5)(a). | Click Here | Income-tax Act, 1961 |
| Section 80G | Foundation for Friendly Environment & Medical Awareness v. Commissioner of Income-tax (Exemption) | The application for 80G approval filed after the CBDT’s cut-off date (30-6-2024) but rejected after the Finance Act 2024 amendment was set aside. The Commissioner (Exemptions) was directed to treat the application as filed under the new clause (iv)(B) of the first proviso to Section 80G(5). | Click Here | Income-tax Act, 1961 / Finance Act, 2024 |
| Section 80G | Mother Leela Trust v. Commissioner of Income-tax (Exemption) | A delayed application for final registration under Section 80G(5)(iii) was to be treated under the newly inserted clause (iv) to the first proviso of Section 80G(5) (via Finance Act 2024) and decided on merit, as time limits were considered directory. | Click Here | Income-tax Act, 1961 / Finance Act, 2024 |
| Section 119 | Gajanand Urban Co-operative Credit Society Ltd. v. Principal Commissioner of Income-tax Surat 1 | The matter was remanded back to the PCIT to condone the delay in filing the return under Section 119(2)(b), which occurred due to technical glitches, since the assessee had filed an affidavit from the Chartered Accountant explaining the cause. | Click Here | Income-tax Act, 1961 |
| Section 139 / 119 | Navinbhai Bhagubhai Patel v. Union of India | Rejection of an application under Section 119(2)(b) to condone the delay in filing a return was unjustified when the assessee (individual) was unaware of TDS on compensation for compulsory land acquisition until PAN registration. PCIT was required to condone the delay. | Click Here | Income-tax Act, 1961 |
| Section 149 | Tarish Investment and Trading Company (P.) Ltd v. Union of India | A notice under Section 148 for AY 2017-18, issued on 7-5-2024, was quashed as it was issued beyond the period of limitation (which expired on 31-3-2024) prescribed under Section 149. | Click Here | Income-tax Act, 1961 |
| Section 194A | Himachal Mitra Mandal Cooperative Credit Society Ltd. v. Income-tax Officer, TDS | As per the pre-amended Section 194A(3)(v) (prior to 1-6-2015), a co-operative society had no statutory obligation to deduct tax at source (TDS) on interest income paid or credited on time deposits of its members. | Click Here | Income-tax Act, 1961 |
For More :- Read IMPORTANT INCOME TAX CASE LAW 16.10.2025