Important Income Tax Case Laws 30.04.2026

Relevant Act	Section	Case Law Title	Citation	Brief Summary
Income Tax	Sec 2(14)	Rashmi Niranjan Mehta v. ITO	Click Here	Sale of gold/silver received as Streedhan is treatable as Capital Gains (eligible for Sec 54F) if item-wise acquisition and vouchers are substantiated on remand.
Income Tax	Sec 10(10AA)	Gyanendra Panwar v. ADIT	Click Here	Leave Encashment: Exemption limit for non-government employees is Rs. 25 lakhs per CBDT Notification 31/2023; restricting it to Rs. 3 lakhs is incorrect.
Income Tax	Sec 10(10AA)	Bindumadavan Prakash v. ITO	Click Here	Employees retiring from BSNL (formerly with DoT) are treated as Government Employees; leave encashment is fully exempt without monetary limits.
Income Tax	Sec 12A / 12AB	Vriksh Be The Change v. ITO	Click Here	Registration can be refused if the trust deed permits spending income/benefits outside India, as exemption is limited to charitable activities within India.
Income Tax	Sec 24 / 80C	Rashmi Niranjan Mehta v. ITO	Click Here	Joint owners can claim housing loan deductions even if the loan is in the spouse’s name, subject to verification of the actual investment source.
Income Tax	Sec 37(1)	Morgan Stanley Advantage Services v. NFAC	Click Here	ESOP Cost: Recharged cost of overseas group company shares allotted to employees is allowable as revenue expenditure, as the value is taxed as a perquisite.
Black Money Act	Sec 51	Deepak Talwar v. ITO	Click Here	Placing previously unavailable foreign asset documents (KYC, Trust records) on record at the pre-charge evidence stage is legally permissible.
Income Tax	Sec 54F / 70	Nikesh Bhagwandas Mehta v. ITO	Click Here	Sec 54F exemption applies to the entire LTCG; assessee can carry forward LTCL without setting it off against the exempt gain.
Income Tax	Sec 69A	Bath Affair v. ITO	Click Here	Sec 69A (Unexplained Money) cannot be invoked for amounts already recorded in books and supported by VAT returns.
Income Tax	Sec 92C	Morgan Stanley Advantage Services v. NFAC	Click Here	Margin agreed upon in a Bilateral APA (BAPA) for US affiliates is applicable to UK affiliates if the nature of the transaction is identical.
Income Tax	Sec 276C	Ritu Butalia v. State	Click Here	Fair Trial: In prosecution for tax evasion, the accused has the right to inspect original foreign documents during cross-examination.

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