IMPORTANT INCOME TAX CASE LAWS 31.01.2026

Relevant Act	Section	Case Law Title	Brief Summary	Citation
Income-tax Act, 1961	Section 11 / 13	Sri Srinivasa Educational & Charitable Trust v. DCIT	[Search Relief for Trusts] Inconclusive DVO reports and surmises regarding “fund diversion” are insufficient to deny exemption. The Court upheld COVID relief expenditure as genuine despite informal documentation given the emergency context.	Click Here
Income-tax Act, 1961	Section 153B	Sri Srinivasa Educational & Charitable Trust v. DCIT	[Limitation Period] Panchnamas drawn merely to revoke restraint orders (u/s 132(3)) cannot extend the limitation period for completing search assessments. Assessments completed beyond the time limit from the last valid panchnama are void.	Click Here
Income-tax Act, 1961	Section 14A	DCIT v. Lotus Herbals (P.) Ltd.	[Restrictive Disallowance] Disallowance u/s 14A must be restricted to the average value of only those investments which actually yielded exempt income during the year, not the total investment pool.	Click Here
Income-tax Act, 1961	Section 151	Integrated Service Point Ltd. v. Dy./Asst. CIT	[Sanction Authority] If a notice u/s 148 is issued after 3 years, approval must be from the Principal CCIT. Approval from a Member (Inv.), CBDT, is incompetent, rendering the reassessment invalid.	Click Here
Income-tax Act, 1961	Section 205	AO v. Shobhan Shantilal Doshi	[TDS Credit SC Ruling] The SC set aside specific High Court directions for “software modification” but did not disturb the principle that direct demand cannot be made on an employee if tax was deducted by the employer.	Click Here

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