IMPORTANT INCOME TAX UPDATE 03.11.2025

By | November 4, 2025
0 Comment

IMPORTANT INCOME TAX UPDATE 03.11.2025

 

SectionCase Law TitleBrief SummaryCitationRelevant Act
Section 2(15)Marwadi Navyuvak Vachanalaya v. Commissioner of Income-tax (Exemption)Rental income from letting out shop spaces by an assessee-trust engaged in educational/philanthropic activities, used to fund charitable objects, will not attract the proviso to section 2(15), and registration under section 12A cannot be denied.Click HereITA, 1961
Section 11Income-tax Officer (Exemption) v. Seth Damji Laxmichand Jain Dharma SthanakBelated filing of Form No. 10B (audit report) before the completion of assessment is a procedural irregularity, and exemption under section 11(2) cannot be denied to the assessee-trust.Click HereITA, 1961
Section 11(3)Income-tax Officer (Exemption) v. Seth Damji Laxmichand Jain Dharma SthanakUnutilized accumulated income donated to other trusts instead of being used for the specified purpose within the permissible period constituted a violation, justifying an addition under section 11(3)(d).Click HereITA, 1961
Section 11(3)Yuvak Pratishthan v. Income-tax OfficerAn addition made under section 143(1) based on an inadvertent arithmetical error in Form 10BB regarding deemed income under section 11(3) must be deleted if corrected through a revised form.Click HereITA, 1961
Section 11Yuvak Pratishthan v. Income-tax OfficerFor the Rs. 5 crore threshold (Rule 17B), only gross receipts from charitable activities are relevant; the effect of section 11 (deductions or deemed income) is not considered, thus the Form 10BB audit report was valid.Click HereITA, 1961
Section 12APata Trans Himalayan Empowerment Society v. Income-tax OfficerDelay in filing an appeal against rejection of registration under sections 12A and 80G, if due to a bona fide mistake based on counsel’s advice, is to be condoned.Click HereITA, 1961
Section 12APata Trans Himalayan Empowerment Society v. Income-tax OfficerRejection of an application for registration under section 12A without providing an opportunity of hearing to the assessee requires the matter to be remanded for fresh adjudication.Click HereITA, 1961
Section 35Malwa Oxygen & Industrial Gases (P.) Ltd. v. Income-tax Officer, NFAC, DelhiIf scientific research satisfies the definition under section 43(4)(iii), the assessee is entitled to 100% deduction of revenue expenses under section 35(1)(i) and depreciation on R&D assets under section 32(1), even if the higher weighted deduction claim was withdrawn.Click HereITA, 1961
Section 56Mamta Agarwal v. PCITRevision by PCIT based on an unsustainable change of opinion, treating a variation within the 10 per cent permissible limit between sale consideration and DVO-determined FMV of an immovable property as taxable income under section 56, was not supported by law.Click HereITA, 1961
Section 68Deputy Commissioner of Income-tax v. Arihant Suresh JainAddition under section 68 for alleged bogus LTCG from share transactions is unsustainable if the assessee has prima facie discharged the onus by substantiating purchases/sales through contract notes, demat, and bank statements, and no defect or price rigging was established.Click HereITA, 1961
Section 69Sahyog Corporation v. Assistant Commissioner of Income-taxA reassessment initiated solely on the basis of a DVO valuation report, without the Assessing Officer conducting any independent enquiry under section 148A(a), is invalid, and the reopening order/notice must be quashed.Click HereITA, 1961
Section 80Balaji Landmarks LLP v. Central Board of Direct Taxes (CBDT)Delay in filing a loss return due to inadequate professional advice on a complex tax issue, and not negligence, is considered bona fide and should be condoned, treating the return as filed under section 153(1B).Click HereITA, 1961
Section 80PWest Bengal State Co-Operative Agriculture & Rural Development Bank Ltd. v. Deputy Commissioner of Income-taxInterest earned by a cooperative society from investing its floating funds in short-term bank deposits is eligible for deduction under section 80P(2)(a)(i), as the amount deposited was not a liability to members.Click HereITA, 1961
Section 80PWest Bengal State Co-Operative Agriculture & Rural Development Bank Ltd. v. Deputy Commissioner of Income-taxInterest income on personal loans extended to members (Class D individuals) is eligible for deduction under section 80P, but interest on house building loans to staff is not eligible.Click HereITA, 1961
Section 245Megha Engineering and Infrastructure Ltd. v. Income-tax Settlement CommissionSettlement applications validly filed before the ITSC before the Finance Act, 2021 was promulgated shall be treated as pending applications to be considered by the Interim Board.Click HereITA, 1961
Section 254Buckeye Trust v. RegistrarA writ petition seeking to restrain the Tribunal from continuing with proceedings on the basis that the matter was being heard by an allegedly AI-driven bench became infructuous after the matter was assigned to a different bench.Click HereITA, 1961

For More :- Read IMPORTANT INCOME TAX CASE LAW 02.11.2025