INCOME TAX CASE LAW 02.09.2026

By | September 3, 2026
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INCOME TAX CASE LAW 02.09.2026

Section Relevant Act Case Law Title Citation Brief Summary
Section 2(47) Income-tax Act, 1961 Sandhya Roy v. Income-tax Officer Click Here Where reassessment was framed treating execution of a JDA as a transfer without a return filed, the CIT(A) order was set aside and remitted for fresh decision on merits with due opportunity and Rule 46A compliance.
Section 11(1) Income-tax Act, 1961 Thailammal Charitable Trust v. ITO, Exemption Click Here Loan repayment claimed as application of income was accepted by the AO after due inquiry; revision under Section 263 was invalid as the order was not erroneous or prejudicial.
Section 12AB Income-tax Act, 1961 Deep Shikha Vikas Samiti v. CIT (E) Click Here Pending or curable non-registration under the Rajasthan Public Trust Act is not fatal; applications should be restored/preserved to verify State registration certificates.
Section 12AB Income-tax Act, 1961 Deep Shikha Vikas Samiti v. CIT (E) Click Here Obtaining registration under the State Act subsequently cures the defect; absence at filing does not demonstrate non-charitable objects or non-genuine activities.
Section 12AB Income-tax Act, 1961 Deep Shikha Vikas Samiti v. CIT (E) Click Here Rejection of registration on summary assumptions without identifying specific non-genuine activities or adverse material cannot stand as a final finding.
Section 12AB Income-tax Act, 1961 Deep Shikha Vikas Samiti v. CIT (E) Click Here Defective filing of Form 10AB or selecting an incorrect sub-clause constitutes a curable procedural defect; merits must be examined upon rectification.
Section 12AB Income-tax Act, 1961 Deep Shikha Vikas Samiti v. CIT (E) Click Here One final opportunity must be afforded to trusts defaulting on procedural notices due to lack of professional help or communication breakdowns.
Section 12AB Income-tax Act, 1961 Veera Devi Ramchandra Jhanwar Charitable Trust v. ITO (E) Click Here Registration under the Rajasthan Public Trust Act cannot be made mandatory without adjudicating the trust’s statutory exemption claim under Section 77(1) of that Act.
Section 14A Income-tax Act, 1961 Addl. CIT, Special Range-7 v. PNB Gilts Ltd. Click Here No Section 14A interest disallowance is attracted where interest-free funds exceed stock-in-trade value, nor can overheads be allocated if they remain fixed.
Section 14A Income-tax Act, 1961 ACIT v. Acme Cleantech Solutions (P.) Ltd. Click Here In the absence of any exempt income earned during the relevant assessment year, no disallowance can be made under Section 14A read with Rule 8D.
Section 28(i) Income-tax Act, 1961 Income Tax Officer v. Varsha Mills Click Here Valuation of damaged stock under bank attachment at Net Realisable Value per AS-2 is valid; Revenue cannot reject books and substitute an arbitrary NRV.
Section 31 Insolvency and Bankruptcy Code, 2016 DCIT v. Indusind General Insurance Company Ltd. Click Here NCLT-approved Resolution Plan extinguishing past tax claims/proceedings binds all authorities including the ITAT; ongoing tax appeals become infructuous.
Section 32 Income-tax Act, 1961 DCIT v. Nirma Ltd. Click Here Depreciation claimed on goodwill arising out of an amalgamation was upheld, following consistent Tribunal orders in the assessee’s own case.
Section 32 Income-tax Act, 1961 DCIT v. Nirma Ltd. Click Here Depreciation on intangible assets (brands and trade names) acquired via demerger was upheld in line with past precedent.
Section 36(1)(iii) Income-tax Act, 1961 Addl. CIT, Special Range-7 v. PNB Gilts Ltd. Click Here Disallowance of interest under Section 36(1)(iii) is unjustified solely because the assessee holds securities as stock-in-trade and has surplus interest-free funds.
Section 37(1) Income-tax Act, 1961 PCIT v. ECA Infrastructure India (P.) Ltd. Click Here Scientifically estimated provision for major maintenance/repairs mandated by a BOT concession agreement represents a present obligation and is allowable.
Section 69A Income-tax Act, 1961 Income Tax Officer v. Varsha Mills Click Here Cash deposits during demonetisation supported by recorded cash sales, sale bills, and stock registers cannot be added as unexplained money under Section 69A.
Section 80G Income-tax Act, 1961 Veera Devi Ramchandra Jhanwar Charitable Trust v. ITO (E) Click Here Rejection of Section 80G approval based entirely on non-registration under State Act cannot survive when the exclusion under Section 77(1) was overlooked.
Section 80G Income-tax Act, 1961 Deep Shikha Vikas Samiti v. CIT (E) Click Here Where 80G approval was rejected solely as a fallout of Section 12AB rejection, setting aside the 12AB order restores the 80G application for fresh independent review.
Section 92C Income-tax Act, 1961 ACIT v. Acme Cleantech Solutions (P.) Ltd. Click Here A company manufacturing capacitors cannot be used as a comparable under TNMM for a business with entirely distinct product characteristics.
Section 92C Income-tax Act, 1961 ACIT v. Acme Cleantech Solutions (P.) Ltd. Click Here Outbound foreign currency loans to AEs must be benchmarked against international lending rates (LIBOR plus spread), not domestic SBI PLR.
Section 92C Income-tax Act, 1961 ACIT v. Acme Cleantech Solutions (P.) Ltd. Click Here No notional interest addition is warranted on delayed AE trade receivables where the uniform policy applies to both AEs and non-AEs with credit terms priced into sales.
Section 92C Income-tax Act, 1961 ACIT v. Acme Cleantech Solutions (P.) Ltd. Click Here EPC engineering service providers across steel/metals lack functional comparability with specialized telecom engineering service providers.
Section 92C Income-tax Act, 1961 DCIT v. Nirma Ltd. Click Here Benchmarking captive electricity supplied by a captive power plant to a manufacturing unit using open market grid purchase rates is a valid ALP method.
Section 92C Income-tax Act, 1961 DCIT v. Nirma Ltd. Click Here Steam supplied from a captive plant to non-eligible units constitutes power transfer; TPO cannot assign a nil ALP by treating it as a valueless waste by-product.
Section 119 Income-tax Act, 1961 Mahavatar Babaji Charitable Trust v. CIT (E) Click Here One-day delay in uploading Form 10B audit report during COVID-19 must be condoned to prevent genuine hardship, as circular timelines cannot override equity.
Section 145A Income-tax Act, 1961 Addl. CIT, Special Range-7 v. PNB Gilts Ltd. Click Here Mark-to-market loss on government securities held as stock-in-trade by a primary dealer (valued at lower of cost or NRV per RBI guidelines) is an allowable business loss.
Section 151 Income-tax Act, 1961 Sara Wines v. ITO Click Here Reassessment notice issued beyond 3 years with sanction from PCIT instead of the higher authority mandated under Section 151(ii) is void ab initio for lack of jurisdiction.