INCOME TAX CASE LAW 04.06.2026
INCOME TAX CASE LAW 04.06.2026
| Relevant Act | Section(s) | Case Law Title | Citation | Brief Summary |
| Income Tax Act, 1961 | Sec. 80P, 80AC, 139 | T943 Vickrapandiyam Primary Agricultural Co-operative Credit Society Ltd. vs. Chief Commissioner of Income-tax | Click Here | Rejection of condonation of delay applications solely for non-furnishing of particulars is unsustainable. Delay must be condoned to let assessments/appeals proceed regarding Sec. 80P deductions. |
| Income Tax Act, 1961 | Sec. 37(1) (Business Expenditure) | Assistant Commissioner of Income-tax vs. Annai Builders Real Estate (P.) Ltd. | Click Here | Compensation paid by a real estate business for a cancelled land sale agreement is fully allowable as a business expenditure in the year incurred; it cannot be treated as part of project cost or work-in-progress. |
| Income Tax Act, 1961 | Sec. 69 | Income-tax Officer vs. Paresh Mulayamchand Panday | Click Here | Deletion of unexplained investment addition is warranted when payments for tenancy rights and additional area are clearly backed by bank statements, PPF records, and fund-flow statements. |
| Income Tax Act, 1961 | Sec. 147, 148 / TOLA | Income-tax Officer vs. Maddila Ramakrishna | Click Here | Reopening of assessment for AY 2015-16 was rightly quashed as time-barred. TOLA extensions apply only if the limitation period falls between 20-03-2020 and 31-03-2021. |
| Income Tax Act, 1961 | Sec. 5 (Scope of Total Income / Transfer Pricing) | Aston Shoes (P.) Ltd. vs. ACIT, Central | Click Here | Commission earned by an overseas entity for procurement facilitation cannot be taxed in India as inflated purchases or undisclosed income without concrete evidence of fund diversion or repatriation to Indian assessees. |
| Income Tax Act, 1961 | Sec. 80P(2)(a)(iii), 154 (Rectification) | National Agricultural Coop. Mkt. vs. Commissioner of Income-tax | Click Here | The Tribunal was legally justified in rectifying its prior order via a miscellaneous application to give effect to a subsequent retrospective amendment to Sec. 80P. |
| Income Tax Act, 1961 | Sec. 37(1) (Business Expenditure) | Raunaq International Ltd. vs. Commissioner of Income-tax IN | Click Here | Disallowance of a corporate taxpayer’s car and telephone expenses for “personal use” is unsustainable without explicit proof that the expenses were unrelated to business, especially to maintain consistency with prior years. |
| Income Tax Act, 1961 | Sec. 147, 148, 282 | Anuradha Doshi vs. Income-tax Officer | Click Here | Serving a reassessment notice to an NRI at the address listed in their PAN or passport constitutes valid service. The Assessing Officer is not required to serve notices via the taxpayer’s bank. |
| Income Tax Act, 1961 | Sec. 4 / 5 (Tax Revenue) | Principal Commissioner of Income-tax vs. Pancard Clubs Ltd. | Click Here | Supreme Court dismissed the Revenue’s SLP, affirming that advance receipts from the sale of hotel room nights cannot be taxed as revenue income in the year of receipt. |
| Income Tax Act, 1961 | Sec. 143, 144C, 153 | Versuni India Home Solutions Ltd. vs. DCIT | Click Here | Mere signing of an assessment order within the limitation period does not equal “completion”. If the final order is delivered after the prescribed period, the assessment is time-barred. |