11 IMPORTANT INCOME TAX CASE LAW 19.02.2025

Sr No	Case Law Title	Brief Summary	Citation	Relevant Section and Act
1	Magadi Planning Authority v. Income-tax Officer	A town planning authority engaged in public welfare activities is considered a charitable institution.	Click Here	Section 2(15) Income Tax Act, 1961
2	Principal Commissioner of Income-tax 5 Kolkata v. Sawankumar T Jajoo	Long-term capital gains on shares are exempt, even if they are penny stocks, if purchased for long-term holding.	Click Here	Section 10(38) Income Tax Act, 1961
3	Magadi Planning Authority v. Income-tax Officer	Registration under Section 12AA can be considered for pending assessment proceedings.	Click Here	Section 12A Income Tax Act, 1961
4	Garware Technical Fibres Ltd. v. DCIT, CC-1(3)	Unaccounted cash receipts found during a search can be added to income, even if there’s no specific evidence of their use.	Click Here	Section 28(i) Income Tax Act, 1961
5	Garware Technical Fibres Ltd. v. DCIT, CC-1(3)	Deduction for in-house R&D expenses is limited to the amount certified by DSIR.	Click Here	Section 35(2AB) Income Tax Act, 1961
6	Make My Trip (India) (P.) Ltd. v. Deputy Commissioner of Income-tax (International Taxation)	Expenses incurred on employee stock option plans (ESOPs) are allowed as a business expenditure.	Click Here	Section 37(1) Income Tax Act, 1961
7	Principal Commissioner of Income-tax v. IOT Anwesha Engineering and Projects Ltd.	Reopening of assessment on the issue of unpaid VAT is not valid if no new material facts are brought on record.	Click Here	Section 43B Income Tax Act, 1961
8	Ajay Data v. ACIT	Gold jewellery and silver articles found during a search are not necessarily unexplained if they belong to a joint family.	Click Here	Section 69A Income Tax Act, 1961
9	Ajay Data v. ACIT	Mere withdrawal of cash without a specific explanation does not make it unexplained income.	Click Here	Section 69A Income Tax Act, 1961
10	Principal Commissioner of Income-tax (Central) v. Navinchandra Dalpatlal Mehta	Settlement Commission can accept a settlement application even if the exact nature of the undisclosed income is not clear.	Click Here	Section 245D Income Tax Act, 1961
11	Assistant Commissioner of Income-tax v. Mohammed Salih	Money in bank accounts can be provisionally attached to protect revenue.	Click Here	Section 281B Income Tax Act, 1961