INCOME TAX CASE LAW DIGEST 04.06.2026
INCOME TAX CASE LAW DIGEST 04.06.2026
| Relevant Act | Section | Case Law Title | Brief Summary | Citation |
| Income-tax Act, 1961 | Section 48 / 55 (Cost of Improvement/Acquisition) | Jugesh Saluja vs. Deputy Commissioner of Income-tax | Claim of indexed cost of construction cannot be fully denied solely due to the absence of old bills when a registered sale deed and valuation authority corroborate the superstructure’s existence. Cost must be recomputed based on the covered area and prevailing PWD rates. | Click Here |
| Income-tax Act, 1961 | Section 206AA read with Rule 114AAA | Sanchit Gupta vs. Deputy Commissioner of Income-tax, CPC, TDS | Higher TDS (20%) is not applicable if the seller disclosed the transaction and paid due taxes in their return, even if their PAN was inoperative due to delayed Aadhaar linking. Matter remanded to the AO for verification. | Click Here |
| Income-tax Act, 1961 | Section 203 (TDS Certificate / Civil Recovery) | Divij Mercantiles Pvt. Ltd. vs. Smt. Sabita Rungta | The issuance of a TDS certificate and acknowledgment of a lender-borrower relationship in tax filings bars the respondent from denying liability in a money recovery suit. This establishes a prima facie case, justifying an injunction. | Click Here |
| Income-tax Act, 1961 | Section 270A | Income-tax Officer vs. Dipali Singha Roy | Penalty proceedings under Section 270A were remanded back to the CIT(A) for fresh adjudication because the quantum appeal for the same assessment year was still pending disposal. | Click Here |
| Income-tax Act, 1961 / Black Money Act | Section 5 (Scope of Total Income) | Principal Commissioner of Income-tax vs. Shriti Verma | No income tax addition is justified based on the mere likelihood of a future inheritance of a foreign asset or speculative ownership changes, especially when Black Money Act proceedings established the assessee was not the beneficial owner. | Click Here |
| Income-tax Act, 1961 | Section 147 (Explanation 2(b)) | Kuljeet Singh vs. ITO | Reassessment proceedings were quashed as the AO wrongly invoked Explanation 2(b) to Section 147 despite a completed scrutiny assessment under Section 143(3). This mechanical invocation showed a non-application of mind. | Click Here |
| Income-tax Act, 1961 | Section 153D & Section 292BC | Bhupendra Autotech Industries (P.) Ltd. vs. Deputy Commissioner of Income-tax | An assessment order is invalid if the mandatory Section 153D approval was granted mechanically without perusing records. Section 292BC cannot retrospectively validate or cure defects for approvals granted prior to its insertion. | Click Here |
| Income-tax Act, 1961 | Section 92C (Transfer Pricing) | NTT India (P.) Ltd. vs. Dy. CIT | Transfer pricing adjustment on management fees paid to an associated enterprise was deleted by applying the principle of consistency, as similar adjustments had been deleted in the assessee’s own case in preceding years. | Click Here |