INCOME TAX CASE LAW DIGEST 12.6.2026
INCOME TAX CASE LAW DIGEST 12.6.2026
| Relevant Act | Section(s) / Rule(s) | Case Law Title | Citation | Brief Summary |
| Income Tax Act, 1961 | Section 10(23FBA) | Deputy Commissioner of Income-tax vs. Sundaram Alternative Opp Series High Yield Secured Debt fund | Click Here | Exemption under Section 10(23FBA) is allowable for NCD processing fees earned by a Category II AIF. Since the processing fee is intrinsically linked to investments and forms part of the overall investment yield, it cannot be recharacterized as business income. |
| Income Tax Act, 1961 | Section 148, Section 148A(d) | Hina Prakash Shah vs. Income-tax Officer | Click Here | Reassessment proceedings were held invalid as time-barred. The original notice was deemed issued on 24.06.2021, and the limitation period expired on 16.06.2022, making the subsequent notice issued on 29.07.2022 invalid. |
| Income Tax Act, 1961 | Section 35D, Section 37 | Navi General Insurance Ltd. vs. Assessment Unit, Income-tax Department | Click Here | Once the Assessing Officer accepts the claim for preliminary expenses (IRDAI license) under Section 35D for the first four years, they cannot disallow the fifth and final installment without disturbing the assessments of the earlier years. |
| Income Tax Act, 1961 | Section 80G, Section 37(1) | Cosmo First Ltd. vs. Deputy Commissioner of Income-tax | Click Here | Even if an assessee suo motu disallows Corporate Social Responsibility (CSR) expenses under Section 37(1), a deduction under Section 80G is still allowable for donations made to an approved registered trust, despite the mandatory nature of CSR. |
| Income Tax Act, 1961 | Section 282(1), Rule 127(1) | Cheshire Homes India KATP vs. Commissioner of Income-tax, Exemptions | Click Here | Serving notices exclusively through the ITBA portal is invalid under Section 282(1) and Rule 127(1). Dismissing a matter for non-compliance without proper service warrants a de novo disposal to ensure a fair opportunity. |
| Income Tax Act, 1961 | Section 143(1), Section 143(3) | Marmo Home (P.) Ltd. v1Ws. DCIT | Click Here | The doctrine of merger does not apply between Section 143(1) and Section 143(3) orders. If an AO merely adopts the income from a 143(1) intimation without independent variation in a 143(3) order, those adjustments cannot be challenged via a 143(3) appeal. |
| Income Tax Act, 1961 (Transfer Pricing) | TNMM (Transactional Net Margin Method) | Kellog Brown and Root Engineering and Construction India (P.) Ltd. vs. Deputy Commissioner of Income-tax | Click Here | Foreign exchange gains/losses arising from the realization of export proceeds for services rendered to Associated Enterprises (AEs) must be treated as operating income/expense for computing the Profit Level Indicator (PLI) and determining the Arm’s Length Price (ALP). |
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