INCOME TAX CASE LAW DIGEST 15.09.2026

Relevant Act	Section(s)	Case Law Title	Citation	Brief Summary
Income Tax Act, 1961	CBDT Circular (Monetary Limits) / Section 260A	Principal Commissioner of Income-tax vs. Taha Wires (P.) Ltd.	Click Here	The ITAT erred in dismissing the Revenue’s appeal based on low tax effect limits, failing to recognize that cases involving the DGCEI fall under the circular’s explicit exceptions. Matter remanded.
Income Tax Act, 1961	Section 148 / 148A (Reassessment)	Income-tax Officer vs. Sai Kumar Mateti	Click Here	Reassessment appeals with ambiguous Assessment Years were segregated and remanded to respective High Courts to determine relevant AYs and decide matters afresh in light of Tej Partap Singh.
Income Tax Act, 1961	Section 11(4A) & Section 12A	National Academy of Agricultural Sciences vs. Income-tax Officer	Click Here	Earnings from letting out auditorium and conference facilities with premium amenities were held not incidental to the trust’s main charitable objects, making it taxable business income under Section 11(4A).
Income Tax Act, 1961	Section 144B	Sanjay Mahendrabhai Desai vs. National e-Assessment Centre Assessment Unit	Click Here	A faceless assessment order was quashed because the Revenue rushed to pass the order without providing a meaningful opportunity or accommodating a reasonable adjournment request for a video conference.
Income Tax Act, 1961	Section 220 / 251 (Stay & Pre-deposit)	Cashfree Payments India (P.) Ltd. vs. Principal Commissioner of Income-tax	Click Here	An order demanding a 20% pre-deposit for an appeal stay was set aside and remanded due to lack of a proper, fair hearing. Excess amounts collected beyond statutory requirements must be refunded.
Income Tax Act, 1961	Section 115JB(2C) (MAT)	ACIT vs. Reliance Industrial Investments and Holdings Ltd.	Click Here	Convertible debentures carrying zero liability components function as pure equity. Thus, they cannot be classified as Compound Financial Instruments (CFI) or increase the transition book profits for MAT.
Income Tax Act, 1961	Section 145(3) & Section 144	Isha Metal Stores vs. Assistant Commissioner of Income-tax	Click Here	The Assessing Officer cannot arbitrarily estimate Gross Profit on unrecorded sales (initially admitted during a survey but later retracted) without formally rejecting the books of accounts under Section 145(3).
Income Tax Act, 1961	Section 115WB read with Section 17	MRF Ltd. vs. Deputy Commissioner of Income-tax	Click Here	Employee medical reimbursements up to Rs. 15,000 per annum are exempt as perquisites and consequently do not attract Fringe Benefit Tax (FBT) in the hands of the employer.
Income Tax Act, 1961	Section 145(3)	Navjeet Singh Bhatia vs. Income-tax Officer	Click Here	Following a book rejection for a liquor trader, the AO cannot add ad-hoc expenses or apply a higher 4% GP rate when a comparable and accepted benchmark trader stood at 3.13%.
Income Tax Act, 1961	Section 154 / 143(3)	ACIT vs. Rolls Royce India (P.) Ltd.	Click Here	The Supreme Court’s landmark Covid-19 limitation extension applies strictly to judicial and quasi-judicial actions, not to the statutory timelines for completing regular assessment proceedings.
Income Tax Act, 1961	Section 153A read with Section 132	ACIT vs. Honey Arora	Click Here	A Section 153A search assessment is legally void and must be annulled if neither the original search warrant nor the panchnama was drawn specifically in the name of the assessee.