INCOME TAX CASE LAW DIGEST 16.06.2026
INCOME TAX CASE LAW DIGEST 16.06.2026
| Relevant Act | Section | Case Law Title | Brief Summary | Citation |
| Income Tax Act, 1961 | Section 11 | National Academy of Agricultural Sciences v. Income-tax Officer | Receipts from providing commercial conference and auditorium facilities are not incidental to charitable objects and constitute taxable business income under Section 11(4A). |
2026
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| Income Tax Act, 1961 | Section 11 | National Academy of Agricultural Sciences v. Income-tax Officer | Administrative salaries paid to scientists and publication/printing expenses are incidental to the trust’s specific objects, qualifying as valid application and accumulation of income. |
2026
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| Income Tax Act, 1961 | Section 14A | ACIT v. Reliance Industrial Investments and Holdings Ltd. | Disallowance under Rule 8D is unsustainable if the Assessing Officer (AO) fails to record objective dissatisfaction regarding the assessee’s suo motu disallowance computation. |
2026
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| Income Tax Act, 1961 | Section 115JB | ACIT v. Reliance Industrial Investments and Holdings Ltd. | Convertible debentures comprising only equity without liability components cannot be treated as transition amounts to increase book profits under Section 115JB(2C) for MAT purposes. |
2026
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| Income Tax Act, 1961 | Section 115WB | MRF Ltd. v. Deputy Commissioner of Income-tax | Employee medical reimbursements up to ₹15,000 per annum (exempt as perquisites for employees) do not attract Fringe Benefit Tax (FBT) in the hands of the employer. |
2026
|
| Income Tax Act, 1961 | Section 144 | Sanjay Mahendrabhai Desai v. National e-Assessment Centre Assessment Unit | A faceless best judgment assessment order passed without granting a requested video conference hearing or a meaningful response window violates natural justice and is invalid. |
2026
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| Income Tax Act, 1961 | Section 145 | Isha Metal Stores v. Assistant Commissioner of Income-tax | The Assessing Officer cannot estimate the gross profit on unrecorded sales without explicitly rejecting the regular books of account under Section 145(3) or invoking Section 144. |
2026
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| Income Tax Act, 1961 | Section 145 | Navjeet Singh Bhatia v. Income-tax Officer | Estimating a higher gross profit (4%) for a liquor trader is unjustified when a comparable trader’s lower GP rate (3.13%) has already been accepted by the Revenue. |
2026
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| Income Tax Act, 1961 | Section 145 | Navjeet Singh Bhatia v. Income-tax Officer | Once the books of account are rejected and the gross profit is estimated by the AO, no further ad-hoc disallowance of P&L expenses can be legally sustained. |
2026
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| Income Tax Act, 1961 | Section 147A | Income-tax Officer v. Sai Kumar Mateti | Reassessment notices for AY 2015-16 fail based on the Apex Court’s concession in Rajeev Bansal; remaining ambiguous matters are remanded back to respective High Courts. |
2026
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| Income Tax Act, 1961 | Section 153A | ACIT v. Honey Arora | If no search warrant or panchnama is drawn up specifically in the name of the assessee, the assumption of jurisdiction and assessments framed under Section 153A are void. |
2026
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| Income Tax Act, 1961 | Section 220 | Cashfree Payments India (P.) Ltd. v. Principal Commissioner of Income-tax | Recovering a full tax demand despite an interim stay and failing to give a fair hearing on a pre-deposit waiver warrants a remand and refund of excess collections. |
2026
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| Income Tax Act, 1961 | Section 254 | Principal Commissioner of Income-tax v. Taha Wires (P.) Ltd. | The ITAT cannot dismiss a Department appeal involving a law enforcement agency (like DGCEI) on low tax effects, as such cases fall under exceptions to CBDT circulars. |
2026
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| Income Tax Act, 1961 | Section 254 | ACIT v. Rolls Royce India (P.) Ltd. | The Supreme Court’s Covid-19 exclusion period for limitation applies strictly to judicial/quasi-judicial proceedings, not to standard assessment time bounds. |
2026
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