INCOME TAX CASE LAWS 11.08.2026

Section	Case Law Title	Citation	Relevant Act	Brief Summary
Section 2(47)	Smt. Mrunalini Kalagara v. Income-tax officer	Click Here	Income-tax Act, 1961	Transfer of immovable property via a registered sale deed constitutes a “transfer” attracting capital gains under Section 45, even if coercion or non-receipt of consideration is claimed. Matter remanded due to unreasoned cost of acquisition.
Section 4	OYO Hotels and Homes (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Income-tax Act, 1961	Reversal of management fee accruals without supporting documentary evidence warranted remanding the matter back to the AO for proper verification and opportunity of hearing.
Section 11	Sadhu Vasvani Mission v. Commissioner of Income-tax (Exemption)	Click Here	Income-tax Act, 1961	Delay in filing Form 10 for accumulation of unspent income due to oversight/first-time e-filing required condonation under CBDT Circular No. 7/2018 when funds were invested in prescribed modes.
Section 12AB	Bombay Patel Welfare Society v. Commissioner of Income-tax (Exemptions)	Click Here	Income-tax Act, 1961	Merely answering ‘Yes’ to irrevocability in Form 10AB when the trust deed lacked an express irrevocability or dissolution clause does not amount to furnishing false information; rejection of registration was unjustified.
Section 14A	Bayer Bioscience (P.) Ltd. v. Assistant Commissioner of Income-tax (OSD) – 10	Click Here	Income-tax Act, 1961	Disallowance of interest expenditure under Rule 8D(2)(ii) is to be deleted if the assessee demonstrates that its own interest-free funds exceeded the investments made.
Section 28	Bayer Bioscience (P.) Ltd. v. Assistant Commissioner of Income-tax (OSD) – 10	Click Here	Income-tax Act, 1961	Write-off of an irrecoverable VAT/CST refund arising from sales returns is allowable as a business loss under Section 28 / Section 37(1) as it arose in the ordinary course of business.
Section 36(1)(vii)	Bayer Bioscience (P.) Ltd. v. Assistant Commissioner of Income-tax (OSD) – 10	Click Here	Income-tax Act, 1961	Bad debts written off in the books of account qualify for deduction under Section 36(1)(vii) read with 36(2) when sales were offered to tax in earlier years and supported by ledger entries.
Section 37(1)	OYO Hotels and Homes (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Income-tax Act, 1961	Assured margin paid to group entities for business transformation services is allowable revenue expenditure under Section 37(1) and not subject to Section 40A(2) disallowance.
Section 37(1)	Deputy Commissioner Income Tax v. Gunasekaran	Click Here	Income-tax Act, 1961	Ad hoc disallowances of labor, salary, and business expenses without pointing out specific defects in books or proving fictitious payees are unsustainable in law.
Section 37(1)	Gujarat Narmada Valley Fertilizers and Chemicals Ltd. v. Deputy Commissioner of Income-tax	Click Here	Income-tax Act, 1961	Corporate guarantee liability settled and debited as a provision in an earlier year crystallized in that period and is deductible as a business expenditure.
Section 56	Manoj Kumar Singh Yadav v. Income-tax Officer	Click Here	Income-tax Act, 1961	Ad hoc addition for undisclosed rental income from plant hiring is unsustainable when the revenue cannot disprove that such income was already included in the reported taxable income.
Section 56	OYO Hotels and Homes (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Income-tax Act, 1961	AO cannot re-evaluate or substitute the DCF valuation method adopted by a merchant banker/valuer under Rule 11UA for CCPS issuance, nor invoke Section 56(2)(viib) on conversion into equity shares.
Section 68	ACIT v. H S Jewels badaun (P.) Ltd.	Click Here	Income-tax Act, 1961	No addition under Section 68 can be made in a Section 153A assessment for completed/unabated assessment years in the absence of incriminating material found during the search.
Section 68	ACIT v. H S Jewels badaun (P.) Ltd.	Click Here	Income-tax Act, 1961	Cash deposits during demonetization duly recorded in audited books with accepted trading results and no rejection of books under Section 145(3) cannot be added as unexplained cash credits.
Section 68	Income-tax Officer v. Abhishek Harshkumar Jain	Click Here	Income-tax Act, 1961	Addition under Section 68 for LTCG on share sales is unsustainable where standard transaction proofs (broker notes, demat, bank statements) are provided and no link to price manipulation is shown.
Section 68	Principal Commissioner of Income-tax 3 v. Ashokumar Bhavanbhai Patel	Click Here	Income-tax Act, 1961	Reopening assessment merely to verify the source of cash deposits without tangible material showing escapement of income amounts to a fishing enquiry and is without jurisdiction.
Section 69A	Manoj Kumar Singh Yadav v. Income-tax Officer	Click Here	Income-tax Act, 1961	Bank deposits in a “Bank Mitra” account representing customer funds for intermediary banking services cannot be taxed as unexplained money under Section 69A.
Section 69A	Navjeevan Dharmi Associates v. Principal Commissioner of Income-tax	Click Here	Income-tax Act, 1961	Assessing undisclosed income declared under IDS, 2016 (where full payment failed/proof was lacking) as unexplained money under Section 69A is justified.
Section 69C	Deputy Commissioner Income Tax v. Gunasekaran	Click Here	Income-tax Act, 1961	Ad hoc 50% disallowance/addition of purchases under Section 69C is unsustainable when purchases are reflected in GSTR-2A and AO makes no independent verification to prove non-existent suppliers.
Section 69C	Income-tax Officer v. Abhishek Harshkumar Jain	Click Here	Income-tax Act, 1961	Estimated commission addition under Section 69C fails automatically when the primary Section 68 addition for alleged bogus LTCG transactions is deleted.
Section 80G	Bombay Patel Welfare Society v. Commissioner of Income-tax (Exemptions)	Click Here	Income-tax Act, 1961	Procedural delay in filing Form 10AB for regular approval under Section 80G should be condoned; rejection purely on procedural grounds without adverse findings on activities is improper.
Section 80G	Bombay Patel Welfare Society v. Commissioner of Income-tax (Exemptions)	Click Here	Income-tax Act, 1961	Absence of an explicit irrevocability or dissolution clause in a trust deed does not warrant rejection under Section 80G in the absence of provisions allowing re-transfer/revocation.
Section 80P	Suryakiran Co-operative Housing Service Society Ltd. v. Income-tax Officer	Click Here	Income-tax Act, 1961	If Form 10-IF (opting for Section 115BAD) was filed by mistake, the AO must compute tax under the old regime and allow Section 80P deductions if the new regime was not previously opted for.
Section 144C	Siddhant Rastogi v. Union of India	Click Here	Income-tax Act, 1961	If a non-resident assessee files objections only before the AO and not before the DRP as required under Section 144C(2)(b), the AO can validly pass the final order under Section 144C(3).
Section 144C	Principal Commissioner of Income-tax v. Unisys India (P.) Ltd.	Click Here	Income-tax Act, 1961	Typographical discrepancies in manually mentioned DINs do not invalidate DRP/revisional orders if the accompanying intimation correctly identifies the order and contains the correct DIN.
Section 153A	Rudra Pratap Tripathi v. Asstt. Commissioner of Income-tax, Central	Click Here	Income-tax Act, 1961	Invoking Section 153A beyond 6 assessment years requires establishing that escaped income is represented by specified assets as per Explanation 2 to the fourth proviso of Section 153A.
Section 168	Estate of Late Rajen Krishnalal Shah v. Income-tax Officer	Click Here	Income-tax Act, 1961	Assessing an executor’s return at Maximum Marginal Rate (AJP) without examining the Will is improper; matter remanded to verify the Will for applicability of individual slab rates under Section 168.
Section 199	Navjeevan Dharmi Associates v. Principal Commissioner of Income-tax	Click Here	Income-tax Act, 1961	Partial payments made under IDS 2016 must be credited against tax liability upon subsequent reassessment, as the revenue cannot retain taxes paid contrary to Article 265 of the Constitution.
Section 199	Navjeevan Dharmi Associates v. Principal Commissioner of Income-tax	Click Here	Income-tax Act, 1961	AO must verify and grant set-off for advance tax, TDS, and self-assessment tax paid under IDS 2016 when finalizing tax liability in reassessment proceedings.
Section 246A	Siddhant Rastogi v. Union of India	Click Here	Constitution of India, 1950 (referred in Context of IT Act)	Writ petition against an assessment order is non-maintainable when an alternative, efficacious statutory appeal route exists under Section 246A before CIT(A).
Section 254	Kamlesh Ranchhodbhai Patel v. Income-tax Officer	Click Here	Income-tax Act, 1961	Ex-parte assessment/appellate orders passed due to non-representation following the death of an assessee warrant restoration to the AO to uphold principles of natural justice.
Section 263	Principal Commissioner of Income-tax v. Unisys India (P.) Ltd.	Click Here	Income-tax Act, 1961	Initial electronic communication of orders without a DIN is valid if DIN is subsequently provided via a separate intimation referencing the original order as per CBDT Circular 19/2019.
Section 270A	Legrand Netherlands B.V. v. ACIT (IT)	Click Here	Income-tax Act, 1961	Penalty under Section 270A cannot be invoked when reclassifying income (LTCG to Dividend) results in an assessed income equal to returned income and lower tax liability, with no misreporting/suppression.
Section 270A	Mixpanel, Inc v. Deputy Commissioner of Income-tax , International Taxation	Click Here	Income-tax Act, 1961	Once the underlying assessment order forming the basis of Section 270A penalty is set aside in appeal, the penalty order cannot survive; AO must await appellate outcomes under Section 275(1A).
Section 271B	Bhavishaben Bhajivala v. Income-tax Officer	Click Here	Income-tax Act, 1961	Penalty for failure to audit books under Section 271B is not justified when reasonable cause is shown, complete details are produced, and assessment is completed without additions.
Section 272A	Manoj Kumar Singh Yadav v. Income-tax Officer	Click Here	Income-tax Act, 1961	Penalty under Section 272A(1)(d) for failure to comply with Section 142(1) notices can be imposed only once for the default type, not per individual unattended notice.
Section 276CC	K.P. Constructions Engineers and Contractors v. Income-tax Officer	Click Here	Income-tax Act, 1961	Prosecution for non-filing of return under Section 276CC is liable to be quashed if appellate deletion of additions results in no tax due and excess TDS exists, satisfying the proviso to Section 276CC.