INCOME TAX CASE LAWS 12.10.2026

By | October 13, 2026
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INCOME TAX CASE LAWS 12.10.2026

 

Here is the consolidated summary of all the notifications and case law precedents presented in a structured table:
Relevant Act Section Case Law Title / Notification Citation Brief Summary
Prohibition of Benami Property Transactions Act, 1988 Section 2(9)(A) Smt. Sunita Babubhai Prajapati v. Initiating Officer, BPU Ahmedabad Click Here Beneficial owners transferring cash to benamidars to convert demonetized money via banks constitutes a benami transaction; concealment of beneficial owner or illegitimate money is not mandatory under Section 2(9)(A).
Income-tax Act, 1961 Section 4 Mepco Industries Ltd. v. Commissioner of Income-tax Click Here Electricity subsidy received based on units consumed to reduce power charges is a revenue receipt chargeable to tax, not a capital receipt.
Income-tax Act, 1961 Section 9 GMP Technical Solutions (P.) Ltd. v. DCIT Click Here Consultancy fees paid to non-residents in UAE & Kenya without a PE in India are not taxable as business profits under DTAA Article 7; disallowance under Section 195 is unwarranted.
Income-tax Act, 1961 Section 14A PCIT v. Tata Realty and Infrastructure Ltd. Click Here SLP dismissed; disallowance under Section 14A cannot be made when no exempt income is earned during the relevant year.
Income-tax Act, 1961 Section 32 CIT v. Hindustan Zinc Ltd. Click Here Generation of power falls within ‘production’; additional depreciation under Section 32(1)(iia) is allowable on new plant and machinery in Captive Power and Wind Power Plants.
Income-tax Act, 1961 Section 32 / 263 CIT v. Hindustan Zinc Ltd. Click Here Revisional jurisdiction under Section 263 cannot be exercised to set aside an assessment allowing additional depreciation when all statutory conditions were satisfied.
Income-tax Act, 1961 Section 32 PCIT v. Franklin Templeton Asset Management (India) (P.) Ltd. Click Here Revenue cannot raise a fresh issue regarding depreciation on goodwill before the High Court if it was not raised before lower authorities.
Income-tax Act, 1961 Section 37(1) PCIT v. Tata Realty and Infrastructure Ltd. Click Here SLP dismissed; compensation paid to an outgoing tenant to vacate premises for a leave-and-license arrangement constitutes allowable revenue expenditure.
Income-tax Act, 1961 Section 68 PCIT v. Shelter Infra Projects Ltd. Click Here Deletion of additions for unexplained cash credits or bogus trading liabilities based purely on factual findings involves no substantial question of law.
Income-tax Act, 1961 Section 68 / 115BBE Sivakumar v. Income-tax Officer Click Here Cash commission accepted as business income cannot be treated as unexplained cash credit under Section 68 or taxed under Section 115BBE without proof of undisclosed sources.
Income-tax Act, 1961 Section 68 Sivakumar v. Income-tax Officer Click Here Cash introduced into a capital account cannot be rejected without a holistic cash flow examination when accepted cash receipts exist and no undisclosed source is proven.
Income-tax Act, 1961 Section 69A PCIT (Central)-2 v. Suresh Kumar Banthia Click Here Addition under Section 69A based on search materials from brokers is unjustified if the materials/retracted statements do not relate to the relevant year or lack corroboration.
Income-tax Act, 1961 Section 69C PCIT-18 v. Pravesh Kumar Jaiswal Click Here Purchases cannot be disbelieved under Section 69C merely due to non-responsive suppliers if sales are accepted and books of account are not rejected.
Income-tax Act, 1961 Section 69C Sivakumar v. Income-tax Officer Click Here Addition for unexplained expenditure under Section 69C is justified if personal withdrawals in the capital account are significantly lower than admitted personal expenses.
Income-tax Act, 1961 Section 80-IC GMP Technical Solutions (P.) Ltd. v. DCIT Click Here Reversal of provisions for doubtful debts and write-backs of creditors are directly linked to trading/manufacturing and qualify as eligible profits under Section 80-IC.
Income-tax Act, 1961 Section 80-IC GMP Technical Solutions (P.) Ltd. v. DCIT Click Here Penalties recovered from vendors for contractual breaches are not directly attributable to manufacturing/operational activities and do not qualify for Section 80-IC deduction.
Income-tax Act, 1961 Section 80-IC GMP Technical Solutions (P.) Ltd. v. DCIT Click Here Transit insurance receipts constitute reimbursements for loss/damage to operational assets and are eligible profits under Section 80-IC.
Income-tax Act, 1961 Section 148 PCIT v. Rohit Baid Click Here SLP dismissed; reassessment notice issued under Section 148 by an Assessing Officer lacking PAN jurisdiction renders the proceedings null and void.
Income-tax Act, 1961 Section 148 / 148A Cyberabad Citizens Health Services (P.) Ltd. v. DCIT Click Here Post-demerger income offered to tax by the resulting company cannot trigger Section 148 based merely on pre-sanction TDS under the demerged entity’s PAN.
Income-tax Act, 1961 Section 149 Cyberabad Citizens Health Services (P.) Ltd. v. DCIT Click Here Notice under Section 148 beyond 3 years is barred by limitation if based only on portal info without evidence showing escaped income exceeding ₹50 lakhs.
Income-tax Act, 1961 Section 153 Laqshya Media Ltd. v. ACIT / DCIT Click Here If the extended time limit for fresh assessment following a Tribunal remand expires without an order being passed, the return of income must be accepted as filed.
Income-tax Act, 1961 Section 153D PCIT 4 v. Helios Exports Ltd. Click Here SLP dismissed; en masse approvals issued under Section 153D within 24 hours using identical wording without referencing draft orders are invalid, invalidating Section 153A assessments.
Income-tax Act, 1961 Section 194A Welspun Aunta Simaria Project (P.) Ltd. v. DCIT Click Here No TDS is required under Section 194A on interest paid to NHAI on mobilization advances as NHAI is exempt under Notification No. 3489.
Income-tax Act, 1961 Section 263 Mukesh Bansal v. PCIT Click Here Intimation under Section 143(1) issued without adjustments on a revised return cannot be treated as an order to invoke revision proceedings under Section 263.