INCOME TAX CASE LAWS 14.08.2026

Relevant Act	Section / Rule	Case Law Title	Citation	Brief Summary
Income-tax Act, 1961	Section 9	DCIT (IT) v. Standard Chartered Bank	Click Here	Reimbursed expatriate salary paid initially by overseas HO for Indian PE is wholly for business, has suffered tax in India, and cannot be disallowed under section 44C or for non-deduction of TDS.
Income-tax Act, 1961	Section 9	DCIT (IT) v. Standard Chartered Bank	Click Here	Interest paid by Indian branch of a foreign bank to HO/overseas branches represents payment to self; no TDS under section 195 applies, and no section 40(a)(i) disallowance is warranted.
Income-tax Act, 1961	Section 9 / India-UK DTAA	DCIT (IT) v. Standard Chartered Bank	Click Here	Interest on income-tax refund under Article 12 of the India-UK DTAA is taxable in India at the rate of 10%.
Income-tax Act, 1961	Section 10(10B)	Vittal Nayak Ullal v. ITO	Click Here	Ex-gratia compensation received under BSNL VRS 2019 possesses the essential character of retrenchment; it is not subject to the monetary cap under the first proviso to section 10(10B) and is fully exempt.
Income-tax Act, 1961	Section 10(10C) / 119	Vittal Nayak Ullal v. ITO	Click Here	Delay in filing an appeal before CIT(A) against section 143(1) intimation to claim full VRS exemption ought to be condoned where sufficient cause and coordinate bench precedents exist.
Income-tax Act, 1961	Section 14A	DCIT (IT) v. Standard Chartered Bank	Click Here	Where interest-free own funds substantially exceed tax-exempt investments, no interest disallowance is warranted; section 14A disallowance was restricted to 1% of exempt income.
Wealth Tax Act, 1957	Section 34AB	Ketan Natvarlal Brahmbhatt v. Union of India	Click Here	Requirement of an Agricultural Science qualification under Rule 8A(3) to register as an agricultural land valuer is constitutionally valid under Articles 14 and 19.
Income-tax Act, 1961	Section 37(1)	DCIT (IT) v. Standard Chartered Bank	Click Here	MTM loss on outstanding forex forward contracts computed per RBI/FEDAI norms and consistent accounting policy is an accrued trading loss allowable under section 37(1).
Income-tax Act, 1961	Section 37(1)	DCIT (IT) v. Standard Chartered Bank	Click Here	Expenditure on renovation and refurbishment of leasehold premises for banking operations constitutes allowable revenue expenditure under section 37(1).
Income-tax Act, 1961	Section 37(1)	Deepak Nitrite Ltd. v. DCIT	Click Here	Unbifurcated composite consideration for business acquisition including non-compete covenants forms part of composite revenue expenditure, eligible for 1/5th deferred revenue deduction.
Income-tax Act, 1961	Section 37(1)	Deepak Nitrite Ltd. v. DCIT	Click Here	Expenses on legal fees, travel, and feasibility studies for an aborted expansion project where no capital asset came into existence are allowable as revenue expenditure.
Income-tax Act, 1961	Section 41(1)	DCIT (IT) v. Standard Chartered Bank	Click Here	Taxability of recoveries from earlier securities losses depends on the final judicial determination regarding the original loss claims.
Income-tax Act, 1961	Section 41(1)	Konica Minolta Healthcare India (P.) Ltd. v. DCIT	Click Here	Remanded to verify whether the liability written back was already offered to tax, ensuring double taxation is eliminated.
Income-tax Act, 1961	Section 44C	DCIT (IT) v. Standard Chartered Bank	Click Here	Remanded to classify HO expenses and examine allowability under section 44C read harmoniously with Articles 7 and 26 of the India-UK DTAA.
Income-tax Act, 1961	Section 69	Balaji Associates v. ITO	Click Here	Additions under section 69 are unsustainable where property purchases are fully recorded and sourced from partners’ capital contributions with verified identities and PANs.
Income-tax Act, 1961	Section 69A / 10(26)	Manaki Natung v. ITO	Click Here	Unexplained cash deposits cannot be granted exemption under section 10(26) merely based on unsubstantiated assertions of past savings and cash rental income.
Income-tax Act, 1961	Section 92	DCIT (IT) v. Standard Chartered Bank	Click Here	Transfer pricing provisions under sections 92, 92B, and 92C are not applicable to internal transactions between a foreign enterprise and its Indian PE.
Income-tax Act, 1961	Section 92C	DCIT (IT) v. Standard Chartered Bank	Click Here	Direct cost allocations by HO for group support services without royalty/FTS elements cannot be assessed at nil ALP; section 37(1) and 40(a)(i) disallowances are unsustainable.
Income-tax Act, 1961	Section 92C	Konica Minolta Healthcare India (P.) Ltd. v. DCIT	Click Here	TNMM is the most appropriate method over RPM where the distributor undertakes significant post-import value additions (installation, compliance, integration, maintenance).
Income-tax Act, 1961	Section 115BAC	Delhi Tax Bar Association v. Union of India	Click Here	Interim direction to prevent CPC from automatically processing returns of High Court and Supreme Court Judges under the new tax regime; demands kept in abeyance.
Income-tax Act, 1961	Section 119	Arulmigu Gnanamalai Murugan Educational Trust v. CIT (Exemption)	Click Here	Delay in filing return due to late audit report condoned by the High Court upon payment of costs, setting aside the rejection order under CBDT circular limits.
Income-tax Act, 1961	Section 143(3) / 156	Sudha Gopalakrishnan v. DCIT	Click Here	Where the assessment order accepts returned income without adverse findings, additional demands raised solely via computation sheets and section 156 notices are invalid.
Income-tax Act, 1961	Section 147	Smt. Krishnaveni Vedula v. DCIT	Click Here	In reassessment proceedings, additions cannot be made on new issues if no addition is sustained on the original ground that formed the basis of reopening.
Income-tax Act, 1961	Section 148 / 148A	Shreenath Finstock (P.) Ltd. v. Union of India	Click Here	Notice signed on 31.03.2021 but dispatched/received electronically on 01.04.2021 is deemed issued on 01.04.2021, necessitating compliance with substituted section 148A procedure.
Income-tax Act, 1961	Section 153D	Soni Commercial Enterprises (P.) Ltd. v. ACIT	Click Here	Search assessments under section 153C/143 based on mechanical, non-application of mind approvals under section 153D are void and cannot be cured by section 292BC.
Income-tax Act, 1961	Section 199	Tejpratap Singh Yadav v. ITO	Click Here	Entire TDS credit reflected under assessee’s PAN is allowable to the assessee where co-owners received joint rental shares but did not claim TDS credit themselves.
Income-tax Act, 1961	Section 260A	Jajodia Finance Ltd. v. PCIT (Central)	Click Here	SLP dismissed; deleting additions for bogus share losses based on a belated retraction made over two years later without supporting record is perverse.
Income-tax Act, 1961	Section 263	Kosi Consultants (P.) Ltd. v. ACIT/DICT	Click Here	Revision under section 263 is impermissible where the Assessing Officer already examined sale, purchase, and DVO valuation details during regular assessment.
Income-tax Act, 1961	Section 276CC	Rajesh Somandas Sachdev v. ITO	Click Here	Prosecution under section 276CC is an abuse of process when the subsequently filed return was accepted and the assessee was determined to be entitled to a refund.