INCOME TAX CASE LAWS 14.10.2026

Here is the structured summary of the case law decisions organized in a clear tabular format:

Relevant Act	Section	Case Law Title	Citation	Brief Summary
Income-tax Act, 1961	Section 9	Oberoi Hotels (P.) Ltd. v. Deputy Commissioner of Income-tax	Click here	Management fees from Hotel Meena House Oberoi, Cairo, constituted business profits derived through a PE in UAR under Article 5(2)(a) of India-UAR DTAA; denial of exemption under Article 24 read with Article 7 was held unjustified.
Income-tax Act, 1961	Section 14A	Oberoi Hotels (P.) Ltd. v. Deputy Commissioner of Income-tax	Click here	Income-based methodology for allocating indirect expenses accepted in prior assessment years cannot be disturbed without a change in facts or law; disallowance retained per accepted methodology, and deletion of balance addition was upheld.
Income-tax Act, 1961	Section 36(1)(va)	Asus India (P.) Ltd. v. Assistant/Deputy Commissioner of Income-tax	Click here	Verification of actual payment dates from available records is required to determine whether employees’ welfare contributions were deposited within statutory due dates when disputing Tax Audit Report findings.
Income-tax Act, 1961	Section 37(1)	ELCA Cosmetics (P.) Ltd. v. Deputy Commissioner of Income-tax	Click here	IT support service charges paid to Associated Enterprise (AE) under a shared services agreement supported by agreements, screenshots, service catalogues, and emails were held allowable under Section 37(1).
Income-tax Act, 1961	Section 37(1)	ELCA Cosmetics (P.) Ltd. v. Deputy Commissioner of Income-tax	Click here	Expenditure on testers and promotions in the cosmetics business is standard industry practice to maintain market share; ad-hoc disallowance made by the Department was deleted.
Income-tax Act, 1961	Section 37(1)	ELCA Cosmetics (P.) Ltd. v. Deputy Commissioner of Income-tax	Click here	Payments made to AE for Restricted Stock Units (RSUs) allotted to employees, supported by RSU agreement, TDS details, and AE debit note, were incurred wholly and exclusively for business, thus allowable under Section 37(1).
Income-tax Act, 1961	Section 37(1) & Section 69C	Deputy Commissioner of Income-tax v. Laser Power & Infra (P.) Ltd.	Click here	Material purchases paid through banking channels and supported by invoices, e-way bills, and delivery records cannot be disallowed as bogus purchases; deletion of Section 37(1) purchase disallowance and Section 69C commission addition was justified.
Income-tax Act, 1961	Section 41(1)	L&T MHI Power Boilers (P.) Ltd. v. Assistant Commissioner of Income-tax	Click here	Unpaid trade payables over two years, acknowledged continuously in books without evidence of creditor waiver or benefit, do not trigger cessation of liability merely due to age or lack of recovery action.
Income-tax Act, 1961	Section 43CA	Sreenivas Narayan v. Income-tax Officer	Click here	Stamp duty value as on the sale agreement date (where part consideration was received prior to agreement), not the registration date, must be applied under Section 43CA(3) for real estate flat sales.
Income-tax Act, 1961	Section 50CA	Deputy Commissioner of Income-tax v. Laser Power & Infra (P.) Ltd.	Click here	Buyback consideration exempt under Section 10(34A) (where company paid tax under Section 115QA) cannot attract Section 50CA, as machinery provisions cannot be invoked when no chargeable capital gain arises.
Income-tax Act, 1961	Section 68	Deputy Commissioner of Income-tax v. Laser Power & Infra (P.) Ltd.	Click here	Unsecured loan additions under Section 68 were deleted as the assessee discharged its burden by providing PANs, financial statements, bank records, TDS details, and proving loan repayments and lender creditworthiness.
Income-tax Act, 1961	Section 68	Pinkcity Infracon (P.) Ltd. v. ACIT	Click here	Additions under Section 68 were deleted as loan transactions via banking channels were verified; requirement to explain “source of source” was held inapplicable for the year under consideration.
Income-tax Act, 1961	Section 68 / Section 37(1)	Pinkcity Infracon (P.) Ltd. v. ACIT	Click here	Disallowance of interest paid on genuine loans was deleted because interest was capitalized to inventory and not claimed as a deduction under Section 37(1) in the profit & loss account.
Income-tax Act, 1961	Section 69	Deputy Commissioner of Income-tax v. Laser Power & Infra (P.) Ltd.	Click here	Cash seized from employees recorded in seized books/day-books cannot be added under Section 69; unlinked WhatsApp messages cannot form the basis for unexplained investment additions.
Income-tax Act, 1961	Section 69D	Deputy Commissioner of Income-tax v. Laser Power & Infra (P.) Ltd.	Click here	Additions for alleged hundi/cash loans based on third-party search receipts using speculative theories, without cross-examination or specific questioning under Section 132(4), were held invalid.
Income-tax Act, 1961	Section 72	ELCA Cosmetics (P.) Ltd. v. Deputy Commissioner of Income-tax	Click here	Matter remanded to AO where DRP directions regarding verification and allowance of brought-forward business losses and unabsorbed depreciation were not given effect in the final order.
Income-tax Act, 1961	Section 92C	ELCA Cosmetics (P.) Ltd. v. Deputy Commissioner of Income-tax	Click here	Non-executed, unsigned template agreements cannot serve as CUP comparables for royalty benchmarking; no TP adjustment is warranted when gross profit margin falls within the permissible range.
Income-tax Act, 1961	Section 115JB	Oberoi Hotels (P.) Ltd. v. Deputy Commissioner of Income-tax	Click here	Reversal of provision for diminution in investment value added back in an earlier year’s computation cannot be adjusted to increase book profits under MAT in the year of write-back.
Income-tax Act, 1961	Section 115JB	Oberoi Hotels (P.) Ltd. v. Deputy Commissioner of Income-tax	Click here	Addition of wealth tax payable while computing book profit under Section 115JB is impermissible as the provision only pertains to income tax paid or payable.
Income-tax Act, 1961	Section 115JB	Gorakhpur Kasia Tollways (P.) Ltd. v. Principal Commissioner of Income-tax	Click Here	Revisionary proceedings under Section 263 cannot be invoked to order re-verification when the AO has already conducted adequate inquiries into MAT computations for IND-AS adjustments.
Income-tax Act, 1961	Section 115JB	Gorakhpur Kasia Tollways (P.) Ltd. v. Principal Commissioner of Income-tax	Click Here	Unwinding interest on discounted road renewal provisions debited as finance cost constitutes an ascertained liability; no MAT adjustment is required under Explanation 1 to Section 115JB(2).
Income-tax Act, 1961	Section 115JB	Gorakhpur Kasia Tollways (P.) Ltd. v. Principal Commissioner of Income-tax	Click Here	Notional MTM losses on preference shares recognized in P&L per IND-AS 109 are not required to be added back to book profits under Explanation 1 to Section 115JB(2).
Income-tax Act, 1961	Section 115UB	Italcoats v. Income-tax Officer	Click here	Pass-through short-term capital loss accumulated at the Category II AIF level as of 31-03-2019 is deemed unit-holder’s loss, eligible for carry forward/set-off per amended Section 115UB.
Income-tax Act, 1961	Section 127	Sandhya Constructions and Estates (P.) Ltd. v. Assistant Commissioner of Income-tax	Click here	Assessees who participated and consented to the centralization of search cases under Section 127 cannot later challenge the transfer and resulting assessment orders on technical grounds.
Income-tax Act, 1961	Section 145	Deputy Commissioner of Income-tax v. Laser Power & Infra (P.) Ltd.	Click here	Ad-hoc disallowances on labor payments made via banking channels with TDS are unsustainable without invoking Section 145(3) to reject audited books of account.
Income-tax Act, 1961	Section 153C	Deputy Commissioner of Income-tax v. Laser Power & Infra (P.) Ltd.	Click here	Reassessment under Section 147 based on material seized in a pre-01.04.2021 third-party search is void without following the mandatory special procedure under Section 153C.
Income-tax Act, 1961	Section 194C	Asus India (P.) Ltd. v. Assistant/Deputy Commissioner of Income-tax	Click here	Uniform discount granted via credit notes on defective goods to distributors is a trade discount, not payment for technical/contractual services; TDS disallowance under Section 40(a)(ia) was deleted.
Income-tax Act, 1961	Section 234C	L&T MHI Power Boilers (P.) Ltd. v. Assistant Commissioner of Income-tax	Click here	Interest under Section 234C must be computed on tax due on returned income (with statutory adjustments and TDS/advance tax credits), not on total assessed income.
Income-tax Act, 1961	Section 245H	Jagtar Singh v. Assistant Director of Income-tax (Investigation) III	Click here	Settlement Commission lacks statutory jurisdiction under the proviso to Section 245H(1) to grant immunity from criminal prosecution if the application was filed after prosecution commenced.
Income-tax Act, 1961	Section 271D	Deputy Commissioner of Income-tax v. Laser Power & Infra (P.) Ltd.	Click here	Penalty under Section 271D is non-leviable where underlying additions under Section 69D were deleted, penalty calculations were arbitrary, and initiating notice failed to state essential transaction details.
Income-tax Act, 1961	Section 277	Jagtar Singh v. Assistant Director of Income-tax (Investigation) III	Click here	Continuation of criminal prosecution under Section 277 for tax evasion after 17–18 years was quashed as serving no practical purpose following partial immunity granted by Settlement Commission.