INCOME TAX CASE LAWS 17.06.2026

Here is the compiled data from your legal updates structured into a scannable, professional reference table.

Case Law Summary Table

Relevant Act	Section	Case Law Title	Citation	Brief Summary
Income-tax Act, 2025	Section 536(2)(c)	Guidelines for Compulsory Scrutiny Selection (Notification F.No.225/56/2026/ITA-II)	Click Here	CBDT issued mandatory parameters and procedures covering six categories of cases for complete scrutiny during FY 2026-27 (for returns filed in FY 2025-26).
Income-tax Act, 1961	Section 4	Graphite India Ltd. v. Commissioner of Income-tax	$2026$ Click Here	Sales-tax remission under a state incentive scheme linked directly to fixed capital investment for expansion/modernization is a capital receipt to induce investment, not trading profits (revenue).
Income-tax Act, 1961	Section 36(1)(iii)	Alice Arun Thomas v. Income-tax Officer	$2026$ Click Here	Where a partner borrows funds to invest as capital in a firm, interest paid on such borrowings cannot be claimed under section 36(1)(iii) by the partner individually, as she herself was not carrying on the business.
Income-tax Act, 1961	Section 37(1)	Chander Veer Singh Bhullar v. Income-tax Officer	$2026$ Click Here	An ad hoc disallowance of 20% of expenditure was reduced to 10% because the AO erroneously recorded a financial loss instead of the reported profit, indicating improper examination of facts.
Income-tax Act, 1961	Section 48	Sarjit Ghanshyam Desai v. Income-tax Officer	$2026$ Click Here	When a property received as alternate accommodation in exchange for surrendering tenancy rights is sold, the fair market value (FMV) of the tenancy rights on the date of surrender forms the cost of acquisition.
Income-tax Act, 1961	Section 68	Dhruv Vijaykumar Trivedi v. Deputy Commissioner of Income-tax	$2026$ Click Here	Reassessment cannot be sustained based on uncorroborated third-party information (like a draft complaint or loose note from an unrelated survey) without a direct nexus to the petitioner.
Income-tax Act, 1961	Section 68	Chander Veer Singh Bhullar v. Income-tax Officer	$2026$ Click Here	The CIT(A) cannot re-characterize an addition originally made under section 69C into an addition under section 68 without giving a specific show-cause notice regarding the change.
Income-tax Act, 1961	Section 68	ACIT v. Diligent Media Corporation Ltd.	$2026$ Click Here	Share premium received from a holding company based on DCF valuation cannot be added under section 68 if identity, genuineness, and creditworthiness are proven; the AO cannot make additions simply due to a disagreement over valuation.
Income-tax Act, 1961	Section 69A	Trupti Aakash Desai v. Income-tax Officer	$2026$ Click Here	Reopening an assessment based on a loose paper entry and uncorroborated rates from a third party, without any evidence linking the salaried petitioner to the seized material, is invalid.
Income-tax Act, 1961	Section 69A	Trupti Vijay Trivedi v. Income-tax Officer	$2026$ Click Here	Reopening an assessment based entirely on a draft complaint and a handwritten paper image retrieved from a third party’s mobile, without direct linkage to undisclosed cash receipts, is invalid.
Income-tax Act, 1961	Section 80HHC	Graphite India Ltd. v. Commissioner of Income-tax	$2026$ Click Here	While computing the export deduction under section 80HHC, business profits are not required to be reduced by the deductions allowed under section 80IA.
Direct Tax Vivad Se Vishwas Scheme, 2024	Section 91	Tarik Handa v. ITO	$2026$ Click Here	Even if an assessment order’s operation is stayed by a High Court interim order, it still “exists” for the purpose of applying under the Vivad Se Vishwas Scheme.
Income-tax Act, 1961	Section 115JB	Commissioner of Income-tax (IT and TP) v. Royal Bank of Scotland N.V.	$2026$ Click Here	Provisions of MAT under section 115JB were inapplicable to foreign banking companies for AY 2011-12, as the amendment making them applicable only took effect from AY 2013-14.
Income-tax Act, 1961	Section 147	Vodafone Idea Ltd. v. Deputy Commissioner of Income-tax	$2026$ Click Here	A reassessment order is invalid if the Assessing Officer completes the assessment without disposing of the assessee’s objections via a separate, speaking order.
Income-tax Act, 1961	Section 148	Sunil Kumar Sahoo v. Deputy Commissioner of Income-tax	$2026$ Click Here	If the department fails to prove actual service of the section 148 notice (even if issued within limitation), the resultant reassessment order violates principles of natural justice and must be set aside.
Income-tax Act, 1961	Section 148	DCIT v. Alaka Mars (P.) Ltd.	$2026$ Click Here	Reassessment proceedings initiated by an ACIT instead of an ITO for an assessee with declared income of Rs. 4.75 lakhs are invalid due to a lack of proper pecuniary jurisdiction under CBDT Instruction No. 1/2011.
Income-tax Act, 1961	Section 149	Aarti Highrise (P.) Ltd. v. Joint Commissioner of Income-tax	$2026$ Click Here	Reassessment notices for A.Y. 2015-16 issued beyond 3 years without material proving that the escaped income met the revised threshold of Rs. 50,00,000 under Section 149(1)(b) lack jurisdiction.
Income-tax Act, 1961	Section 149	Shivam Dealcom (P.) Ltd. v. Joint Commissioner of Income-tax	$2026$ Click Here	Post-amendment (effective 01-09-2024), a notice under section 148 issued beyond 3 years for A.Y. 2015-16 without meeting the mandatory Rs. 50 lakh threshold criteria is void of jurisdiction.
Income-tax Act, 1961	Section 153C	Antal Expo Fab (P.) Ltd. v. Dy. CIT	$2026$ Click Here	Search assessments invoked under section 153C will be annulled if the satisfaction note fails to establish a clear nexus between the seized material (from a third party) and the assessee’s income.
Income-tax Act, 1961	Section 194C	Deputy Commissioner of Income-tax v. Air France	$2026$ Click Here	Common Area Maintenance (CAM) charges paid for services in a commercial complex are payments for “work” under section 194C (2% TDS) and cannot be treated as “rent” under section 194I.