INCOME TAX CASE LAWS 22.07.2026

Section	Case Law Title	Brief Summary	Citation	Relevant Act
Section 2(14)	Sonu Grover v. Income-tax Officer	Verification of actual distance from municipal limits using Tehsildar’s certificate and Google Maps was required to determine whether land sold was a rural agricultural land exempt from capital gains; matter remanded for fresh adjudication.	Click Here	Income-tax Act, 1961
Section 2(15)	Masina Hospital Trust v. CIT (Exemptions)	Where a charitable hospital had no evidence of income diversion for private benefit, metrics like tariff or revenue per bed alone could not make its activities commercial; entitled to Section 12AB renewal.	Click Here	Income-tax Act, 1961
Section 2(15)	Commissioner of Income-tax (Exemptions) v. Salej Rotary Seva Foundation	Registration under Section 12AB was justified for a Section 8 company since its main objects were not limited to members and welfare activities benefited the public at large.	Click Here	Income-tax Act, 1961
Section 10(23)	ITO (E) v. Board of Control for Cricket in India	PILCOM was a joint managing committee and not an independent AOP; hence, only BCCI’s Indian match surplus from the 1996 World Cup was assessable, with Section 10(23) exemption allowable.	Click Here	Income-tax Act, 1961
Section 11	Nizamia Hyderabad Womens Association Trust v. Income-tax Officer	Excess application of income entitlement flows directly from Section 11 and cannot be denied merely because a separate carry-forward claim was not made in earlier returns.	Click Here	Income-tax Act, 1961
Section 12AB	Ashoka University v. Commissioner of Income-tax (Exemption)	Section 12AB renewal could not be denied based on unsupported allegations or differing interpretations without findings of non-genuine activities by relevant authorities.	Click Here	Income-tax Act, 1961
Section 12AB	Ashoka University v. Commissioner of Income-tax (Exemption)	Rejection of a renewal application cannot automatically act as a cancellation of existing registration without initiating statutory cancellation proceedings under Section 12AB(4).	Click Here	Income-tax Act, 1961
Section 12AB	D.R. Shanmukappa Charitable Trust v. Commissioner of Income-tax (Exemptions)	Rejection of earlier applications for procedural defects does not bar a trust from filing a fresh Section 12AB application, which can be granted prospectively from the new application date.	Click Here	Income-tax Act, 1961
Section 12AB	Masina Hospital Trust v. CIT (Exemptions)	Renewal proceedings under Section 12AB cannot be converted into a retrospective cancellation/annulment of existing registration from the date of grant without findings of fraud or statutory violations.	Click Here	Income-tax Act, 1961
Section 12AB	Masina Hospital Trust v. CIT (Exemptions)	Independent cancellation of Section 12AB registration for alleged non-compliance with the Maharashtra Public Trusts Act (Indigent Patients’ Fund) was unjustified without an adverse finding from authorities under that Act.	Click Here	Income-tax Act, 1961
Section 12AB	Ahmedabad Visha Shrimali Jain v. CIT (Exemption)	Subsisting registration in Form 10AC could not be treated as invalid or rejected solely for non-production of an earlier certificate where no adverse findings existed regarding trust objects or activities.	Click Here	Income-tax Act, 1961
Section 12AB	Ahmedabad Visha Shrimali Jain v. CIT (Exemption)	Matter restored for limited verification after the trust produced the prior registration certificate, confirming that renewal should not be rejected merely due to initial non-production.	Click Here	Income-tax Act, 1961
Section 14A	Kansai Nerolac Paints Ltd. v. Deputy Commissioner of Income-tax	Disallowance under Section 14A read with Rule 8D required fresh examination where interest-free funds exceeded investments and investments were made in growth funds not yielding exempt income.	Click Here	Income-tax Act, 1961
Section 32	Kansai Nerolac Paints Ltd. v. Deputy Commissioner of Income-tax	Balance 50% additional depreciation is allowable in the immediately succeeding assessment year if new plant/machinery was used for less than 180 days in the initial previous year.	Click Here	Income-tax Act, 1961
Section 37(1)	Patanjali Renewable Energy (P.) Ltd. v. Dy. CIT	Unclaimed input VAT credit included as part of purchase cost (and not claimed separately in VAT returns) is allowable as business expenditure under Section 37(1).	Click Here	Income-tax Act, 1961
Section 48	Sonu Grover v. Income-tax Officer	Recomputation of capital gains was ordered to grant indexation benefit on the sale of property.	Click Here	Income-tax Act, 1961
Section 48	Ranjan Sen Jain v. Income-tax Officer	AO could not replace registered valuers’ FMV and builder’s cost certificate with his own estimates without a reference to DVO; FMV and cost certificate should be accepted with proper Section 54 deduction.	Click Here	Income-tax Act, 1961
Section 54	Ranjan Sen Jain v. Income-tax Officer	Receiving multiple floors as a single residential unit under a collaboration agreement qualifies as acquiring one residential unit, making it eligible for Section 54 deduction.	Click Here	Income-tax Act, 1961
Section 54	Sonu Grover v. Income-tax Officer	Section 54 deduction is allowable where evidence (bank certificate/statement) establishes that unutilized capital gains were deposited in the Capital Gains Accounts Scheme.	Click Here	Income-tax Act, 1961
Section 54	Pavan Kumar Agarwal v. Deputy Commissioner of Income-tax	Restricting Section 54 exemption to only one house was improper where the assessee sold 17 flats and invested capital gains into 5 residential houses (exemption allowed up to the number of original properties transferred).	Click Here	Income-tax Act, 1961
Section 54F	Smt. Anuradha Chennu v. Dy. CIT	Prior to the Finance Act 2014 amendment, investment of consideration received via a JDA into multiple (50) flats was eligible for Section 54F exemption across all flats.	Click Here	Income-tax Act, 1961
Section 68	Patanjali Renewable Energy (P.) Ltd. v. Dy. CIT	Where cash deposits during demonetization showed a disproportionate spike prior to the period, a reasonable lump-sum addition was held proper instead of full disbelief/addition.	Click Here	Income-tax Act, 1961
Section 68	Patanjali Renewable Energy (P.) Ltd. v. Dy. CIT	Submitting creditor’s confirmation and ledger account discharges the initial onus under Section 68; addition for unexplained credit deleted.	Click Here	Income-tax Act, 1961
Section 68	Prasad Nimmagadda v. ACIT	Assessee was granted another opportunity to present evidence regarding foreign bank credits before CIT(A) in the interest of justice given pending criminal proceedings.	Click Here	Income-tax Act, 1961
Section 72	Patanjali Renewable Energy (P.) Ltd. v. Dy. CIT	Assessing Officer must verify and compute brought-forward business loss before disallowing its set-off against subsequent year’s income.	Click Here	Income-tax Act, 1961
Section 92C	Kansai Nerolac Paints Ltd. v. Deputy Commissioner of Income-tax	Transfer pricing adjustment on royalty paid to AE deleted as TPO failed to bring any comparable uncontrolled transaction or benchmarking analysis on record.	Click Here	Income-tax Act, 1961
Section 92C	Kansai Nerolac Paints Ltd. v. Deputy Commissioner of Income-tax	Rejection of TNMM in favor of CUP using domestic sales without making adjustments for export market conditions was unjustified.	Click Here	Income-tax Act, 1961
Section 92C	Kansai Nerolac Paints Ltd. v. Deputy Commissioner of Income-tax	Benchmarking for delayed AE receivables should be calculated using LIBOR + 100 bps after granting a credit period, rather than SBI Prime Lending/Base Rate.	Click Here	Income-tax Act, 1961
Section 115-O	Kansai Nerolac Paints Ltd. v. Deputy Commissioner of Income-tax	Issue regarding whether Dividend Distribution Tax (DDT) rate is restricted by DTAA treaty rates was restored to AO to await final outcome of pending Supreme Court proceedings.	Click Here	Income-tax Act, 1961
Section 145A	Kansai Nerolac Paints Ltd. v. Deputy Commissioner of Income-tax	Deletion of additions on unutilized Modvat/Cenvat credit upheld as switching between inclusive and exclusive accounting methods was revenue neutral.	Click Here	Income-tax Act, 1961
Section 149	Jitendra Shankarlal Mistri v. Income-tax Officer	Section 148 reopening notice is valid if initial information suggested escapement of ≥ ₹50 lakhs, even if the final assessed escaped income turns out to be below ₹50 lakhs.	Click Here	Income-tax Act, 1961
Section 192	Kansai Nerolac Paints Ltd. v. Deputy Commissioner of Income-tax	Disallowance under Section 40(a)(ia) for director commission provision deleted because TDS was subsequently deducted under Section 192 upon payment.	Click Here	Income-tax Act, 1961
Section 263	Hollis Vitrified (P.) Ltd. v. Principal Commissioner of Income-tax	Tribunal impermissibly relied on a subsequent assessment order passed under Section 143(3) r.w.s. 263 while deciding an appeal against PCIT’s invocation of Section 263 jurisdiction; order quashed.	Click Here	Income-tax Act, 1961