INCOME TAX CASE LAWS 22.09.20226
| Section | Case Law Title | Brief Summary | Citation | Relevant Act |
| Section 10(10B) | Saguirodin Amid Aga v. Income-tax Officer | BSNL VRS 2019 amounts received by employees qualify as retrenchment compensation and are treated as capital receipts exempt under section 10(10B) rather than section 10(10C). | Click Here | Income-tax Act, 1961 |
| Section 12AB | Church of St. Francis Xavier Dabul v. Commissioner of Income-tax(Exemption) | CIT(E) was unjustified in rejecting renewal of registration under section 12AB merely due to non-furnishing of a formal trust deed/MOA for a religious-cum-charitable institution governed by Canon Law and the Maharashtra Public Trusts Act. | Click Here | Income-tax Act, 1961 |
| Section 40(b) | Sanjay Distributors v. Deputy Commissioner of Income-tax | Profit from the sale of depreciable shop premises credited to the P&L account cannot be excluded while determining ‘book profit’ to compute permissible working partner remuneration under section 40(b)(v). | Click Here | Income-tax Act, 1961 |
| Section 43B | ACIT v. Usha Martin Ltd. | Where the assessee claimed leave encashment provision based on judicial orders staying/holding section 43B(f) ultra vires, it does not amount to furnishing inaccurate particulars, and penalty under section 271(1)(c) is not warranted. | Click Here | Income-tax Act, 1961 |
| Section 48 | ACIT v. Usha Martin Ltd. | Where legal fees claimed as transfer expenses for capital gains computation were backed by documents and subsequently allowed by the Tribunal, penalty under section 271(1)(c) is not maintainable. | Click Here | Income-tax Act, 1961 |
| Section 56 | June Alice Fernandes v. Income-tax Officer | Non-resident purchaser relying on an earlier agreement with a different builder to claim a lower stamp-duty reference date was denied benefit under section 56(2)(vii)(b) provisos since the 2016 agreement solely fixed the price and no prior banking payments were made. | Click Here | Income-tax Act, 1961 |
| Section 69C | Principal Commissioner of Income-tax v. Dinesh Jain | Where non-genuine purchase bills were obtained and the Tribunal restricted addition to 6 percent of bogus purchases following precedent, no question of law arises. | Click Here | Income-tax Act, 1961 |
| Section 80JJAA | Manpower Group Services India (P.) Ltd. v. Assistant Commissioner of Income-tax | Deduction under section 80JJAA is allowable for consecutive years where eligibility conditions are fulfilled, condoning minor procedural delays (such as one day in filing Form 10DA due to Covid-19). | Click Here | Income-tax Act, 1961 |
| Section 92B | Manpower Group Services India (P.) Ltd. v. Assistant Commissioner of Income-tax | Matter involving revenue generated from GAP and GSS programmes of an AE remanded for factual verification where details were initially incomplete. | Click Here | Income-tax Act, 1961 |
| Section 92C | Manpower Group Services India (P.) Ltd. v. Assistant Commissioner of Income-tax | Remanded issues concerning intra-group Salesforce payment ALP determination at nil, KPO re-characterization of IT/ITeS services, and clarified that Chapter VI-A deductions (like 80JJAA) are restricted by total income excluding TP adjustments under section 92C(4). | Click Here | Income-tax Act, 1961 |
| Section 92C | ACIT v. Usha Martin Ltd. | Deletion of penalty under section 271(1)(c) upheld where TP adjustments regarding loan interest rates and comparable selections were recomputed or reversed in quantum proceedings. | Click Here | Income-tax Act, 1961 |
| Section 143 | Bengal Chamber of Commerce & Industry v. Income-tax Officer (Exemption) | Intimation processed under section 143(1) making adjustments without issuing a prior show-cause notice to the assessee is invalid and liable to be quashed. | Click Here | Income-tax Act, 1961 |
| Section 147 | Zila Sahakari Bank Ltd. v. Income-tax Officer | Reassessment notice under section 148 held void ab initio where the Assessing Officer initiated proceedings solely based on CBDT instructions without independent material or satisfaction of income escapement. | Click Here | Income-tax Act, 1961 |
| Sections 147A, 148, & 151A | Union of India v. Bharat Industrial Enterprises (P.) Ltd. | Supreme Court granted Special Leave Petition (SLP) and stayed the operation of the High Court judgments which had declared section 147A unconstitutional and mandated automated faceless issuance of section 148 notices. | Click Here | Income-tax Act, 1961 |