INCOME TAX CASE LAWS 24.07.2026

Section	Case Law Title / Source	Brief Summary	Citation	Relevant Act
N/A	India-Mauritius DTAA Amendment	Protocol approved to amend the India-Mauritius DTAA to curb treaty shopping by revising the preamble and introducing the Principal Purpose Test (PPT) to deny treaty benefits for abusive arrangements.	Click Here	Income-tax Act, 1961 / DTAA
Section 2(47)	Sanjay Baburao Parab v. Income-tax Officer	Claim for exemption under Section 54F on a development agreement was denied. The order was set aside and remanded to the AO to examine additional evidence (cancellation agreement and occupancy certificate) on merits.	Click Here	Income-tax Act, 1961
Section 10AA	DBS Technology Services India (P.) Ltd. v. ACIT	Rejection of a deduction claim solely due to the technical omission of not attaching Form 56F with the return (uploaded subsequently) was held unjustified when the unit was otherwise eligible.	Click Here	Income-tax Act, 1961
Section 11	Rashtreeya Sikshana Samithi Trust v. ACIT (Exemption)	Crediting substantial development fees under a consensual fee structure by a registered educational trust does not disentitle it from Sections 11 & 12 exemption absent evidence of fund diversion or violation of state law.	Click Here	Income-tax Act, 1961
Section 11	Rashtreeya Sikshana Samithi Trust v. ACIT (Exemption)	Depreciation on fixed assets is allowable for years prior to AY 2015-16, even if asset costs were previously claimed as application of income, as Section 11(6) restrictions apply prospectively from AY 2015-16.	Click Here	Income-tax Act, 1961
Section 11	Rashtreeya Sikshana Samithi Trust v. ACIT (Exemption)	Long-term capital gains from compulsory acquisition invested in new capital assets (even prior to compensation receipt or via loans) qualify for Section 11(1A) exemption, at least proportionately.	Click Here	Income-tax Act, 1961
Section 11	John and Marie Almedia Educational Trust v. CIT (Exemptions)	Delay in filing Form 10B due to the managing trustee’s ill-health was condoned under Section 119(2)(b) subject to payment of costs, as sufficient cause was shown and the time limit is not mandatory.	Click Here	Income-tax Act, 1961
Section 14A	TTP Technologies (P.) Ltd. v. DCIT	Where an intimation under Section 143(1) accepted the returned income without proposing a Section 14A adjustment, no disallowance under Section 14A could subsequently be considered for that assessment year.	Click Here	Income-tax Act, 1961
Section 22	G.B. Lawns (P.) Ltd. v. DCIT	Addition of notional rent based on an earlier superseded MOU is unsustainable when rental income was declared and supported by a valid executed rent agreement and tenant confirmation.	Click Here	Income-tax Act, 1961
Section 24	Manish Saraogi v. DCIT	Provisional attachment under Section 24 of PBPT Act is valid and sustainable even without apprehension of alienation where appellants failed to disclose prior attachment of the properties under PMLA to the Initiating Officer.	Click Here	Prohibition of Benami Property Transactions Act, 1988
Section 35	TTP Technologies (P.) Ltd. v. DCIT	For in-house R&D, only expenditure approved by DSIR in Form 3CL is eligible for weighted deduction under Section 35(2AB); unapproved balance revenue expenditure is allowable as normal business expense under Section 37(1).	Click Here	Income-tax Act, 1961
Section 36(1)(vii)	G.B. Lawns (P.) Ltd. v. DCIT	Irrecoverable rental dues written off in the Profit & Loss account are allowable as bad debts under Section 36(1)(vii) read with Section 36(2) without requiring further supporting evidence.	Click Here	Income-tax Act, 1961
Section 37(1)	G.B. Lawns (P.) Ltd. v. DCIT	Routine outlays like pooja expenses and interest on service tax are allowable business expenses; disallowance was sustained only for penal interest on TDS.	Click Here	Income-tax Act, 1961
Section 37(1)	G.B. Lawns (P.) Ltd. v. DCIT	Disallowance of repair and maintenance expenses is unjustified where complete details were provided to the AO and no defects or further queries were raised during assessment.	Click Here	Income-tax Act, 1961
Section 37(1)	Gopallal Mathurdas Vaishnav v. ITO	Disallowance of purchases as bogus based solely on Investigation Wing inputs is unjustified when the assessee produces complete books, GST records, e-way bills, transport receipts, and sales are accepted.	Click Here	Income-tax Act, 1961
Section 41(1)	G.B. Lawns (P.) Ltd. v. DCIT	Carrying forward advances received from buyers/allottees in books does not constitute a remission or cessation of trading liability under Section 41(1) to justify addition as income.	Click Here	Income-tax Act, 1961
Section 56	Pandurang Gopal Thakur v. ITO	Interest received under Section 28 of the Land Acquisition Act, 1894 on enhanced compensation for compulsory acquisition forms part of compensation and is not taxable under Income from Other Sources (Sections 145A/56(2)(viii) do not apply).	Click Here	Income-tax Act, 1961
Section 68	G.B. Lawns (P.) Ltd. v. DCIT	Section 68 applies strictly to credits made during the relevant previous year; opening balances brought forward from prior years cannot be added as unexplained cash credits.	Click Here	Income-tax Act, 1961
Section 68	Datta Projects (P.) Ltd. v. ACIT	Reopening assessment on the presumption of receiving unaccounted cash (on-money) linked to a sister concern without direct evidence is unsustainable and liable to be quashed.	Click Here	Income-tax Act, 1961
Section 80G	TTP Technologies (P.) Ltd. v. DCIT	Claim for deduction under Section 80G in respect of Corporate Social Responsibility (CSR) expenses cannot be denied.	Click Here	Income-tax Act, 1961
Section 80-I	Harsiddh Specific Family Trust v. ACIT	When computing deduction under Section 80-I, profits and gains of the industrial undertaking are to be calculated without reducing the deduction admissible under Section 32AB.	Click Here	Income-tax Act, 1961
Section 80-IA	Chennai Container Terminal (P.) Ltd. v. ACIT	Reopening beyond four years to challenge eligibility under Section 80-IA(4) is invalid when substantial infrastructure was developed and all material facts were fully disclosed during original assessment.	Click Here	Income-tax Act, 1961
Section 147	Gopallal Mathurdas Vaishnav v. ITO	Reopening assessment for fictitious purchases based solely on unverified Insight Portal flags without independent inquiries or considering the assessee’s reply is legally invalid.	Click Here	Income-tax Act, 1961
Section 148A	Satish Thourani v. Union of India	Proceeding directly to issue a show-cause notice under Section 148A(b) without conducting the preliminary inquiry under Section 148A(a) for which prior approval was obtained renders subsequent notices invalid.	Click Here	Income-tax Act, 1961
Section 149	Polypeptide Laboratories (P.) Ltd. v. ACIT	Notices issued under Section 148 for AY 2015-16 on or after 1-4-2021 that fall outside the time limit prescribed under TOLA are liable to be quashed following Revenue concessions.	Click Here	Income-tax Act, 1961
Section 179	Anandhi P Naig v. Union of India	Notices fixing director liability under Section 179 without granting reasonable response time or without service of notice violate natural justice principles and are void.	Click Here	Income-tax Act, 1961
Section 179	Anandhi P Naig v. Union of India	Section 179 proceedings against directors lack legal basis if the department fails to establish the foundational fact that the entity is a closely held private limited company rather than a public limited company.	Click Here	Income-tax Act, 1961
Section 271AAC	G.B. Lawns (P.) Ltd. v. DCIT	Penalty under Section 271AAC cannot be levied while the quantum assessment order treating rent as an accommodation entry is pending decision before the High Court on jurisdictional grounds.	Click Here	Income-tax Act, 1961
Section 276C	Vijay Jain v. Union of India	Continuation of prosecution under Section 276C(1)(i) cannot be sustained when the underlying penalty under Section 271AAB has been quashed by the ITAT, despite pending revenue appeals.	Click Here	Income-tax Act, 1961