INCOME TAX CASE LAWS 24.09.20226

Section	Case Law Title / Case Name	Brief Summary	Citation	Relevant Act
Section 393(2)	Notification No. 121/2026	CBDT amended Income-tax Rules, 2026 to allow resident individuals/HUF buying immovable property from non-residents to deposit and report TDS under Section 393(2) via Form No. 141 (with new Schedule E) and updated Form No. 132, removing TAN requirements effective 1 Oct 2026.	Click Here	Income-tax Act, 2025
Section 9	Deputy Commissioner of Income-tax v. Johnson & Johnson (P.) Ltd.	Penalty under Section 271(1)(c) was not leviable for excluding overseas branch profits where branches constituted PEs taxed abroad under DTAA, as the issue was debatable and involved interpretational differences.	Click Here	Income-tax Act, 1961
Section 10(37)	Shantaben Ganpatbhai Patel v. Income-tax Officer	Surplus compensation from compulsory acquisition of agricultural land outside municipal limits where farming was actually conducted is exempt from capital gains tax as it does not qualify as a capital asset.	Click Here	Income-tax Act, 1961
Section 12AB	St. Josephs High School v. CIT (Exemptions)	Rejection of Section 12AB renewal for a long-standing registered public charitable educational trust solely due to the absence of a formal trust deed was unsustainable; reliance on the Indian Trusts Act was misplaced.	Click Here	Income-tax Act, 1961
Section 22	DCIT v. Ferani Hotels (P.) Ltd.	Prior to insertion of Section 23(5) w.e.f. 01-04-2018, no addition could be made on account of notional annual letting value (ALV) for completed but unsold flats held as stock-in-trade by real estate developers.	Click Here	Income-tax Act, 1961
Section 56	Shantaben Ganpatbhai Patel v. Income-tax Officer	Compensation received upon compulsory land acquisition for structures/assets like trees, wells, and huts is taxable under capital gains with a mandatory allowance of 60% of compensation as the cost of acquisition.	Click Here	Income-tax Act, 1961
Section 69A	Ajay Lunawat v. Income-tax Officer	Additions under Section 69A and Section 115BBE for demonetisation cash deposits were set aside as the trader produced immediate, identifiable sources from cash sales/debtors forming part of disclosed tax turnover.	Click Here	Income-tax Act, 1961
Section 69B	JSV Ingredient v. ACIT	Excess stock of regular commodities found during survey at declared warehouses, acquired from suppressed business profits, is assessable as regular business income rather than unexplained investment under Section 69B.	Click Here	Income-tax Act, 1961
Section 69C	Principal Commissioner of Income-tax v. Dinesh Jain	Supreme Court dismissed SLP against HC order upholding Tribunal’s restriction of bogus purchase disallowance to 6% for non-genuine purchase bills linked to the Bhanwarlal Jain group.	Click Here	Income-tax Act, 1961
Section 80P	A 1757 Kamatchipuram Primary Agricultural Co-operative Credit Society Ltd. v. CCIT	Substantive benefit of Section 80P deduction could not be completely denied to primary cooperative credit societies due to delayed filing, but extended subject to a specified payment to a designated association.	Click Here	Income-tax Act, 1961
Section 92C	Deputy Commissioner of Income-tax v. Johnson & Johnson (P.) Ltd.	Penalty for TP adjustments cannot survive where the entire transfer pricing addition was deleted on merits and confirmed by the Tribunal, leaving no substantial addition in the hands of the assessee.	Click Here	Income-tax Act, 1961
Section 92C	DCIT v. Ferani Hotels (P.) Ltd.	TPO cannot arbitrarily replace actual brokerage paid (2.87%) to marketing arms with a generic 2% industry benchmark without comparable transactions, independent market data, or proper FAR analysis.	Click Here	Income-tax Act, 1961
Section 145	Ajay Lunawat v. Income-tax Officer	Rejection of books of account under Section 145(3) for high cash sales is unjustified where VAT returns, full accounts, and trade debtors were produced without AO finding specific discrepancies or false entries.	Click Here	Income-tax Act, 1961
Section 263	Reliance Home Finance Ltd. v. PCIT	Section 263 revision proceedings continued or passed after the declaration of moratorium under Section 14 of IBC against corporate debtors are prohibited and must be set aside/restored to PCIT file.	Click Here	Income-tax Act, 1961
Section 270A	Karnataka Co-operative Oil Seeds Growers Federation Ltd. v. ACIT	Penalty under Section 270A(8) for misreporting was upheld against a cooperative society claiming inadmissible bank interest/dividend deductions, as Section 270A(8) excludes bona fide explanation benefits.	Click Here	Income-tax Act, 1961
Section 271(1)(c)	Deputy Commissioner of Income-tax v. Johnson & Johnson (P.) Ltd.	Penalty for concealment cannot be levied on Section 43B disallowance of unpaid employee bonus claimed bona fide as salary under contract with full disclosure in accounts.	Click Here	Income-tax Act, 1961
Section 271(1)(c)	Deputy Commissioner of Income-tax v. Johnson & Johnson (P.) Ltd.	Disallowance of provision for Executive Retirement Scheme as unascertained liability does not attract penalty where full facts were disclosed and claim was based on a defined, bona fide methodology.	Click Here	Income-tax Act, 1961
Section 271(1)(c)	Deputy Commissioner of Income-tax v. Johnson & Johnson (P.) Ltd.	Adding MODVAT excise duty under Section 145A to closing stock creates a revenue-neutral timing difference with opening stock, thus barring penalty under Section 271(1)(c).	Click Here	Income-tax Act, 1961
Section 271(1)(c)	Deputy Commissioner of Income-tax v. Johnson & Johnson (P.) Ltd.	Mere disallowance of cash discount provision linked to March sales made under accepted business practice and full disclosure does not constitute concealment or inaccurate particulars for penalty levy.	Click Here	Income-tax Act, 1961
Section 271H	Rampal Trivedi Inter College v. Income-tax Officer (TDS)	Levy of maximum penalty (₹1 Lakh) for delayed Form 24Q filing by an educational institution was reduced to statutory minimum (₹10,000/quarter) as TDS was fully deposited without deductee loss.	Click Here	Income-tax Act, 1961