INCOME TAX CASE LAWS 25.08.2026

Relevant Act	Section	Case Law Title	Citation	Brief Summary
Prohibition of Benami Property Transactions Act, 1988	Section 2	Om Parkash Agarwal v. Initiating Officer (DCIT/ACIT)	Click Here	Acquisition of substantial shares by a paper company lacking genuine operations/capital, funded via connected entities, held as a benami transaction with the promoter as beneficial owner.
Income-tax Act, 1961	Section 9	KPMG India (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Disallowance u/s 40(a)(i) deleted as the AO failed to establish that non-resident payments qualified as ‘Royalty’ under Article 12 of the Indo-US DTAA.
Income-tax Act, 1961	Section 9	Deputy Commissioner of Income-tax v. Magick Woods Exports (P.) Ltd.	Click Here	Vendor compliance/sales-support expenses deducted abroad by foreign buyers for export sales do not accrue/arise in India u/s 9(1)(i); no withholding tax required.
Income-tax Act, 1961	Section 12AB	St John Ambulance Association v. Commissioner of Income-tax (Exemptions)	Click Here	Century-old charitable institution cannot be denied renewal u/s 12AB or approval u/s 80G merely due to the absence of a formal trust deed when objects/activities are substantiated.
Income-tax Act, 1961	Section 12AB	St John Ambulance Association v. Commissioner of Income-tax (Exemptions)	Click Here	Rejection of registration renewal based on an erroneous assumption of Canon Law governance due to a missing formal trust deed shows non-application of mind; remanded for fresh review.
Prohibition of Benami Property Transactions Act, 1988	Section 24	Om Parkash Agarwal v. Initiating Officer (DCIT/ACIT)	Click Here	Freezing of an entire demat account (21.52L shares) was set aside for the excess 11.09L shares not forming part of the 10.43L shares attached under the PBPT Act.
Income-tax Act, 1961	Section 32	Deputy Commissioner of Income-tax v. Magick Woods Exports (P.) Ltd.	Click Here	Depreciation on amalgamation goodwill cannot be disallowed by treating its cost as nil in subsequent years once allowability has attained finality in the initial year.
Income-tax Act, 1961	Section 37(1)	Rajni Dua v. Income-tax Officer	Click Here	Reassessment initiated solely on audit party objections regarding already examined issues without new material amounts to an invalid change of opinion.
Income-tax Act, 1961	Section 37(1)	KPMG India (P.) Ltd. v. Deputy Commissioner of Income-tax	Click Here	Reversal/write-off of previously taxed unbilled revenue (under Ind AS 115/mercantile system) due to non-invoicing is akin to a bad debt and deductible.
Income-tax Act, 1961	Section 80P	Gujarat State Co. Op. Agricultural and Rural Development Bank Ltd. v. Income-tax Officer	Click Here	Reopening an assessment to disallow previously allowed deduction u/s 80P(2)(d) on interest from co-operative banks constitutes an impermissible change of opinion.
Income-tax Act, 1961	Section 80P	Gujarat State Co. Op. Agricultural and Rural Development Bank Ltd. v. Income-tax Officer	Click Here	Interest income received by a co-operative society from investments in co-operative banks qualifies for deduction under Section 80P(2)(d).
Income-tax Act, 1961	Section 115JB	Markel Capital Ltd. v. Deputy Commissioner of Income-tax, Int Tax	Click Here	Reserve for unexpired risks not debited to the profit and loss account cannot be added back when computing book profits for MAT.
Income-tax Act, 1961	Section 148	Sri Venkataramanappa v. Income-tax Officer	Click Here	Failure to dispose of reopening objections via a speaking order is a curable procedural defect; reassessment order was quashed with remand to dispose of objections.
Income-tax Act, 1961	Section 148A	Vyome Mehta v. Income-tax Department	Click Here	Where an assessee claims PAN identity theft, the Revenue must produce primary positive evidence linking them to transactions before shifting the burden of proof.
Income-Tax Act, 2025	Section 165	Markel Capital Ltd. v. Deputy Commissioner of Income-tax, Int Tax	Click Here	Matter remanded to verify contemporaneous emails and contracts submitted as additional evidence to substantiate receipt and ALP of intra-group management support services.
Income-tax Act, 1961	Section 194A	Citizen Credit Co-operative Bank Ltd. v. Income-tax Officer, TDS	Click Here	A co-operative bank paying interest on fixed deposits to non-member co-operative societies is exempt from deducting TDS under Section 194A(3)(v).
Income-tax Act, 1961	Section 251	Siti Networks Ltd. v. Deputy Commissioner of Income-tax	Click Here	CIT(A) has no power to remand a penalty matter back to the AO; conditional relief directing the AO to re-verify facts before confirming penalty is invalid u/s 251(1)(b).