INCOME TAX CASE LAWS 31.07.2026
| Relevant Act | Section | Case Law Title | Brief Summary | Citation |
|---|---|---|---|---|
| Prevention of Money Laundering Act, 2002 | Section 2 | Cochin Minerals and Rutile Ltd. v. Directorate of Enforcement | Proceeds of crime investigation and attachment actions under PMLA can start without an FIR/complaint for the scheduled offence; existence of an FIR is not a precondition for Section 50 summons at the preliminary stage. | Click Here |
| Income-tax Act, 1961 | Section 5 | Deputy Commissioner of Income-tax v. Bank of Baroda | Interest accrued but not due on securities/debentures is not taxable as income accrues only on specified due dates, and year-end accounting entries do not amount to real income. | Click Here |
| Income-tax Act, 1961 | Section 10AA | Kitchen Xpress Overseas Ltd. v. Deputy Commissioner of Income-tax | Reopening reassessment beyond four years on grounds of alleged double deduction of depreciation without new tangible material or non-disclosure is impermissible and quashed. | Click Here |
| Income-tax Act, 1961 | Section 12AB | IMC Ramakrishna Bajaj National Quality Award Trust v. Commissioner of Income-tax (Exemptions) | Where registration is granted based on a binding High Court ruling, CIT(E) cannot dilute registration by subjecting it to the outcome of a proposed challenge before the Supreme Court. | Click Here |
| Income-tax Act, 1961 | Section 14A | Deputy Commissioner of Income-tax v. Bank of Baroda | Disallowance under Section 14A r.w.r. 8D(2)(ii) is unsustainable when securities are held as stock-in-trade and income/profit is offered as business income. | Click Here |
| Income-tax Act, 1961 | Section 28(i) | Deputy Commissioner of Income-tax v. Bank of Baroda | Provision for depreciation on investments held as stock-in-trade (valued at cost or market value, whichever is lower) is allowable as a business loss. | Click Here |
| Income-tax Act, 1961 | Section 32 | Dy. Commissioner of Income-tax v. Panorama Television (P.) Ltd. | Depreciation at 25% is allowable on a film software library treating it as an intangible asset. | Click Here |
| Income-tax Act, 1961 | Section 32 | Dy. Commissioner of Income-tax v. Panorama Television (P.) Ltd. | Computer peripherals like printers, scanners, modems, and routers are eligible for depreciation at 60% under the block ‘computers including computer software’. | Click Here |
| Income-tax Act, 1961 | Section 32 | Dy. Commissioner of Income-tax v. Panorama Television (P.) Ltd. | Depreciation on non-compete fees acquired under a demerger cannot be denied if accepted in the predecessor company’s hands per Tribunal directions. | Click Here |
| Income-tax Act, 1961 | Section 32 | Win Star Industries (P.) Ltd. v. Assistant Commissioner of Income-tax | Reopening assessment after four years under Section 148 is impermissible when the assessee fully disclosed facts regarding depreciation method and accounting policy during original Section 143(3) scrutiny. | Click Here |
| Income-tax Act, 1961 | Section 36(1)(iii) | Deputy Commissioner of Income-tax v. Bank of Baroda | Interest paid on Innovative Perpetual Debt Instruments qualifying as Tier-I capital is allowable as a business deduction. | Click Here |
| Income-tax Act, 1961 | Section 36(1)(vii) | Deputy Commissioner of Income-tax v. Bank of Baroda | Bad debts written off in excess of the provision credit balance available under Section 36(1)(viia) are allowable under Section 36(1)(vii). | Click Here |
| Income-tax Act, 1961 | Section 37(1) | Deputy Commissioner of Income-tax v. Bank of Baroda | Amortisation of premium on Held to Maturity (HTM) securities as per RBI guidelines and ICDS-VIII is an allowable business expenditure. | Click Here |
| Income-tax Act, 1961 | Section 37(1) | Deputy Commissioner of Income-tax v. Bank of Baroda | Amount paid to RBI for KYC non-compliance is allowable under Section 37(1) as it is paid during banking business and not for an offence/prohibited act. | Click Here |
| Income-tax Act, 1961 | Section 37(1) | Deputy Commissioner of Income-tax v. Bank of Baroda | Provision created for wage revision based on ongoing negotiations and reasonable liability estimation represents an accrued liability and is allowable. | Click Here |
| Income-tax Act, 1961 | Section 37(1) | Dy. Commissioner of Income-tax v. Panorama Television (P.) Ltd. | Expenses incurred on the production of TV serials, news, and programs are allowable as revenue expenditure. | Click Here |
| Income-tax Act, 1961 | Section 43AA | Deputy Commissioner of Income-tax v. Bank of Baroda | Opening balance of FCTR relating to monetary items cannot be added as income; transitional ICDS-VI provisions cannot tax unrealised gains of prior years, and Section 43AA does not override charging Sections 4 and 5. | Click Here |
| Income-tax Act, 1961 | Section 43D | Deputy Commissioner of Income-tax v. Bank of Baroda | Unrealised interest on Non-Performing Assets (NPAs) unrecognized as per RBI guidelines due to recovery uncertainty is not liable to tax under Section 43D r.w.r. 6EA. | Click Here |
| Income-tax Act, 1961 | Section 45 | GPFE Housing Co-operative Society Ltd. v. Income-tax Officer | Cost of acquisition cannot be treated as NIL solely due to missing old records; matter remanded to determine correct cost using reverse indexation or time-gap method. | Click Here |
| Prevention of Money Laundering Act, 2002 | Section 50 | Cochin Minerals and Rutile Ltd. v. Directorate of Enforcement | ED’s powers to summon or investigate under PMLA are not contingent on an SFIO final report under the Companies Act; subsequent SFIO complaints can be considered during writ. | Click Here |
| Income-tax Act, 1961 | Section 54F | Sudhakar Reddy Mettu v. Assistant Commissioner of Income-tax | Exemption cannot be denied to an NRI for delayed construction/registration beyond 3 years if full capital gains were invested in a villa and delay was due to developer partner disputes beyond control. | Click Here |
| Income-tax Act, 1961 | Section 69A | Deputy Commissioner of Income-tax v. Gardenia Shelters (P.) Ltd. | Cash found in employee lockers belonging to the assessee as recorded leftover construction sales (backed by GST returns, stock, and buyer confirmations) cannot be added under Section 69A. | Click Here |
| Income-tax Act, 1961 | Section 90 | Denso Haryana (P.) Ltd. v. Joint/Additional Commissioner of Income-tax | Applicability of lower Dividend Distribution Tax (DDT) rate under India-Japan DTAA remanded to AO to keep pending awaiting Supreme Court’s final decision. | Click Here |
| Income-tax Act, 1961 | Section 92C | Denso Haryana (P.) Ltd. v. Joint/Additional Commissioner of Income-tax | TPO cannot segregate closely linked international transactions benchmarked on an aggregated basis under TNMM to apply CUP and determine ALP at Nil. | Click Here |
| Income-tax Act, 1961 | Section 92C | Denso Haryana (P.) Ltd. v. Joint/Additional Commissioner of Income-tax | Transfer Pricing adjustment by disallowing mark-up on fixed assets purchased from Associated Enterprises (AEs) is unsustainable. | Click Here |
| Income-tax Act, 1961 | Section 115JB | Deputy Commissioner of Income-tax v. Bank of Baroda | MAT provisions under Section 115JB do not apply to banks preparing financial statements under the Banking Regulation Act. | Click Here |
| Income-tax Act, 1961 | Section 143 | Pradeep Dayanand Kothari v. Commissioner of Income-tax | SLP dismissed against HC order upholding reopening notice based on Investigation Wing info regarding undeclared foreign bank accounts and unaccounted deposits. | Click Here |
| Income-tax Act, 1961 | Section 147 | Smt. Asha Dubey v. Union of India | Reassessment validity depends strictly on statutory requirements; non-fulfillment of mandatory jurisdictional conditions renders proceedings void regardless of tax implications. | Click Here |
| Income-tax Act, 1961 | Section 147A | Synokem Pharmaceuticals Ltd v. Assistant Commissioner of Income-tax | Application seeking amendment to challenge Sec 147A was rejected as academic since the original writ was already dismissed. | Click Here |
| Income-tax Act, 1961 | Section 148 | Smt. Asha Dubey v. Union of India | Notice issued under Section 148 to a deceased person is a jurisdictional defect (not curable under Section 292B), rendering the proceeding void ab initio. | Click Here |
| Income-tax Act, 1961 | Section 150 | Smt. Asha Dubey v. Union of India | Quashing of Section 148 notice issued to a deceased person after limitation does not constitute a ‘finding or direction’ under Section 150(1) to issue a fresh notice to legal representatives. | Click Here |
| Income-tax Act, 1961 | Section 151 | Anagandula Indra Reddy v. Income-tax Officer | Section 148 notice issued beyond 3 years with approval from an unauthorized officer lacks jurisdiction and is quashed; defect is not curable under Section 292BC. | Click Here |
| Income-tax Act, 1961 | Section 153A | Vinod Kumar Maheshwari v. Deputy Commissioner of Income-tax | Notice under Section 153C beyond the 10-year limit is invalid; additions below the ₹50 lakh threshold under Section 153C are liable to be quashed. | Click Here |
| Income-tax Act, 1961 | Section 153C | Vinod Kumar Maheshwari v. Deputy Commissioner of Income-tax | Section 153C assessments based on satisfaction notes using the old ‘belongs to’ test instead of the post-amendment framework are invalid. | Click Here |
| Income-tax Act, 1961 | Section 154 | Arjunkumar Chimanlal Desai v. Deputy Commissioner of Income-tax | Rectification application for TDS mismatch supported by debtor’s ledger must be decided within 3 months, keeping outstanding demand in abeyance without insisting on further evidence. | Click Here |
| Income-tax Act, 1961 | Section 159 | Smt. Asha Dubey v. Union of India | Section 159 allows legal heirs to continue proceedings initiated when the assessee was alive, but does not allow fresh initiation of reassessment against a deceased person. | Click Here |
| Income-tax Act, 1961 | Section 234A | GPFE Housing Co-operative Society Ltd. v. Income-tax Officer | Interest under Section 234A must exclude the period during which no statutory mechanism existed for the assessee to file a valid return until receipt of Section 148 notice. | Click Here |
| Income-tax Act, 1961 | Section 244A | Deputy Commissioner of Income-tax v. Bank of Baroda | Part refunds must be adjusted first against the interest component and subsequently against the tax component for computing Section 244A interest. | Click Here |
| Income-tax Act, 1961 | Section 245 | Anshu Hospitals Ltd. v. Chairman, Central Board of Direct Taxes | Revenue cannot adjust refunds of subsequent years against outstanding tax demands that have been explicitly stayed by the PCIT subject to instalment payments. | Click Here |
| Prevention of Money Laundering Act, 2002 | Section 245H | Cochin Minerals and Rutile Ltd. v. Directorate of Enforcement | Settlement Commission immunity extends only to Income-tax prosecution/penalties, not to PMLA proceedings, as ITSC lacks jurisdiction over money laundering. | Click Here |
| Income-tax Act, 1961 | Section 254 | Shailesh Narshibhai Patel v. Income-tax Officer | Delay of 2,376 days not condoned where GPA was not notarized/consularized in the USA and assessee failed to demonstrate diligence or valid evidence. | Click Here |
| Income-tax Act, 1961 | Section 268A | Principal Commissioner of Income-tax v. Kabir Jewels (P.) Ltd. | State VAT Department qualifies as a “law enforcement agency” under Clause 10(e) of CBDT Circular; dismissing Revenue appeal on low tax effect by excluding VAT info was improper. | Click Here |
| Income-tax Act, 1961 | Section 271G | Deputy Commissioner of Income-tax, Central v. Carbon Creation Exports (P.) Ltd. | Penalty under Section 271G deleted as reasonable cause under Section 273B was established due to trade practice making AE/non-AE segmental accounting impractical. | Click Here |
| Income-tax Act, 1961 | Section 276C | Madha Constructions and Properties (P.) Ltd. v. Assistant Commissioner of Income-tax | Mere delay in tax payment without evidence of a wilful attempt to evade tax does not constitute an offence under Section 276C(2); prosecution quashed. | Click Here |
| Income-tax Act, 1961 | Section 292BB | Smt. Asha Dubey v. Union of India | Notice issued to a deceased person is invalid; participation by legal heirs does not attract deeming service or estoppel under Section 292BB as it applies only during the assessee’s lifetime. | Click Here |