IMPORTANT INCOME TAX CASE LAWS 15.01.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 2(15) Deshpande Education Trust v. ACIT [Vocational Training = Education] Providing vocational training and skill development to rural youth involves systematic teaching and constitutes “Education”. It is not “General Public Utility,” so the commercial receipt restrictions… Read More »

Pre-existing tax claims not in resolution plan are extinguished; appeals cannot continue during IBC proceedings Issue Whether income tax appeals against assessment orders can proceed during the pendency of Corporate Insolvency Resolution Proceedings (CIRP) or after the approval of a Resolution Plan, and whether tax claims not included in such a plan are extinguished under… Read More »

Assessing Officer cannot mechanically mandate 20% pre-deposit for stay without evaluating hardship and merits   Issue Whether the Revenue Department can mechanically reject an assessee’s application for stay of demand under Section 220(6) by insisting on a standard 20% pre-deposit based on CBDT Office Memorandums, without exercising judicial discretion or considering the specific merits and… Read More »

Section 54 deduction allowed if funds utilized timely despite builder’s delay in registration   Issue Whether an assessee is entitled to claim exemption under Section 54 of the Income-tax Act for capital gains reinvested in a residential property, even if the registration of the new property was delayed beyond the statutory limit due to the… Read More »

Date of allotment determines acquisition date for holding period in redevelopment cases, not possession   Issue Whether the capital gains arising from the sale of a redeveloped flat should be treated as Short-Term Capital Gains (STCG) or Long-Term Capital Gains (LTCG) based on the date of allotment versus the date of construction completion or physical… Read More »

Captive solar power supply to parent company fails charitable purpose test for Section 12AB registration   Issue Whether a Section 8 company, incorporated to manage a solar power project as a CSR initiative, is eligible for charitable registration under Section 12AB where the electricity generated is supplied exclusively to its parent company (shareholder), thereby raising… Read More »

Vocational training generating surplus utilized for education qualifies for Section 11 exemption   Issue Whether the activity of running coaching classes and vocational training programs by a registered trust constitutes “education” under Section 2(15) of the Income-tax Act, thereby entitling it to exemption under Section 11, or if it falls under “advancement of any other… Read More »

Interest on FDRs disallowed u/s 80P as investment income exceeded income from credit facilities   Issue Whether the interest income of Rs. 1,50,19,858 earned by the assessee (a co-operative agricultural service society) from Fixed Deposits (FDRs) with scheduled banks is eligible for deduction under Section 80P(2)(a)(i) as income “attributable to” the business of providing credit… Read More »