IMPORTANT INCOME TAX CASE LAWS 29.11.2025 Section Case Law Title Brief Summary Citation Relevant Act N/A (Press Release) CBDT launches 2nd NUDGE initiative to strengthen voluntary compliance in respect of Foreign Assets CBDT launched a second campaign to encourage voluntary disclosure and compliance regarding foreign assets using data reported by foreign jurisdictions under AEOI. Income… Read More »
Excess Stock Found During Survey is Business Income if Nexus Proven; Section 115BBE Not Applicable Issue Whether the Principal Commissioner of Income Tax (PCIT) was justified in invoking revisionary jurisdiction under Section 263 on the ground that the Assessing Officer (AO) failed to tax the surrendered income (excess stock and cash found during survey) under… Read More »
Reassessment Proceedings Quashed: Revenue Cannot Revive Extinguished Claims Post-CIRP Case Analysis Based on the facts provided, the case establishes that the Income Tax Department cannot initiate or continue reassessment proceedings (under Section 148A/148 of the Income Tax Act) against a corporate debtor for a period prior to the approval of a Resolution Plan, if… Read More »
Cash Deposits from Prior Withdrawals for Failed Property Deal Not Unexplained Money; Section 263 Revision Invalid if Appeal Pending Issue Whether cash deposits made by an assessee (a Scheduled Tribe member claiming Section 10(26) exemption) can be treated as “unexplained money” under Section 69A when the assessee demonstrates through bank statements that the source was… Read More »
Section 54 Exemption Allowed: Investment in Wife’s Name Valid; Construction Delay Condoned for NRI Issue Investment in Spouse’s Name: Can an assessee claim exemption under Section 54 if the new residential property (vacant land for construction) is purchased in the name of his wife? Completion within 3 Years: Is the exemption denied if the construction… Read More »
Domestic Transfer Pricing Adjustment Deleted as No Profit Manipulation Proven; Ad-Hoc Disallowance on Expenses Quashed I. No TP Adjustment u/s 80-IA(10) if Assessee Retains Minimal Margin and No Profit Shifting is Proven Issue: Whether the Transfer Pricing Officer (TPO) is justified in making an adjustment to a Specified Domestic Transaction (SDT) by benchmarking the profit… Read More »
Deduction u/s 36(1)(viia) Allowed Even if Provision Entry Passed After Year-End Based on Audit Memo Issue Whether a co-operative bank is entitled to claim a deduction under Section 36(1)(viia) for the provision for bad and doubtful debts for a specific assessment year (AY 2007-08), when the actual accounting entry creating the provision in the ledger… Read More »
Form 9A Not Mandatory for AY 2015-16; Option Exercised in Audit Report (Form 10B) is Sufficient. Issue Whether the requirement to file Form 9A (for exercising the option of deemed application of income) is applicable for Assessment Year 2015-16, and whether the denial of exemption for non-filing/late filing of this form is valid when the… Read More »
Compensation for Withdrawing Civil Suit Regarding Property Claim is Not Taxable as Capital Gains Issue Whether an amount received by an assessee for withdrawing a pending civil suit (claiming a share in a property) constitutes consideration for the “transfer of a capital asset” taxable under Capital Gains, particularly when the assessee’s right to the property… Read More »
12A Registration Allowed for Pre-1961 Trust Benefiting Scheduled Caste; Section 13(1)(b) Not Applicable Issue Whether the provisions of Section 13(1)(b) (denying exemption to trusts created for a particular religious community or caste) apply to a trust established in 1956, i.e., before the commencement of the Income-tax Act, 1961. Whether a trust established for the benefit… Read More »