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… Read More »
Maximum Section 271H TDS penalty scaled down to minimum ten thousand per quarter for government institution. Issue Whether levying the maximum penalty of ₹1,00,000 per quarter under Section 271H(1)(a) on a Government educational institution for delayed filing of Form 24Q TDS statements is harsh and unsustainable when deducted tax was timely deposited. Facts Assessee Profile:… Read More »
Section 270A misreporting penalty applies despite subsequent tax payment or bona fide explanation. Issue Whether a penalty under Section 270A for under-reporting of income in consequence of misreporting can be sustained when the assessee voluntarily pays the due tax and interest during penalty appeal proceedings and offers a bona fide explanation. Facts Assessment Year: AY… Read More »
Section 263 revision order passed during IBC moratorium is unsustainable and stands set aside. Issue Whether a revisional order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 during the currency of a Section 14 IBC moratorium against a corporate debtor is legally sustainable. Facts Assessment History: The assessment unit completed a… Read More »
Section 80P Deduction Allowed to Primary Cooperative Society for Belated Return Subject to Nominal Costs Issue Whether a primary cooperative society can be allowed the substantive tax benefit of deduction under Section 80P read with Section 80AC despite filing its return of income beyond the due date prescribed under Section 139. Facts Assessment Year: AY… Read More »
Supreme Court dismisses Revenue’s SLP, upholding disallowance of bogus purchases restricted to six percent. Supreme Court dismisses Revenue’s SLP, upholding disallowance of bogus purchases restricted to six percent. Issue Whether the Special Leave Petition (SLP) filed by the Revenue should be entertained against the High Court’s order upholding the Tribunal’s decision to restrict the disallowance… Read More »
Excess stock found during survey, acquired from suppressed business profits, is taxable as business income, not under Section 69B. Issue Whether excess stock discovered during a Section 133A survey, consisting of regular trading commodities acquired out of suppressed business profits, is assessable as business income under normal provisions or as unexplained investment under Section 69B… Read More »
Rejection of books and unexplained cash additions under Section 69A are unsustainable when turnover is accepted. Rejection of books and unexplained cash additions under Section 69A are unsustainable when turnover is accepted. Issue Whether rejection of books of accounts under Section 145(3) is valid without identifying specific defects or independently estimating business profits, when disclosed… Read More »
BSNL VRS ex-gratia compensation eligible for Section 10(10B) exemption subject to workman status verification. Issue Whether ex-gratia compensation received by BSNL employees under VRS-2019 qualifies for tax exemption as retrenchment compensation under Section 10(10B), and whether the matter needs verification by the Assessing Officer regarding individual eligibility conditions, including workman status. Facts Assessment Years: AY… Read More »
Absence of formal trust deed cannot justify rejecting Section 12AB registration for genuine public trust. Absence of formal trust deed cannot justify rejecting Section 12AB registration for genuine public trust. Issue Whether the CIT(Exemptions) was justified in rejecting the assessee’s application in Form No. 10AB for renewal of registration under Section 12AB solely due to… Read More »