INCOME TAX CASE LAW 01.08.2026

CA Satbir Singh — Wed, 05 Aug 2026 08:00:31 +0000

INCOME TAX CASE LAW 01.08.2026

Relevant Act	Section	Case Law Title	Brief Summary	Citation
Income-tax Act, 1961	Section 2(15)	Amaltash Residents Welfare Association v. CIT(E)	Activities limited strictly to RWA members with benefits confined to a determinate group are governed by the principle of mutuality and do not qualify as “charitable.” Rejection of Sec 12AB registration upheld.	Click Here
Prohibition of Benami Property Transactions Act, 1988	Section 4	Valsa Jose v. V.B. Chandran	Suit claiming partition based on an alleged 1963 benami transaction dismissed as an unchallenged 1970 Settlement Deed established absolute ownership, barring succession claims.	Click Here
Income-tax Act, 1961	Section 4	Castles Vista (P.) Ltd. v. ACIT	Addition of 12% notional interest on interest-free advances made under business agreements without contractual interest obligation or evidence of accrual cannot be taxed.	Click Here
Income-tax Act, 1961	Section 9	Bank of America v. ACIT	Though interest paid by a foreign bank’s Indian PE to overseas branches was not taxable in India, once TDS is deducted and deposited, credit or refund must be claimed by the deductee, not the deductor.	Click Here
Income-tax Act, 1961	Section 11	Medak Catholic Mission v. ITO	Accumulation of income under Sec 11(2) for specific revenue purposes (maintenance of priests/preachers) aligned with the trust’s objects is permissible and allowable.	Click Here
Income-tax Act, 1961	Section 11	Calvary Mennonite Brethren Church v. ITO(E)	Where Sec 11 exemption is denied for lack of registration, gross receipts must still be assessed on commercial principles by allowing expenditure incurred to earn those receipts.	Click Here
Income-tax Act, 1961	Section 11 / 12A	Calvary Mennonite Brethren Church v. ITO(E)	Benefit of Sec 11 & 12 under the second proviso to Sec 12A(2) (prior to omission by Finance Act, 2023) is available for an AY if assessment proceedings were pending at the time provisional registration was granted.	Click Here
Income-tax Act, 1961	Section 11 / 12A	Calvary Mennonite Brethren Church v. ITO(E)	Exemption under Sec 11 & 12 via the second proviso to Sec 12A(2) is unavailable for relevant AYs if no assessment proceedings were pending when provisional registration was granted.	Click Here
Income-tax Act, 1961	Section 11 / 12	Dignity Lifestyle Trust v. ITO	Deferred pre-operative expenses before charitable activity commencement are alien to Sec 11 & 12; however, expenses actually incurred during the year out of current income qualify as application of income.	Click Here
Income-tax Act, 1961	Section 11(6)	Dignity Lifestyle Trust v. ITO	If actual capital expenditure incurred during the year is claimed as application of income under Sec 11, depreciation cannot be separately claimed as per Sec 11(6); remanded for factual verification.	Click Here
Income-tax Act, 1961	Section 14A	JP Morgan Chase Bank, NA v. JCIT	Interest earned from lending surplus funds to overseas head office/branches is governed by the doctrine of mutuality (self-to-self) and does not constitute “income”; Sec 14A disallowance does not apply.	Click Here
Income-tax Act, 1961	Section 14A	Bank of America v. ACIT	No Sec 14A disallowance is warranted where non-interest-bearing self-owned funds exceed investments yielding exempt income and no nexus to interest-bearing funds is shown.	Click Here
Income-tax Act, 1961	Section 28(i)	Mukesh Gupta v. DCIT	[SLP Granted] Receipts claimed by a director as professional/technical fee treated as salary income due to lack of documentary proof of technical/professional services rendered.	Click Here
Income-tax Act, 1961	Section 37(1)	Mukesh Gupta v. DCIT	[SLP Granted] Deduction of interest on borrowed funds advanced to a company disallowed as business expense for failure to establish business nexus or commercial expediency.	Click Here
Income-tax Act, 1961	Section 40(a)(ia)	Castles Vista (P.) Ltd. v. ACIT	Disallowance for non-deduction of TDS set aside where Form 26A certifying payee tax returns was filed with a delay caused by portal technical glitches (substantial compliance with Sec 201(1)).	Click Here
Income-tax Act, 1961	Section 41(1)	Vimal Oil and Foods Ltd. v. ACIT	Sec 148 notice quashed where issued on a clean-slate corporate debtor under CIRP based on surmises of unpaid interest deduction without any actual P&L debit since FY 2015-16.	Click Here
Income-tax Act, 1961	Section 44C / 36(1)(viia)	Bank of America v. ACIT	Deduction under Sec 36(1)(viia) for bad debt provisions must be allowed prior to calculating the statutory ceiling under Sec 44C for Head Office expenditure.	Click Here
Income-tax Act, 1961	Section 44C / 37(1)	Bank of America v. ACIT	Overseas branch expenses incurred to solicit NRI deposits fall within the purview of Head Office expenditure under Sec 44C and cannot be claimed separately under Sec 37(1).	Click Here
Income-tax Act, 1961	Section 44C	Bank of America v. ACIT	Remanded to verify whether data processing and branch costs satisfy the “tripartite test” laid down in American Express Bank for classification under Head Office expenditure.	Click Here
Income-tax Act, 1961	Section 48 / 54F	Smt. Nagabhushana Pamala v. ITO	Deemed consideration under a JDA must be based on Sub-Registrar circle rates instead of JDA values; Sec 54F exemption claim restored to AO for construction completion verification.	Click Here
Indian Succession Act, 1925	Section 63	Valsa Jose v. V.B. Chandran	Registered Will upheld after attesting witness testimony proved execution; alleged suspicious circumstances regarding home registration and testatrix age/health were unsubstantiated.	Click Here
Income-tax Act, 1961	Section 68 / 149	Pace Iron and Steel (P.) Ltd. v. ITO	Sec 148 notice issued past 3 years based solely on third-party search material without recording specific satisfaction linking seized items to assessee is barred by limitation and void of jurisdiction.	Click Here
Income-tax Act, 1961	Section 68	Castles Vista (P.) Ltd. v. ACIT	Addition under Sec 68 deleted where the assessee produced invoices, PAN, payment details, and contact info, thereby discharging the initial burden of proof for advertisement services.	Click Here
Income-tax Act, 1961	Section 68 / 10(38)	PCIT v. Sanjay Kumar Damjibhai Gangani	[SLP Dismissed] Sec 68 penny stock addition unsustainable where assessee provided complete documentary proof (contract notes, demat records) and revenue failed to adduce contrary evidence.	Click Here
Income-tax Act, 1961	Section 69	Suneeta Ramesh Korgaonkar v. ITO	Sec 69 addition for alleged “on-money” cash payment in property purchase set aside as it was based on an unsigned, corroboration-lacking “dumb document” retrieved from the Insight Portal.	Click Here
Income-tax Act, 1961	Section 69A / 148	Suneeta Ramesh Korgaonkar v. ITO	Reopening under Sec 148 based on generic search charts from a builder group uploaded on the Insight Portal, without possessing actual seized materials implicating the assessee, is bad in law.	Click Here
Income-tax Act, 1961	Section 69C / 144B	Accost Media LLP v. DCIT	Order restricting disallowance to 12.5% set aside and remanded because the High Court / ITAT failed to decide the foundational jurisdictional challenge of non-compliance with Sec 144B.	Click Here
Income-tax Act, 1961	Section 80G / 37(1)	Standard Chartered Capital Ltd. v. DCIT	Explanation 2 to Sec 37(1) prohibits claiming CSR expenses under business head, but does not bar claiming deduction under Sec 80G if donations are made to approved eligible trusts.	Click Here
Income-tax Act, 1961	Section 115BBE	Deepak Maratha v. Union of India	Retrospective application of higher tax/penalty rates under Sec 115BBE/271AAC (enacted post 01.04.2017) to demonetization deposits in FY 2016-17 held illegal.	Click Here
Income-tax Act, 1961	Section 145	Castles Vista (P.) Ltd. v. ACIT	Clerical entry error in wrong return column regarding ICDS inventory adjustment deleted since correcting it yielded zero impact on the final tax computation.	Click Here
Income-tax Act, 1961	Section 148 / 135A	Dhanwanti Jain v. ITO	Pendency of Sec 143(1)/154 appeal doesn’t bar valid Sec 148 reassessment proceedings initiated on separate information obtained via Sec 135A with proper administrative approval.	Click Here
Income-tax Act, 1961	Section 149	ACIT v. Anil Kumar Bhikhabhai Virani	[SLP Disposed] Notifications 20/2021 & 38/2021 cannot override or extend statutory limitation periods under the proviso to Sec 149(1) for old regime AYs 2013-14 and 2014-15.	Click Here
Income-tax Act, 1961	Section 153C	DCIT v. Dharmesh Rameshchandra Gathani	[SLP Dismissed] Inordinate delay in recording satisfaction note (4 years post-search, 2 years post-searched person assessment) invalidates and quashes Sec 153C proceedings.	Click Here
Income-tax Act, 1961	Section 234C	Standard Chartered Capital Ltd. v. DCIT	Challenge against interest levy under Sec 234C restored to AO for fresh factual verification and proper recomputation in accordance with law.	Click Here
Income-tax Act, 1961	Section 244A	Standard Chartered Capital Ltd. v. DCIT	Claim of short grant of Sec 244A interest restored to AO for verification and release of due balance.	Click Here
Income-tax Act, 1961	Section 244A	DCIT v. Sony India (P.) Ltd.	Partial refund issued before final order must be set off against interest accrued up to that date first, with the remainder credited toward principal tax refund.	Click Here
Income-tax Act, 1961	Section 268A	PCIT v. Smita Jhawar	Departmental appeal dismissed as non-maintainable because the tax effect fell below CBDT prescribed monetary limits and no substantial question of law arose.	Click Here
Income-tax Act, 1961	Section 271(1)(c)	Smt. Nagabhushana Pamala v. ITO	Penalty under Sec 271(1)(c) cannot survive independently when quantum additions are set aside/remanded; must be re-evaluated post quantum order implementation.	Click Here
Income-tax Act, 1961	Section 271(1)(c)	Smt. Nagabhushana Pamala v. ITO	Penalty set aside and remanded to AO for fresh consideration following ITAT order setting aside LTCG additions and remanding Sec 54F exemption.	Click Here

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INCOME TAX CASE LAW 01.08.2026