Income Tax Case laws 02.08.2026 Archives - Tax Heal https://www.taxheal.com/tag/income-tax-case-laws-02-08-2026 Complete Guide for Income Tax and GST in India Thu, 06 Aug 2026 10:02:08 +0000 en-US hourly 1 https://wordpress.org/?v=7.1.1 Income Tax Case laws 02.08.2026 https://www.taxheal.com/income-tax-case-laws-02-08-2026.html Thu, 06 Aug 2026 09:55:23 +0000 https://www.taxheal.com/?p=137816 Income Tax Case laws 02.08.2026 Income Tax Case laws 02.08.2026 Relevant Act Section Case Law Title Citation Brief Summary PBPT Act, 1988 Section 2(9) Lakshya Jewels v. Initiating Officer, DCIT (BPU) Click Here Unexplained deposit of demonetized currency followed by RTGS transfers fell within “benami transaction” under Sec 2(9) r.w.s. 2(26), warranting provisional attachment. Income-tax… Read More »

]]> Income Tax Case laws 02.08.2026

Income Tax Case laws 02.08.2026

Relevant Act Section Case Law Title Citation Brief Summary
PBPT Act, 1988 Section 2(9) Lakshya Jewels v. Initiating Officer, DCIT (BPU) Click Here Unexplained deposit of demonetized currency followed by RTGS transfers fell within “benami transaction” under Sec 2(9) r.w.s. 2(26), warranting provisional attachment.
Income-tax Act, 1961 Section 2(15) Mandke Foundation v. CIT (Exemption) Click Here Commerciality, premium facilities, or surplus cannot negate a hospital’s charitable character without findings of private enrichment or non-charitable income diversion.
Income-tax Act, 1961 Section 9 Saint Gobain India (P.) Ltd. v. Deputy Commissioner of Income-tax Click Here Disallowance u/s 40(a)(i) for non-TDS on export commission was upheld after assessee conceded MFN claim under India-Belgium DTAA was invalid post-Nestle SA SC ruling.
Income-tax Act, 1961 Section 9 DBS Bank Ltd. v. Additional Director of Income-tax, (IT) Click Here Interest paid by Indian PE of a Singapore bank to its HO/overseas branches is deductible in computing PE profits under Article 7 of India-Singapore DTAA.
Income-tax Act, 1961 Section 9 DBS Bank Ltd. v. Additional Director of Income-tax, (IT) Click Here Surcharge and cess cannot be levied over DTAA-capped tax rates; however, where no rate is capped by treaty, surcharge/cess are leviable per domestic tax law.
Income-tax Act, 1961 Section 9 DBS Bank Ltd. v. Additional Director of Income-tax, (IT) Click Here Sec 244A interest on tax refund earned by a Singapore resident bank’s Indian PE is taxable at 15% as ‘interest’ under Article 11, not as business profits.
Income-tax Act, 1961 Section 9 Play Games 24X7 (P.) Ltd. v. ACIT Click Here Payments to Facebook Ireland for online banner ads without server control/technical services are not Royalty/FTS; no Sec 40(a)(i) disallowance for non-TDS u/s 195.
Black Money Act, 2015 Section 10 Pascal Postel v. Deputy Director of Income-tax (Investigation) Click Here Assessee can challenge underlying quantum on merits in an appeal against a Sec 10/12 rectification order levying Sec 40 interest; matter remanded to CIT(A).
Income-tax Act, 1961 Section 12AB Bai Manekbai a Dubash Hareshwar Pandit Trust v. CIT (Exemptions) Click Here CIT(E) cannot attach caveats making Sec 12AB/80G approvals conditional on the outcome of a proposed Supreme Court challenge against High Court order.
Income-tax Act, 1961 Section 12AB Mandke Foundation v. CIT (Exemption) Click Here Disagreements over overseas medical equipment spending u/s 11(1)(c) do not justify refusal of renewal or cancellation of Sec 12AB trust registration.
Income-tax Act, 1961 Section 12AB Mandke Foundation v. CIT (Exemption) Click Here Retrospective cancellation of Sec 12AB registration without establishing fraud, misrepresentation, or suppression of facts is legally unjustified.
Income-tax Act, 1961 Section 12AB Mandke Foundation v. CIT (Exemption) Click Here Alleged non-compliance with the Maharashtra Public Trusts Act/IPF Scheme cannot trigger Sec 12AB cancellation/refusal absent findings by competent authority.
Income-tax Act, 1961 Section 14A Saint Gobain India (P.) Ltd. v. Deputy Commissioner of Income-tax Click Here No Rule 8D(2)(ii) disallowance where own funds exceed investments; under Rule 8D(2)(iii), only investments actually yielding exempt income can be considered.
Income-tax Act, 1961 Section 14A Principal Commissioner of Income-tax v. Gujarat Urja Vikas Nigam Ltd. Click Here Sec 14A disallowance cannot be added back to compute book profits for Minimum Alternate Tax (MAT) under Section 115JB.
Income-tax Act, 1961 Section 14A Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Sec 14A read with Rule 8D disallowance cannot be imported into Explanation 1, clause (f) of Sec 115JB(2) MAT computations.
Income-tax Act, 1961 Section 32 Saint Gobain India (P.) Ltd. v. Deputy Commissioner of Income-tax Click Here Software licenses capitalized alongside computer systems qualify as computer software eligible for higher computer depreciation rate, not 25%.
Income-tax Act, 1961 Section 32 Saint Gobain India (P.) Ltd. v. Deputy Commissioner of Income-tax Click Here Goodwill arising on amalgamation of group companies as well as on slump sale acquisition is an intangible asset eligible for depreciation u/s 32.
Income-tax Act, 1961 Section 35 Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Weighted deduction u/s 35(2AB) allowed for R&D ancillary expenses (trademarks, repairs, taxes, refreshments) following consistent precedent.
Income-tax Act, 1961 Section 36(1)(iii) Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Interest on bank loan taken to fund an out-of-court patent litigation settlement is allowable business expenditure u/s 36(1)(iii).
Income-tax Act, 1961 Section 36(1)(iii) Principal Commissioner of Income-tax v. Gujarat Urja Vikas Nigam Ltd. Click Here Addition for capitalizing interest to CWIP deleted as investments and building expenditures were backed by sufficient interest-free funds.
Income-tax Act, 1961 Section 37(1) Saint Gobain India (P.) Ltd. v. Deputy Commissioner of Income-tax Click Here Infrastructure/land development charges for long-term lease of industrial land from SIPCOT without asset ownership are allowable revenue expenses.
Income-tax Act, 1961 Section 37(1) Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Treatment of software expenditure as capital asset with corresponding depreciation upheld since full amount had already been claimed or allowed as depreciation.
Income-tax Act, 1961 Section 37(1) Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Reallocation of group R&D expenditure strictly based on turnover ratio of manufactured formulations was held unsustainable.
Income-tax Act, 1961 Section 37(1) Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Ad hoc disallowance of genuine business promotion/gift expenses is invalid merely due to minor lack of complete recipient particulars.
Income-tax Act, 1961 Section 37(1) Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Compensatory out-of-court payment to Cephalon Inc. for resolving US patent litigation is allowable revenue expenditure u/s 37(1).
Income-tax Act, 1961 Section 37(1) Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Post-demerger US patent litigation settlement protecting market and reputation is a genuine business revenue expense not barred by Explanation 1.
Income-tax Act, 1961 Section 37(1) Egger Pumps India (P.) Ltd. v. Income-tax Officer Click Here Forex loss from year-end restatement of ECB availed from parent company for acquiring capital assets is capital in nature, hence not deductible u/s 37(1).
Black Money Act, 2015 Section 40 Pascal Postel v. Deputy Director of Income-tax (Investigation) Click Here Sec 40(1) & 40(2) interest isn’t leviable on senior citizens without business income for foreign income quantum disputes absent deliberate suppression.
Income-tax Act, 1961 Section 40(a)(ia) Play Games 24X7 (P.) Ltd. v. ACIT Click Here Standard banner ad payments to Facebook Ireland without server access or technical service rights do not attract tax deduction u/s 195/disallowance u/s 40(a)(i).
Income-tax Act, 1961 Section 43A Saint Gobain India (P.) Ltd. v. Deputy Commissioner of Income-tax Click Here Principal Only Swap (POS) hedging charges for ECBs do not add to actual capital cost u/s 43A; deductible as revenue expenditure u/s 37(1).
Income-tax Act, 1961 Section 45 DBS Bank Ltd. v. Additional Director of Income-tax, (IT) Click Here Gains on cancellation of forex forward contracts entered by Singapore resident to hedge Indian investment currency risks are assessable as Capital Gains.
Income-tax Act, 1961 Section 50C ECI Technology (P.) Ltd. v. Assistant Commissioner of Income-tax Click Here Reopening assessment beyond 4 years on Sec 50C capital gains without new tangible material or non-disclosure amounts to invalid change of opinion.
Income-tax Act, 1961 Section 56 Ramesh v. Income-tax Officer Click Here Sec 56(2)(x)(b) addition based solely on stamp valuation difference is unsustainable without independent evidence of actual higher fair market value.
Income-tax Act, 1961 Section 69A Ramesh v. Income-tax Officer Click Here Large cash deposits supported by confirmations/bank statements cannot be added u/s 69A merely due to AO’s subjective dissatisfaction.
Income-tax Act, 1961 Section 69A Ramesh v. Income-tax Officer Click Here Property purchase where major consideration was set off against prior mortgage advance and rest via bank cannot be added as unexplained money.
Income-tax Act, 1961 Section 69A Manoj Naveen Patel v. ACIT Click Here Rs. 7 lakhs cash in joint locker explained via gifts, family contributions, and savings supported by bank statements cannot be added u/s 69A without rebuttal.
Income-tax Act, 1961 Section 80G Mandke Foundation v. CIT (Exemption) Click Here Rejection of Sec 80G approval cannot survive once the underlying order cancelling Sec 12AB registration is set aside.
Income-tax Act, 1961 Section 80GGC Meetkumar Hasmukhbhai Chaturvedi v. Income-tax Officer Click Here Deduction for political donation via banking channels disallowed as investigation proved it was a non-genuine accommodation entry.
Income-tax Act, 1961 Section 80JJAA Saint Gobain India (P.) Ltd. v. Deputy Commissioner of Income-tax Click Here Sec 80JJAA deduction cannot be denied if new workmen complete prescribed employment period in subsequent year (Finance Act 2018 amendment is retrospective).
Income-tax Act, 1961 Section 92B Elgi Rubber Co. Ltd. v. Deputy Commissioner of Income-tax Click Here Receivables from AEs arising out of benchmarked main transactions follow a uniform non-interest policy and don’t form a separate international transaction.
Income-tax Act, 1961 Section 92C Elgi Rubber Co. Ltd. v. Deputy Commissioner of Income-tax Click Here Full recovery of SBLC bank charges from overseas AEs constitutes arm’s length compensation for guarantee transaction subject to verification.
Income-tax Act, 1961 Section 92C Elgi Rubber Co. Ltd. v. Deputy Commissioner of Income-tax Click Here Treating bad debts write-off as non-operating and forex gains as operating brought assessee’s PLI under TNMM within arm’s length range.
Income-tax Act, 1961 Section 92C Elgi Rubber Co. Ltd. v. Deputy Commissioner of Income-tax Click Here Segregating export sales commission from closely linked transactions to evaluate ALP at nil under TNMM is unsustainable.
Income-tax Act, 1961 Section 92C DBS Bank Ltd. v. Additional Director of Income-tax, (IT) Click Here Guarantee commission TP adjustment for foreign bank PE must be restricted only to the difference between internal CUP rate and fee recovered.
Income-tax Act, 1961 Section 92C Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Captive power plant electricity transfer TP additions deleted where identical factual and legal matrix was ruled in favor of assessee in prior years.
Income-tax Act, 1961 Section 92C Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Notional interest TP adjustments on loans and share application money given to AEs deleted following binding precedent in assessee’s own prior cases.
Income-tax Act, 1961 Section 92C Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Upward TP adjustment on sales to AE deleted following earlier Tribunal decisions under identical facts and legal positions.
Income-tax Act, 1961 Section 115JB Sun Pharmaceutical Industries Ltd. v. Deputy Commissioner of Income-tax Click Here Provision created for wealth tax cannot be added back to book profits for the purpose of Minimum Alternate Tax (MAT) u/s 115JB.
Income-tax Act, 1961 Section 119 Bhupathi Hotels Ltd. v. Centralized Processing Centre Click Here Condonation of delay applications for tax refunds cannot be rejected solely on CBDT’s 6-year circular limit; Sec 119(2)(b) allows consideration beyond 6 years.
Income-tax Act, 1961 Section 154 Surajit Ghosh v. Income-tax Officer Click Here Rectification order passed beyond limitation, without proof of Sec 154(3) notice service, and lacking a DIN is invalid and liable to be set aside.
Income-tax Act, 1961 Section 254 Mashreq Bank PSC. v. Deputy Director of Income Tax (IT) Click Here A 6-year delay in filing cross-objection before ITAT cannot be condoned merely because the prevailing legal position was previously unfavorable.
Income-tax Act, 1961 Section 254 Cisco Systems Inc v. Deputy Commissioner of Income-tax, International Taxation Click Here Rectification application against stay order is unmaintainable if assessee fails to establish an error in the stay order itself, despite recovery of demand by AO.
Income-tax Act, 1961 Section 260A Iron Build Systems (P.) ltd. v. Assistant Commissioner of Income-tax Click Here Tribunal erred in refusing to condone a 712-day delay where CIT(A) order was received by Accounts Manager but not brought to management’s attention.
Income-tax Act, 1961 Section 263 Mirum Digital (P.) Ltd. v. Principal Commissioner of Income-tax Click Here Sec 263 revision for “inadequate inquiry” on client reimbursement exclusions is invalid where AO examined reconciliations and PCIT conducted no fresh inquiry.
Income-tax Act, 1961 Section 268A Principal Commissioner of Income-tax v. Arvind Dwarkadas Purohit Click Here Appeals filed prior to 20-8-2018 below monetary limits are subject to dismissal; subsequent CBDT exception letters cannot be applied retrospectively.
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