https://www.taxheal.com/tag/income-tax-case-laws-17-08-2026 Complete Guide for Income Tax and GST in India Tue, 18 Aug 2026 10:28:58 +0000 en-US hourly 1 https://wordpress.org/?v=7.1.2 https://www.taxheal.com/income-tax-case-laws-17-08-2026.html Tue, 18 Aug 2026 10:16:47 +0000 https://www.taxheal.com/?p=138745 INCOME TAX CASE LAWS 17.08.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 2(15) Lakhmi Chand Charitable Society v. Principal Commissioner of Income-tax Renewal under Section 12AB and approval under Section 80G were directed to be granted where no deficiencies existed in educational activities during the preceding 3 years, and… Read More »

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Relevant Act	Section	Case Law Title	Brief Summary	Citation
Income-tax Act, 1961	Section 2(15)	Lakhmi Chand Charitable Society v. Principal Commissioner of Income-tax	Renewal under Section 12AB and approval under Section 80G were directed to be granted where no deficiencies existed in educational activities during the preceding 3 years, and rejection based on past search/retracted statements was invalid.	Click Here
Income-tax Act, 1961	Section 9	L. G. Electronics India (P.) Ltd. v. Asstt./Jt./Addl. CIT/ITO, National e-Assessment Centre	Additional claim for DDT relief under Indo-Korea DTAA was remitted to the AO to await the final decision of the Supreme Court in view of an interim order on the identical issue.	Click Here
Income-tax Act, 1961	Section 32	Principal Commissioner of Income-tax (Central) v. Cadila Healthcare Ltd.	Depreciation is allowable to a company on a vehicle purchased and paid for by it for business purposes, even if registered in the Director’s name.	Click Here
Income-tax Act, 1961	Section 36(1)(vii)	Andromeda Sales and Distribution (P.) Ltd. v. Assistant Commissioner of Income-tax	Trade receivables written off in the ordinary course of business cannot be denied bad debt deduction for lack of proof of commercial irrecoverability once statutory conditions are met.	Click Here
Income-tax Act, 1961	Section 37(1)	Luminous Power Technologies (P.) Ltd. v. Additional Commissioner of Income-tax	Recurring expenses on brand ambassador fees, design creation, and market research create no enduring capital asset and are fully allowable as revenue expenditure.	Click Here
Income-tax Act, 1961	Section 37(1)	L. G. Electronics India (P.) Ltd. v. Asstt./Jt./Addl. CIT/ITO, National e-Assessment Centre	Following the rule of judicial consistency and prior Tribunal orders, salary paid to expatriate employees is deductible business expenditure.	Click Here
Income-tax Act, 1961	Section 37(1)	L. G. Electronics India (P.) Ltd. v. Asstt./Jt./Addl. CIT/ITO, National e-Assessment Centre	Royalty paid to an overseas parent covered under a concluded APA and accepted as revenue expenditure in prior years cannot be disallowed as capital expenditure.	Click Here
Income-tax Act, 1961	Section 37(1)	L. G. Electronics India (P.) Ltd. v. Asstt./Jt./Addl. CIT/ITO, National e-Assessment Centre	Provision for service warranty computed on a scientific and rational basis is allowable as deductible business expenditure.	Click Here
Income-tax Act, 1961	Section 37(1)	Principal Commissioner of Income-tax-12 v. Marico Ltd.	Recurring market research expenditure to study consumer behavior supports normal operations and is allowable as revenue expenditure rather than capital expenditure.	Click Here
Income-tax Act, 1961	Section 45	Pramod Kumar Jain v. Deputy Commissioner of Income-tax	Consideration received by an employee on repurchase of vested, unexercised stock options constitutes transfer of a capital asset taxable as Long-Term Capital Gains, not salary perquisite.	Click Here
Income-tax Act, 1961	Section 68	Principal Commissioner of Income-tax v. Aditya Agrawal	Penny stock additions based solely on Investigation Wing reports without independent inquiry cannot be sustained when transactions are backed by banking and DEMAT records.	Click Here
Income-tax Act, 1961	Section 68	Income-tax Officer v. Adhir Barter (P.) Ltd.	Offline sale of shares without DEMAT movement, contract notes, or broker confirmation is not a valid transfer under Section 2(47); hence, no capital gain/loss or cash credit addition arises.	Click Here
Income-tax Act, 1961	Section 68	Venus Infrabuild v. Deputy Commissioner of Income-tax	Reopening an assessment based purely on a Suspicious Transaction Report (STR) without examining submitted explanations or establishing bogus entries is invalid.	Click Here
Income-tax Act, 1961	Section 68 / 69C	Harichandana Developers (P.) Ltd. v. Income-tax Officer	Unsecured loans received and repaid via banking channels with interest and TDS cannot be added as accommodation entries based on generalized third-party statements.	Click Here
Income-tax Act, 1961	Section 68	Shivam Silkfab (P.) Ltd. v. Additional/Joint/Deputy Assistant/Commissioner of Income-tax/Income-tax Officer (NFAC)	Cash deposits already recorded as cash sales in books and included in turnover cannot be added again as unexplained cash credits under Section 68.	Click Here
Income-tax Act, 1961	Section 69	Mahendra R. Shah v. Asst. Commissioner of Income-tax	Arbitrary property valuation cannot replace disclosed investment value without establishing cash nexus, and additions for undisclosed FDRs must be restricted to investment cost, not maturity value.	Click Here
Income-tax Act, 1961	Section 69A	Tarun Santramdas Varma v. Assistant Commissioner of Income-tax	Reassessment notice under Section 148 based merely on an inquiry register entry in a broker’s record without direct transaction nexus is invalid.	Click Here
Income-tax Act, 1961	Section 69C	Principal Commissioner of Income-tax-27 v. Jain Dalichand Gosalia	Revenue cannot challenge the Tribunal’s bogus purchase estimation (10%) when it accepted the CIT(A)’s earlier restriction (12.5%) without filing an appeal.	Click Here
Income-tax Act, 1961	Section 69C	Hiramoti Texchem (P.) Ltd. v. Income-tax Officer	Reopening assessment on fully disclosed purchases based purely on Investigation Wing data without fresh tangible material constitutes an impermissible change of opinion.	Click Here
Income-tax Act, 1961	Section 69C	Income-tax Officer v. Adhir Barter (P.) Ltd.	Writing off an already disallowed debit balance in the P&L account does not constitute incurring unexplained expenditure under Section 69C.	Click Here
Income-tax Act, 1961	Section 80G	Sri Digambar Jain Sammedachal Vikas Committee v. Commissioner of Income Tax Exemption	Section 80G approval rejection without evaluating the claim that religious expenses were under the 5% threshold or providing personal hearing requires fresh re-examination.	Click Here
Income-tax Act, 1961	Section 92B	Luminous Power Technologies (P.) Ltd. v. Additional Commissioner of Income-tax	Interest-free loans to an AE constitute an international transaction benchmarked at 6-month LIBOR + 400 bps, irrespective of internal fund availability.	Click Here
Income-tax Act, 1961	Section 92B	Luminous Power Technologies (P.) Ltd. v. Additional Commissioner of Income-tax	Providing a corporate guarantee to a step-down subsidiary without consideration is an international transaction benchmarkable at an arm’s length fee of 0.5%.	Click Here
Income-tax Act, 1961	Section 92BA	Luminous Power Technologies (P.) Ltd. v. Additional Commissioner of Income-tax	Omission of Section 92BA(i) without a saving clause invalidates TPO references and subsequent TP adjustments for specified domestic purchase transactions.	Click Here
Income-tax Act, 1961	Section 92C	Luminous Power Technologies (P.) Ltd. v. Additional Commissioner of Income-tax	Allocation of common Head Office expenses across units without mark-up does not constitute a service provision under Section 80-IA(8) requiring TP mark-up.	Click Here
Income-tax Act, 1961	Section 92C	Andromeda Sales and Distribution (P.) Ltd. v. Assistant Commissioner of Income-tax	Compulsorily Convertible Debentures (CCDs) cannot be re-characterized as equity by the TPO and must be benchmarked as debt instruments under the CUP method.	Click Here
Income-tax Act, 1961	Section 92CC	L. G. Electronics India (P.) Ltd. v. Asstt./Jt./Addl. CIT/ITO, National e-Assessment Centre	Concluded Advance Pricing Agreements (APAs) covering AMP, royalty, HQ expenses, and warranty must be fully implemented to determine ALP for all covered dispute years.	Click Here
Income-tax Act, 1961	Section 148	SSTA Logistics India (P.) Ltd. v. Assistant Commissioner of Income-tax	Reassessment notices issued solely on the basis of the Justice M.B. Shah Commission Report on illegal mining were quashed following binding High Court precedents.	Click Here
Income-tax Act, 1961	Section 151	Income-tax Officer v. Vinod Bhanji Shah	Reassessment notices issued after 3 years without sanction from the correct specified authority under Section 151 are void ab initio.	Click Here
Income-tax Act, 1961	Section 264	Deputy Commissioner of Income-tax, CPC v. Om Siddhakala Associates	Revision under Section 264 cannot be used as a backdoor method to claim omitted Section 43CA tolerance limits once the time limit for filing a revised return has lapsed.	Click Here

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