IMPORTANT INCOME TAX CASE LAWS 11.12.2025 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 10(23G) Tata Industries Ltd. v. ACIT Assessee infrastructure capital company qualifies for exemption under section 10(23G) by investing in shares of an enterprise engaged in the business of infrastructure facility. Click Here Income-tax Act, 1961 Section… Read More »
Ex-Parte CIT(A) Dismissal Set Aside despite Non-Compliance; Assessee granted “One Final Opportunity” Issue Whether the Commissioner (Appeals) is justified in dismissing an appeal summarily for non-prosecution (failure to file written submissions) after granting multiple opportunities, or if the principles of natural justice require that the assessee be given one more chance to argue the case… Read More »
Reopening Notice Issued Beyond 3 Years Quashed Due to Invalid Sanction (Pr. CIT instead of Pr. CCIT) Issue Whether a notice issued under Section 148 for reopening an assessment after three years from the end of the relevant assessment year is valid if the sanction (approval) was obtained from the Principal Commissioner of Income Tax… Read More »
Reopening Notice for AY 2014-15 issued in July 2022 held Time-Barred; “Surviving Period” of Limitation breached Issue Whether a reassessment notice under Section 148 issued on 27.07.2022 for Assessment Year 2014-15 is valid, or if it is barred by limitation because the original 6-year period (extended by TOLA) had expired, and the “surviving period” available… Read More »
Reassessment against NRI Quashed; Local ITO lacked jurisdiction to issue Section 148 Notice Issue Whether a reassessment order passed against a Non-Resident Indian (NRI) is valid if the initial notice under Section 148 was issued by a regular/local Income Tax Officer (ITO) instead of the ITO (International Taxation), even if the final assessment order was… Read More »
Cash Deposits representing Business Turnover of Small Trader cannot be taxed u/s 69; Sec 44AD benefits apply Issue Whether cash deposits in a savings bank account can be treated as “unexplained investment” under Section 69 when the assessee (a small trader) claims they represent business turnover covered under the presumptive taxation scheme (Section 44AD), even… Read More »
Reassessment after 4 years Quashed; “Borrowed Satisfaction” from Investigation Wing invalidates Notice Issue Whether a reassessment proceeding initiated under Section 147 after the expiry of four years from the end of the relevant assessment year is valid if: The original assessment was completed under scrutiny (Section 143(3)/153B). The Assessing Officer (AO) failed to allege any… Read More »
Best Judgment Assessment Quashed; Mandatory Section 143(2) Notice was never issued Issue Whether an assessment completed under Section 144 (Best Judgment Assessment) is valid if the Assessing Officer (AO) failed to issue the mandatory notice under Section 143(2) to the assessee. Facts Assessment Year: 2017-18. The Action: The Assessing Officer completed the assessment ex-parte under… Read More »
Best Judgment Assessment Quashed; Mandatory Section 143(2) Notice was never issued Issue Whether an assessment completed under Section 144 (Best Judgment Assessment) is valid if the Assessing Officer (AO) failed to issue the mandatory notice under Section 143(2) to the assessee. Facts Assessment Year: 2017-18. The Action: The Assessing Officer completed the assessment ex-parte under… Read More »
Income Tax Notices for Pre-Resolution Plan period Quashed; “Clean Slate” Theory under IBC prevails Issue Whether the Income Tax Department (Assessing Officer) has jurisdiction to issue notices under Sections 143(2) and 142(1) seeking information or conducting assessment for a period prior to the approval of a Resolution Plan under the Insolvency and Bankruptcy Code (IBC),… Read More »