INCOME TAX CASE LAWS 22.06.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 10 Syngenta India (P.) Ltd. v. ACIT Additional ground claiming Sec 10(1) exemption on seed business raised for the first time before the ITAT must be admitted if facts are on record. The matter was remanded to… Read More »
Penalty under Section 270A cannot be levied if the return filed under Section 148 is accepted without variation. Issue Whether the mere filing of an income tax return for the first time in response to a Section 148 notice automatically attracts under-reporting penalties under Section 270A(2)(b) when the Assessing Officer accepts the returned income without… Read More »
Reassessment Notice Issued Beyond Six-Year Limitation and Consequential Assessment Order Quashed as Time-Barred Reassessment Notice Issued Beyond Six-Year Limitation and Consequential Assessment Order Quashed as Time-Barred Issue Whether an income tax reassessment notice issued under Section 148 on August 30, 2024, for the Assessment Year 2016-17, along with its consequential assessment order, is legally sustainable… Read More »
Invalid Section 127 case transfer without a prior hearing quashes subsequent assessment notices. Issue Whether an order transferring a taxpayer’s case under Section 127(2) is invalid if passed without affording the assessee an opportunity of being heard. Whether assessment notices under Section 143(2) and subsequent assessment orders are valid when issued by an officer who… Read More »
TPO cannot reject certified segmental financials without investigating cost drivers or finding explicit discrepancies. Issue Whether the Transfer Pricing Officer (TPO) is legally justified in rejecting certified segmental financial results and reallocating costs on a generic revenue-proportion basis without conducting an independent investigation or identifying specific discrepancies in the assessee’s allocation method. Facts The assessee-company… Read More »
Audited books showing sufficient cash-in-hand invalidate Section 68 additions for demonetization bank deposits. Issue Whether the Assessing Officer can legally reject a taxpayer’s explanation and make an addition under Section 68 for cash deposited during the demonetization period, when the taxpayer establishes that the deposits originated from cash-in-hand recorded in its regularly maintained, unblemished, and… Read More »
Dismissal of writ appeal upheld as no mandamus lies to compel time-barred reassessment action. Issue Whether a writ of mandamus under Article 226 of the Constitution of India can be issued to compel the Income Tax authorities to act on a Tax Evasion Petition and initiate reassessment proceedings when the statutory limitation period under Section… Read More »
Reassessment additions are legally unsustainable if the original issue triggering the reopening is entirely dropped. Issue Whether the Assessing Officer can legally disallow a Section 54 capital gains deduction and make a new addition in a reassessment order if no addition is ultimately made on the primary issue for which the Section 147 reopening was… Read More »
Tax authorities cannot dispute a company’s commercial wisdom in securing loans to repay prior debt obligations. Issue Whether the Assessing Officer can disallow finance costs under Section 37(1) by questioning the commercial wisdom or business acumen of an assessee who takes out a new loan to repay an existing bank loan. Whether the finance costs… Read More »
Disallowance under Section 36(1)(iii) must reflect actual interest paid, while verified loans defeat Section 68 additions. Issue Whether the lower authorities were justified in making a massive interest disallowance under Section 36(1)(iii) without correlating the disallowance to the actual interest expenditure incurred on loans diverted for interest-free advances. Whether an addition under Section 68 for… Read More »