INCOME TAX CASE LAWS 21.09.2026 Section Case Law Title Brief Summary Citation Relevant Act Section 9 Teva Pharmaceuticals USA Inc. v. Deputy Commissioner of Income-tax Mere payment by an Indian resident to a non-resident does not constitute income accruing or arising in India without a real and substantive territorial nexus or application of deeming provisions;… Read More »
Reassessment Notice Set Aside as Non-Furnishing of Details Prevented Reconciliation of Non-Resident TDS Data Reassessment Notice Set Aside as Non-Furnishing of Details Prevented Reconciliation of Non-Resident TDS Data Issue Whether an order under Section 148A(3) and consequential reassessment notice under Section 148 are liable to be set aside and remanded when information regarding alleged foreign… Read More »
CIT(A) can consider fresh claims arising from typographical errors under Section 154 to tax real income. Issue Whether the Commissioner of Income Tax (Appeals) [CIT(A)] is entitled to consider fresh claims made by an assessee during an appeal against an order passed under Section 154 of the Income-tax Act, 1961, where such claims arise from… Read More »
Propagating Vedic knowledge is charitable, not religious, entitling the trust to Section 80G tax approval. Issue Whether an assessee-trust engaged in the propagation of Sanatana Dharma, Vedas, Bhagavad Gita, and related works can be classified as a “religious cum charitable trust” without any specific reasons assigned by the CIT(Exemptions). Whether the classification as a “religious… Read More »
Premium from selling export quota entitlements is ineligible for deduction under Section 80HHC. Issue Whether an assessee-exporter is entitled to claim deduction under Section 80HHC of the Income-tax Act, 1961 on the premium earned from the sale or transfer of export quota entitlements, relying upon a CBDT Office Memorandum. Facts Assessment Year: AY 2001-02. Quota… Read More »
High Court rightly upheld Section 263 revision as export quota premium exclusion under Section 80HHC was erroneous. Issue Whether the High Court was justified in upholding the Commissioner’s revisional jurisdiction under Section 263, which set aside the assessment for failure to exclude 90% of export quota premium from business profits under Explanation (baa) to Section… Read More »
Recorded banked expenditure cannot be treated as unexplained under Section 69C merely due to vendor non-response. Issue Whether an addition under Section 69C towards unexplained expenditure can be sustained based solely on vendors’ non-response to Section 133(6) notices and their non-filer status when purchases are recorded in books, paid via banking channels, and fully documented;… Read More »
Reassessment based on search-derived information without independent prior Section 151 sanction is invalid. Issue Whether a reassessment order passed under Section 147 based on search information from a third party is sustainable when the Assessing Officer issued a notice under Section 148 without obtaining independent prior approval from the specified authority under Section 151. Facts… Read More »
Assessee’s contractual sharing of forex gains is non-taxable rebate and ad-hoc expenditure disallowances are reduced. Issue Whether foreign exchange fluctuation gains passed on to an overseas buyer under a contractual agreement qualify as an allowable business deduction/rebate under Section 37(1) of the Income-tax Act, 1961 (Section 34 of the Income-tax Act, 2025), and whether ad-hoc… Read More »
Deduction for ESOP expenses and CA-certified share valuation for Section 56(2)(viib) are legally allowable. Issue Whether deduction for Employee Stock Option Scheme (ESOP) expenditure is allowable as business expenditure, and whether a share valuation report from a Chartered Accountant under Section 56(2)(viib) for AY 2018-19 can be rejected solely on the ground that it was… Read More »