Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


CIT(IT) v. Standard Chartered Grindlays Ltd. [2025] 171 taxmann.com 183 /[2026] 486 ITR 564 (Delhi)(HC)

S. 44C: Non-residents-Head office expenditure-Expenditure on opening offshore branches of bank-money brought to India in foreign currency as per RBI circular-AO treated the expense as office expenses-Held, income from said transaction already taxed in India-Revenue Appeal dismissed. [S. 36(1)(iv), 40A(9), 40A(10), (260A R. 87, 88]

Ambalal Sarabhai Enterprises Ltd. v. Dy. CIT (2026) 486 ITR 598 / 185 taxmann.com 647 (Guj)(HC

S.37(1): Business expenditure-Amortisation of expenditure-expenditure on voluntary retirement scheme Employees at time of retirement paid gratuity and leave encashment-Allowable as business expenditure-Sums payable-Payments brought within scope of disallowance with effect from 1-4-2002-Provision not applicable to payments prior to that date. Allowable without any condition of actual payment prior to such date. [S. 35DD, 43B(f), 260A]

Ambalal Sarabhai Enterprises Ltd. v. Dy. CIT (2026) 486 ITR 598 / 185 taxmann.com 647 (Guj)(HC)

S. 28(iv): Business income-Value of any benefit or perquisites-Converted into money or not-Assignment of trade mark-Not value of any benefit or perquisite arising from business-No case made out for taxing consideration for sale of trade marks as profits chargeable to tax.[S.41(1), 260A]

CIT (E) v. AIC@36INCE [2025] 170 taxmann.com 496 /(2026) 486 ITR 416 (Chhattisgarh)(HC) Editorial: SLP of revenue dismissed, CIT (E) v. AIC@36INCE (2026) 486 ITR 422 / 182 taxmann.com 404 (SC)

S. 12AA: Procedure for registration-Trust or institution-Charitable purpose-Registration cannot be denied merely because activities promote entrepreneurship, incubation or economic development; at the registration stage, CIT(E) is required to examine only charitable objects and genuineness of activities-High Court held the tribunal justified in directing grant of registration under section 12AA.[S. 2(15), 12AA(1)(b)(i), 260A]

CIT (E) v.Aic@36Ince (2026) 486 ITR 422/ 182 taxmann.com 404 ((SC) Editorial : CIT (E) v.Aic@36Ince [2025] 170 taxmann.com 496 /(2026) 486 ITR 416 (Chhattisgarh)(HC)

S. 12AA: Procedure for registration-Trust or institution-Charitable purpose-Registration cannot be denied merely because activities promote entrepreneurship, incubation or economic development; at the registration stage, CIT(E) is required to examine only charitable objects and genuineness of activities-High Court held the tribunal justified in directing grant of registration under section 12AA-SLP of revenue was dismissed. [S. 2(15), 12AA(1)(b)(i), Art. 136]

Maheswara Educational Society v. DIT (E) [2025] 175 taxmann.com 74 / (2026) 486 ITR 392 (Telangana)(HC)

S. 12A: Registration-Trust or institution-No satisfactory explanation or reasons for delay in filing application for registration-Contradictory stand-Order of Tribunal affirmed. [S. 10(23C)(iiiad),260A]

CIT (IT) v. DXC Technology Services Singapore Pte. Ltd. [2024] 158 taxmann.com 431 / (2026) 486 ITR 423 (Delhi)(HC) Editorial: CIT (IT) v. DXC Technology Services Singapore Pte. Ltd. (2026) 486 425 / 309 Taxman 242 (SC), SLP of the revenue dismissed on account of delay of 598 days.

S.9(1)(vi): Income deemed to accrue or arise in India-Royalty-Sale or supply of software-No transfer of copyright, only copyrighted article supplied-Receipts not liable to tax as royalty under Article 12(3) of India-Singapore DTAA-DTAA-India-Singapore. [S.90, Art. 12(3)]

Jaykumar B. Patil(Deceased through Legal heir Nitin J. Patil v. JCIT [2025] 177 taxmann.com 431/2026] 486 ITR 627 (Bom) (HC)

S. 2(22)(e) : Deemed dividend-Business advance-Utilised for payment of assessee’s personal tax under Kar Vivad Samadhan Scheme, and not for execution of job work; the same was rightly treated as deemed dividend-Order of Tribunal affirmed. [S.260A].

M.J. George v. Dy. CIT[2026] 486 ITR 239 / 182 taxmann.com 243 (Ker)(HC) Editorial: SLP dismissed, Gijo George v. Dy. CIT (2026] 309 Taxman 169 / 486 ITR 244 (SC)

S. 2(14)(iii): Capital Asset-Agricultural land-Sale of land as agricultural land-AO treated it as capital gain-Only village officer certificate as proof-Failure to produce evidence-Order of Tribunal rejecting the exemption was affirmed-No substantial question of law. [S. 45, 260A]

Bala Sreenivas Rao Somisetty & Ors v. ITO (AP)(HC) [www.itatonline.org]

S.147A: Reassessment – Constitutional validity – Retrospective amendment – Jurisdiction of Jurisdictional Assessing Officer (JAO) – Faceless assessment – Section 147A inserted by the Finance Act, 2026, with retrospective effect from 1-4-2021, clarifying that the Assessing Officer for the purposes of sections 148 and 148A shall mean an Assessing Officer other than the National Faceless Assessment Centre or any assessment unit – Amendment held unconstitutional and struck down. [ S. 120, 124, 127, 130, 144B, 147, 148 , 148A(b) , 148A(d), 151A , Income -Tax Act , 2025, S. 532,,536(2)(c), ,General Clauses Act, 1897 , S. 5 , Art. 14, 19(1)(g), 226, 265 ]