Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Graphite India Ltd. v. CIT (2026) 310 Taxman 543 (Cal)(HC)

S. 115JB : Book profit-While computing book profit under section 115JB, entire amount of profits eligible under section 80HHC was to be excluded from book profit and not 80 per cent thereof-Sales tax incentive/remission received by assessee-company under State incentive scheme linked to fixed capital investment for expansion in a backward area, being capital in nature, was to be excluded from computation of book profit under section 115JB and fell outside ambit of income under section 2(24) [S.2(24), 80HHC, 260A]

Narayan Industries v. ACIT (2026) 310 Taxman 49 (Delhi)(HC)

S. 80IC: Special category states-Duty drawback receipts do not constitute profits derived from an eligible industrial undertaking so as to qualify for deduction-Matter was remanded to the Assessing Officer to reduce excise duty and customs duty paid on raw materials from duty drawback receipts and pass a fresh assessment order. [S.260A]

Computer Graphics (P.) Ltd. v. Dy. CIT (2026) 310 Taxman 381 (Mad)(HC)

S. 80IB: Industrial undertakings-Interest income received consequent to refund of income tax under section 244A-Not profit or gain derived from assessee’s business activity either directly or indirectly-Not eligible for deduction.[S.244A]

Graphite India Ltd. v. CIT (2026) 310 Taxman 543 (Cal)(HC)

S. 80-IA: Industrial undertakings-Infrastructure development-Electricity-Captive consumption-Market value-Export profits-No reduction of business profits eligible for deduction under section 80HHC was required merely on account of deduction allowed under section 80IA.[S.80HHC, 260A]

Tata International Ltd. v. ACIT (2026) 310 Taxman 716 (Mad)(HC)

S. 80HHC: Export business-Matter was remanded back to the Assessing Officer for computation of taxable income after giving due deductions under section 80IB and section 80HHC. [S.80IB 260A]

CIT (Central) v. Shri Shivaji Education Society (2026) 310 Taxman 91 / 489 ITR 3 (SC) Editorial: Decision of the Bombay High Court in CIT (Central) v. Shri Shivaji Education Society (2017) 399 ITR 186 (Bom)(HC), modified with directions.

S. 80G : Donation-Grant of exemption under Section 80G is not automatic on registration under Section 12AA-Requirements of Section 80G have to be satisfied independently in each assessment year-Assessee was enjoying benefit under Section 80G in terms of orders passed by Tribunal and as upheld by High Court-Revenue was directed to take action against assessee in case it finds violation of any of terms on which benefit under Section 80G was admissible. [S.12AA, Art. 136]

PCIT v. Sunil Devkishan Panwar (2026) 310 Taxman 607 (Guj)(HC)

S. 69C: Unexplained expenditure-Bogus purchases-Failure to give an opportunity of cross-examination-Sham transaction-Deletion of addition was affirmed.[S.147, 148, 260A]

Narayan Rao Hebri v. ACIT (2026) 310 Taxman 232 (Karn)(HC)

S. 69A: Unexplained money-Survey-Income from other sources-Additional income voluntarily offered-Taxes were paid-Demonetisation-Additional income and cash payment as income from other sources and taxed them at 60% under Section 115BBE-Statement was not retracted-First time before Tribunal, assessee argued that additional income was based solely on a survey statement without evidence-Tribunal rejected the contention-On appeal, High Court affirmed the order of the Tribunal.[S. 115BBE, 133A,139(5), 254(1), 260A]

Loomba Manufacturing Syndicate Ludhiana v. CIT (2026) 310 Taxman 39 (P&H)(HC)

S. 69: Unexplained investments-Stock-Overdraft facility from bank against hypothecation of stock-Stock statements furnished to bank-Cross-examination of Bank Manager-Failure to disprove-Order of Tribunal affirming the addition is affirmed.[S. 260A]

Bathina Srilakshmi v. ITO (2026) 310 Taxman 370 (AP)(HC)

S. 68 : Cash credits-Cash payments-Exceeded cash balance-Cash gifts-Self-signed vouchers-Addition confirmed. [S.260A]