This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 153B: Assessment-Search-Limitation-Extension of limitation period due to a reference made to foreign authorities under a tax treaty-Reference must be valid under the specific provisions of the relevant protocol-Following search in AMQ group, Assessing Officer made FT&TR reference seeking Hong Kong information for assessment year 2017-18, since India-Hong Kong DTAA effective 30-11-2018 permitted exchange only for subsequent fiscal years, such reference was impermissible and no limitation extension under Explanation (ix) to section 153B was available-DTAA-India-Hong Kong. [S. 147, 148,260A Art. 26]

Pr. CIT v. Sanjay Jain (2026) 349 CTR 699 / 183 taxmann.com 129 (Delhi)(HC)

S.153A: Assessment-Search-No actual search conducted-Survey converted to search without due process-Notices lacking reasons and unsupported by incriminating material-Notices quashed.[S. 132, 133A, 153B, Art. 226]

B and B Mercantile (P.) Ltd. v. DIT (INV) (2026) 310 Taxman 345 /349 CTR 745 (Raj.)(HC)

S. 151A: Faceless assessment of income escaping assessment-Reassessment-Jurisdictional Assessing Officer (JAO) as well as Faceless Assessing Officer (FAO) possess concurrent jurisdiction to initiate reassessment proceedings under section 148-Notice issued by JAO is valid and not in contravention of the statutory scheme under section 151A. [S. 147, 148 Art. 226]

Inder Dev Gupta v. ACIT [2025] 180 taxmann.com 805/ (2026) 349 CTR 688 (Delhi)(HC)

S. 151: Reassessment-Sanction for issue of notice-Cash credits-Share capital and share premium received-Accommodation entries-Reopening of assessment-Approval under section 151-Single line approval recording satisfaction held valid-Competent Authority used language ‘Yes, I am convinced it is a fit case for reopening of assessment under section 147 by issuing notice under section 148’, same would satisfy the mandate of section 151-ITAT order quashing reassessment set aside low tax effect-Exception. [S. 68, 147, 148, 268A]

Pr. CIT v. Agroha Fincap Ltd. [2025] 179 taxmann.com 185 / (2026) 349 CTR 450 (Delhi)(HC) Editorial: SLP of assessee dismissed, Agroha Fincap Ltd v. PCIT [2026] 186 taxmann.com 281 (SC)

S. 149: Reassessment-Time limit for notice-Notice issued under section 148, pursuant to an order passed under section 148A(d), beyond the prescribed statutory period of 30 days was bad in law. [S. 148, 148A(b), 148A(d), TOLA S. 3, Art. 226]

Jasbir Singh Oberoi v. UOI [2026] 184 taxmann.com 726 / 349 CTR 585 (J&K) (HC)

S. 148: Reassessment-Reason to believe-Information/material indicating escapement of income-Purchase of flat from builder does not by itself bar reassessment-S. 148 as applicable from 1-4-2021 [Art. 226]

Veena Arora v. CIT (2026) 349 CTR 111 (Delhi)(HC).

S. 147: Reassessment-Disallowance of expenditure-Exempt income-Assessee participated in proceedings and objections disposed of by a speaking order-Writ petition challenging notice under section 148 not maintainable at show-cause stage-Order of single judge set aside. [S.14A, 148, Art. 226]

ACIT v. City Union Bank Ltd. (2025) 181 taxmann.com 176(2026) 349 CTR 53 (Mad.)(HC) Editorial: City Union Bank Ltd v.ACIT (2020) 116 taxmann.com 139/ 425 ITR 475 (Mad)(HC), order of single judge was set aside.

S. 147: Reassessment-Reason to believe-Order of Transfer Pricing Officer for subsequent assessment year can be taken into account for reassessment of period prior to amendment of section 92-Writ petitions dismissed. [S. 92, Art.226]

Motorola India (P) Ltd. v. Asst. CIT (2026) 349 CTR 461 (P&H)(HC)

S. 147: Reassessment-Reassessment order passed in reliance on a superior court ruling after original notices were quashed by the High Court-An unappealed High Court judgment quashing a notice remains final and cannot be bypassed via subsequent universal rulings. [S. 148, 148A(b), 148A(d), 149, Art. 226]

Ravi Kumar Kailashnath Jaiswal v. ACIT (2026) 349 CTR 329 (Bom)(HC)

S. 144C: Reference to dispute resolution panel-Reference to TPO under section 92CA was made on 11-01-2022 after expiry of limitation for passing an assessment order under section 153(2) on 31-03-2021; it was without jurisdiction. The order passed under section 92CA (3) on 27-01-2022 and consequential proceedings under section 144C were set aside. [S. 92CA (3), 153(2), Art. 226]

Eaton Power Quality (P) Ltd. v. Dy. CIT (2026) 349 CTR 564 /183 taxmann.com 363 (Mad)(HC)