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. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Consultancy charges paid to related party-No comparable instances cited by AO-Disallowance is deleted. [S. 40A(2)(b)]

Virbala Kiritkumar Patel v. Dy. CIT (Ahd.)(Trib.)(UR)

S. 11 : Property held for charitable purposes – Excess expenditure over income-Accumulation of income-Applied charitable purpose – Denial of exemption is not valid. [S. 11(1)(a), 12A]

Rajasthan Cricket Association v. ITO( E) [2025] 174 taxmann.com 346 (Jaipur)(Trib)

S. 11 : Property held for charitable purposes – Accumulation of income-Amendment by Finance Act, 2022, restricting accumulation applies prospectively from 1-4-2022- Trust could validly utilize accumulated income of earlier years up to 31-3-2023 within original time window. [S. 11(3)(c)]

Meshri Mahajan Vanda v. ITO (E) (Ahd.)(Trib.)(UR)

S. 4 : Charge of income-tax – Capital or revenue – Compensation received for under performance of wind turbine generators (WTGs)- Capital receipt. [S.28(i)]

Essel Mining & Industries Ltd. v. Addl. CIT [2025] 174 taxmann.com 866 (Kol.)(Trib)

S. 151A: Face less assessment scheme – Reassessment – Faceless jurisdiction – Manual DIN – Reassessment held void ab initio – Jurisdictional AO issued notice instead of Faceless AO – Assessment order manually issued without computer-generated DIN – Proceedings invalid. S. 147, 148 151, CBDT Circular No. 19/2019 ]

Estate Investment Co. Pvt. Ltd. v. DCIT (Mum)(Trib) — www.itatonline.org

S. 69A : Unexplained money – Rough diary notings – Internal circulation of funds –Statement in the Course of search – Statement retracted – Addition unsustainable.[ S. 132, 132(4), 132(4A) ]

Estate Investment Co. Pvt. Ltd. v. DCIT (Mum)(Trib) www.itatonline.org

S. 45 : Capital gains – Alleged NOC receipts – Loose sheets – Statement in the Course of search – Statement retracted – No corroboration – Additions deleted. [ S.132, 132(4), 132(4A) ]

Estate Investment Co. Pvt. Ltd. v. DCIT (Mum)(Trib) www.itatonline.org

Prohibition of Benami Property Transactions Act, 1988

S. 26(3) : Appeal-Order of adjudicating authority-Writ cannot be issued. [S.24, Art. 226]

Santosh Bhadoriya. v. UOI (2025) 467 ITR 467 (MP)(HC)

Direct Tax Vivad Se Vishwas Scheme, 2024.
S. 2(i)(j): Disputed tax-Pendency of appeal-Non-resident-Authority for Advance Rulings holding taxable capital gains arose out of conversion of Indian subsidiary company to limited liability partnership-Pendency of writ-Capital gains from conversion of shares to interest in limited liability partnership brought to tax in reassessment proceedings-Not disclosing pending writ petition-Pendency of appeal before CIT(A)-Designated authority directed to process declaration considering date of original declaration and issue appropriate certificate. [S. 245Q(1), 245R(4), 250 Art.226]

Domino Printing Sciences plc. v. CIT (2025) 476 ITR 372 /174 taxmann.com 865 (Delhi)(HC)

Direct Tax Vivad se Vishwas Act, 2020.

S. 2(i)(j): Disputed tax-Pendency of appeal-Binding circular-Review pending before Supreme Court on specified date-Review petition was dismissed-Rejection application was set aside-Interpretation of taxing statutes Beneficial legislation requires purposive construction. [S. 2(1)(a)(i), ITAct,1961, S.119, Art, 226]

NRA Iron and Steel Pvt. Ltd v.ITO (2025) 476 ITR 13 (Delhi)(HC) Editorial : Refer, PCIT v. NRA Iron and Steel Pvt. Ltd (2019) 412 ITR 161 (SC)/ PCIT v. NRA Iron and Steel Pvt. Ltd (2019) 419 ITR 449 (SC), NRA Iron and Steel Pvt. Ltd v.PCIT (2020) 11 SCC 722/ 2020 SCC OnLine SC 319