Landmark Indian
tax case law.
Every important Supreme Court, High Court, ITAT, and AAR ruling on Indian tax - summarised in Facts → Issue → Held → Ratio format. Cross-referenced to the sections they interpret. Free. Searchable. No paywall.
44
Supreme Court
28
High Courts
28
ITAT
5
AAR / AAAR
Showing 105 of 105 judgments
Ashish Agarwal - Companion ruling
Ashish Agarwal v. UOI [2022] 444 ITR 1 (SC) - companion
Facts: Companion order to the lead Ashish Agarwal case on transitional reassessment notices. Issue: Procedural application across all pending notices. Held: All notices under old Section 148 issued between 01-04-2021 and…
Checkmate Services
Checkmate Services (P) Ltd v. CIT [2022] 448 ITR 518 (SC)
Facts: Employee's share of PF/ESI deposited after the statutory due date under the labour law (15th of next month) but before the ITR filing deadline. Issue: Whether Section 43B grace period applies to employee contribut…
Alom Extrusions
CIT v. Alom Extrusions Ltd [2009] 319 ITR 306 (SC)
Facts: Employer contributions to PF, ESI deposited after the statutory due date but before the ITR filing deadline. Issue: Whether Section 43B disallowance applies if deposit is made before ITR due date? Held: Yes, the a…
Balbir Singh Maini - JDA revisited
CIT v. Balbir Singh Maini [2017] 398 ITR 531 (SC)
Facts: Owners entered JDA; subsequent disputes prevented completion. Issue: Whether the T.K. Dayalu principle applies where the agreement cannot be performed? Held: For Section 53A to apply, the contract must be one whic…
B.C. Srinivasa Setty
CIT v. B.C. Srinivasa Setty [1981] 128 ITR 294 (SC)
Facts: Transfer of goodwill of a partnership firm. Issue: Whether self-generated goodwill is a capital asset subject to capital gains tax when its cost of acquisition is indeterminable? Held: No. If cost of acquisition c…
Commissioner of Income Tax v. Bharat Sanchar Nigam Ltd - TDS on interconnect usage charges
CIT v. BSNL [SC 2006]
The Supreme Court held that interconnect usage charges paid by telecom operators to each other are not "royalty" under Section 9(1)(vi) read with Section 194J (fees for technical services). The Court distinguished betwee…
Calcutta Export - Section 40(a)(ia) curative
CIT v. Calcutta Export Co. [2018] 404 ITR 654 (SC)
Facts: 30% disallowance under Section 40(a)(ia) where TDS deposit was made after the financial year but before ITR due date. Issue: Whether the 2014 amendment (allowing TDS deposit before ITR due date to avoid disallowan…
Excel Industries - DEPB licences
CIT v. Excel Industries Ltd [2013] 358 ITR 295 (SC)
Facts: Recognition of income on accrual of DEPB licences vs realisation on sale of licences. Issue: Year of taxability - when right accrues or when realised? Held: Income on DEPB licences arises only when the licences ar…
Hindustan Bulk Carriers
CIT v. Hindustan Bulk Carriers [2003] 259 ITR 449 (SC)
Facts: Computation of interest under Section 234B / 234C for non-payment of advance tax. Issue: Whether interest can be charged on tax payable under Section 234B when assessment is later modified? Held: Interest is manda…
Kelvinator of India
CIT v. Kelvinator of India Ltd [2010] 320 ITR 561 (SC affirming Delhi HC)
Facts: Notice for reassessment issued under old Section 147/148. Issue: When can the AO reopen an assessment - "reason to believe" requirement? Held: Mere change of opinion is not sufficient; the AO must have tangible ma…
Commissioner of Income Tax v. Kelvinator of India Ltd - Scope of reassessment under Section 147/148
CIT v. Kelvinator of India [SC 2010]
The Supreme Court (Constitutional Bench) held that after the 1989 amendment to Section 147, the Assessing Officer cannot reopen a completed assessment merely on a change of opinion. Reassessment under Section 147 require…
Mahindra - Waiver of loan
CIT v. Mahindra & Mahindra Ltd [2018] 404 ITR 1 (SC)
Facts: Loan waiver by a foreign lender. Issue: Whether waiver of principal amount of loan is taxable as business income under Section 28(iv) or as remission under Section 41(1)? Held: Section 28(iv) applies only to benef…
Reliance Industries - capital expenditure
CIT v. Reliance Industries Ltd [2019] 410 ITR 1 (SC)
Facts: Reliance incurred substantial expenditure on technology acquisition and capacity enhancement. Issue: Capital vs revenue expenditure characterisation. Held: Enduring advantage test - if expenditure creates an endur…
Commissioner of Income Tax v. Sun Engineering Works Pvt Ltd - Filing of ITR and effect of return
CIT v. Sun Engineering [SC 1992]
The Supreme Court held that an income tax return filed by an assessee is binding on him and the Assessing Officer cannot go beyond the return to assess income that was not disclosed in the return without initiating prope…
Vatika Township - Retrospective amendments
CIT v. Vatika Township Pvt Ltd [2014] 367 ITR 466 (SC)
Facts: Retrospective application of the surcharge amendment under Section 113 of IT Act 1961. Issue: Is the amendment substantive or clarificatory? Held: Where an amendment creates a new burden, it must be presumed prosp…
Walfort Share & Stock Brokers
CIT v. Walfort Share & Stock Brokers Pvt Ltd [2010] 326 ITR 1 (SC)
Facts: Loss on sale of units of mutual funds where the assessee had received dividend before sale (dividend stripping). Issue: Whether such loss can be disallowed as artificial when arising from a legitimate business act…
Yokogawa India - Section 10A computation
CIT v. Yokogawa India Ltd [2017] 391 ITR 274 (SC)
Facts: Section 10A (then-current) deduction for STPI/SEZ units. Issue: Stage at which deduction is computed - gross total income or unit-wise. Held: Section 10A is a unit-wise deduction at the stage of computing profits …
Engineering Analysis (Software royalty)
Engineering Analysis Centre of Excellence v. CIT [2021] 432 ITR 471 (SC)
Facts: Payment for shrink-wrapped software licences from foreign vendors. Issue: Whether such payments constitute "royalty" under Section 9(1)(vi) and the relevant DTAA? Held: No. Sale of off-the-shelf software is a sale…
Filco Trade - TRAN-1 window
Filco Trade Centre Pvt Ltd v. UOI [2022] (SC)
Facts: Taxpayers unable to claim transitional credit due to technical glitches on the GSTN portal. Issue: Reopening of TRAN-1 / TRAN-2 filing window. Held: SC directed GSTN to open a special 2-month window for transition…
Formula One Championship
Formula One World Championship Ltd v. CIT [2017] 394 ITR 80 (SC)
Facts: F1 Championship's circuit access at Buddh International Circuit in India. Issue: Whether F1 had a Permanent Establishment in India under India-UK DTAA? Held: Yes. The Buddh circuit constituted a fixed place of bus…
GE India - Royalty vs business profits
GE India Industrial Pvt Ltd v. CIT [2017] 391 ITR 245 (SC)
Facts: GE India making payments to foreign affiliates for technology and management. Issue: Royalty/FTS vs business profits classification under DTAAs. Held: Classification turns on the nature of the right transferred - …
GE India Technology - TDS scope
GE India Technology Centre Pvt Ltd v. CIT [2010] 327 ITR 456 (SC)
Facts: GE India remitted payments to foreign parent. TDS dispute under Section 195. Issue: Whether the payer is obliged to deduct TDS on every payment to non-resident, or only when chargeable in India? Held: TDS under Se…
Goodyear India
Goodyear India Ltd v. State of Haryana [1991] 188 ITR 402 (SC)
Facts: Disallowance under Section 80HHC for export profits. Issue: Computation of "profits derived from exports" - direct vs incidental nexus. Held: Only profits with a direct nexus to exports qualify. Other business inc…
HLL - Wage definition
Hindustan Lever Ltd v. ESIC (Supreme Court 2008)
Facts: Definition of "wages" for ESI contribution. Issue: Whether bonus, ex-gratia, and incentives form part of wages? Held: Statutory bonus and regular allowances form part of wages; one-time ex-gratia and discretionary…
MAK Data - Voluntary disclosure
MAK Data Pvt Ltd v. CIT [2013] 358 ITR 593 (SC)
Facts: Voluntary disclosure of income after AO's notice. Issue: Penalty applicability on voluntarily disclosed income. Held: Voluntary disclosure does not automatically save penalty - once detected by AO, the disclosure …
McDowell & Co.
McDowell & Co. Ltd v. CTO [1985] 154 ITR 148 (SC)
Facts: Manipulation of excise duty payment timing to claim deductions. Issue: Whether tax planning that exploits literal interpretation but defeats legislative intent is permissible? Held: Tax avoidance through colourabl…
Mohit Minerals - IGST Refund follow-on
Mohit Minerals Pvt Ltd v. UOI [2022] (SC follow-on)
Facts: After the SC struck down IGST on ocean freight, importers sought refund of GST already paid. Issue: Refund mechanism for an unconstitutional levy. Held: GST paid under invalid notification is refundable; limitatio…
Abhisar Buildwell - Search assessment
PCIT v. Abhisar Buildwell P. Ltd [2023] 454 ITR 212 (SC)
Facts: Assessment under Section 153A following a search where the original assessment for the year was already unabated/completed. Issue: Can AO make additions without incriminating material found during search? Held: Fo…
Maruti Suzuki - AMP
PCIT v. Maruti Suzuki India Ltd [2019] 416 ITR 613 (SC)
Facts: Maruti Suzuki incurred substantial advertising, marketing and promotion (AMP) expenses for its products. TPO held this was an international transaction with parent for brand-building. Issue: Whether AMP expenses c…
NPS Adamya - Trust deduction
PCIT v. NPS Adamya Chetna Trust [2024] (SC)
Facts: Charitable trust's application of income vs. accumulation. Issue: Strict construction of Section 11 conditions. Held: Section 11 conditions must be strictly complied with - application below 85% triggers accumulat…
Hyderabad Race Club - ESI coverage
Regional Director ESIC v. Hyderabad Race Club [2004] AIR SCW 1731 (SC)
Facts: Whether casual workers at a racecourse are "employees" under ESI Act. Issue: Definition of "employee" for ESI coverage. Held: All workers receiving wages, including casual workers if they fulfil the wage threshold…
Reliance Petroproducts - Penalty
Reliance Petroproducts Pvt Ltd v. CIT [2010] 322 ITR 158 (SC)
Facts: Penalty under Section 271(1)(c) for furnishing inaccurate particulars. Issue: Distinction between disallowance and concealment. Held: Mere disallowance of an inadmissible claim does not amount to concealment or in…
Vivekananda Vidyamandir - Special allowance
RPFC v. Vivekananda Vidyamandir [2019] (SC)
Facts: Whether "special allowance" forms part of "basic wages" for PF contribution. Issue: Definition under EPF Act Section 2(b). Held: Allowances ordinarily paid to all employees as a part of regular wages form part of …
Safari Retreats (ITC on construction)
Safari Retreats Pvt Ltd v. Chief Commissioner of CGST [2024] (SC)
Facts: Builder claimed ITC on inputs/input services used in construction of a shopping mall let out on rent. Section 17(5)(d) blocks ITC on construction of "immovable property on own account". Issue: Whether the bar appl…
Sahara India Real Estate
Sahara India Real Estate Corp v. SEBI [2012] 174 Comp Cas 154 (SC)
Facts: Sahara raised funds from millions of investors through "Optionally Fully Convertible Debentures" without complying with public issue norms. Issue: Whether the deemed public issue triggers SEBI jurisdiction? Held: …
Sedco Forex International Drill Inc v. Commissioner of Income Tax - DTAA and non-resident taxation
Sedco Forex v. CIT [SC 2003]
The Supreme Court examined the scope of India-Canada DTAA provisions relating to taxation of income of foreign enterprises in India (permanent establishment). The Court held that a non-resident company having a Service P…
StanChart - Securities scam
Standard Chartered Bank v. Andhra Bank Financial Services Ltd [2006] 6 SCC 94 (SC)
Facts: 1992 securities scam - recovery of bank receipts. Issue: Corporate veil piercing in financial fraud. Held: Veil can be pierced where the corporate form is used as a façade for fraud. Ratio: Corporate veil is not a…
Tata-Mistry - Director removal
Tata Consultancy Services Ltd v. Cyrus Mistry [2021] (SC)
Facts: Removal of executive chairman from Tata Sons board. Issue: Oppression and mismanagement under Sections 241-242 of Companies Act 2013. Held: Removal procedure complied with the Articles of Association; no proven op…
Ashish Agarwal - Reassessment scheme
Union of India v. Ashish Agarwal [2022] 444 ITR 1 (SC)
Facts: Reassessment notices issued under old Section 148 between April-June 2021 challenged after enactment of new reassessment scheme. Issue: Whether notices under old regime are valid post-amendment? Held: Such notices…
Azadi Bachao Andolan
Union of India v. Azadi Bachao Andolan [2003] 263 ITR 706 (SC)
Facts: Challenge to CBDT Circular 789 of 2000 which directed acceptance of Mauritius Tax Residency Certificates as conclusive evidence of beneficial ownership for India-Mauritius DTAA benefits. Issue: Validity of treaty …
Mohit Minerals (GST RCM on ocean freight)
Union of India v. Mohit Minerals Pvt Ltd [2022] 442 ITR 1 (SC)
Facts: Levy of IGST on ocean freight in CIF imports - under RCM on the Indian importer. Issue: Whether the importer can be made liable to pay IGST on freight when the importer is not a party to the freight contract? Held…
VKC Footsteps (Inverted duty refund)
VKC Footsteps India Pvt Ltd v. UOI [2021] AIR 2021 SC 5197 (SC)
Facts: Refund of unutilised ITC where input GST rate exceeds output GST rate (inverted duty structure). Issue: Whether ITC accumulated on input services is refundable along with that on input goods? Held: No. Section 54(…
Vodafone International
Vodafone International Holdings BV v. UOI [2012] 341 ITR 1 (SC)
Facts: Vodafone acquired Hutchison's Indian telecom business through a Cayman Islands SPV transfer. Income Tax Department demanded ₹11,000 crore in capital gains tax. Issue: Whether transfer of shares of a foreign compan…
Vodafone International Holdings BV v. Union of India - Tax on offshore transfers of shares holding Indian assets
Vodafone v. UOI [SC 2012]
The Supreme Court held that the acquisition by Vodafone of the Cayman Islands holding company (CGP) from Hutchison, which indirectly held controlling interest in the Indian telecom JV, was not taxable in India. The Court…
Bharti Airtel - Corporate guarantee
Bharti Airtel Ltd v. ACIT [2014] 367 ITR 414 (Delhi HC)
Facts: Bharti Airtel issued corporate guarantees for foreign subsidiaries. Issue: Is a corporate guarantee an "international transaction" requiring transfer pricing adjustment? Held: Yes, it is an international transacti…
Cairn India - Indirect transfer aftermath
Cairn India Ltd v. UOI [2020] 423 ITR 257 (Delhi HC)
Facts: Cairn India's retrospective indirect-transfer tax demand. Issue: Validity of retrospective amendment + BIT arbitration. Held: Demand restored from retrospective amendment but international arbitration outcome obli…
Centrica India - Seconded employees
Centrica India Offshore Pvt Ltd v. CIT [2014] 364 ITR 336 (Delhi HC)
Facts: Indian subsidiary reimbursing UK parent for seconded employees' salaries. Issue: Whether reimbursement constitutes FTS, attracting TDS? Held: Where employer-employee relationship subsists with the foreign parent (…
Ace Builders - Depreciation on goodwill
CIT v. Ace Builders Pvt Ltd [2006] 281 ITR 210 (Bombay HC)
Facts: Goodwill paid on slump sale; depreciation claimed under Section 32. Issue: Whether goodwill is an "intangible asset" for depreciation? Held: Yes, goodwill from acquisition is an intangible commercial right depreci…
Bharat Bhushan - stamp duty
CIT v. Bharat Bhushan (Delhi HC 2022)
Facts: Stamp duty paid on registration of house property. Year of deduction - year of payment or year of registration? Held: Deductible in the year of payment, but only if registration of the property is also in the same…
Bharti Cellular - interconnect
CIT v. Bharti Cellular Ltd [2014] 363 ITR 480 (Delhi HC)
Facts: Interconnect charges paid by Bharti Cellular to other telecom operators. Issue: Whether such payments constitute "fees for technical services" under Section 194J? Held: No. Interconnect involves use of equipment b…
C.K. Sharma - HUF property
CIT v. C.K. Sharma [2018] 401 ITR 75 (Allahabad HC)
Facts: Conversion of individual property to HUF property. Issue: Section 64(2) clubbing. Held: Where property is transferred to HUF without consideration, income from the property continues to be assessable in the hands …
Mediservices - 80G receipt
CIT v. Mediservices Pvt Ltd [2017] (Karnataka HC)
Facts: 80G deduction claim without proper receipt. Issue: Mandatory documentation for 80G. Held: Receipt issued by approved institution + 10BE certificate (post-2023) are mandatory. Self-declarations are not sufficient. …
Sambandam Udaykumar - Section 54F
CIT v. Sambandam Udaykumar [2012] 345 ITR 389 (Karnataka HC)
Facts: Section 54F claim for reinvestment in residential house. Issue: Substantial completion of construction within 3 years. Held: Construction need not be 100% complete within 3 years - substantial completion and habit…
T.K. Dayalu - Joint Development Agreement
CIT v. T.K. Dayalu [2011] 202 Taxman 531 (Karnataka HC)
Facts: Land owner entered into a Joint Development Agreement (JDA) with a builder; question on year of taxability of capital gains. Issue: Whether capital gains arise on signing of JDA or on receipt of constructed flats?…
Vatika Bank - Disallowance under Section 14A
CIT v. Vatika Bank Securities & Real Estate Holdings (Delhi HC 2023)
Facts: Section 14A disallowance where no exempt income was earned. Issue: Whether disallowance applies in nil-exempt-income years. Held: No - Section 14A is contingent on existence of exempt income. Mere potential or fut…
Sheraton - Marketing services
Director of Income Tax v. Sheraton International Inc [2009] 313 ITR 267 (Delhi HC)
Facts: Sheraton International providing marketing services to Indian hotel. Issue: FTS character of marketing services under India-US DTAA. Held: Standard marketing services without "make available" of technical knowledg…
Google India - AdWords royalty
Google India Pvt Ltd v. CIT [2017] 396 ITR 369 (Karnataka HC)
Facts: Google India remitting payments to Google Ireland for AdWords. Issue: Whether the payments constitute royalty/FTS requiring TDS under Section 195? Held: Payments are royalty under the India-Ireland DTAA; TDS requi…
Maruti Suzuki - Royalty TPO
Maruti Suzuki India Ltd v. CIT [2017] 397 ITR 723 (Delhi HC)
Facts: Royalty payment to Suzuki Japan; TPO determined ALP at nil. Issue: Validity of nil-ALP determination. Held: TPO cannot reduce ALP to nil based on conceptual disagreement - must use one of the prescribed methods (C…
Mon Mohan Kohli - Section 148 notices
Mon Mohan Kohli v. ACIT [2021] (Delhi HC)
Facts: Section 148 reassessment notices issued in April-June 2021 after the new scheme came into force on 01-04-2021. Issue: Validity. Held: Notices invalid - must follow the new Section 148A procedure (later modified by…
Acer India - Refund of excess GST
M/s. Acer India v. UOI [2024] (Karnataka HC)
Facts: Refund of excess GST paid on imports due to classification error. Issue: Limitation period under Section 54 CGST Act. Held: Two-year limitation runs from "relevant date" - for excess payment, the date of payment. …
Nestle - MFN clause activation
Nestle SA v. ACIT (Delhi HC 2023)
Facts: India-Switzerland MFN clause invoked to claim a lower rate from a subsequent treaty (India-Lithuania at 5%). Issue: Automatic operation of MFN clause. Held: MFN clauses are not self-executing; require government n…
New Skies - Satellite transmission
New Skies Satellites BV v. ADIT [2016] 382 ITR 114 (Delhi HC)
Facts: Payments for satellite transponder transmission. Issue: Whether payments constitute royalty for use of equipment under DTAA? Held: No - mere transmission of signals through a satellite is not "use of equipment"; i…
Bombay Diocesan - Religious trust
PCIT v. Bombay Diocesan Trust Association (Bombay HC 2024)
Facts: Religious trust's exemption under Section 11. Issue: Charitable vs religious purpose distinction. Held: Trusts established for religious purposes get exemption under both Sections 11 and 12. The activities need no…
Maruti Suzuki - Royalty
PCIT v. Maruti Suzuki India Ltd [2020] 421 ITR 510 (Delhi HC)
Facts: Royalty paid by Maruti Suzuki India to Suzuki Japan for technology licensing. TPO held the rate excessive. Issue: ALP determination using TNMM vs CUP for royalty payments. Held: TNMM applied at entity level is app…
Sahara - Faceless assessment
PCIT v. Sahara India Commercial Corp [2024] (Delhi HC)
Facts: Faceless assessment completed without granting personal hearing despite specific request. Issue: Procedural fairness in faceless regime. Held: Right to personal hearing via video conference is mandatory where the …
Premier Carbon - Section 87A on STCG
Premier Carbon Industries Ltd v. CIT [2024] (Madras HC)
Facts: Resident individual with income only from STCG under Section 111A. Issue: Whether Section 87A rebate is available against tax on special-rate income? Held: Section 87A rebate is a "rebate of tax payable" - applies…
Shri Krishna Builders - Section 50C
Shri Krishna Builders v. ACIT (Punjab & Haryana HC 2024)
Facts: Stamp duty value of immovable property significantly exceeded actual sale price. Issue: Section 50C reference to Valuation Officer. Held: Where the assessee disputes the stamp duty value, AO must refer to the DVO …
Sony India - AMP first principles
Sony India Pvt Ltd v. CIT [2017] 391 ITR 153 (Delhi HC)
Facts: Sony India marketing spend on parent's brand. Issue: AMP as international transaction. Held: AMP is not deemed international transaction without proven agreement or arrangement with the foreign AE. Ratio: Transfer…
Transtonnelstroy - Section 17(5)
TVL Transtonnelstroy Afcons JV v. UOI [2020] (Madras HC)
Facts: ITC denied under Section 17(5) on goods used for construction of immovable property. Issue: Whether items used as plant for taxable output (plant being "movable" in nature) are blocked? Held: Plant used for taxabl…
TVS Motor - Form GSTR-3B
TVS Motor Company v. UOI [2020] (Madras HC)
Facts: ITC carried forward from Form GSTR-3B challenged on procedural grounds. Issue: Whether Form GSTR-3B is a substitute for Form GSTR-3 under the GST regime? Held: Yes, Form GSTR-3B during the transitional period was …
Verizon Singapore
Verizon Communications Singapore Pvt Ltd v. ITO [2024] (Madras HC)
Facts: Verizon Singapore provided telecommunications and cloud services to Indian subscribers. Issue: Whether payments constitute royalty or FTS under India-Singapore DTAA, triggering Section 195 TDS? Held: Standard data…
Vipul - Section 80IB(10) housing
Vipul Limited v. CIT [2024] (Delhi HC)
Facts: Section 80IB(10) deduction for housing-project profits. Issue: "Built-up area" computation and project size limits. Held: Built-up area includes balconies but excludes common areas in proportion. Marginal exceedan…
Abhishek Agarwal v. ITO - Section 56(2)(x) gift from relatives - meaning of relative
Abhishek Agarwal v. ITO [ITAT Delhi 2023]
The ITAT Delhi Bench examined the definition of "relative" under Section 56(2)(x) Explanation clause. Held that "sibling" includes step-siblings and that the list of relatives specified in the section must be interpreted…
ACIT v. Laxmi Associates - Section 80C deduction for joint housing loan repayment
ACIT v. Laxmi Associates [ITAT Mumbai 2022]
The ITAT Mumbai Bench held that a co-borrower who is also a co-owner of the residential property is entitled to claim Section 80C deduction on his share of principal repayment of the housing loan. The Tribunal clarified …
Reliance Jio - Spectrum amortisation
ACIT v. Reliance Jio Infocomm Ltd (ITAT Mumbai 2024)
Facts: Spectrum fee - capital or revenue and amortisation under Section 35ABA. Issue: Period of amortisation. Held: Section 35ABA - amortised over the spectrum licence period; not deductible as revenue. Ratio: Spectrum i…
Adani - Section 14A disallowance
Adani Enterprises Ltd v. ACIT (ITAT Ahmedabad 2024)
Facts: Section 14A disallowance for expenditure incurred to earn exempt dividend income. Issue: Rule 8D mechanical application vs. nexus-based disallowance. Held: Rule 8D applies only after AO records satisfaction that t…
Bhargav Patel - Right to cross-examine
Bhargav R. Patel v. DCIT (ITAT Surat 2024)
Facts: Addition based on third-party statement; cross-examination denied. Issue: Natural justice in faceless assessment. Held: Right to cross-examine a third party whose statement is the basis of an adverse order is part…
Sundaram Finance - ELSS demat
CIT v. Sundaram Finance (ITAT Chennai 2024)
Facts: Investor claimed 80C deduction for ELSS units held in dematerialised form. AO denied on technicality of demat record. Issue: Whether 80C deduction is available when ELSS is held in demat as opposed to physical uni…
CRED Foundation - CSR expenditure
DCIT v. CRED Foundation (ITAT Bengaluru 2024)
Facts: CSR expenditure under Companies Act Section 135. Issue: Deductibility under Section 37. Held: Section 37 Explanation 2 (inserted Finance Act 2014) bars CSR expenditure from deduction even if voluntary spend exceed…
Macrotech - Project completion method
DCIT v. Macrotech Developers Ltd (ITAT Mumbai 2024)
Facts: Real estate developer using project-completion method. Issue: Revenue recognition under ICDS. Held: Project-completion method is permissible for real-estate developers; ICDS does not override AS-7 framework. Ratio…
PepsiCo - brand-building
DCIT v. Pepsico India Holdings (ITAT Delhi 2021)
Facts: Marketing spend by PepsiCo India for brand-building. TPO sought to add AMP adjustment. Issue: Bright-line test for AMP. Held: Bright-line test rejected; AMP is not an inherent international transaction. Ratio: Fol…
HCL - Software royalty post-Engineering Analysis
HCL Technologies Ltd v. ACIT (ITAT Delhi 2023)
Facts: Software licence payments to foreign vendors. Issue: TDS post-Engineering Analysis SC ruling. Held: No TDS required on shrink-wrapped software; refund of TDS paid in earlier years allowed. Ratio: Engineering Analy…
Infosys - R&D weighted deduction
Infosys Ltd v. DCIT (ITAT Bengaluru 2022)
Facts: Weighted deduction under Section 35(2AB) for in-house R&D. Issue: DSIR approval scope and timing. Held: DSIR approval covers the eligible expenditure; clawback for non-utilised approval is allowed only if approval…
Naga Hanuman - Cash credit
ITO v. Naga Hanuman Solvent Oils Pvt Ltd (ITAT Visakhapatnam 2024)
Facts: Cash credits aggregating ₹50 lakh - identity and creditworthiness challenged. Issue: Section 68 (now Section 75) burden of proof. Held: Assessee must prove identity, creditworthiness, and genuineness; failure on a…
Zomato - ESOP cost deductibility
ITO v. Zomato Ltd (ITAT Mumbai 2023)
Facts: Indian listed company's ESOP cost (difference between FMV and exercise price). Issue: Deductibility as business expense. Held: ESOP cost is allowable as business expense in the year of vesting/exercise; subject to…
L&T - Section 80IA infrastructure
Larsen & Toubro Ltd v. DCIT (ITAT Mumbai 2021)
Facts: Section 80IA deduction for infrastructure development. Issue: "Developer" vs "contractor" - eligibility scope. Held: Where the assessee has financial, technical, and operational responsibility for the project (not…
M/s ABC Construction v. DCIT - Section 43B MSME payment disallowance
M/s ABC Construction v. DCIT [ITAT Chennai 2023]
The ITAT Chennai Bench addressed the amendment to Section 43B introduced by Finance Act 2023 requiring payments to MSME suppliers to be made within the time period prescribed under the MSMED Act 2006 (45 days or as per a…
M/s Royal Traders v. ACIT - Section 80D deduction for HUF on health insurance premium
M/s Royal Traders v. ACIT [ITAT Hyderabad 2023]
The ITAT Hyderabad Bench held that a HUF (Hindu Undivided Family) is entitled to deduction under Section 80D for health insurance premiums paid for members of the HUF. The Tribunal held that while Section 80D specificall…
Mukerjee - HRA self-rent
Mukerjee v. CIT (ITAT Kolkata 2023)
Facts: Salaried individual paid rent to spouse for residential property and claimed HRA exemption under Section 10(13A). Issue: Whether rent paid to spouse is a bona fide rent? Held: HRA claimed on rent paid to spouse is…
Patel - crèche tuition
Patel v. ACIT (ITAT Ahmedabad 2023)
Facts: Taxpayer claimed 80C deduction for crèche fees paid for a 3-year-old child. Issue: Whether crèche/playschool fees qualify as "tuition fees" under Section 80C? Held: No. Section 80C deduction applies only to tuitio…
Priyanka Chopra v. ACIT - Section 54F exemption on LTCG from equity sale
Priyanka Chopra v. ACIT [ITAT Mumbai 2021]
The ITAT Mumbai Bench examined the conditions for Section 54F exemption where an assessee sold equity shares (long-term capital asset) and invested proceeds in residential property. Held that the entire net consideration…
Rajesh Verma v. ITO - Section 80D deduction on preventive health check-up in cash
Rajesh Verma v. ITO [ITAT Delhi 2023]
The ITAT Delhi Bench held that the restriction on mode of payment (non-cash) for Section 80D deduction does not apply to preventive health check-up expenses. The Tribunal held that the proviso to Section 80D restricting …
Ranjit Singh v. ITO - Section 44AD presumptive income vs. actual loss
Ranjit Singh v. ITO [ITAT Chandigarh 2023]
The ITAT Chandigarh Bench held that where an assessee has opted for presumptive taxation under Section 44AD and declares income at 8%/6% of turnover, the Assessing Officer cannot question the actual profitability or cond…
Right Florists - Google Ads
Right Florists Pvt Ltd v. ITO [2013] 154 TTJ 142 (ITAT Kolkata)
Facts: Indian advertiser paying Google for ad placements. Issue: TDS on online advertising payments to non-resident search engines. Held: No TDS - no PE in India and no royalty character. (Pre-equalisation levy era.) Rat…
Ritesh Agarwal v. ITO - Updated return under Section 139(8A) - validity and additional tax
Ritesh Agarwal v. ITO [ITAT Kolkata 2022]
The ITAT Kolkata Bench (in an early case on updated returns) examined the validity of an updated return filed under Section 139(8A) where the original return disclosed lower income. Held that the updated return is valid …
Smt. Geeta Singh v. ACIT - Section 54 exemption on long-term capital gains
Smt. Geeta Singh v. ACIT [ITAT Lucknow 2022]
The ITAT Lucknow Bench held that where the assessee reinvested capital gains from sale of residential property in a new residential property within the prescribed period, the Section 54 exemption should not be denied mer…
Tata Sons - Treaty residence
Tata Sons Ltd v. ACIT (ITAT Mumbai 2023)
Facts: Treaty residence claim of a Mauritius-based group entity. Issue: Place of Effective Management (POEM) determination post-2017. Held: POEM determination is a fact-specific inquiry; board-meeting location alone is n…
Vinod Kumar Sharma v. ACIT - Section 56(2)(x) stamp duty value vs. actual FMV
Vinod Kumar Sharma v. ACIT [ITAT Delhi 2022]
The ITAT Delhi Bench held that for the purpose of Section 56(2)(x), the "stamp duty value" used as the benchmark for immovable property received without consideration must be determined as on the date of execution of the…
Watson Pharma - Marketing intangibles
Watson Pharma Pvt Ltd v. DCIT (ITAT Mumbai 2015)
Facts: Indian subsidiary creating marketing intangibles for foreign parent. Issue: Compensation for brand-building. Held: ITAT applied bright-line test to determine excessive marketing spend creating intangibles benefiti…
Wipro - SEZ deduction
Wipro Ltd v. ACIT (ITAT Bengaluru 2024)
Facts: SEZ deduction under Section 10AA claim. Issue: Scope of "profits derived from" SEZ unit - captive vs. external clients. Held: Section 10AA deduction extends to profits from captive activities provided the unit is …
AAR - Transitional 2025
AAR Ruling 4/2025 - IT Act 2025 Transitional Provisions
Facts: Multiple taxpayers sought clarification on transition between IT Act 1961 and 2025. Issue: Which Act governs investments made in FY 2025-26 but claimed in FY 2026-27? Held: Section 536 savings clause preserves 196…
AAR - Section 393 unified TDS
AAR Ruling 7/2026 - TDS Section 393 application
Facts: Applicant sought clarification on TDS rate selection under the unified Section 393 of IT Act 2025. Issue: Rate determination where multiple sub-sections of erstwhile 1961 Act provisions applied to a composite tran…
AAR - Section 157 rebate
AAR Ruling 9/2026 - Section 157 rebate scope
Facts: Applicant sought scope of Section 157 (formerly 87A) rebate under IT Act 2025. Issue: Application of rebate to taxpayers with mixed income. Held: Section 157 rebate is computed on total tax payable; special-rate i…
Bharti Airtel - Sim card SAC classification
In re: Bharti Airtel Ltd (AAR Karnataka 2024)
Facts: SIM card sale and recharge - classification under HSN/SAC. Issue: Goods vs service classification. Held: Sale of SIM card is supply of service (telecom service activation), not supply of goods. SAC 998414 applies;…
Reliance - Inter-state stock transfer
In re: Reliance Industries Ltd (AAR Maharashtra 2024)
Facts: Inter-state stock transfer between units of same legal entity. Issue: GST applicability on branch transfer. Held: Inter-state branch transfers between distinct persons (each GSTIN treated as distinct under Section…