HIGH COURTS
Rajasthan HC
60% Tax Rate Under Section 115BBE Cannot Apply To Pre-1 April 2017 Income: Rajasthan High Court
Case Title : Deepak Maratha v. Union of India
Case Number : D.B. Civil Writ Petition No. 3625/2020
CITATION : 2026 LLBiz HC(RAJ) 26
The Rajasthan High Court on 27 May held that the enhanced tax rate of 60% introduced under Section 115BBE of the Income-tax Act through the Taxation Laws (Second Amendment) Act, 2016, cannot be applied retrospectively to income pertaining to Financial Year 2016–17, as the amendment was expressly made effective from 1 April 2017. The Division Bench of Justices Arun Monga and Sunil Beniwal held that the higher rate could operate only prospectively and could not govern income earned prior to its commencement.
ITAT
FTS Receipts Of Thai Company Not Taxable Under India-Thailand DTAA's Residuary Clause: ITAT Delhi
Case Title : Denso International Asia Co. Ltd. v. ACIT (International Taxation)
Case Number : ITA No. 3421/Del/2023
CITATION : 2026 LLBiz ITAT(DEL) 153
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that Fee for Technical Services (FTS) received by Thailand-based Denso International Asia Co. Ltd. from its Indian group companies cannot be taxed in India under the residuary clause of the India-Thailand Double Taxation Avoidance Agreement (DTAA). A bench comprising Judicial Member Vikas Awasthy and Accountant Member Renu Jauhri allowed the assessee's appeal for AY 2021-22 and deleted an addition of ₹17.28 crore made by the Assessing Officer.
Per Diem Received By EY Employee During UK Assignment Taxable Only In UK, Not India: ITAT Delhi
Case Title : Sachin Saxena v. DCIT/ACIT (International Taxation), Noida
Case Number : ITA No. 4037/Del/2025
CITATION : 2026 LLBiz ITAT(DEL) 154
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted a ₹17.25 lakh addition made in the hands of an employee deputed to the United Kingdom, holding that ₹16.17 lakh received as per-diem during the overseas assignment was taxable, if at all, in the UK and not in India. Per diem is a daily allowance received by the employee during the his UK assignment. A bench of Judicial Member Vikas Awasthy and Accountant Member Brajesh Kumar Singh allowed the appeal filed by Sachin Saxena for the assessment year 2017-18.
Case Title : PNB Housing Finance Ltd. v. DCIT
Case Number : ITA No. 6763/Del/2025
CITATION : 2026 LLBiz ITAT(DEL) 155
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has granted relief to PNB Housing Finance Ltd. by allowing its claim for deduction in respect of eligible CSR-related donations and deleting a ₹3.36 crore penalty imposed for accepting cash EMI repayments from borrowers. Geographic Reference A bench of Judicial Member Satbeer Singh Godara and Accountant Member Naveen Chandra passed the order while deciding a batch of appeals filed by the housing finance company for assessment years 2017-18 to 2020-21.
Case Title : Milacron India Private Limited v. Deputy Commissioner of Income Tax
Case Number : I.T.A. No. 1696/Ahd/2024
CITATION : 2026 LLBiz ITAT(AHM) 156
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 May held that tax authorities cannot deny a deduction under Section 80G of the Income Tax Act merely because a company made the donation to fulfil its Corporate Social Responsibility (CSR) obligations. Vice-President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar partly allowed an appeal filed by Milacron India Private Limited for Assessment Year 2020-21 and remanding the matter to the Assessing Officer for fresh consideration.
Case Title : Roquette India Pvt. Ltd. v. Assistant/Deputy Commissioner of Income Tax
Case Number : I.T.A. Nos. 102 & 366/Ahd/2022
CITATION : 2026 LLBiz ITAT(AHM) 157
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 May held that tax authorities cannot determine the arm's length price (ALP) of intra-group services at nil merely on a subjective perception of benefit once the taxpayer proves receipt of services and substantiates them with evidence. Vice-President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar allowed an appeal by Roquette India Pvt. Ltd. and deleted transfer pricing adjustments for Assessment Years 2017–18 and 2018–19 arising from payments made towards Central Corporate and Area services, Global Business Unit services, and IT services received from associated enterprises.
ITAT Ahmedabad Deletes ₹3.88 Crore Transfer Pricing Adjustment, Upholds TNMM Consistency
Case Title : Inductotherm (India) Pvt. Ltd. v. Deputy Commissioner of Income Tax
Case Number : I.T.A. No. 1609/Ahd/2024
CITATION : 2026 LLBiz ITAT(AHM) 158
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 May held that in the absence of any change in facts or functional profile, tax authorities must consistently follow transfer pricing positions accepted in earlier years, and deleted a transfer pricing adjustment of Rs.3.88 crore in the case of Inductotherm (India) Pvt. Ltd. Geographic Reference Vice-President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar rejected the Revenue's attempt to replace the Transactional Net Margin Method (TNMM) with an internal Cost Plus Method (CPM).
ITAT Delhi Holds TDS Applicable On CAM Charges As They Are Maintenance Payments, Not Rent
Case Title : DCIT v. Biba Apparels Pvt. Ltd.
Case Number : ITA Nos. 7689, 7684 & 7687/Del/2025
CITATION : 2026 LLBiz ITAT(DEL) 159
The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 May held that Common Area Maintenance (CAM) charges paid by tenants in shopping malls constitute payments for maintenance services and not rent, and therefore attract Tax Deducted at Source (TDS) under Section 194C of the Income Tax Act and not under Section 194-I. Judicial Member Raj Kumar Chauhan and Accountant Member Renu Jauhri dismissed Revenue's appeals against Biba Apparels Pvt. Ltd. for Assessment Years 2013–14, 2014–15 and 2015–16, upholding the deletion of the tax demand.
Transfer Pricing Must Be Benchmarked Using AE Transactions, Not Entity-Level Profits: ITAT Delhi
Case Title : Cornell Overseas Pvt. Ltd. v. DCIT
Case Number : ITA No. 850/Del/2017
CITATION : 2026 LLBiz ITAT(DEL) 161
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 2 June 2026 held that transfer pricing analysis must ordinarily be restricted to international transactions with Associated Enterprises (AEs) where reliable segmental data is available, and cannot be extended to entity-level profitability. Judicial Member Anubhav Sharma and Accountant Member Naveen Chandra partly allowed the appeal filed by Cornell Overseas Pvt. Ltd. for Assessment Year 2007–08 and remanded the transfer pricing issue to the Transfer Pricing Officer (TPO) for fresh consideration of comparables.
Registered Sale Deed Triggers Capital Gains Tax Even If Payment Is Delayed: ITAT Ahmedabad
Case Title : Mehboob Jabir Patel v. Income Tax Officer, Ward-1, Godhra
Case Number : I.T.A. No. 523/Ahd/2025
CITATION : 2026 LLBiz ITAT(AHM) 160
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 June held that execution and registration of a sale deed complete “transfer” for capital gains taxation purposes, and that delayed payment or dishonour of cheques does not postpone taxability unless the transaction itself is cancelled. Vice President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar passed the order in an appeal filed by Mehboob Jabir Patel. The Bench, however, directed the Assessing Officer to grant consequential relief if the same capital gains had already been taxed in Assessment Year 2016-17, to avoid double taxation.
Case Title : Jet Lite (India) Ltd. v. ACIT/DCIT
Case Number : ITA Nos. 4885 & 4886/Del/2011 and ITA Nos. 3330 & 3331/Del/2014
CITATION : 2026 LLBiz ITAT(DEL) 162
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the deletion of penalties exceeding ₹7.6 crore imposed on Jet Lite (India) Ltd. in a fringe benefit tax (FBT) dispute. The tribunal held that the assessee had sought to justify its case against the fringe benefit assessment and that this could not be treated as furnishing inaccurate particulars. A bench of Judicial Member Satbeer Singh Godara and Accountant Member Manish Agarwal dismissed the Revenue's appeals against orders of the Commissioner (Appeals) deleting penalties for Assessment Years 2007-08 and 2008-09. The Tribunal also dismissed Jet Lite's appeals against the fringe benefit tax assessments for Assessment Years 2007-08 and 2008-09.
Case Title : IMAX Corporation v. ACIT (International Taxation)
Case Number : ITA No. 1934/Del/2025
CITATION : 2026 LLBiz ITAT(DEL) 164
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently held that IMAX Corporation, Canada, did not have either a fixed place Permanent Establishment (PE) or an installation/supervisory PE in India. The tribunal held that a five-day site inspection visit and subsequent installation activities lasting only 17 days did not satisfy the conditions prescribed under the India-Canada Double Taxation Avoidance Agreement (DTAA). Since no PE existed in India, the Tribunal held that no income could be attributed to the alleged PE.
Other Developments
FIIs, BIS Get Income Tax Exemption On Government Securities Under New Income Tax Ordinance
Foreign Institutional Investors (FIIs) and the Bank for International Settlements (BIS) will be exempt from income tax on interest earned from government securities and capital gains arising from their sale, exchange, or transfer under amendments introduced by the Centre through the Income-tax (Amendment) Ordinance, 2026. The ordinance, published in the Gazette on June 5, amends Schedule IV of the Income-tax Act, 2025 and is deemed to have come into force from April 1, 2026.