HIGH COURTS
Bombay HC
Case Title : Accost Media LLP v. Deputy Commissioner of Income Tax, Circle 27(1), Navi Mumbai & Connected Appeal
Case Number : Income Tax Appeal No. 753 of 2025 with Income Tax Appeal (L) No. 25904 of 2025
CITATION : 2026 LLBiz HC(BOM) 360
The Bombay High Court has recently set aside an order of the Income Tax Appellate Tribunal (ITAT), holding that the tribunal failed to adjudicate a taxpayer's jurisdictional objection alleging non-compliance with the mandatory assessment procedure. The court ruled that the issue went to the root of the matter and required adjudication by the tribunal. A division bench of Justice G.S. Kulkarni and Justice Aarti Sathe observed, "Even otherwise, on merits, the ITAT was required to consider and appreciate the documentary evidence as sought to be produced by the AppellantAssessee to prove the genuineness and creditworthiness of the transactions, and hence an opportunity to appreciate the aforesaid evidence in its entirety needs to be given to the Appellant-Assessee. We are therefore of the view that the impugned order of the ITAT dated 10th December 2024, hence is required to be set aside considering the jurisdictional issue raised by the Appellant-Assessee. The same goes to the root of the matter and has to be adjudicated."
Unit Owners, Not Society, Must Challenge Individual Property Tax Demands: Bombay High Court
Case Title : Madanmohan M. Kotia & Anr. v. Municipal Corporation of Greater Mumbai & Ors. connected with Kotia Nirman Co-operative Commercial Premises Society Ltd. v. Municipal Corporation of Greater Mumbai & Ors.
Case Number : Writ Petition No. 1840 of 2017
CITATION : 2026 LLBiz HC(BOM) 362
The Bombay High Court has held that after the Municipal Corporation of Greater Mumbai (MCGM) issued separate property tax demand notices to individual unit owners, any grievance regarding the assessment, penalty or sewerage tax became an individual dispute. The court held that the appropriate remedy thereafter is the statutory appeal under the Mumbai Municipal Corporation Act. It dismissed writ petitions filed by a commercial premises society and some of its members after finding that MCGM had complied with an earlier direction to issue unit-wise property tax bills.
Gujarat HC
Case Title : Ammann India Private Limited v. Assistant Commissioner of Income Tax
Case Number : R/Special Civil Application No. 7854 of 2024
CITATION : 2026 LLBiz HC(GUJ)80
The Gujarat High Court has quashed reassessment proceedings initiated against road construction equipment maker Ammann India Private Limited. It held that the Revenue reopened the assessment by treating the company's scientifically determined warranty provision as an unascertained liability without considering the principles laid down by the Supreme Court, the Income Computation and Disclosure Standards (ICDS), or the material already available with the Assessing Officer.
Case Title : ABC v. Union of India & Ors.
Case Number : R/Special Civil Application No. 12632 of 2019
CITATION : 2026 LLBiz HC(GUJ)81
The Gujarat High Court has recently refused to interfere with the Central Board of Direct Taxes' (CBDT) decision fixing the reward payable to an informant under the 2007 Reward Guidelines. It held that the reward is an ex gratia payment and that the court cannot re-evaluate the methodology adopted by the Full Board unless its determination suffers from manifest illegality or patent arbitrariness. A Division Bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati dismissed the writ petition filed by a real estate consultant. He had sought enhancement of the reward granted for information relating to tax evasion by the Sheladia Group.
Case Title : Bipinkumar Girdharlal Parekh v. Office of the Assistant Commissioner of Income Tax, Circle 4(1)(1), Ahmedabad
Case Number : R/Special Civil Application No. 15105 of 2025
CITATION : 2026 LLBiz HC(GUJ)82
The Gujarat High Court has held that the earlier reassessment regime can apply even where the assessee was not the person searched, provided the reassessment is founded on incriminating material recovered during a search conducted within the statutory transition period. Applying that principle, the court quashed reassessment proceedings against a transporter after holding that the reopening notice had been issued beyond the applicable limitation period.
Jharkhand HC
Jharkhand High Court Upholds Conviction For False Income Tax Refund Claim Based On Forged Documents
Case Title : Sashi Bhusan Prasad Bhuian @ Shashi Bhusan Prasad Bhuia v. State of Jharkhand & Anr.
Case Number : Criminal Revision No. 5 of 2017
CITATION : 2026 LLBiz HC (JHAR) 13
The Jharkhand High Court has upheld the conviction of an Eastern Coalfields Limited employee for claiming an income tax refund of ₹35,875 on the basis of forged documents. The court found no reason to interfere with the concurrent findings of the trial and appellate courts. Justice Pradeep Kumar Srivastava dismissed the criminal revision filed by Sashi Bhusan Prasad Bhuian. The court directed him to surrender before the trial court within two months to undergo the remaining sentence. The court observed, "From the impugned judgment, it is crystal clear that present petitioner has claimed on the basis of forged document, a refund of Rs. 35,875/- for which no valid explanation or reasons has been furnished by him."
ITAT
Brilliant Study Centre Faculty Are Independent Professionals, Not Employees For TDS: ITAT Cochin
Case Title : Brilliant Study Centre Private Limited v. Income Tax Officer (TDS), Ward TDS, Kottayam
Case Number : S.A. No. 37/Coch/2026 & ITA No. 545/Coch/2026
CITATION : 2026 LLBiz ITAT(COC) 211
The Income Tax Appellate Tribunal (ITAT) at Cochin has recently held that faculty members engaged by Brilliant Study Centre Pvt. Ltd., a well-known Kerala coaching institute that prepares students for NEET, JEE, and other medical and engineering entrance examinations, were independent professionals and not employees. It consequently set aside a demand of Rs. 9.48 lakh raised against the institute after the Income Tax Department treated it as an assessee in default for allegedly short-deducting tax at source.
Case Title : Maan Steel & Power Limited v. Deputy Commissioner of Income Tax, Central Circle-1(2), Kolkata
Case Number : ITA Nos. 1167, 2354, 1096 & 2609/KOL/2025
CITATION : 2026 LLBiz ITAT(KOL) 210
The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT), on 26 June held that where reassessment is initiated on the basis of material seized during a third-party search conducted prior to 1 April 2021, the Income Tax Department must proceed under the special search assessment provisions and cannot invoke Sections 147 and 148 of the Income Tax Act, 1961. Accountant Member Rajesh Kumar allowed the appeals filed by Maan Steel & Power Ltd. for assessment years 2018–19 and 2019–20 and dismissed the Revenue's cross appeals as infructuous, while quashing the reassessment proceedings.
Case Title : Stargate Enterprises Pvt. Ltd. v. Deputy Commissioner of Income Tax, Corporate Circle 3(1), Chennai
Case Number : ITA No. 1396/CHNY/2026
CITATION : 2026 LLBiz ITAT(CHE) 212
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) on 26 June held that a penalty under Section 271B for failure to furnish a tax audit report cannot be sustained where the taxpayer acted under a bona fide belief that the audit requirement did not apply. Vice President George George K and Accountant Member Gagan Goyal allowed the appeal filed by Stargate Enterprises Pvt. Ltd. and deleted the penalty of Rs.1.5 lakh imposed under Section 271B for failure to furnish a tax audit report under Section 44AB.
Case Title : Emdarapu Kumaraswamy v. Income Tax Officer, Ward-11(1), Hyderabad
Case Number : ITA No. 1441/Hyd/2025
CITATION : 2026 LLBiz ITAT(HYD) 213
The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) on 24 June held that winnings taxable under Section 115BB of the Income Tax Act must be computed on the basis of net winnings from online games and not on gross amounts reflected by gaming platforms. Vice President Vijay Pal Rao and Accountant Member Manjunatha G partly allowed the appeal filed by Emdarapu Kumaraswamy and set aside the addition made towards alleged online gaming winnings and remanded the issue relating to disallowance of deductions.
ITAT Hyderabad Quashes Penalty U/S 271DA Income Tax Act, Finds No Proof Of Section 269ST Violation
Case Title : Shreemukh Realtors v. Deputy Commissioner of Income Tax / Assistant Commissioner of Income Tax
Case Number : ITA Nos. 1021 to 1024/Hyd/2026
CITATION : 2026 LLBiz ITAT(HYD) 214
On 24 June, the Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) set aside penalties imposed on Shreemukh Realtors under Section 271DA of the Income Tax Act, holding that the Revenue failed to prove, with cogent evidence, any contravention of Section 269ST relating to alleged cash receipts exceeding Rs. 2 lakh. Vice President Vijay Pal Rao and Accountant Member Manjunatha G allowed the appeals against orders of the Commissioner of Income Tax (Appeals), which had upheld penalties for assessment years 2020–21 to 2023–24.
ITAT Delhi Quashes Search Assessment Over Defective Consolidated Satisfaction Note
Case Title : Sunwhite Realty Private Limited v. DCIT, Central Circle-6
Case Number : ITA No. 9135/Del/2025
CITATION : 2026 LLBiz ITAT(DEL) 216
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed a search assessment against Sunwhite Realty Private Limited over a defective satisfaction note recorded for multiple assessment years. A bench of Judicial Member Anubhav Sharma and Accountant Member M. Balaganesh allowed the company's appeal against the assessment for the assessment year 2016–17. The assessment arose from a search conducted in the Ashish Begwani group cases. Sunwhite Realty challenged the Assessing Officer's jurisdiction. It argued that the proceedings had been initiated on the basis of a consolidated satisfaction note covering several assessment years. The company also contended that the note did not identify the seized material pertaining to it. Nor did it specify the assessment year to which those entries related.
ITAT Ahmedabad Allows Former BSNL Employee's Claim For Tax Exemption On VRS Compensation
Case Title : Jashvantbhai Ashabhai Patel v. Income Tax Officer, Ward-7(2)(1), Ahmedabad
Case Number : ITA No. 1145/Ahd/2026
CITATION : 2026 LLBiz ITAT(AHM) 215
The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has recently allowed a former BSNL employee's claim for exemption on compensation received under the BSNL Voluntary Retirement Scheme (VRS). The tribunal held that he was entitled to the benefit under Section 10(10B) of the Income Tax Act by following earlier coordinate Bench decisions on the issue. Section 10(10B) of the Income Tax Act provides a tax exemption for eligible retrenchment compensation received by an employee, subject to the prescribed conditions.
ITAT Jodhpur Deletes Business Expense Disallowance For Lack Of Adverse Findings
Case Title : Svaraj Trading and Agencies Ltd. & Ors. v. Assistant Commissioner of Income Tax, Central Circle-1, Udaipur
Case Number : ITA Nos. 777/Jodh/2025 & Connected Matters
CITATION : 2026 LLBiz ITAT(JOD) 217
The Income Tax Appellate Tribunal (ITAT), Jodhpur, has allowed a batch of appeals filed by four companies, holding that business expenditure cannot be disallowed merely because the tax authorities considered the assessees to have minimal business activity. The tribunal found no adverse evidence questioning the genuineness of the expenditure and held that the disallowances sustained by the first appellate authority could not be justified on mere suspicion.
Case Title : Global Cricket Corporation Pte. Ltd. v. Additional Director of Income Tax (International Taxation), Range-3, Mumbai
Case Number : ITA Nos. 2161 & 2162/Mum/2014
CITATION : 2026 LLBiz ITAT(MUM) 218
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has quashed reassessment proceedings against Global Cricket Corporation Pte. Ltd.. The tribunal did so after finding that the Income Tax Department failed to establish that it had issued the mandatory notice before completing the reassessment. Global Cricket Corporation Pte. Ltd. is a Singapore-based sports rights and sports event management company involved in the management and promotion of sporting events.
ITAT Mumbai Rules Barclays Bank's Interest From Overseas Branches Not Taxable In India
Case Title : Barclays Bank PLC v. Additional Commissioner of Income Tax & Connected Appeals
Case Number : ITA No. 5514/Mum/2001
CITATION : 2026 LLBiz ITAT(MUM) 219
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that interest earned by the Indian branches of Barclays Bank PLC from its Head Office, overseas branches and other overseas banks is not taxable in India. It ruled that transactions between the Indian branch and its Head Office amount to payments to self and cannot give rise to taxable income under domestic tax law. A bench of Vice President Saktijit Dey and Accountant Member Prabhash Shankar observed that, while a permanent establishment may be treated as a distinct entity for attributing profits under a tax treaty, the Indian branch and the Head Office remain the same legal entity under domestic tax law.
Case Title : Sterling Holiday Resorts Limited v. Deputy Commissioner of Income Tax & Cross Appeals
Case Number : ITA Nos. 843/MUM/2024 and 941/MUM/2024
CITATION : 2026 LLBiz ITAT(MUM) 220
A holding company cannot issue shares on behalf of its subsidiary to satisfy the conditions for claiming tax benefits arising from a demerger, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held. "The Holding company cannot issue shares on behalf of the subsidiary and its obligations are restricted to its own legal liabilities and obligations under the law," the tribunal observed. A bench of Vice President Saktijit Dey and Accountant Member Prabhash Shankar partly allowed Sterling Holiday Resorts Limited's appeal and dismissed the Revenue's cross-appeal for the assessment year 2015-16.
ITAT Jaipur Upholds CA Student's Claim For Section 87A Rebate On Short-Term Capital Gains Tax
Case Title : Priyamvada Singhal v. DCIT-Circle 7, Jaipur
Case Number : ITA No. 1412/JPR/2025
CITATION : 2026 LLBiz ITAT(JAI) 221
The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) on 25 June held that a resident individual who opts for the new tax regime under Section 115BAC of the Income Tax Act and whose total income falls within the prescribed threshold is entitled to claim rebate under Section 87A even against tax payable on short-term capital gains under Section 111A. Accountant Member Annapurna Gupta allowed an appeal filed by Priyamvada Singhal, a CA student and directed the Revenue to grant the rebate for Assessment Year 2024–25. She observed: “I hold therefore that the denial of grant of rebate to the assessee u/s 87A of the Act is not in accordance with law. I accordingly direct that the assessee be granted the rebate u/s 87A of the Act.”
ITAT Mumbai Holds Tax Appeals Infructuous After Company's Liquidation And Sale As Going Concern
Case Title : EMI Transmission Limited v. DCIT, Central Circle-8(1), Mumbai
Case Number : ITA Nos. 1071/Mum/2026
CITATION : 2026 LLBiz ITAT(MUM) 222
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that no effective adjudication survives in income tax appeals filed by EMI Transmission Limited after the company underwent liquidation under the Insolvency and Bankruptcy Code (IBC). It noted that the company had been sold as a going concern and the liquidation proceedings had been closed by the National Company Law Tribunal (NCLT). A bench of Judicial Member Amit Shukla and Accountant Member Girish Agrawal was hearing EMI Transmission Limited's appeals for assessment years 2011-12 to 2018-19 against orders sustaining various income tax additions.
ITAT Mumbai Deletes ₹572.83 Crore Brand Royalty Transfer Pricing Adjustment Against Vodafone Idea
Case Title : Vodafone Idea Limited (Successor of Vodafone Mobile Services Limited) v. ACIT, Circle-26(2), New Delhi
Case Number : ITA No. 8971/DEL/2019
CITATION : 2026 LLBiz ITAT(MUM) 223
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has deleted a ₹572.83 crore transfer pricing adjustment on Vodafone Idea Ltd.'s payment of brand royalty. It held that the controlled transaction relied on by the tax department could not be used as a comparable under the Comparable Uncontrolled Price (CUP) method. A bench of Accountant Member Om Prakash Kant and Judicial Member Anikesh Banerjee observed: "The Coordinate Benches of the Tribunal, while dealing with identical transfer pricing adjustments in the assessee's own case for Assessment Years 2011-12, 2012-13 and 2013-14, as well as in the cases of its group concerns referred to hereinabove, have consistently held that the agreement entered into between Virgin Enterprises Ltd. and Virgin Mobile USA LLC, being a controlled transaction, cannot constitute a valid comparable for determining the arm's length price under the CUP Method. The Tribunal has further held that the arm's length price of an international transaction has to be determined only by comparing it with comparable uncontrolled transactions in accordance with Rule 10B of the Income-tax Rules, 1962. The Revenue has not brought to our notice any distinguishing feature in the facts of the year under consideration nor any subsequent judicial pronouncement taking a contrary view."
ITAT Delhi Restores ₹1.43 Crore Addition Over Alleged Cash Salary Payments
Case Title : DCIT v. ECR Buildtech Pvt. Ltd.
Case Number : ITA No. 9107/Del/2025 (Cross Objection No. 56/Del/2026)
CITATION : 2026 LLBiz ITAT(DEL) 224
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently upheld an addition of ₹1.43 crore towards alleged unexplained cash salary payments. It held that the Commissioner of Income Tax (Appeals) deleted the addition without carrying out any inquiry or seeking a remand report despite the material relied upon by the Assessing Officer. A bench of Judicial Member Madhumita Roy and Accountant Member Kriwant Sahay allowed the Revenue's appeal and dismissed the assessee's cross-objection.
ITAT Delhi Quashes Reassessment Based Solely On Investigation Wing Report
Case Title : V & S International Pvt. Ltd. v. DCIT
Case Number : ITA No. 5782/Del/2024 (AY 2005-06)
CITATION : 2026 LLBiz ITAT(DEL) 225
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently quashed reassessment proceedings against V & S International Pvt. Ltd., a readymade garments manufacturer and exporter. It held that the Assessing Officer reopened the completed assessment solely on information received from the Investigation Wing, without independently examining the material. The tribunal observed that the absence of a "live link" between the information and the reasons recorded made the reopening unsustainable. A bench of Judicial Member Satbeer Singh Godara and Accountant Member Naveen Chandra held that the Assessing Officer had not undertaken any independent verification before issuing the reassessment notice.
Interest On Unspent Government Grants Cannot Be Treated As Separate Income: ITAT Chandigarh
Case Title : Hydro Engineering College Society v. Income Tax Officer, Ward, Bilaspur (H.P.)
Case Number : ITA No. 1183/CHANDI/2025
CITATION : 2026 LLBiz ITAT(CHA) 226
The Income Tax Appellate Tribunal (ITAT) has recently held that interest earned on unspent government grants parked in fixed deposits retains the same character as the grants themselves. It cannot be treated as an independent source of income while determining whether an educational institution is substantially financed by the government. A Chandigarh tribunal comprising Judicial Member Laliet Kumar and Accountant Member Manoj Kumar Aggarwal allowed the appeal filed by Hydro Engineering College Society.