Supreme Court Dismisses Revenue SLP Against Bombay HC Ruling On Tax Assessments Of Merged Reliance Entities

The Supreme Court recently declined to entertain the Income Tax Department's Special Leave Petition against a Bombay High Court judgment that had quashed assessment orders passed in the names of Reliance Polyethylene Limited and Reliance Polypropylene Limited after they had ceased to exist following their merger with Reliance Industries Limited. A bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe dismissed the petition after recording that, pursuant to the High Court's ruling, the...

Supreme Court To Examine If Delay In Filing ITR Can Be Condoned Under Section 119(2)(b) Of Income Tax Act

The Supreme Court is to examine whether a delay in filing a return of income can be condoned under Section 119(2)(b) of the Income Tax Act, 1961. A Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan issued notice in a Special Leave Petition filed by Sirez Limited challenging the judgment dated December 8, 2025, of the Delhi High Court. “The short point that falls for our consideration is whether delay in filing the Return of income can be condoned under Section 119(2)(b) of the Act,...

Supreme Court Dismisses Plea Seeking Checks To Prevent TDS Defaults On Property Purchases Above ₹50 Lakh

The Supreme Court on Wednesday dismissed a plea seeking directions to introduce safeguards so that property buyers are not unknowingly penalised for failing to deduct tax at source (TDS) while purchasing property worth more than Rs 50 lakhs. A bench of Justice Vikram Nath and Justice Sandeep Mehta heard the matter and dismissed the petition after brief submissions. The petition concerned Section 194IA of the Income Tax Act, 1961. The provision requires a buyer of immovable property (other than...

PIL In Supreme Court Challenges Income Tax Law Allowing Search Of Digital Devices, Cloud Data

A public interest litigation has been filed before the Supreme Court challenging the constitutionality of provisions in the Income Tax Act, 2025 that empower tax authorities to conduct searches of “computer systems” and “virtual digital space”, including personal electronic devices, cloud servers, emails and private communications. The plea, filed under Article 32 of the Constitution by entrepreneur Vishwaprasad Alva, assails Section 247 of the Income Tax Act, 2025, as well as the corresponding...

Supreme Court Issues Notice In Plea Challenging Punjab and Haryana HC Ruling Against AO Consulting Superiors Before IT Assessment

The Supreme Court on Monday issued notice on an appeal by the Income Tax Department against a Punjab and Haryana High Court judgment that held that an Assessing Officer abdicated his quasi-judicial function by repeatedly consulting superior officers before passing an assessment order. A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe issued notice on both the application seeking condonation of delay and the Special Leave Petition. The matter is listed next on March 16,...

Supreme Court Dismisses Revenue Plea Against Gujarat HC Order Quashing Adani Wilmar Income Tax Reassessment

The Supreme Court on Monday refused to interfere with a Gujarat High Court judgment that had quashed the reopening of Adani Wilmar Limited's income tax assessment for the 2013–14 assessment year, dismissing a special leave petition filed by the revenue. A Bench of Justice B. V. Nagarathna and Justice Ujjal Bhuyan said it was not inclined to step in after examining the record. “Having regard to the facts of this case, we are not inclined to interfere in the matter. The SLP is dismissed. The...

Supreme Court To Examine If PF, ESI Deposits Late Under Welfare Laws but Paid Before IT Return Are Deductible

The Supreme Court has recently said that it will examine a long-standing dispute under the Income Tax Act on whether employees' provident fund and ESI contributions, deposited late under labour welfare laws, can still be allowed as deductions if paid before the income tax return due date. A Bench of Justice J.B. Pardiwala and Justice Sandeep Mehta, while hearing a petition filed by Woodland (Aero Club) Private Limited, noted that High Courts across the country have taken conflicting views on...

Supreme Court Issues Notice In Appeal Against Order Quashing IT Assessments On Entities Merged Into Reliance Industries

The Supreme Court on Tuesday issued notice on an appeal filed by the Revenue challenging a Bombay High Court ruling that had quashed income tax assessments against Reliance Polyethylene Ltd. and Reliance Polypropylene Ltd. following their merger with Reliance Industries Ltd. A Bench of Justice Pamidighantam Sri Narasimha and Justice Vijay Bishnoi called for a response from Reliance Industries Ltd. and directed that the matter be listed for further hearing after completion of pleadings. The...

Supreme Court Upholds Gujarat High Court Order Quashing Adani Power's Income Tax Reassessment Notice

The Supreme Court has refused to interfere with a 2024 Gujarat High Court ruling that quashed a reassessment notice issued to Adani Power Limited for the 2014–15 assessment year. A bench led by the Chief Justice of India, Surya Kant, and comprising Justices Joymalya Bagchi and Vipul M. Pancholi said the High Court's view “warrants no interference at all.” The court declined to condone a delay of 426 days in filing the petition. It said the explanation offered by the tax department was...

Supreme Court Quashes Gujarat HC Order To Modify Income Tax Software To Prevent TDS-Default Demands Against Deductee

The Supreme Court on January 12, 2026, set aside directions issued by the Gujarat High Court requiring the Central Board of Direct Taxes (CBDT) to modify the income-tax department's software. The court, however, left untouched the relief granted to the taxpayer on merits. A bench of Justices Rajesh Bindal and Vijay Bishnoi was hearing an appeal filed by the Income Tax Department against a Gujarat High Court order passed in favour of Shobhan Shantilal Doshi, an individual taxpayer. The Court...

Income Tax | Shares Received On Amalgamation Can Be Taxed as Business Income If Held As Stock-in-Trade: Supreme Court

The Supreme Court has held that when shares held as stock-in-trade are replaced with shares of another company under an amalgamation scheme, the allotment can result in taxable business income, provided the new shares can be realised in money and have a definite value. The bench, consisting of Justices J B Pardiwala and R Mahadevan, opined that "where the shares of an amalgamating company, held as stock-in-trade, are substituted by shares of the amalgamated company pursuant to a scheme of...

Non-Compete Fee Can Be Deducted As Revenue Expenditure Under Section 37(1) Income Tax Act: Supreme Court

The Supreme Court has held that payment of non-compete fee does not result in acquisition of a capital asset or alteration of the profit-making structure of the business, and is allowable as revenue expenditure under Section 37(1) of the Income Tax Act, 1961.“Thus non-compete fee only seeks to protect or enhance the profitability of the business, thereby facilitating the carrying on of the business more efficiently and profitably. Such payment neither results in creation of any new asset nor...