Income Tax Weekly Flashback: 9 To 15 November 2025

Income Tax Weekly Flashback for the period from 09 to 15 November 2025. Supreme Court Supreme Court to Examine Taxability of Security Deposits in Property Deals Case Title: M/S Ansal Properties And Industries Ltd Vs Commissioner Of Income Tax Delhi Case No.: SLP(C) No(s). 996/2019 The Supreme Court of India is set to examine a crucial question in tax jurisprudence — whether a “security deposit” received during a property transaction constitutes taxable income or represents a bona fide business arrangement. Delhi High Court Income Tax Dept Failed To Give Effect To ITAT’s Order: Delhi HC Directs Rs. 36.85 Lakh Refund with 3% Interest Case Title: Santosh Kumar Suri Versus Deputy Commissioner Of Income Tax Case No.: W.P.(C) 15373/2025 The Delhi High Court has ordered the Income Tax Department to refund Rs. 36,85,243 to the assessee, along with statutory interest under Section 244(1A) of the Income Tax Act, after observing that the department failed to give effect to an ITAT order for nearly two years, and acted only after a writ petition was filed. Bombay High Court Bombay High Court Quashes Income Tax Reassessment Against A Company Converted Into LLP Case Title: Erangal Comtrade and Consultancy LLP Versus ACIT Case No.: Writ Petition No.2033 Of 2022 The Bombay High Court has quashed a reassessment notice and subsequent assessment order issued by the Income Tax Department to a company that had already been converted into an LLP years earlier. Dept. Acted On ‘Factually Wrong’ Grounds: Bombay HC Quashes Reopening of Assessment Against Charitable Trust Case Title: Sir Jamsetjee Jejeebhoy Charity Fund Versus Income Tax, Officer Case No.: WRIT PETITION NO.4941 OF 2024 The Bombay High Court has quashed the Income Tax Department’s move to reopen the assessment of a charitable trust for AY 2018–19, holding that the reopening was based on incorrect facts, misreading of records, and amounted to a mere change of opinion. Bombay High Court Declares Transfer Pricing Addition ‘Non Est’ for Missing DRP Timeline; Orders Refund Case Title: Archroma International (India) Private Limited versus DCIT Case No.: Writ Petition (L) No.11226 Of 2025 The Bombay High Court has held that the Income Tax Department’s failure to give effect to the Dispute Resolution Panel (DRP) directions within the mandatory period prescribed under Section 144C(13) renders the transfer pricing addition against the assessee non est. Madras High Court Payments Made To SIPCOT For Common Infrastructure Can’t Be Treated As Depreciable Assets: Madras HC Case Title: M/s.Hinduja Foundries Ltd. Versus ACIT Case No.: TCA Nos.794 and 795 of 2016 and 798, 800, 801, 802 & 803 of 2018 The Madras High Court has held that payments made to (SIPCOT) for common infrastructure cannot be treated as depreciable assets but may be claimed as revenue expenditure over time. Kerala High Court Income Tax Assessment Doesn’t Bar Separate Benami Proceedings: Kerala High Court Case Title: Vittal Sait Popat & Anr. vs. Assistant Commissioner of Income Tax (BPU) & Ors. Case No.: WP(C) No. 4193 of 2020 The Kerala High Court has dismissed a writ petition filed by two assessees challenging show-cause notices issued to them under Section 24(1) of the Prohibition of Benami Property Transactions Act, 1988, in connection with the seizure of ₹88.77 lakh in cash by the Thrithala Police in 2019. Gujarat High Court Gujarat High Court Quashes Criminal Prosecution for Late ITR Filing After Tax and Penalty Already Paid Case Title: M/S. Associated Microtech Pvt. Ltd. Versus State Of Gujarat & Ors. Case No.: R/Criminal Misc. Application No. 30583 Of 2017 The Gujarat High Court has quashed criminal proceedings initiated against the company and its directors for alleged failure to file their Income Tax return for Assessment Year (AY) 2013–14 within the prescribed due date. ITAT S. 14A Disallowance: ITAT Rules Against Improper Satisfaction by AO in Aishwarya Rai Bachchan’s Case Case Title: ACIT Versus Aishwarya Rai Bachchan Case No.: ITA No.5403/MUM/2025 The Income Tax Appellate Tribunal (ITAT), Mumbai Bench has dismissed the department’s appeal against the relief granted to actor Aishwarya Rai Bachchan by the Commissioner of Income Tax (Appeals) in a dispute over disallowance of expenses under Section 14A of the Income Tax Act, 1961, for the Assessment Year (AY) 2022–23. Possession Of Gold Within These CBDT Limits: ITAT Deletes Addition on Gold Jewellery Belonging to Assessee’s Wife and Mother Case Title: Prashant Prakash Nilawar vs DCIT, Circle-6(1), Mumbai Case No.: ITA No.2318/Mum/2025 The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has held that ornaments belonging to an assessee’s wife and mother, when within reasonable limits, cannot be treated as unexplained investments. PCIT’s Can Invoke S. 263 Despite Capital Gains Issue Pending Before CIT(A): ITAT Case Title: Sanjay Singh Rana Versus PCIT Case No.: ITA No. 3463/DEL/2024 The Income Tax Appellate Tribunal (ITAT), Delhi Bench has upheld the exercise of revisionary jurisdiction by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act in a case where the dispute on the same issue was already pending before the Commissioner of Income Tax (Appeals) .

Income Tax Weekly Flashback: 9 To 15 November 2025

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GST Dept. Wrongly Classified Stock, Premises Insurance Policy as Motor Vehicle Insurance; ITC Can’t Be Denied: Gujarat HC

Customs Brokers Accused of Allowing Large-Scale Misuse of CHA Licences in Rs. 600-Crore Import Fraud: Delhi HC Refuses to Grant Pre-Deposit Waiver

Valuation-Linked Excise Dispute Must Go to Supreme Court: Gauhati HC Dismisses Dept’s Appeal Against Johnson Products

GST Dept. Wrongly Classified Stock, Premises Insurance Policy as Motor Vehicle Insurance; ITC Can’t Be Denied: Gujarat HC

Customs Brokers Accused of Allowing Large-Scale Misuse of CHA Licences in Rs. 600-Crore Import Fraud: Delhi HC Refuses to Grant Pre-Deposit Waiver

Valuation-Linked Excise Dispute Must Go to Supreme Court: Gauhati HC Dismisses Dept’s Appeal Against Johnson Products

Deposits Made During Investigation Must Be Counted Toward Pre-Deposit Under Customs Act: Delhi HC

GST Dept. Wrongly Classified Stock, Premises Insurance Policy as Motor Vehicle Insurance; ITC Can’t Be Denied: Gujarat HC

Customs Brokers Accused of Allowing Large-Scale Misuse of CHA Licences in Rs. 600-Crore Import Fraud: Delhi HC Refuses to Grant Pre-Deposit Waiver

Valuation-Linked Excise Dispute Must Go to Supreme Court: Gauhati HC Dismisses Dept’s Appeal Against Johnson Products

Deposits Made During Investigation Must Be Counted Toward Pre-Deposit Under Customs Act: Delhi HC

Notification For Rectifying ITC Orders U/S 16(4) Ignored by Appellate Authority: Calcutta HC Remands Back

Telangana Govt. Issues SOP On Prevention, Rectification Of Multiplicity Of Orders For Same Cause Of Action Under TGST Act, 2017

GSTN Issues Advisory on Mandatory Furnishing of Bank Account Details Under Rule 10A

GST Dept. To Consider Amended Business Address Before Passing GST Registration Cancellation Order: Delhi HC

SGST Tax Officer Can’t Be Suspended Merely For Submitting Late Report In Fake ITC Case: Allahabad HC

GST Officer Gave No Reasons Beyond Claim That Taxpayer ‘Did Not Reply’: Delhi HC Quashes Demand

SC Seeks Detailed Affidavit From Trader After GST Dept. Fails to Release Seized Areca Nuts Despite Prior Orders

Can I gift mutual funds to my wife? Know Taxability

GST Dept. Wrongly Classified Stock, Premises Insurance Policy as Motor Vehicle Insurance; ITC Can’t Be Denied: Gujarat HC

Customs Brokers Accused of Allowing Large-Scale Misuse of CHA Licences in Rs. 600-Crore Import Fraud: Delhi HC Refuses to Grant Pre-Deposit Waiver

Valuation-Linked Excise Dispute Must Go to Supreme Court: Gauhati HC Dismisses Dept’s Appeal Against Johnson Products