Here’s an Income Tax weekly flashback from 04 To 10 January 2026.
Madras High Court
E-Filing Mandatory for Companies; Madras High Court Allows Dept’s Appeal on Section 80-IC Deduction
Case Title: The Commissioner of Income Tax Versus Gemini Communication Ltd
Case No.: T.C.A. No.143 of 2014
The Madras High Court has held that companies were mandatorily required to file their returns electronically from Assessment Year (AY) 2008–09 onwards and could not rely on manually filed returns to claim statutory deductions.
Allahabad High Court
Once Statutory Time Limit Under Unamended Law Expires, No Reassessment Could Be Initiated Under New Regime: Allahabad HC
Case Title: Dinesh Jain Versus UOI
Case No.: WRIT TAX No. – 2021 of 2025
The Allahabad High Court has held that once the statutory time limit under the unamended law had expired, no reassessment could be initiated under the new regime introduced by the Finance Act, 2021, even after taking into account the relaxations granted during the COVID-19 period.
Madhya Pradesh High Court
VDIS Declaration Does Not Bar Income Tax Scrutiny Where Discrepancies Exist: Madhya Pradesh High Court
The Madhya Pradesh High Court at Jabalpur has dismissed a writ petition challenging the validity of scrutiny notices issued under Section 143(2) of the Income Tax Act, 1961, held that income disclosed under the Voluntary Disclosure of Income Scheme (VDIS), 1997 does not grant blanket immunity against further assessment where discrepancies are found.
Telangana High Court
No Income Tax Payable On Income Earned From Sale Of Tissue Cultured Plants: Telangana HC
Case Title: M/s. A.G. Biotech Laboratories (India) Ltd. Versus Income Tax Officer
Case No.: Income Tax Tribunal Appeal Nos.91 And 92 Of 2008
The Telangana High Court has held that income earned from the sale of tissue-cultured plants qualifies as agricultural income exempt from income tax under Section 10(1) of the Income Tax Act, 1961.
ITAT
Reassessment Invalid Where Income Reopened U/s 68 but Ultimately Taxed as Anonymous Donations U/s 115BBC: ITAT
Case Title: Rajarshi Shahu Shikshan Sanstha Versus ITO
Case No.: ITA Nos.1121 to 1126/PUN/2024
The ITAT Pune held that Sections 68 and 115BBC operate in distinct and mutually exclusive fields, and a reassessment founded on one provision cannot be legally concluded under another. Since the final addition was not made on the ground forming the “reason to believe” for reopening, the assumption of jurisdiction under Section 147 was held to be bad in law, rendering the reassessment proceedings unsustainable.
ITAT Slams CPC for Ignoring CBDT Extension on Form 56F; Upholds S. 10AA Deduction Despite Late Return
Case Title: DCIT Versus MD Equipment Pvt. Ltd.
Case No.: ITA No.3523/Del/2025
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Centralised Processing Centre (CPC) wrongly denied the deduction by ignoring the CBDT’s extension for filing Form 56F and by retrospectively applying a statutory amendment that was not applicable for the relevant assessment year.
ITR Non-Filing by Suppliers Alone Can’t Justify Disallowance of Purchases: ITAT Deletes of Rs. 25.55 Crore Addition
Case Title: ACIT Versus M/s. Everest Food Products Pvt. Ltd.
Case No.: ITA No.3988/Mum/2025
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that mere non-filing or alleged irregular filing of income tax returns by suppliers is not sufficient to treat purchases as bogus, and on that basis dismissed the Revenue’s appeal against deletion of a Rs. 25.55 crore addition made on alleged non-genuine purchases.
Wrong Legal Advice Justifies 543-Day Delay; But ITAT Upholds PCIT’s Section 263 Revision Over Demonetisation Cash Deposits
Case Title: Vineetsingh Gulabsingh Rore Versus PCIT
Case No.: I.T.A. No. 868/Ahd/2023
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has condoned a substantial delay of 543 days in filing an appeal against a revisionary order passed under Section 263 of the Income Tax Act, 1961, accepting the assessee’s plea of wrong professional advice.
Jewellery Found During Search Can’t Be Fully Treated as Unexplained When Relatives Are Present for Family Function: ITAT
Case Title: Hitendrakumar Chimanlal Patel Versus DCIT
Case No.: I.T.A. No. 1926/Ahd/2024
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has partly allowed appeals filed by a husband and wife against additions made on account of allegedly unexplained jewellery found during a search operation, holding that a reasonable allowance must be given for jewellery belonging to relatives present during family ceremonies, though complete relief cannot be granted in the absence of corroborative evidence.
Composite Trust Eligible for Section 80G Approval If Religious Spending Is Within 5% Limit: ITAT
Case Title: Shri Rajesh Ravindran Charity Trust Versus CIT (Exemption)
Case No.: I.T.A. No. 34/Ahd/2025
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that a charitable trust with incidental religious objects cannot be denied approval under Section 80G of the Income Tax Act, 1961, provided its expenditure on religious activities does not exceed the statutory threshold of 5% of total income.
No TDS Required For Services Rendered Outside India: ITAT Deletes Disallowance on Foreign Commission
Case Title: Kloeckner Desma Machinery Pvt. Ltd. Versus DCIT
Case No.: I.T.A. No. 578/Ahd/2025
The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has allowed the appeal of a manufacturing company and deleted the disallowance of commission expenses paid to non-resident foreign agents, holding that no tax was deductible at source (TDS) where services were rendered entirely outside India and the agents had no permanent establishment in India.
ITAT Restricts Addition to 8% Presumptive Profit in Cattle Feed Trader’s Case, Rejects Full Disallowance of Cash Purchases
Case Title: Sachin Ganpat Vadane Versus ITO
Case No.: ITA No.2073/PUN/2025
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has granted substantial relief to a small rural trader by restricting the income addition to 8% presumptive profit instead of sustaining the entire addition of cash purchases as unexplained expenditure under Section 69C of the Income Tax Act, 1961.
ITAT Quashes Reassessment Based on “Fictitious Loan” Allegations, Slams Dept. for Acting on Incorrect Information
Case Title: Shah Mahendrakumar Mafatlal HUF Versus Income Tax Officer
Case No.: I.T.A. Nos. 1688 & 1689/Ahd/2025
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has quashed reassessment orders passed against Shah Mahendrakumar Mafatlal HUF for Assessment Years 2014-15 and 2015-16, holding that the reopening was based on incorrect information and without any supporting evidence.When the very foundation of reopening is flawed, the entire proceedings are vitiated.
Read More: Customs Duty Weekly Flashback: 04 To 10 January 2026
