AIBE 20 Tax Law 2025: Syllabus, Topics, Important Cases, Preparation Tips, Books

AIBE 20 Tax Laws Syllabus 2025

The detailed syllabus of Tax Laws subject of AIBE 2025 has been given below:

Topic 1: Introduction

Concept of – Tax, Cess, Surcharge; Types of taxes: Direct Taxes, Indirect Taxes; Definition of Income [Section 2(24)] – Application of Income or diversion by overriding title - Capital Receipt v. Revenue Receipt - Tests to distinguish (with special reference to ‗Salami‘); Assessee; Previous Year (section 3); Assessment year; Basis of charge (Receipt, Accrual, and Arisal); General Scheme of Income Tax Act, 1961

Important Cases

• CIT v. G.R. Karthikeyan, 1993 Supp (3) SCC 222

• CIT v. Sitaldas Tirathdas (1961) 2 SCR 634

• C.I.T. v. Sunil J. Kinariwala (2003) 1 SCC 660

Topic-2: Agricultural Income – Meaning of Agricultural Income [Section 2(1A), 10(1)]

• Bacha F. Guzdar v. C.I.T., Bombay, AIR 1955 SC 74

• C.I.T. v. Benoy Kumar Sahas Roy, AIR 1957 SC 768

• Premier Construction Co. Ltd. v. C.I.T., Bombay City (1948) XVI ITR 380 (PC)

• C.I.T. v. Maddi Venkatasubbayya (1951) XX ITR 151 (Mad.)

• Sakarlal Naranlal v. C.I.T., AIR 1965 Guj. 165 9. C.I.T. v. H.G. Date (1971) 82 ITR 71 (Bom.)

• K. Lakshmanan & Co. v. C.I.T. (1999) 239 ITR 597 (SC)

Topic-3: Residence and Scope of Total Income

Tests for the determination of the residential status of the Assessee (section 6); Total income of the assessee (sections 4 and 5); Income deemed to accrue or arise in India (section 9); Incidence of tax varies with residential status of an assessee?

Important Cases

1. V.V.R.N.M. Subbayya Chettiar v. C.I.T., AIR 1951 SC 101

2. Narottam and Parekh Ltd. v. CIT, Bom. City, AIR 1954 Bom. 67

3. Vodafone International Holdings B.V. v. Union of India (UOI) and Anr, (2012) 6SCC613

Topic-4: Heads of Income (Sections 14-59)

Heads of Income (section 14), Rationale; Heads, whether mutually exclusive

Head A: Salaries (Sections 15 to 17) – Chargeability - Meaning of Salary; Perquisites.

Important Cases

1. Ram Pershad v. C.I.T. (1972) 2 SCC 696: AIR 1973 SC 637

2. C.I.T. v. L.W. Russel, AIR 1965 SC 49

Head B: Omitted by the Finance Act, 1988 with effect from 1-4-1989]

Head C: Income from House Property (Sections 22 to 27) - Ingredients of section 22 - Annual Value how to be determined - Deductions under section 24 - Deemed owner (section 27)

Important Cases

1. C.I.T., West Bengal v. Biman Behari Shaw, Shebait (1968) 68 ITR 815 (Cal.)

2. East India Housing & Land Development Trust Ltd. v. C.I.T. (1961) 42 ITR 49(SC)

3. R.B. Jodhamal Kuthiala v. C.I.T., AIR 1972 SC 126

Head D: Profits and Gains of Business and Profession (Sections 28 to 44) –Applicability - Deductions - Bad debts

Important Cases

1. B.D. Bharucha v. C.I.T., AIR 1967 SC 1505

2. C.I.T. v. Mysore Sugar Co. Ltd., AIR 1967 SC 723

Business Expenditure – Allowability - Tests of distinctions between Business expenditure and Capital expenditure [section 37(1)]

Important Cases

1. C.I.T. v. Travancore Sugar & Chemicals Ltd., AIR 1973 SC 982

2. Empire Jute Co. v. C.I.T., AIR 1980 SC 1946

3. L.B. Sugar Factory & Oil Mills(P.) Ltd. v. C.I.T., AIR 1981 SC 395

4. C.I.T. v. Jalan Trading Co. (Pvt.) Ltd. (1985) 155 ITR 536 (SC)

5. BIkaner Gypsums Ltd. v. C.I.T., AIR 1991 SC 227

6. C.I.T. v. General Insurance Corporation, 2007 (1) SCJ 800

Head E: Capital Gains (Sections 45 to 55) – Definition of capital assets [section 2(14)]; Short term capital assets [section 2(42A)]; Short term capital gains [section 2(42B)]; Long term capital assets and Long term capital gain [section 2(29A) and 2(29B)]; Meaning of

Transfer‘[section 2(47)]; computation (section 45); Transactions not amounting to transfer (sections 46 and 47); Mode of computation (section 48); Meaning of adjusted‘, cost of improvement‘ and cost of acquisition (section 55)

Important Case

1. N. Bagavathy Ammal v. C.I.T., Madurai, JT 2003 (1) SC 363

Head F: Income from Other Sources (Sections 56 to 59)

• C.I.T. v. Rajendra Prasad Moody (1978) 115 ITR 519 (SC)

Topic 5: Income of Other Persons included in Assessee’s Total Income (Sections 60 to 64)

Concept of clubbing of income – justifiability - throwing of separate property into the common stock of Joint Hindu Family and subsequent partition of the same section 64(2)

Important Cases

• Philip John Plasket Thomas v. C.I.T., AIR 1964 SC 587

• Batta Kalyani v. Commissioner of Income Tax (1985) 154 ITR 59

• J.M. Mokashi v. Commissioner of Income Tax(1994) 207 ITR 252 (Bom)

• Mohini Thapar v. C.I.T. (1972) 4 SCC 493

Topic 6: Assessment

Best Judgment Assessment; Income escaping assessment (Sections 139, 142, 143, 144, 145(2), 147, 148, 149, 150, 151 and 153)

Important Cases

1. State of Kerala v. C. Velkutty (1966) 60 ITR 239 (SC)

2. C.I.T. v. Burlop Dealers Ltd. (1971) 79 ITR 609 (SC)

3. Gemini Leather Stores v. The Income-tax Officer, AIR 1975 SC 1268

4. The Income Tax Officer v. Lahkmani Mewal Das (1976) 3 SCC 757

5. Srikrishna (P) Ltd. v. Income-Tax Officer (1996) 9 SCC 534

Preparation Tips for AIBE 20 (XX) Taxation Law

Here are some preparation tips to ace the Tax Law section of AIBE 20 (XX) 2025:

• Understand the syllabus: Before starting their preparations candidates must understand the syllabus of AIBE Taxation Laws. Knowing the syllabus will help candidates segregate and identify topics and plan their preparation accordingly.

• Revise regularly: Revision is a very key part of preparation. Candidates must make sure that they regularly revise whatever they have learnt. Given the comprehensive syllabus of AIBE, candidates must ensure that they remember and recall whatever they have studied.

• Practice previous year papers: The Bar Council of India releases the question papers of AIBE after each session. Candidates are advised to practice as many AIBE previous year question papers as possible before the exam. These AIBE PYQs give candidates a good understanding of the pattern.

• Read Case Laws: Along with the theoretical part, candidates must also read case law to understand the practicality of the topics given in the AIBE 2025 Taxation Law syllabus.

Recommended Books for AIBE 20 Tax Laws 2025

Apart from going through The Income Tax Act, 1961, candidates can refer to these two recommended books for AIBE Taxation Law:

1. Vinod K. Singhania & Kapil Singhania, Taxmann’s Direct Taxes – Law & Practice

2. Girish Ahuja & Ravi Gupta, Direct Taxes – Law and Practice

3. A. C. Dutta - Corporate Taxation

4. R. S. Gupta - Principles of Taxation Law

5. A. R. Goyal - International Taxation in India