Reassessment for Bogus LTCG: AO’s Application of Mind Upheld, Reopening Justified Issue: Whether the Assessing Officer (AO) mechanically reopened an assessment under Section 147 based solely on an investigation wing report, or if there was independent application of mind justifying the reopening to examine alleged bogus Long Term Capital Gains (LTCG) / Short Term Capital… Read More »
I. Interest on Inter-Corporate Deposits and Interest-Free Loans to Associates: Commercial Expediency Upheld Issue: Whether interest expenditure claimed by an assessee-company on inter-corporate deposits should be disallowed when it has also advanced interest-free loans to its associate concerns, given that the profitability of the associate concerns impacts the assessee’s financial status and business. Facts: The… Read More »
Interest Income Accrual for NPA Debtor: No Accrual if Recovery Doubtful, but No TDS Credit Without Corresponding Income Part I: Accrual of Interest Income (In favor of assessee) Issue: Whether interest income accrues to an assessee (a partnership firm) on an advance given to a company (‘D’) when the debtor company is in severe financial… Read More »
IMPORTANT GST CASE LAWS 21.05.2025 Section Case Law Title Brief Summary Citation Relevant Act 8 (Compensation to States Act, 2017) Mercedes-Benz India (P.) Ltd. v. Union of India Ground Clearance for motor vehicles for compensation tax levy prior to 26-7-2023 must be considered in laden condition; Notification No. 3/2023-CC (Rate) is prospective. Click Here Goods… Read More »
Compensation Cess on Motor Vehicles: Ground Clearance in Laden Condition for Pre-July 2023 Period Issue: Whether the Compensation Cess of 22% under Sr. No. 52B of the Cess Notification is applicable to motor vehicles for the period September 2017 to July 2022 based on ground clearance in an unladen condition, or if the measurement should… Read More »
Non-Diligence in Checking GST Portal: Assessee Directed to Appeal Despite Wrong Tab Upload Issue: Whether an order passed based on a Show Cause Notice (SCN) uploaded under the ‘additional notices and orders’ tab instead of the ‘notices and orders’ tab on the GST portal, coupled with the assessee’s alleged inability to access the portal and… Read More »
Service of SCN on Wrong Portal Tab and Lack of Hearing Leads to Setting Aside of Order Issue: Whether a show cause notice (SCN) uploaded on the ‘Additional Notices Tab’ of the GST portal, thereby not coming to the knowledge of the assessee, and leading to an order passed without an opportunity of hearing, vitiates… Read More »
Rectification Rejection: Assessee Directed to Appellate Authority for Full Scrutiny of Records Issue: Whether a rectification rejection order, primarily based on the assessee’s alleged failure to produce E-way bills and other documents, should be set aside on the ground that it was passed without proper scrutiny of records and in violation of natural justice principles,… Read More »
Confiscation and penal proceedings under section 130 can only initiate after completion of process under section 129. Seizure of Goods in Transit: Lack of Reasons and Improper Procedure Leads to Direction for Release Issue: Whether the seizure of goods in transit without assigning legible reasons, failure to issue a notice under Section 129(3) within seven… Read More »
Demand Order Vitiated by Lack of Digital Signature on Preceding Intimation and SCN Issue: Whether a demand order passed under Section 73 is valid if the preceding Form GST DRC-01A (intimation) and the show cause notice (SCN) do not bear the digital signature of the issuing authority, as mandated by Rule 26(3). Facts: Form GST… Read More »