A reassessment order is a nullity without a valid Section 143(2) notice. Issue Is a reassessment order passed under Section 147 of the Income-tax Act, 1961, legally valid if the Assessing Officer fails to issue the mandatory notice under Section 143(2) after the assessee has filed a return in response to the initial reopening notice?… Read More »
An addition cannot be based solely on a third-party document denied by the assessee. Issue Can a tax addition be made against a person based solely on a loose document found at the premises of a third party, especially when that person completely denies the transaction, alleges forgery, and provides evidence to support their claim?… Read More »
A generic purpose in Form 10 is acceptable if a Board Resolution specifies it. Issue Can the benefit of accumulating income under Section 11(2) of the Income-tax Act, 1961, be denied to a charitable trust simply because the purpose mentioned in the prescribed Form 10 is generic, even if a supporting and contemporaneous Board Resolution… Read More »
A hotel cannot cite market dynamics to justify not passing on a GST rate cut. Issue Can a hotel avoid the charge of profiteering under Section 171 of the CGST Act, 2017, by claiming that its increase in the base price of rooms, which effectively nullified a GST rate reduction, was a result of market… Read More »
A court may grant extended time to file an appeal despite the taxpayer’s non-compliance. Issue Should a taxpayer who failed to reply to a show-cause notice, attend a hearing, and file a timely appeal be granted an opportunity by a High Court to pursue the statutory appellate remedy belatedly? Facts The assessee received a show-cause… Read More »
A provisional attachment of property under the GST law automatically expires after one year. Issue Can a provisional attachment of a bank account, made under Section 83 of the CGST Act, 2017, continue to be in effect for a period longer than one year from the date the attachment order was initially made? Facts The… Read More »
A court will not quash a reasoned show-cause notice but will ensure a fair hearing. Issue Should a High Court, in its writ jurisdiction, interfere with and quash a show-cause notice (SCN) issued under Section 74 of the CGST Act at a preliminary stage, based on the taxpayer’s claims that the allegation of fraud is… Read More »
No suppression can be alleged when the issue is already under litigation. Issue Can the tax department validly issue a show-cause notice under Section 74 of the CGST Act, 2017, alleging suppression of facts, on a classification issue that the department is fully aware of and which is already pending for a final decision before… Read More »
An ex-parte order is invalid if the preceding show-cause notice was uploaded to an obscure or ancillary tab on the GST portal, depriving the taxpayer of a fair hearing. Issue Is an ex-parte adjudication order legally valid if the show-cause notice (SCN) that initiated the proceeding was uploaded to the “Additional Notices Tab” of the… Read More »
A court may grant an extended time to file a statutory appeal, even after initial non-compliance by the taxpayer, considering the possibility of inadvertent error. Issue Should a taxpayer who failed to reply to a show-cause notice, did not attend the hearing, and did not file a timely appeal be granted a fresh opportunity by… Read More »