Monthly Archives: September 2025

An order passed after denying an adjournment requested on valid medical grounds is a violation of the principles of natural justice and is not legally sustainable.

By | September 25, 2025
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An order passed after denying an adjournment requested on valid medical grounds is a violation of the principles of natural justice and is not legally sustainable. Issue Is an adjudication order confirming a tax demand legally valid if it is passed without granting an adjournment sought by the taxpayer on genuine medical grounds, thereby denying… Read More »

Category: GST

Denying the cross-examination of a witness whose statement is used against a taxpayer is a clear violation of the principles of natural justice.

By | September 25, 2025
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Denying the cross-examination of a witness whose statement is used against a taxpayer is a clear violation of the principles of natural justice. Issue Is an adjudication order confirming a tax demand legally valid if it relies on the statements of a third party, but the adjudicating authority denies the taxpayer’s specific request to cross-examine… Read More »

A court will direct an authority to first decide on a pending representation regarding a contractual GST dispute before intervening on the merits of the case.

By | September 25, 2025
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A court will direct an authority to first decide on a pending representation regarding a contractual GST dispute before intervening on the merits of the case. Issue When there is a contractual dispute over who is liable to bear the burden of GST, and the aggrieved party has already made a formal representation to the… Read More »

Category: GST

No concealment penalty can be levied on an addition made purely on an estimated basis.1

By | September 25, 2025
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No concealment penalty can be levied on an addition made purely on an estimated basis.1 Issue Can a penalty for concealment of income under Section 271(1)(c) of the Income-tax Act, 1961, be validly imposed when the underlying addition to income was not based on concrete proof of bogus transactions but was made by the Assessing… Read More »

A rejection of Form 10AB due to a clerical error is a violation of natural justice.

By | September 25, 2025
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A rejection of Form 10AB due to a clerical error is a violation of natural justice. Issue Can a charitable trust’s application for regular approval under Section 80G of the Income-tax Act, 1961, be rejected as non-maintainable simply because of an inadvertent clerical error in selecting the wrong clause in the online application form, especially… Read More »

LTCG isn’t bogus if fully documented, despite the company’s weak financials.

By | September 25, 2025
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LTCG isn’t bogus if fully documented, despite the company’s weak financials. Issue Can an Assessing Officer treat a Long-Term Capital Gain (LTCG) from the sale of shares as bogus under Section 68 of the Income-tax Act, 1961, simply because the company is a “penny stock” whose price is not supported by its financial fundamentals, even… Read More »

An addition under Section 68 is justified when the money trail proves funds were routed back to the assessee through shell companies.

By | September 25, 2025
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An addition under Section 68 is justified when the money trail proves funds were routed back to the assessee through shell companies. Issue Can share application money be treated as unexplained cash credit under Section 68 of the Income-tax Act, 1961, if the tax department provides evidence, such as a money trail, to show that… Read More »

A disallowance for unverifiable creditors was restricted to 25% when sales were accepted.

By | September 25, 2025
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A disallowance for unverifiable creditors was restricted to 25% when sales were accepted. Issue When the purchases made by a business are considered genuine (because the corresponding sales are accepted), but the creditors for those purchases are found to be non-existent or unverified, should the entire amount be added to income, or should a portion… Read More »