Section 43B Disallowance Invalid if Tax Was Never Claimed as an Expense. Issue Can a disallowance be made under Section 43B for unpaid statutory dues (like VAT/GST) if the assessee never claimed these dues as a deduction in its Profit and Loss account in the first place? Facts For the Assessment Year 2018-19, the Assessing… Read More »
Disallowance of Commission is Unjustified When Linked to Substantial Growth in Sales and Profits. Issue Can an Assessing Officer (AO) disallow commission expenses by deeming them “unverifiable” and not genuine, even when the assessee provides substantial evidence of payment, confirmations from recipients, and can demonstrate a direct correlation between the commission paid and significant business… Read More »
Bad Debt Write-Off Allowed Alongside Provision; Proviso Prevents Double Deduction Issue How does the proviso to Section 36(1)(vii) of the Income-tax Act operate in conjunction with the deduction for a provision for bad and doubtful debts under Section 36(1)(viia)? Does it limit the total bad debt claim, or does it merely function as a mechanism… Read More »
Reopening Notice Quashed for Lack of Prima Facie Belief of Escaped Income. Issue Can an Assessing Officer (AO) issue a reassessment notice under Section 147 merely to conduct a detailed investigation into an assessee’s claims (such as the nature of offshore services or the existence of a Permanent Establishment), without having a genuine prima facie… Read More »
IMPORTANT GST CASE LAWS 28.10.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 2 of the Central Goods and Services Tax Act, 2017 Amit Kumar Basau v. Sales Tax Officer Class II Avato, Delhi The embargo under Section 69 of the Partnership Act, 1932 (regarding unregistered firms suing) was held inapplicable to a… Read More »
Repeal of GST Rule Without a Saving Clause Invalidates All Pending Proceedings. Issue Can tax authorities continue with proceedings and enforce a demand raised under a specific rule (Rule 96(10) of the CGST Rules) after that rule has been repealed by the legislature without a “saving clause” to protect ongoing actions? Facts The petitioner was… Read More »
HC Directs GSTN to Activate Portal, Upholding Assessee’s Right to Appeal. Issue What is the appropriate legal remedy for a taxpayer who is unable to validate their statutory appeal because their GST portal has been rendered inactive, thereby preventing them from making the mandatory online pre-deposit required under Section 107 of the CGST Act? Facts… Read More »
GST Appellate Order Invalid if Not Passed on Hearing Date, Remanded for Fresh Decision. Issue Is a GST appellate order legally valid if it is passed and issued on a date subsequent to the conclusion of the final hearing, especially when the GST Act does not contain a specific provision that permits such a delayed… Read More »
Pre-Hearing Not Mandatory for Provisional Attachment; Post-Attachment Remedy Sufficient. Issue Is a pre-decisional hearing a mandatory requirement under Section 83 of the CGST Act before a proper officer can provisionally attach a taxpayer’s bank account? Facts The GST department, during an investigation into ITC misuse, passed an order under Section 83 to provisionally attach the… Read More »
GST Payment Collected During Raid is Coercive and Illegal; HC Orders Refund with Interest. Issue Can a payment made by a taxpayer in FORM GST DRC-03 during a search and seizure operation, before the issuance of any show-cause notice or determination of liability, be considered a “voluntary” payment under the GST Act, or does it… Read More »