Foreign Investment Write-Off Held as Allowable Business Loss, Not Capital Loss. Issue Whether the loss incurred from writing off an investment in a foreign subsidiary, which was established to further the assessee’s core business, constitutes an allowable revenue business loss or an inadmissible capital loss. Facts The assessee-company invested in a US company (BC) to… Read More »
Reassessment Quashed as Assessee Had Fully Disclosed Depreciation Claim in Original Assessment. Issue Whether a reassessment notice issued beyond four years from the end of the assessment year is legally valid, when the reason for reopening (disallowance of additional depreciation) is the exact same issue that was fully disclosed, supported by documents, and examined during… Read More »
Salary Paid to a Partner is Business Income; Expenses Incurred to Earn it are Deductible. Issue Whether expenses (like car depreciation) incurred by a partner, which are wholly and exclusively for the purpose of earning remuneration from their partnership firm, can be claimed as a deduction, or if such remuneration is non-deductible salary income. Facts… Read More »
Late Form 10 Filing a Curable Defect, Condoned on Genuine Hardship Grounds. Issue Can the benefit of income accumulation under Section 11(2) of the Income-tax Act be denied to a charitable trust for a procedural delay in filing Form No. 10, especially when the intent to accumulate was declared, all substantive conditions were met, and… Read More »
Urban Improvement Authority is “State” Under Article 289, Immune from Income Tax. Issue Whether an Urban Improvement Authority, a statutory body created by a State law to perform sovereign/municipal functions, qualifies as the “State” and is therefore entitled to constitutional immunity from Union (Central) income tax under Article 289 of the Constitution. Facts The assessee,… Read More »
IMPORTANT GST CASE LAW 11.11.2025 Section/Rule Case Law Title Brief Summary Citation Relevant Act Section 6 JSW Techno Projects Management Ltd. v. Union of India Writ petition against a show-cause notice (SCN) challenging parallel proceedings under Section 6(2)(b) was dismissed, as the periods involved differed and factual issues needed determination. Non-interference was justified due to… Read More »
Anti-Profiteering Proceedings Terminated After Contractor Voluntarily Pays Residual ITC Benefit. Issue Whether anti-profiteering proceedings under Section 171 of the CGST Act should be continued against a contractor after they have voluntarily paid the remaining (profiteered) amount, as computed by the Director General of Anti-Profiteering (DGAP), to the recipient of the service. Facts An oil PSU… Read More »
10% Penalty Pre-Deposit for GSTAT Appeal is Mandatory; Prior DRC-03 Payments Cannot Be Adjusted. Issue In a penalty-only appeal to the GST Appellate Tribunal (GSTAT), can a taxpayer adjust an amount that was paid “voluntarily” (via Form GST DRC-03) during the initial investigation against the mandatory 10% pre-deposit of the disputed penalty, which is required… Read More »
Appeal Limitation Runs From Date of Email, Not Failed Portal Upload; HC Remands Case. Issue Whether the statutory time limit for filing an appeal under Section 107 of the CGST Act begins from the date an order is passed, or from the date it is actually communicated to the taxpayer, especially when a “portal glitch”… Read More »
Unsigned GST Order Validated by DRC-07 Details; HC Grants Appeal on Separate Natural Justice Breach. Issue Whether a GST Order-in-Original is legally invalid for lacking a signature if it is accompanied by a FORM GST DRC-07 that contains the issuing officer’s details, and whether a subsequent breach of natural justice (in a rectification proceeding) can… Read More »