Daily Archives: December 8, 2025

Penalty proceedings stayed following Supreme Court stay on Reassessment regarding alleged Round-Tripping

By | December 8, 2025
0 Comment

Penalty proceedings stayed following Supreme Court stay on Reassessment regarding alleged Round-Tripping Issue Whether a penalty notice issued under Section 272A is sustainable and should be enforced when the underlying High Court order (which validated the reopening of assessment based on allegations of round-tripping and non-disclosure) has already been stayed by the Supreme Court. Facts… Read More »

Ex-parte Section 50C addition remanded; Assessment must be on merits despite non-compliance

By | December 8, 2025
0 Comment

Ex-parte Section 50C addition remanded; Assessment must be on merits despite non-compliance Issue Whether an ex-parte assessment making additions under Section 50C by treating the Cost of Acquisition as ‘Nil’ due to the assessee’s non-appearance is sustainable, or if the matter should be remanded when substantive factual disputes regarding valuation, cost, and the year of… Read More »

Retrospective cancellation of 12A registration u/s 12AB(4) quashed; “Specified Violations” apply only post-2022

By | December 8, 2025
0 Comment

Retrospective cancellation of 12A registration u/s 12AB(4) quashed; “Specified Violations” apply only post-2022 Issue Whether the Commissioner (Exemption) has the jurisdiction to cancel a charitable trust’s registration retrospectively under Section 12AB(4) based on “specified violations” that allegedly occurred prior to April 1, 2022, the date when the concept of “specified violations” was introduced into the… Read More »

PCIT’s Section 263 revision quashed; AO’s view on ‘Penny Stock’ LTCG held plausible

By | December 8, 2025
0 Comment

PCIT’s Section 263 revision quashed; AO’s view on ‘Penny Stock’ LTCG held plausible Issue Whether the Principal Commissioner of Income Tax (PCIT) can invoke revisional jurisdiction under Section 263 to set aside an assessment order accepting Long Term Capital Gains (LTCG) exemption on alleged “penny stocks,” when the Assessing Officer (AO) had already examined the… Read More »

Rejection of rectification application hindering appeal requires personal hearing; “Civil Consequence” test applied

By | December 8, 2025
0 Comment

Rejection of rectification application hindering appeal requires personal hearing; “Civil Consequence” test applied Issue Whether a personal hearing is mandatory before rejecting an application for rectification of mistake under Section 161, particularly when the alleged error (mismatch between detailed order and DRC-07) impedes the assessee’s ability to calculate the statutory pre-deposit for filing an appeal.… Read More »

Category: GST

Penalty for expired E-way bill quashed; GPS confirms arrival and unique engine numbers rule out evasion

By | December 8, 2025
0 Comment

Penalty for expired E-way bill quashed; GPS confirms arrival and unique engine numbers rule out evasion Issue Whether the detention of goods and imposition of penalty under Section 129 for an expired e-way bill is sustainable when the vehicle had already reached the destination within the validity period (proven by GPS) but was parked waiting… Read More »

Category: GST

Bank account attachment vacated on 10% deposit; SCN reply treated as objection to ITC blocking

By | December 8, 2025
0 Comment

Bank account attachment vacated on 10% deposit; SCN reply treated as objection to ITC blocking Issue Whether the provisional attachment of a bank account and blocking of Input Tax Credit (ITC) should be continued when the petitioner has already replied to the Show Cause Notices (SCN) issued on the same subject matter, and whether a… Read More »

Category: GST

Proceedings deemed closed upon payment of 15% penalty when tax & interest paid pre-SCN under Section 74

By | December 8, 2025
0 Comment

Proceedings deemed closed upon payment of 15% penalty when tax & interest paid pre-SCN under Section 74 Issue Whether a Show Cause Notice (SCN) issued under Section 74(1) (involving fraud/suppression) and the subsequent demand order are sustainable when the assessee had already deposited the tax and interest before the issuance of the SCN, and whether… Read More »

Category: GST

Society controlled by State officers qualifies as “Government Entity”; GST exemption allowed

By | December 8, 2025
0 Comment

Society controlled by State officers qualifies as “Government Entity”; GST exemption allowed Issue Whether a society established under a State scheme, with a Governing Body comprising government officers (Deputy Commissioner, etc.) and receiving state grants, qualifies as a “Government Entity” under Notification No. 12/2017-Central Tax (Rate) to claim exemption on services provided to the government.… Read More »

Category: GST

Self-drive car rentals classified under SAC 997329; GST rate linked to sale of like goods

By | December 8, 2025
0 Comment

Self-drive car rentals classified under SAC 997329; GST rate linked to sale of like goods Issue What is the correct Service Accounting Code (SAC) and applicable GST rate entry for “Self-drive passenger car rental services” (without operator) post-October 1, 2019, considering the amendments to Heading 9966. Facts Service Model: The applicant provides passenger cars for… Read More »

Category: GST