Penalty quashed for minor PIN code error in E-way bill; CBIC Circular binding Issue Whether the detention of goods and imposition of penalty under Section 129 is justified when there is a minor one-digit error in the PIN code on the E-way bill/invoice, while the address is correct and all other documents are in order.… Read More »
Demand quashed for traveling beyond SCN; Interest and Penalty cannot be imposed if not proposed Issue Whether an adjudicating authority can impose interest and penalty in the final assessment order when the Show Cause Notice (SCN) issued under Section 74/73 proposed only the recovery of tax. Facts Period Involved: 2019-20. The SCN: The Revenue authorities… Read More »
COVID-19 limitation extension saves refund claim for tax paid under wrong head Issue Whether the refund applications filed for tax paid under the wrong head (Section 77) for the period January 2019 to March 2022 were barred by limitation, considering the exclusion of the COVID-19 period under Notification No. 13/2022-Central Tax. Facts Period Involved: January… Read More »
Supreme Court upholds refund of unutilized Compensation Cess ITC despite export on payment of IGST Issue Whether an assessee is entitled to a refund of unutilized Input Tax Credit (ITC) of Compensation Cess paid on inputs (coal), when the final goods are exported on payment of IGST (which is subsequently refunded), and the Department denies… Read More »
Reassessment against deceased valid if death not intimated; Remanded for fresh hearing Issue Jurisdiction: Whether reassessment proceedings initiated against a deceased assessee (notice issued after death) are void ab initio when the legal representatives failed to inform the Income Tax Department about the death. Natural Justice: Whether the assessment order should be set aside to… Read More »
Addition based solely on retracted disclosure deleted; Assessee held as broker based on seized ‘rukkas’ Issue Whether an addition made under Section 153A is sustainable if it relies primarily on a disclosure made during a search which was subsequently retracted, and where the seized material (documents/rukkas) indicates that the assessee acted merely as a middleman/broker… Read More »
CAD Software expenses allowed as Revenue Expenditure due to short shelf-life; 80-IC benefits restored Issue Whether expenditure incurred on the acquisition of “Premium CAD Software” constitutes Capital Expenditure (providing enduring benefit) or Revenue Expenditure (due to rapid obsolescence), and the consequential impact on the computation of eligible profits for deduction under Section 80-IC. Facts Assessment… Read More »