Bank’s loss on conversion of Loan into Equity (CDR) allowable as Business Loss/Bad Debt Issue Whether a bank can claim a tax deduction for the loss suffered when a portion of an outstanding loan is compulsorily converted into equity shares under a Corporate Debt Restructuring (CDR) scheme, specifically when the market value of the shares… Read More »
Script Writer’s Profit Estimation accepted at 68.19%; Arbitrary addition deleted Issue Whether the Revenue authorities can ignore audited books of account and arbitrarily estimate professional income at a high rate (85.30%) when the assessee (a script writer) has already offered a substantial net profit (68.19%) and voluntarily disallowed personal expenses. Facts Assessee Profile: A script… Read More »
I. Section 68 Addition on Sub-Contractor Payables Deleted Issue Whether outstanding amounts payable to sub-contractors can be added as unexplained cash credits under Section 68 when the assessee has provided full details (PAN, GST, Confirmations) and the Assessing Officer (AO) has accepted the sub-contract expenses in the P&L account. Facts Assessee Profile: A firm engaged… Read More »
Transfer Pricing: “Gross Rate” of State Electricity Board accepted as ALP for Captive Power; Section 14A disallowance upheld I. Transfer Pricing: Valuation of Captive Power (Section 80-IA) Issue For benchmarking the sale of power to an Associated Enterprise (AE) or captive consumption (for Section 80-IA deduction purposes), should the Arm’s Length Price (ALP) be the… Read More »
Milk Society for Farmers entitled to Section 11 Exemption; “Relief of Poor” upheld despite commercial activity Issue Whether a charitable society engaged in the procurement and processing of milk from small/marginal farmers is entitled to tax exemption under Sections 11 and 12 as “Relief of the Poor” under Section 2(15), or if its activities constitute… Read More »
IMPORTANT GST CASE LAWS 11.12.2025 Relevant Act Section Case Law Title Brief Summary Citation Central GST Act, 2017 Section 29 (Cancellation of Registration) Ms Imagine Marketing Ltd. v. Joint Commissioner CGST Appeals II Delhi Cancellation of GST registration, revocation, and appellate rejection orders were set aside and registration was restored, as orders were non-speaking, lacked… Read More »
Appellate Authority cannot dismiss appeal without reasons even if Appellant is absent (Ex-Parte) Issue Whether an Appellate Authority can dismiss an appeal via a non-speaking order without addressing the specific grounds raised in the appeal memo, solely because the appellant failed to appear for the personal hearing. Facts Background: The petitioner, a registered taxpayer, applied… Read More »
Recovery Notice (DRC-13) quashed; Automatic Stay triggers upon filing Appeal with Pre-deposit Issue Whether recovery proceedings initiated via Form DRC-13 (Notice to Bank/Third Party) can continue or must be withdrawn once the taxpayer files a statutory appeal under Section 107 and pays the mandatory 10% pre-deposit. Facts The Demand: The petitioner suffered two demand orders… Read More »
Writ Petition dismissed for Laches; Appeal remedy bypassed without cause Issue Whether a Writ Petition under Article 226 is maintainable to challenge a GST demand order when the petitioner failed to file a statutory appeal within the prescribed limitation period, offered no explanation for the delay, and the dispute involves factual verification of ITC mismatches.… Read More »
Matter remanded for fresh adjudication; Impugned Order to be treated as SCN Addendum Issue Whether an adjudication order (DRC-07) should be sustained when the petitioner had already paid the entire demand amount (as per the intimation) via Form DRC-03 prior to the order, but failed to file a formal reply to the Show Cause Notice… Read More »