ITC Denial Quashed: Supplier Had Paid Tax with Interest Issue Whether an assessment order raising a demand for Input Tax Credit (ITC) under Section 74 is sustainable when the denial is based on the alleged non-payment of tax by the supplier, despite evidence showing the supplier eventually complied. Facts Period: February – March 2020.… Read More »
Customs Report Validates IGST Payment; Matter Remanded for Re-verification Issue Whether an assessee can be denied Input Tax Credit (ITC) on imported goods merely because they failed to produce “certified copies” of IGST payment from the Customs Department during the initial adjudication, even if the duty was actually paid. Facts The Allegation: The GST… Read More »
Ex Post Facto Acceptance of LUT for Refund on Zero-Rated Supplies Issue Whether a refund claim for IGST on zero-rated supplies (exports) can be rejected solely because the exporter failed to furnish the Letter of Undertaking (LUT) or Bond prior to the export as required under Rule 96A, or if such a lapse can… Read More »
GST Rate Reduction on Cinema Tickets: State Price Caps Do Not Justify Anti-Profiteering Issue Whether a cinema hall owner is liable for anti-profiteering under Section 171 of the CGST Act for failing to lower ticket prices after the GST rate reduction on 01-01-2019, despite arguments that (a) State laws fixed the ticket prices and… Read More »
IMPORTANT INCOME TAX CASE LAWS 22.01.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 5 (Accrual) PCIT v. EMC Ltd. [Retention Money] Retention money is a deferred payment contingent upon satisfactory completion. The assessee has no vested right to receive it in the year of retention; thus, it accrues only… Read More »
Assessment Quashed: “60-Day Rule” Applies After Stay Vacated in Search Cases, Not 12 Months Issue Whether the limitation period for completing a search assessment (under Section 153C) after a court-ordered stay is vacated is extended by 12 months (under Section 153(6)(i)) or only to 60 days (under the proviso to the Explanation to Section… Read More »
8-Minute Delay Condoned: Rs. 21 Crore Business Loss Allowed to be Carried Forward Issue Whether a delay of merely eight minutes in filing the Income Tax Return (ITR) can justify the denial of the right to carry forward a substantial business loss of Rs. 21.33 crores under Section 80, and whether the CBDT was… Read More »
Co-operative Societies: Section 80P Deduction Scope Clarified & Souharda Status Confirmed Detailed Analysis of Issues 1. Souharda Societies are “Co-operative Societies” (Section 2(19)) Issue: The Revenue often denies Section 80P deductions to entities registered under the Karnataka Souharda Sahakari Act, 1997, arguing they technically aren’t “co-operative societies” under the Income Tax Act. Decision: The Tribunal… Read More »
Section 80-IA Deduction Allowed for Road Projects; SLP Dismissed on Delay and Merit Issue Whether an assessee executing road projects awarded by the Government is eligible for deduction under Section 80-IA(4) as a “Developer” of infrastructure facilities, or if they are merely executing a “Works Contract” (which is ineligible), and whether the Supreme Court… Read More »
Section 50C Not Applicable if Rectified DVO Value is Lower than Sale Consideration Issue Whether the provisions of Section 50C (deeming Stamp Duty Value as sale consideration) apply if the Fair Market Value (FMV) determined by the Departmental Valuation Officer (DVO)—after correcting for errors regarding area and occupancy—is actually lower than the consideration received… Read More »