Additions based on uncorroborated WhatsApp chats and selective reading of seized documents deleted Issue The central issue across these five distinct rulings is the evidentiary value of materials found during search and seizure operations—specifically, whether loose sheets, WhatsApp chats, and internal ledgers can be used to make additions under Sections 68 and 69A without… Read More »
Bonus to directors remanded for shareholding check; Non-reporting of transporter details under 194C(7) does not attract disallowance I. Bonus to Directors: Performance or Dividend in Disguise? Issue Whether a bonus paid to directors, which was disallowed by the Assessing Officer (AO) as being “in lieu of dividend” under Section 36(1)(ii), can be allowed as a… Read More »
Government grant for rehabilitation of cooperative society held as capital receipt, not taxable income Issue Whether a grant-in-aid received by a co-operative milk union from the Government under a rehabilitation scheme should be treated as a capital receipt (non-taxable) or a revenue receipt (taxable income), specifically when the funds are intended to clear liabilities… Read More »
IMPORTANT GST CASE LAWS 17.01.2026 Relevant Act Section Case Law Title Brief Summary Citation CGST Act, 2017 Section 9 (Classification) Patel Products v. Union of India [Chewing Tobacco Classification] Tobacco repacked from bulk into retail pouches is “manufactured”, falling under Tariff Heading 2403 9910 (Chewing Tobacco), not 2401 (Unmanufactured). The process of repacking for retail… Read More »
Notice uploaded in ‘Additional Notices’ tab invalid; Challenge to limitation extension pending SC verdict Issue Service of Notice: Whether an ex parte adjudication order is valid when the Show Cause Notice (SCN) was uploaded under the “Additional Notices” tab on the GST portal—a tab not easily visible or known to the taxpayer at the… Read More »
Appeal filed on last day of extended amnesty period held valid; rejection for delay set aside Issue Whether an appellate authority can reject an appeal as time-barred when the taxpayer filed it on the last date (31-10-2023) specified in a special government notification (Notification No. 29/2023) that extended the limitation period for such cases.… Read More »
High Court confirms inability to condone appeal delay beyond statutory limit under GST Act Issue Whether the High Court, in the exercise of its writ jurisdiction under Article 226 of the Constitution, can condone a delay in filing an appeal before the Appellate Authority when the appeal was filed beyond the maximum permissible period… Read More »
Refund rejection set aside; Department admits eligibility based on petitioner’s own previous favorable order Issue Whether the Revenue Department can reject a refund claim when the Appellate Authority has previously allowed a refund for the same petitioner under identical circumstances in a different period. Facts Application Rejected: The petitioner filed an application for a… Read More »
Repacked chewing tobacco classified as ‘Manufactured Tobacco’ (2403), attracting higher Compensation Cess Issue Whether tobacco leaves that are processed (dried, crushed, sieved) and packed in small retail pouches constitute “Unmanufactured tobacco” under Tariff Heading 2401 or “Chewing tobacco” under Tariff Heading 2403 for GST and Compensation Cess purposes. Facts Process: The assessee purchased tobacco… Read More »
IMPORTANT INCOME TAX CASE LAWS 16.01.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 14A / Rule 8D Asia Investments (P.) Ltd. v. ACIT [Nexus for Disallowance] Disallowance under Section 14A (Rule 8D) is restricted to expenditure having a proximate nexus with exempt income. Mechanical application of Rule 8D without… Read More »