IMPORTANT GST CASE LAWS 31.01.2026 Relevant Act Section Case Law Title Brief Summary Citation CGST Act, 2017 Section 47 Ms. Kandan Hardware Mart v. Asst. Comm. (ST) [Late Fee is Penal] The Court clarified that “Late Fee” u/s 47(2) is essentially a penal levy. Since it lacks quid pro quo and aims to deter breaches… Read More »
Madras High Court Ruling: Late Fees under Section 47 vs. General Penalty under Section 125 1. The Nature of “Late Fee” under Section 47 The Court provided a profound legal interpretation of what constitutes a “fee” in the context of late filings. Penal in Nature: The Court held that “Late Fee” collected under Section 47(2)… Read More »
Calcutta High Court Restores Appeal: Appellate Authority Cannot Ignore Special Amnesty Notifications 1. The Core Dispute: Amnesty vs. Statutory Limitation The petitioner was caught in a cycle of litigation regarding a partially rejected refund claim from 2020. Initial Rejection: The refund was rejected in 2020. The first appeal (filed in Sept 2020) was dismissed in… Read More »
Bombay High Court Quashes Consolidated Section 74 Notices: Multiple Financial Years Cannot Be Clubbed 1. The Core Dispute: Consolidated vs. Year-Wise Notices The Revenue issued a single, composite Show Cause Notice (SCN) under Section 74 of the CGST Act, covering multiple financial years. The notice alleged that the assessee had suppressed taxable value and made… Read More »
Bombay High Court Mandates 3-Month Gap Between SCN and Final Order under Section 73 1. The Core Dispute: Compressed Adjudication Timelines The petitioner challenged a demand order passed under Section 73 of the CGST Act, which deals with tax dues not involving fraud or suppression. The Timeline: The Revenue issued the Show Cause Notice (SCN)… Read More »
Substantive Entitlement Over Technical Lacunae: Gujarat High Court Rules on Blocked IGST Refunds 1. The Core Dispute: Size Constraints and System Errors The assessee, an exporter, faced a series of technical hurdles while attempting to claim a refund of accumulated IGST from zero-rated supplies. Size Constraints: Due to the large volume of exports, shipping bills… Read More »
IMPORTANT INCOME TAX CASE LAWS 31.01.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 11 / 13 Sri Srinivasa Educational & Charitable Trust v. DCIT [Search Relief for Trusts] Inconclusive DVO reports and surmises regarding “fund diversion” are insufficient to deny exemption. The Court upheld COVID relief expenditure as genuine… Read More »
Supreme Court Modifies High Court Order: Direct Tax Demand Barred, but Software Mandate Relaxed 1. The Core Conflict: The “Employer Default” Problem This case addresses a common grievance: an employer deducts tax (TDS) from an employee’s salary but fails to deposit it into the Government treasury. The Problem: When the employee files their return, the… Read More »
ITAT Ruling: Reassessment Quashed for Invalid Sanction; Relief on Bogus Purchases & Peak Credit I. Inflated Transport and Handling Charges During a search, the Revenue found Excel sheets indicating that the assessee had inflated bills for transportation and port handling. The extra money was paid to vendors and then “routed back” in cash to the… Read More »
Case Summary: ITAT Rules in Favor of “LOTUS” Brand Owner on AMP Expenses, Staff Salary, and Section 14A I. Genuineness of Advertisement, Marketing & Promotion (AMP) Expenses The Assessing Officer (AO) doubted the genuineness of AMP expenses because some vendors failed to respond to statutory notices under Section 133(6). The Findings: The Commissioner (Appeals) reviewed… Read More »