I. Interest Disallowance: Capitalization Restricted to “Put to Use” Period The Issue Whether the Assessing Officer (AO) was justified in making a massive interest disallowance of ₹9.54 crores under Section 36(1)(iii) on the grounds that short-term loans were diverted for long-term investments without proving commercial expediency. The Facts The Claim: The assessee, a major trader… Read More »
Landmark Ruling on IDS 2016, Faceless Jurisdiction, and Tax Rates I. Tangible Material vs. Jurisdictional Validity The Issue Whether a failed IDS declaration in Form 1 can trigger a reopening of assessment for AY 2017-18 and if the Jurisdictional Assessing Officer (JAO) still holds the power to issue such notices. The Facts The Declaration: The… Read More »
Mandatory Draft Order: Procedural Safeguards in Remanded Transfer Pricing Cases The Issue Whether the Assessing Officer (AO) is legally bound to issue a fresh draft assessment order when a case is remanded by the Principal Commissioner (PCIT) for a de novo (fresh) assessment, especially if a draft order was already issued in the original round… Read More »
Employee Safe from Double Taxation: TDS Credit Must Be Granted Despite Employer’s Default The Issue Whether the Income Tax Department can raise a tax demand against an employee or deny TDS credit if the employer has deducted the tax from the salary but failed to deposit it into the Central Government’s account. The Facts The… Read More »
Testing Assets Not a Business Benefit: ITAT Deletes Section 28(iv) Addition The Issue Whether high-value equipment (₹3.86 crores) received free of cost from a foreign parent company (AE) solely for testing and calibration of software—and which is subsequently returned or destroyed—can be taxed as a “business benefit” under Section 28(iv). The Decision Not a… Read More »
Portal Glitches & Natural Justice: Restoring Regular Registration for Charitable Trusts I. Portal Limitations Cannot Deny Regular Registration (Section 12AB) The Issue Whether an existing trust is entitled to regular registration (5 years) even if technical glitches on the Income Tax portal forced them to select the wrong sub-clause (Provisional Registration) during filing. The Facts… Read More »
Counting Days for NRI Status & Retracted Statements under Search I. Counting “Stay in India”: Arrival Date Must Be Excluded The Issue Whether the “day of arrival” in India should be included or excluded when calculating the 182-day threshold for determining an individual’s residential status under Section 6. The Facts The Profile: The assessee was… Read More »
IMPORTANT GST CASE LAWS 24.01.2026 Relevant Act Section Case Law Title Brief Summary Citation CGST Act, 2017 Section 16 (ITC Blocking) Mrs. Anjita Dokania v. State Tax Officer [Mandatory Unblocking] Power to block the Electronic Credit Ledger under Rule 86A ceases automatically after one year. Continuation beyond this period is wholly impermissible and must be… Read More »
Abdul Kader M v. State Tax Officer: Remand Granted for Deceased Assessee and Disputed Extensions The Issue Whether a GST assessment order for FY 2018-19 can be sustained if passed in the name of a deceased taxpayer and based on limitation extensions (Notifications 9/2023 and 56/2023) previously declared illegal by the High Court. The… Read More »
Assessment Against Deceased Person & Invalid Limitation Extensions: Madras HC Remands Case The Issue Whether a GST assessment order is valid if it was passed in the name of a deceased person and relied on limitation extensions (Notifications 9/2023 and 56/2023) that were previously declared illegal by the High Court. The Facts Illegal Notifications:… Read More »