Personal Liberty Prevails: High Court Grants Bail to Accused in High-Value IGST Evasion Case After Six Months Custody 1. The Core Dispute: Allegation of Fraud vs. Right to Liberty The petitioners were arrested for allegedly evading tax by importing services from overseas without discharging their IGST liability under RCM. The Trial Court had initially rejected… Read More »
Telangana High Court Holds That Cancellation of GST Registration Does Not Wipe Out Past Tax Liabilities and Penalties 1. The Core Dispute: “Zero Liability” Declaration vs. Subsequent SCN The petitioner (Assessee) voluntarily applied for the cancellation of its GST registration, declaring that it had zero tax liability. The department accepted the application and cancelled the… Read More »
Quashing of Ex Parte Assessment Where Notice Uploaded on Portal Went Unnoticed; Mandating Use of Alternative Service Modes 1. The Core Dispute: Uploading vs. Effective Communication The Revenue authorities issued a Show Cause Notice (SCN) and subsequent reminders solely by uploading them on the GST Common Portal. Because the petitioner was unaware of these digital… Read More »
Bombay High Court Declares Clubbing of Multiple Financial Years in a Single SCN Under Section 74 as nconstitutional and Without Jurisdiction 1. The Dispute: “Bunching” vs. Year-Wise Assessment The Revenue authorities issued a single, consolidated Show Cause Notice (SCN) under Section 74, covering a continuous period from April 2018 to March 2024 (six financial years).… Read More »
Gujarat High Court Holds Omission of Rule 96(10) and 89(4B) Without Saving Clause Renders Them Redundant for All Pending Litigations 1. The Legal Controversy: The “Double Benefit” Restriction Historically, Rule 96(10) and Rule 89(4B) of the CGST Rules restricted exporters from claiming a refund of Integrated Tax (IGST) paid on exports if they had imported… Read More »
ITC Denial Quashed as Section 16(5) Overrides Original Limitation Period for FY 2017-18 to 2020-21 1. The Core Dispute: Statutory Deadlines vs. Retrospective Relief The petitioner’s Input Tax Credit (ITC) claims for late 2019 and early 2020 were originally rejected. The tax authorities argued that the returns (filed in December 2020 and November 2021) were… Read More »
IMPORTANT INCOME TAX CASE LAWS 19.02.2026 Section Case Law Title Core Ruling & Strategic Summary Citation S. 148 / 151A Vibhavari B. Bhatt v. ITO [Landmark – Faceless Mandate] Reassessment notices issued after 29-3-2022 by a Jurisdictional AO (manual) instead of the Faceless AO are void. High Court rulings (e.g., Hexaware Tech) are binding on… Read More »
TRO Not Empowered to Declare Third-Party Mortgage Void-Ab-Initio but Retains Right to Sell Attached Property Post-Rule 2 Notice 1. Scope of Section 281(1): Pendency of Proceedings Section 281(1) acts as a protective shield for the Revenue, declaring certain transfers void if they occur during the pendency of any proceeding or after completion but before the… Read More »
NBFC Entitled to Section 37(1) Deduction for Mark-to-Market Losses on NIFTY-Linked Debentures Under Mercantile System 1. The Core Dispute: Realized Loss vs. Contingent Liability The assessee, an NBFC, issued specialized debt instruments known as Benchmark Linked Debentures (BLDs). These were principal-protected, meaning the original investment was safe, but the “coupon” (interest) was contingent upon the… Read More »
Development Authorities Entitled to Section 11 Exemption Provided Commercial Receipts Stay Within the 20% Threshold 1. The Core Dispute: Charitable Purpose vs. Commercial Activity The assessee, a statutory Development Authority (similar to DDA, AUDA, or GIDC), claimed exemption under Section 11. The Assessing Officer (AO) rejected the claim, citing the provisos to Section 2(15). AO’s… Read More »