Monthly Archives: February 2026

Bombay High Court Quashes Reassessment for AY 2016-17 Holding Audit Objections on Disclosed Material Amount to a Change of Opinion 1. The Core Dispute: Audit Objections vs. Change of Opinion The assessee filed a return showing a loss, which was scrutinized under Section 143(3). During the original assessment, the Assessing Officer (AO) specifically examined details… Read More »

Supreme Court Disposes of Revenue’s SLP, Permitting High Court Review in Light of Retrospective Clarifications on JAO Jurisdiction 1. The Core Dispute: JAO vs. FAO (Faceless Reassessment) The primary legal conflict involves whether a Jurisdictional Assessing Officer (JAO) has the authority to issue a reassessment notice under Section 148 after the introduction of the Faceless… Read More »

Jurisdictional Invalidity of Rejecting Project Completion Method Without Satisfaction of Section 145(3) Conditions 1. Rejection of Accounting Method (Section 145) The assessee, a real estate developer, followed the Project Completion Method (PCM), recognizing revenue only when the construction of “Milan Mall” was finished (AY 2017-18). The Assessing Officer (AO) rejected this, attempting to tax receipts… Read More »

Mandatory Refund of Recovered Tax Dues Beyond Pre-Deposit Where GST Tribunal Is Not Operational 1. The Core Dispute: Recovery vs. Right to Appeal The petitioner’s tax dues were recovered by the Revenue department following a “Summary of Demand” (Annexure-C). The petitioner intended to challenge this order before the GST Appellate Tribunal (GSTAT) under Section 112,… Read More »

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 »