Monthly Archives: February 2026

Setting Aside Ex-Parte Assessment Where SCN Uploaded on Portal Went Unnoticed, Mandating Use of Alternative Service Modes

By | February 18, 2026
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Setting Aside Ex-Parte Assessment Where SCN 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 uploads,… Read More »

Category: GST

Mandatory Refund of Recovered Tax Dues Beyond Pre-Deposit Where GST Tribunal Is Not Operational

By | February 18, 2026
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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 »

Category: GST

Quashing of Consolidated Show Cause Notices and Composite Assessment Orders Covering Multiple Financial Years

By | February 18, 2026
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Quashing of Consolidated Show Cause Notices and Composite Assessment Orders Covering Multiple Financial Years 1. The Core Dispute: “Bunching” of Multiple Financial Years The tax authorities issued a single consolidated Show Cause Notice (SCN) to the petitioner, covering a span of five financial years (from 2019-20 to 2023-24). Subsequently, a single composite assessment order was… Read More »

Category: GST

Quashing of Illegal “Negative Blocking” of Input Tax Credit Beyond Available Ledger Balance

By | February 18, 2026
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Quashing of Illegal “Negative Blocking” of Input Tax Credit Beyond Available Ledger Balance 1. The Core Dispute: Creating an Artificial “Debt” via Rule 86A During the period from January 2025 to October 2025, the tax authorities blocked the petitioner’s Electronic Credit Ledger (ECL) under Rule 86A. The block was not limited to the balance currently… Read More »

Category: GST

IMPORTANT INCOME TAX CASE LAWS 18.02.2026

By | February 18, 2026
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IMPORTANT INCOME TAX CASE LAWS 18.02.2026 Relevant Section Case Law Title Core Ruling / Summary Citation Section 2(47) Zarir Rustom Joshi v. ITO [JDA Transfer Date] If a development agreement was registered and full consideration was received in 2000, the transfer is complete. LTCG cannot be re-computed on the final sale deed in 2008 by… Read More »

Supreme Court Allows Revenue to Represent Clarification on Local vs. Faceless Assessment Jurisdiction in Reopening Cases

By | February 18, 2026
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Supreme Court Allows Revenue to Represent Clarification on Local vs. Faceless Assessment Jurisdiction in Reopening Cases 1. The Core Dispute: JAO vs. Faceless Assessing Officer (FAO) The High Court had originally ruled in favor of the assessee, quashing reassessment notices issued under Section 148. The primary reason was that the Jurisdictional Assessing Officer (JAO)—the local… Read More »

Invalidation of Assessment Proceedings Due to Service of Section 143(2) Notice Beyond Statutory Limitation Period

By | February 18, 2026
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Invalidation of Assessment Proceedings Due to Service of Section 143(2) Notice Beyond Statutory Limitation Period 1. The Core Dispute: Time-Barred Scrutiny Notice The primary issue in this case was whether the Assessing Officer (AO) complied with the strict statutory timeline for serving a scrutiny notice under Section 143(2). For the relevant assessment year, the law… Read More »

Deletion of Addition under Section 56(2)(x) where Variation Between Purchase Price and Stamp Duty Value is within 10% Safe Harbor Limit

By | February 18, 2026
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Deletion of Addition under Section 56(2)(x) where Variation Between Purchase Price and Stamp Duty Value is within 10% Safe Harbor Limit 1. The Core Dispute: Stamp Duty Valuation Mismatch The assessee, a partnership firm in the real estate development business, purchased land with structures. After an initial conveyance deed, a supplementary deed was executed, fixing… Read More »

Scholarship for Foreign Studies & Condonation of Delay in Section 12AB Registration

By | February 18, 2026
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Scholarship for Foreign Studies & Condonation of Delay in Section 12AB Registration 1. Core Dispute: Scholarship as “Application Outside India” The Assessing Officer (AO) rejected the trust’s application for registration under Section 12AB on the grounds that the trust violated Section 11(1)(c). The violation was alleged because the trust provided a ₹2 lakh scholarship for… Read More »

Duty of Appellate Authorities to Grant Legitimate Relief Even if Not Claimed in Original Income Tax Return

By | February 18, 2026
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Duty of Appellate Authorities to Grant Legitimate Relief Even if Not Claimed in Original Income Tax Return 1. The Core Dispute: Technical Error vs. Substantive Exemption The assessee, an NGO registered under Section 12A, inadvertently disclosed its interest income from FDRs and bank deposits under the head ‘Income from Other Sources’ instead of claiming it… Read More »