Jurisdictional Invalidity of Composite Show Cause Notices (SCNs) 1. The Core Dispute: Consolidation vs. Independent Tax Periods The Revenue department has frequently adopted a practice of “bunching” or clubbing multiple financial years into a single Show Cause Notice (SCN) or a composite assessment order. This is often done for administrative convenience or to extend the… Read More »
Determining the “Relevant Date” for Refund After Correcting Payment Heads 1. The Core Dispute: When Does the Two-Year Limitation Start? The petitioner mistakenly paid the Kerala Flood Cess (KFC) through the regular GSTR-1 portal instead of the dedicated KFC-A return. Realizing the error, the petitioner made a fresh payment under the correct head on 10.03.2025.… Read More »
Retrospective Relief for Time-Barred ITC Claims under Section 16(5) 1. The Core Dispute: Strict Limitation vs. Retrospective Relaxation The petitioner, a registered dealer, faced departmental orders reversing their Input Tax Credit (ITC). The department’s sole ground was that the credit was claimed beyond the strict time limit prescribed under Section 16(4). Department’s Stand: Based on… Read More »
GST Applicability on Overseas Merchant Trade between Two Indian Entities 1. The Core Dispute: Supply between Indian Entities vs. Non-Taxable Territory Movement The applicant, an Indian entity, operates a “dropshipping” or merchant trade model. They purchase goods from foreign vendors (Spain/USA) and sell them to another Indian entity (Party B) for a profit. Crucially, the… Read More »
Prohibition of Parallel Adjudicatory Proceedings under GST 1. The Core Dispute: Overlapping Jurisdiction (Section 6(2)(b)) The petitioner-firm was subjected to scrutiny and demands from both Central GST (CGST) and State GST (SGST) for the periods 2019-20 and 2020-21. The firm sought the quashing of CGST’s Show Cause Notices (DRC-01) and Orders-in-Original (OIO), arguing that a… Read More »
IMPORTANT INCOME TAX CASE LAWS 12.02.2026 Relevant Section Case Law Title Core Ruling / Summary Citation Section 14A / 144B Captain Pramod Kumar Bajaj v. UOI [Selection Bias] The SC quashed the rejection of a candidate for ITAT Member because the selection committee included an officer who had faced contempt proceedings from that candidate. Justice… Read More »
Limitation Period for Penalty Orders After Search (Section 271AAB) 1. The Issue The primary legal dispute was whether the limitation period for passing a penalty order under Section 271AAB (penalty in case of search) is governed by: Section 275(1)(a): Applicable when the assessment order is under appeal (6 months from the end of the month… Read More »
I. Section 14A: Disallowance Restricted to Income-Yielding Investments Issue: Whether investments that do not yield exempt income should be considered for disallowance under Section 14A read with Rule 8D. Key Takeaways: Restrictive Application: The Tribunal held that disallowance under Rule 8D must be restricted only to those investments which actually yielded exempt income during the… Read More »
Rejection of Charitable Registration for Medical Society Funded by Pharma Companies 1. Issue The primary legal question was whether a medical society primarily funded by pharmaceutical companies for organizing high-end conferences and seminars for doctors qualifies as a “charitable institution” under Section 2(15), and thereby eligible for registration under Section 12A. 2. Facts The assessee-society… Read More »
Rights in an Allotted Property Classified as a Capital Asset 1. The Core Dispute: Relinquishment of Rights vs. Income from Other Sources The assessee booked a residential unit with a developer in 2010 and received an allotment letter. In 2021, she transferred her “rights” in this unit to a third party via a registered agreement… Read More »