Invalidation of JAO Notices u/s 148 due to Mandatory Faceless Procedure (Section 151A) 1. The Core Dispute: JAO vs. Faceless Authority The petitioner challenged a reassessment notice issued under Section 148 and the subsequent assessment order. The primary contention was that the Jurisdictional Assessing Officer (JAO) lacked the legal authority to initiate these proceedings after… Read More »
Character of Land in Revenue Records Prevails Over Actual Usage for Section 50C (AY 2011-12) 1. The Core Dispute: Multiplicative Factor for Circle Rate The assessee sold a property located in a ‘Lal Dora’ area (historically residential/agricultural village land). While the property was built on agricultural land, it was being used commercially as a godown… Read More »
Cost of Acquisition in Joint Development Agreements (JDA) (AY 2022-23) 1. The Core Dispute: Is the Constructed Area “Free”? The assessee, a landowner, entered into a JDA where they gave up 45% of their land share to a developer. In exchange, the developer constructed a building and gave the assessee 55% of the constructed area.… Read More »
Taxation of Employee Welfare Trusts at Normal AOP Rates (AY 2022-23) 1. The Core Dispute: Discretionary Trust vs. Welfare Exception The Assessing Officer (AO) treated the assessee-trust as a standard discretionary trust. Because the shares of the beneficiaries (the employees) were not specifically defined in the trust deed, the AO invoked Section 167B to tax… Read More »
Retrospective Disallowance of Education Cess and the Definition of Assessing Officer (AY 2020-21) I. Education Cess: Retrospective Disallowance & Revisionary Powers The assessee-company claimed Education Cess as a business expenditure under Section 37(1). The Assessing Officer (AO) initially allowed the claim during limited scrutiny. However, the Principal Commissioner (PCIT) invoked Section 263 (Revisionary Jurisdiction) to… Read More »
Mandatory Reasoned Decision for Informant Rewards 1. The Core Dispute: Informant’s Right to a Reasoned Decision The petitioner provided detailed information to the Income Tax Department regarding alleged tax evasion by a group of builders. Following the prescribed procedure, he signed a written statement and was subsequently granted an interim reward of ₹1 lakh. However,… Read More »
IMPORTANT GST CASE LAWS 06.02.2026 Relevant Act Section Case Law Title Brief Summary Citation CGST Act, 2017 Section 16(5) & 16(6) Rubicon Associates v. State Tax Officer [Retrospective ITC Relief] The newly inserted Sections 16(5) and 16(6) provide a legal “pardon” for ITC claims for FY 2017-18 to 2020-21. If the GSTR-3B was filed by… Read More »
Critical Legal Precedents on GST Adjudication, Benami Transactions, Income Tax Jurisdiction, and Procedural Natural Justice The dispute began when a demand was confirmed against the assessee under Section 73 due to a mismatch between the Input Tax Credit (ITC) claimed in Form GSTR-3B and that available in Form GSTR-2A. Assessee’s Action: The assessee filed an… Read More »
Invalidation of “Negative Blocking” in Electronic Credit Ledger 1. The Core Dispute: Blocking vs. Negative Entries The tax authorities blocked the Electronic Credit Ledger (ECL) of the petitioner, resulting in a “negative balance.” This meant that even though the taxpayer had no current ITC balance, the authorities inserted a negative entry, forcing any future credits… Read More »
Consistency of the “Relevant Period” in ITC Refund Computation 1. The Dispute: Selective Interpretation of the “Relevant Period” The assessee, a manufacturer of biostimulants and potash (seasonal goods), claimed a refund of accumulated Input Tax Credit (ITC) for the month of March 2025 under the zero-rated supply route (exports). The Assessee’s Logic: The company applied… Read More »