Validity of Arrest and Procedural Safeguards under BNSS 2023 1. The Core Dispute: Technical Omissions vs. Substantive Awareness The DGGI arrested two respondents for allegedly availing fraudulent Input Tax Credit (ITC) totaling approximately ₹16.53 crore (roughly ₹8.26 crore each). The Chief Judicial Magistrate (CJM) initially granted bail based on two procedural flaws: The “Heading” Issue:… Read More »
ITC Relief for FY 2018-19 via Retrospective Statutory Amendments 1. The Core Dispute: Belated Filing and Mismatches The petitioner received a Show Cause Notice (DRC-01) and a subsequent demand order for FY 2018-19. The demand was based on two primary grounds: Section 16(4) Violation: ITC was claimed in a belatedly filed GSTR-3B return. ITC Mismatch:… Read More »
IMPORTANT INCOME TAX CASE LAWS 06.02.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 32 Anshul Speciality Molecules (P.) Ltd. v. DCIT [Goodwill in Slump Sale] Excess consideration paid over net assets in a slump sale (as a going concern) to acquire commercial rights/licences is “Goodwill.” This qualifies as an… Read More »
Invalidation of Delayed Reopening Notices for AY 2017-18 1. The Core Dispute: Reopening Notices Beyond Limitation The case involved a challenge to a reassessment notice issued under Section 148 for Assessment Year 2017-18. The notice was issued on May 1, 2024, several years after the original assessment period had concluded. The Issue: Whether the notice… Read More »
Invalidation of Assessment Due to Lack of Inherent Jurisdiction in Section 127 Transfer 1. The Core Dispute: Corporate vs. Non-Corporate Jurisdiction The assessee-company, with its principal place of business in Greater Noida (UP), had its case transferred from its original jurisdiction to the Central Circle-30, Delhi, by an order passed under Section 127 by the… Read More »
Invalidation of Assessment Due to Lack of Inherent Jurisdiction in Section 127 Transfer 1. The Core Dispute: Corporate vs. Non-Corporate Jurisdiction The assessee-company, with its principal place of business in Greater Noida (UP), had its case transferred from its original jurisdiction to the Central Circle-30, Delhi, by an order passed under Section 127 by the… Read More »
Private Trust Exemptions and Erroneous Advance Tax Receipts (AY 2022-23) I. Trust Beneficiary Exception for Relatives (Section 56(2)(x)) The assessee, a private trust, received a settlement of shares from its settlor. Under Section 56(2)(x), gifts of shares are generally taxable, but an exception exists for property received by a trust created solely for the benefit… Read More »
No Remission or Cessation of Liability on Loan Assignment to ARC 1. The Core Dispute: Loan Assignment vs. Loan Waiver The Assessing Officer (AO) observed that the assessee’s loan was transferred from the original lender to an Asset Reconstruction Company (ARC) at a “discounted value.” The AO interpreted this discount—the difference between the total outstanding… Read More »
Case Analysis: Retrospective Disallowance of Employees’ PF/ESI Contributions (AY 2018-19 to 2019-20) 1. The Core Dispute: Section 36(1)(va) vs. Section 43B The assessee delayed the deposit of employees’ contributions to the Provident Fund (PF) and Employee State Insurance (ESI). While these deposits were made after the statutory due dates (e.g., the 15th of the following… Read More »
Depreciation on Goodwill in a Slump Sale (AY 2020-21) 1. The Core Dispute: Valuation vs. Commercial Reality The assessee-company acquired a manufacturing unit as a going concern through a slump sale. The acquisition price exceeded the value of individual tangible assets, and the difference was recorded as goodwill. Assessing Officer’s View: The AO disallowed the… Read More »