Case Analysis: SET ASIDE of Adjudication Order due to Procedural Lapses & Lack of Mandatory Personal Hearing 1. The Core Dispute: Mandatory Hearing vs. “Portal-Only” Notice The petitioner-assessee challenged an adverse adjudication order on two primary procedural grounds: The “Hidden” Notice: The Show Cause Notice (SCN) and the final order were uploaded under the ‘Additional… Read More »
Stay on Section 74 SCN: Jurisdictional Challenge Over 1/3rd Land Deduction (2026) 1. The Conflict: Mandatory 1/3rd Abatement for Land The controversy stems from Paragraph 2 of Notification No. 11/2017-Central Tax (Rate), which imposes a mandatory deeming fiction. It requires builders to deduct exactly 1/3rd of the total consideration as the value of land, regardless… Read More »
Assessment Order Deemed Withdrawn: Condonation of Delay in Belated GSTR-3B Returns 1. The Core Dispute: “Best Judgment” vs. Belated Compliance The case involves a registered taxpayer who failed to file GSTR-3B returns for seven months. Following the statutory procedure, the department issued notices under Section 46 and subsequently passed “Best Judgment” assessment orders under Section… Read More »
Landmark Relief on ITC Limitation: Impact of New Section 16(5) and CBIC Circular 1. The Core Dispute: Section 16(2) vs. Section 16(4) The petitioner challenged the denial of Input Tax Credit (ITC) for the second half of FY 2018-19. The credit was availed in October 2019, which the Revenue claimed was beyond the deadline prescribed… Read More »
IMPORTANT INCOME TAX CASE LAWS 04.02.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 12AB (Condonation) Sunder Nagar Satsang Sabha v. CIT(E) [Finance Act 2024 Relief] Rejection of Form 10AB regularization solely due to a 16-month delay is unjustified. The Finance Act No. 2 of 2024 now empowers the Commissioner… Read More »
ITAT Ruling on Club Expenses, Section 14A Disallowance, and MAT Computation (AY 2017-18) In a significant decision for Assessment Year 2017-18, the Income Tax Appellate Tribunal (ITAT) provided clarity on the deductibility of corporate club expenses and the refined computation of disallowances related to exempt income. I. Corporate Club Expenses as Business Expenditure (Section 37)… Read More »
Assessment Order Quashed: Violation of Natural Justice in Faceless Proceedings (Section 144B) 1. The Core Dispute: Order Passed Before Scheduled Hearing In this case, the Faceless Assessment process reached a critical stage where the Assessing Officer (AO) proposed a variation (addition) to the assessee’s income. The Request: Upon receiving the Show Cause Notice (SCN) proposing… Read More »
Deduction u/s 80JJAA Valid Despite Delay in Filing Form 10DA 1. The Core Dispute: Technical Delay vs. Substantive Right The assessee claimed a deduction under Section 80JJAA, which provides a tax incentive for businesses that generate new employment. The Assessing Officer (AO) disallowed the claim during the processing of the return under Section 143(1) because… Read More »
Denial of Section 54B Exemption for Land Purchased in Spouse’s Name 1. The Core Dispute: Investment in Spouse’s Name The assessee sold agricultural land and reinvested the capital gains to purchase new agricultural land. To defer tax liability, the assessee claimed an exemption under Section 54B of the Income-tax Act, 1961. The Conflict: The Assessing… Read More »
Income Tax Case Summary: Capital Expenditure, MAT, and Section 14A Disallowances (AY 2016-17) I. Classification of Software Expenditure (Section 37(1)) The assessee, a real estate developer, claimed ERP and software expenses as revenue expenditure. The Assessing Officer (AO) disagreed, treating them as capital due to their enduring benefit. Court’s Ruling: The court held that while… Read More »