Cinema Ticket Prices Must Reflect GST Rate Cuts; Increasing Base Price to Maintain MRP Amounts to Profiteering 1. The Core Dispute: The “Same MRP” Trap Following the GST Council’s recommendation, the tax rate on cinema tickets was reduced effective January 1, 2019: Tickets ≤ ₹100: Reduced from 18% to 12%. Tickets > ₹100: Reduced from… Read More »
Proceedings Against Dead Person are Null and Void: High Court Sets Aside Tax Demand and Rejects Limitation Plea Against Legal Heir 1. The Core Dispute: Adjudicating a Non-Existent Taxpayer The Revenue initiated recovery proceedings for the FY 2017-18 against a sole proprietorship. However, the proprietor had passed away in July 2020, and the GST registration… Read More »
Single Composite Show Cause Notice for Multiple Tax Years Held Jurisdictionally Defective under Section 74 1. The Core Dispute: Bunching of Tax Periods The Revenue issued a single, composite Show Cause Notice (SCN) under Section 74 covering five distinct financial years (2017-18 through 2021-22). The assessee challenged the validity of this notice, arguing that the… Read More »
Documentary Evidence Overrides Non-Appearance: Share Capital Additions Deleted for Satisfying the “Triple Test” of Section 68 1. The Dispute: Documentary Proof vs. Investigative Suspicion The Assessing Officer (AO) made an addition under Section 68, treating share capital and premium from nine corporate subscribers as “unexplained cash credits.” The AO dismissed the assessee’s documentation as mere… Read More »
Capital Receipt vs. Revenue Receipt: Interest under Section 28 of Land Acquisition Act Held Non-Taxable as Income from Other Sources 1. The Core Dispute: The Legal Character of “Interest” The assessee received enhanced compensation for land acquisition, which included an interest component awarded under Section 28 of the Land Acquisition Act. Revenue’s Stand: The Assessing… Read More »
Fair Market Value vs. Stamp Duty and Real vs. Effective Purchase Date I. Section 50C: Stamp Duty Value and Fair Market Value Title: [Rectified Stamp Duty Value Prevails Over Original Assessment for Capital Gains Computation] Reference: Section 50C of the Income-tax Act, 1961. Assessment Year (AY): 2014-15 Status: In Favor of Assessee (Additions Deleted). The… Read More »
Natural Justice and Legislative Amendments: Relief for Trusts in Section 12AB and 80G(5) Applications 1. Section 12AB: Registration & Principles of Natural Justice The assessee-trust, established in 2016 for Vedic education and charitable activities, had its registration application rejected because it failed to submit documents within a tight timeline. The Commissioner (Exemptions) denied an adjournment… Read More »
Reassessment Quashed: NRI’s Property Purchase Proved via Bank Loans; Income Escaping Assessment Below ₹50 Lakh Threshold for Extended Limitation 1. The Core Dispute: Unexplained Investment vs. Bank Finance The Revenue initiated reassessment proceedings against an NRI taxpayer following information from the Sub-Registrar regarding a high-value residential property purchase. The Assessing Officer (AO) initially suspected that… Read More »
High Court Reverses Interest Disallowance on Business Commencement and Audit Fees Due to Consistency. I. Commencement of Business (Section 37(1)) Issue: Can a company claim revenue expenses if it hasn’t started its primary operations (SEZ/Real Estate) during the year? Held (Assessee): The business is deemed to have commenced once it is “set up” and ready… Read More »
Full Interest Deduction for Let-Out Property Upheld; No Lender Certificate Required Under Section 24(b) Provisos 1. The Core Dispute: Interest Limits & The Certificate Requirement The assessee claimed a deduction for interest on a housing loan under Section 24(b) against rental income from a let-out property. The original assessment was completed under Section 143(3). Later,… Read More »