GST on Non-Compete Fees: Apportionment Between Export and Domestic Supply In this significant Advance Ruling (March 2026), the authority addressed the taxability of Non-Compete and Non-Solicitation services provided by an Indian shareholder to joint purchasers (one US-based and one India-based). The ruling establishes how such global agreements must be “split” for GST purposes based on… Read More »
High Court Quashes Rejection of Export Remittance Condonation for Lack of a Reasoned Order In a March 2026 ruling, the High Court intervened in a dispute involving the delayed receipt of export remittances. The court emphasized that administrative “notes” on a file cannot replace a formal, reasoned order passed after a personal hearing, especially when… Read More »
Procedural Fairness in GST Appeals: High Court Rules Against Technical Dismissals In this significant ruling from March 2026, the Andhra Pradesh High Court set aside an order by the Appellate Authority that had dismissed an appeal purely due to its “manual” filing. The court emphasized that substantive justice must prevail over technical irregularities, especially when… Read More »
High Court Quashes Recovery and Restores Hearing Rights in GSTR-3B Discrepancy Case In a significant ruling from March 2026, the Karnataka High Court set aside an Order-in-Original (OIO) and a subsequent bank attachment, emphasizing that a taxpayer’s right to be heard cannot be bypassed even if they fail to file an initial reply to a… Read More »
High Court Quashes Recovery and Restores Hearing Rights in GSTR-3B Discrepancy Case In a significant ruling from March 2026, the Karnataka High Court set aside an Order-in-Original (OIO) and a subsequent bank attachment, emphasizing that a taxpayer’s right to be heard cannot be bypassed even if they fail to file an initial reply to a… Read More »
High Court Restores Input Tax Credit by Applying Retrospective Statutory Extensions to Limitation Deadlines In this significant March 2026 ruling, the High Court quashed a tax demand that had reversed a taxpayer’s Input Tax Credit (ITC) on the grounds of being time-barred. The court clarified that the rigorous deadlines of Section 16(4) must now yield… Read More »
IMPORTANT INCOME TAX CASE LAWS 20.03.2026 Relevant Act Section Case Law Title / Authority Brief Summary Citation Income Tax Act Sec 2(1A) B.M. Govardhana Murthy v. DCIT Agricultural income cannot be treated as “Other Sources” if ownership is undisputed and the income was accepted in prior years, even if old documents are missing. Click Here… Read More »
Reassessment Quashed: “Change of Opinion” and the Lapsing of Scrutiny Proceedings In this significant ruling for AY 2021-22, the Court protected the assessee from a “second bite at the apple” by the Revenue. The decision clarifies that if the Assessing Officer (AO) allows a scrutiny assessment to lapse due to a procedural failure, they cannot… Read More »
Re-characterization of Equity and the “Sufficient Own Funds” Rule This ruling for AY 2016-17 provides a significant dual victory for taxpayers regarding Transfer Pricing and interest disallowances. The Tribunal reaffirmed that the Revenue cannot second-guess a company’s commercial wisdom by turning equity into debt or by assuming that interest-bearing loans were diverted to subsidiaries. I.… Read More »
ITAT Quashes Capital Gains on JDAs, Search-Based Disclosures, and Rejections of Agricultural Income The Assessing Officer’s View (Addition under Section 68): The AO treated the entire sale proceeds as “Unexplained Cash Credit” under Section 68. This was based on a report from the Investigation Wing which alleged that the specific company’s shares were being used… Read More »