Invalidation of Remand Order for Non-Supply of Written ‘Grounds of Arrest’ (Section 69) Facts The Detention: Following a search of his residential premises under Section 67, the Petitioner was detained and subsequently arrested by GST authorities. The Remand: The Petitioner was produced before a Magistrate, and a remand order was passed, authorizing his continued custody.… Read More »
Interest Liability on Wrongfully Availed Transitional Credit (Section 50) Facts The Transaction: For the period August 2017 to May 2019, the Petitioner carried forward approximately Rs. 1.31 crore as transitional credit by filing Form GST TRAN-1. The Discrepancy: The credit did not reflect in the Petitioner’s Electronic Credit Ledger (ECL). Consequently, the Petitioner reported and… Read More »
Sufficiency of Show Cause Notice (SCN) for Cancellation of Registration (Section 29) Facts The Notice: The Jurisdictional Officer issued a Show Cause Notice (SCN) in Form GST REG-17 to the Petitioner, proposing the cancellation of their GST registration. The Allegation: The SCN alleged that the Petitioner had availed ineligible Input Tax Credit (ITC) from non-existent… Read More »
Release of Seized Assets Due to Time-Barred Assessment (Section 132B) Facts The Seizure: In March 2008, during a search and seizure operation, the Revenue seized jewellery valued at Rs. 40.34 lakhs belonging to the Petitioner. The Assessment: An assessment was originally framed for AY 2008-09, making an addition for the value of the seized jewellery.… Read More »
Assessment in the Name of a Non-Existent Company Post-Amalgamation Facts The Amalgamation: A scheme of amalgamation was approved by the NCLT, under which the transferor company (‘H’) stood amalgamated with the Assessee-company. The Intimation: On 2-3-2023, the Assessee formally informed the Assessing Officer (AO) about the amalgamation, effectively notifying the department that ‘H’ had ceased… Read More »
Procedural Delay in Filing Form 10-IC for Concessional Tax Rate (Section 115BAA) Facts The Assessee: A domestic company opting for the concessional tax rate of 22% (plus applicable surcharge and cess) under Section 115BAA for AY 2020-21. The Filing: * The company filed its Return of Income (ITR) on 31-03-2021, explicitly selecting the option for… Read More »
Relief for Salary Arrears under Section 89(1) and Reconciliation of Form 26AS Facts The Assessee: An individual taxpayer who received salary arrears during the Financial Year 2019-20 (AY 2020-21). Issue I: Section 89(1) Relief: The Assessee claimed tax relief under Section 89(1) to mitigate the higher tax bracket impact caused by receiving past years’ salary… Read More »
Reopening of Assessment Based on Change of Opinion (Section 147/148) Facts Original Assessment: For AY 2013-14, the Assessee’s case was subjected to scrutiny under Section 143(3). During these proceedings, the Assessing Officer (AO) raised specific queries regarding cash deposits and the transfer of Transferable Development Rights (TDR). Assessee’s Compliance: The Assessee provided the cash book… Read More »
Deletion of Additions Based on GSTR-1 Discrepancies and Ind-AS Notional Interest Facts The Assessee: An engineering and infrastructure construction company. Issue 1: Turnover Variance (Section 145): For AY 2020-21, the Assessing Officer (AO) identified a discrepancy of Rs. 218.61 crores between the turnover reported in the Profit & Loss (P&L) account and the turnover reflected… Read More »
Treatment of Surplus from Unlisted Shares: Capital Gains vs. Business Income (Section 263 Revision) Facts The Transaction: The Assessee-company sold 34 unlisted preference shares of ICICI Bank in March 2018. These shares were acquired in June 2012 and held for nearly six years. Assessee’s Position: The surplus of approximately Rs. 12.98 crores was treated as… Read More »