Rectification of Bona Fide Errors in Revised TRAN Forms (Section 140) Facts Original Filing (2017): The Petitioner, a private limited company, filed TRAN-1 and TRAN-2 in 2017 to carry forward transitional Input Tax Credit (ITC) from the Kerala VAT and CST regimes. Supreme Court Window (2022): Following the Supreme Court’s directive in Union of India… Read More »
High Court at the Location of the Bank Account Has Jurisdiction to Quash Illegal Freezing Orders. Facts The Action: The Police Station (PS) Papumpare, Arunachal Pradesh, issued a notice to a branch manager of ICICI Bank in Kolkata to debit freeze the petitioner’s bank account. The Reason: CGST authorities in Arunachal Pradesh had lodged a… Read More »
Educational Boards Qualify as Educational Institutions for Exam-Related GST Exemptions. Facts The Applicant: Board of Secondary Education, Rajasthan (RBSE), a government authority. The Services Received: The Board procured various services essential for conducting examinations, including: Printing: Answer sheets, question papers, OMR sheets, certificates, and mark-sheets. Digital/IT: Online examination form filling and processing of results. Maintenance… Read More »
Writ Maintainability Against SCN and Natural Justice in Adjudication (Section 74) Facts The Allegation: The Petitioners, traders in crude tar, were issued a notice in Form DRC-01A for AY 2023-24. The Revenue alleged that the Petitioners received inward supplies from entities whose GST registrations were cancelled retrospectively. The Fraud Chain: The Department doubted the genuineness… Read More »
IMPORTANT INCOME TAX CASE LAWS 25.03.2026 Relevant Act Section Case Law Title / Authority Brief Summary Citation PBPT Act, 1988 Sec 2(9) DCIT (BPU) v. Sara Company Sharing business premises and accounting staff between entities for “convenience” is not Benami if there is no evidence of fictitious consideration passing. Click Here Income Tax Act Sec… Read More »
Capital Losses Expire After Eight Years and Cannot Be Set Off Beyond the Statutory Limit. Facts The Claim: For AY 2016-17, the assessee sought to set off a carried-forward capital loss against current year capital gains. The Origin: The capital loss in question pertained to Assessment Year 2007-08. The Dispute: The Revenue argued that the… Read More »
Section 43CB Mandates Straight-Line Revenue Recognition for Time-Bound Service Contracts. Facts The Assessee: A company manufacturing, installing, and maintaining elevators and escalators. The Transaction: The company enters into Annual Maintenance Contracts (AMCs) with customers for periods of 1 to 2 years. The Accounting: The assessee recognized revenue on a straight-line basis over the tenure of… Read More »
Deduction for Logo Royalty Upheld Based on Unrebutted Additional Evidence and Valid Agreements. The Facts: For AYs 2010-11 to 2012-13, the assessee claimed a deduction for royalty paid for the use of a brand/logo. The AO disallowed the portion attributable to the logo. The Decision: The assessee provided additional evidence, including relevant agreements, to support… Read More »
Interest on Borrowed Capital: Own Funds vs. Interest-Bearing Loans (Section 36(1)(iii)) Presumption of Own Funds for Business Advances The Facts: For AY 2017-18, the assessee had an outstanding advance of Rs. 80 lakhs given to A.M. Enterprises. The Assessing Officer (AO) disallowed interest of Rs. 9.60 lakhs (calculated at 12%) under Section 36(1)(iii), assuming that… Read More »
Airport Infrastructure: Rights, Depreciation, and Capital Receipts under Income Tax I. Procedure of CIT(A) – Duty to Adjudicate All Grounds Assessee-Airport Operator’s Right to Merits-Based Adjudication The Facts: The assessee raised additional grounds before the Commissioner (Appeals) regarding bogus accommodation entries and investment write-offs (under normal provisions and Section 115JB). The CIT(A) ignored these grounds… Read More »