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 »
Section 54F: Advance Payments and the “Construction” vs. “Purchase” Distinction This ruling for AY 2015-16 provides a critical interpretation of the timelines and nature of investments required to claim exemption under Section 54F. The court clarified that booking an under-construction villa is treated as “construction,” which offers a more flexible three-year window compared to the… Read More »
Promoter Share Sales: Deductibility of IPO and PMS Expenses under Section 48 In this ruling for AY 2022-23, the Tribunal addressed two critical types of costs incurred by shareholders during the sale of securities: proportionate IPO/OFS expenses and Portfolio Management Service (PMS) charges. The decision reinforces the “Net Realization” principle for computing Capital Gains. I.… Read More »
Stamp Duty Value vs. Presumptive Income: Avoiding the Double-Taxation Trap In this significant ruling for AY 2014-15, the tribunal addressed a common conflict between two “deeming” provisions of the Income-tax Act: Section 43CA (Stamp Duty Value as sale consideration) and Section 44AD (Presumptive Business Income). The court ruled in favour of the assessee, ensuring that… Read More »