Tax Deductibility of Interest on Loans for Foreign Acquisitions: Section 36(1)(iii) This landmark ruling (AY 2008-09) provides a significant precedent for Indian conglomerates expanding globally. The core issue was whether interest paid on massive loans taken to acquire a foreign entity (specifically Corus by Tata Steel) is a deductible business expense or a non-deductible capital… Read More »
Trust Registration and 80G Approval: Non-Commencement of Activities Is Not a “Specified Violation” This landmark ruling (delivered in early 2026) provides a massive relief to new and dormant charitable trusts. The ITAT (Income Tax Appellate Tribunal) clarified that the Commissioner of Income Tax (Exemptions) cannot deny registration simply because a trust has not yet started… Read More »
Accrual of Income: Taxability of Interim Deposits During Pending Litigation This ruling (AY 2006-07) clarifies a fundamental principle of tax law: Income only accrues when the right to receive it is absolute and finalized. If a payment is received under an interim court order while the underlying dispute is still sub-judice, it does not constitute… Read More »
IMPORTANT GST CASE LAWS 18.03.2026 Relevant Act Section Case Law Title / Authority Brief Summary Citation CGST Act, 2017 Section 50 & 74 Geena Garments v. State Tax Officer Interest under Sec 50(3) is mandatory for belated payment of ineligible ITC. Debiting an insufficient Electronic Credit Ledger via DRC-03 does not mitigate interest or penalty… Read More »
Interim Release of Perishable Goods and Vehicle: Balancing Revenue and Business Continuity This ruling (delivered in March 2026) by the Orissa High Court addresses a common crisis in logistics: the detention of goods due to technical failures in generating an E-way bill. The Court provided a middle path, ensuring the government’s tax interest is secured… Read More »
High Court Quashes GST Detentions: Limits on Undervaluation and Transit State Jurisdiction In a comprehensive ruling (March 2026), the Andhra Pradesh High Court addressed multiple writ petitions involving the detention and confiscation of goods under Section 129 and Section 130. The judgment establishes critical safeguards against the overreach of mobile squad officers at check posts.… Read More »
Appellate Authority Must Pass Reasoned Orders: Calcutta High Court Remands “Mechanical” GST Appeal This ruling (delivered in early 2026) reinforces the principle that the first appellate stage is not a mere formality. The Calcutta High Court clarified that an Appellate Authority cannot simply “paraphrase” the lower officer’s order; it must independently evaluate the evidence already… Read More »
Anticipatory Bail For GST Practitioner: Distinguishing Professional Assistance From Fraudulent Intent This ruling (delivered in February 2026) provides significant protection for tax practitioners and intermediaries who assist in GST compliance. The Patna High Court clarified that providing professional services, such as filing returns based on information provided by a client, does not inherently satisfy the… Read More »
Quashing of Prohibition and Seizure Orders Post-Remand: A Victory for Taxpayer Rights This ruling (delivered in early 2026) addresses the legality of continuing restrictive search and seizure orders (INS-03 and INS-02) when the underlying assessment order has been quashed and no notice for confiscation exists. The Tamil Nadu/Madras High Court clarified that these orders cannot… Read More »
Admitted Liability and Insufficient Credit Balance: High Court Upholds Interest and Penalty This ruling (delivered in late 2025/early 2026) reinforces the principle that once a taxpayer admits to a tax liability and settles the demand, they cannot later challenge the mandatory consequential interest and penalties—especially when their Electronic Credit Ledger was insufficient to cover the… Read More »