Personal Hearing in Faceless Assessment: A Mandatory Right (AY 2023-24) This ruling for AY 2023-24 reinforces a vital pillar of the Indian tax system: Natural Justice. It clarifies that while the assessment process is “faceless” (conducted digitally), it is not “voiceless.” If a taxpayer asks for a hearing to explain their case, the Department cannot… Read More »
The Finality of ‘Nil’ Assessments: Section 156 Demand Notice Validity This ruling for AY 2012-13 establishes a critical procedural safeguard: the Revenue cannot demand money from a taxpayer without first passing a formal order that justifies that amount. A demand notice is a “shadow” that cannot exist without the “body” of an assessment order. The… Read More »
FPI vs. Assessing Officer (Penny Stock & India-Mauritius DTAA) This ruling for AY 2019-20 addresses a common conflict where the Revenue treats high-growth Long-Term Capital Gains (LTCG) as “bogus” under the penny stock theory, despite the taxpayer being a regulated institutional investor. The Legal Issue Can the Assessing Officer (AO) invoke Section 68 (Unexplained Cash… Read More »
Reassessment of Stamp Duty Difference: Applicability of Section 56(2)(x) (AY 2018-19) This ruling provides a significant defense for taxpayers who entered into property agreements years before the actual registration, specifically concerning the “Deemed Income” provisions under Section 56(2)(x). The Legal Issue Can the Department tax the difference between the Stamp Duty Value (SDV) and the… Read More »
FLSmidth Private Limited vs. ACIT (ITAT Chennai) I. Depreciation on Goodwill Arising from Amalgamation The Legal Issue Can a company claim depreciation on “Goodwill” created when it pays more for a subsidiary’s assets than their net book value during a merger? Facts of the Case The assessee-company (FLSmidth) merged its wholly-owned subsidiary (FPIL) into itself… Read More »
ICAI Handbook: Navigating Global Tax Frameworks and Digital Economy Challenges in the Modern Era The Institute of Chartered Accountants of India (ICAI) has released a comprehensive study titled “Handbook on Taxation of Digital Economy,” designed to address the complex tax challenges arising from the rapid growth of digital businesses and cross-border electronic commerce. Key Highlights… Read More »
IMPORTANT GST CASE LAWS 12.03.2026 Relevant Act Section Case Law Title / Authority Brief Summary Citation CGST Act, 2017 Section 73/74 Accountants Service Society v. Union of India Consolidated SCNs for multiple financial years are invalid. The law requires year-wise notices and orders to avoid prejudice regarding limitation periods and pre-deposit calculations. Click Here CGST… Read More »
Section 74 vs. Section 73: The “Fraud” Barrier to Amnesty Benefits (AY 2017-18) In a significant ruling for AY 2017-18, the Gujarat High Court (in R.B. Pandey and Sons vs. Assistant Commissioner) addressed the attempts by taxpayers to reclassify “fraud” cases as “non-fraud” cases to secure lighter penalties or access amnesty schemes. The Legal Issue… Read More »
Composite GST Notices: The “Anti-Bunching” Rule (Sections 73 & 74) This ruling by the Kerala High Court (Dhanlaxmi Bank Limited vs State of Kerala) addresses a critical jurisdictional error common in GST audits: the issuance of a single/composite Show Cause Notice (SCN) or Order covering multiple financial years. The Legal Issue Can GST authorities issue… Read More »
IMPORTANT INCOME TAX CASE LAWS 12.03.2026 Relevant Act Section Case Law Title / Authority Brief Summary Citation Income Tax Act Sec 35(2AB) & 148 Gujarat Metal Cast Industrial v. ACIT Reopening an assessment on the same material already examined during the original assessment is a “change of opinion” and is legally impermissible. Click Here Income… Read More »