Advance Ruling Rejection: You Cannot Seek a Ruling on Someone Else’s Supply The Legal Issue The central dispute in this case (2025/2026) involves the jurisdictional boundaries of the Authority for Advance Ruling (AAR). The primary question was: Can a landlord (the applicant) seek an advance ruling regarding the GST liability of activities performed by their… Read More »
GSTAT’s Power to Stay Recovery: Inherent Jurisdiction Confirmed The Legal Issue The primary legal question addressed by the High Court was whether the Goods and Services Tax Appellate Tribunal (GSTAT) has the authority to grant interim stay or injunctions against tax recovery, given that the CGST Act does not contain an explicit provision labeled “Power… Read More »
GST Demands Quashed: SCN Summaries and Unsigned Orders Held Legally Invalid The Legal Issue The central dispute in this case (2025/2026) addressed three critical procedural failures by the GST Department: Summary vs. Substance: Is a summary of a notice in Form DRC-01 sufficient to replace a detailed, speaking Show Cause Notice (SCN)? Digital Authentication: Does… Read More »
GST Registration Cancellation Quashed: Non-Speaking Orders Fail Constitutional Scrutiny The Legal Issue The core legal dispute centers on whether a “non-speaking order” (one that lacks reasons) for the cancellation of GST registration is legally sustainable, particularly when: No opportunity for a personal hearing was granted to the taxpayer. The subsequent statutory appeal was dismissed solely… Read More »
Hindustan Unilever Ltd vs. Income Tax Department: Comprehensive Analysis of AY 2004-05 Ruling I. Compensation for Trademark Termination: Capital vs. Revenue Receipt The Legal Issue Whether compensation received for the premature termination of a trademark user agreement (‘Savlon’) constitutes a tax-free capital receipt (loss of a profit-making source) or a taxable revenue receipt (compensation for… Read More »
IMPORTANT INCOME TAX CASE LAWS 07.03.2026 Section Case Law Core Ruling & Strategic Summary Citation S. 143 / 260A Reliance Industries (RIL) [Non-Existent Entities] Assessment orders passed in the name of companies that have already amalgamated (RPEL/RPPL) are void ab initio. The SC also allowed additional evidence to prove the AO was aware of the… Read More »
Reliance Industries: Supreme Court Quashes Reassessments on Trusts and Investment Allowances The Legal Issue The central dispute across these cases involves the validity of reassessment proceedings initiated after a full scrutiny assessment. Specifically, the Court examined: Whether the Revenue can reopen an assessment by claiming “non-disclosure” when the specific facts (Income from a Trust) were… Read More »
Supreme Court Upholds Quashing of Assessments on Non-Existent Entities in Reliance Amalgamation The Supreme Court of India (2026) has dismissed the Income Tax Department’s Special Leave Petition (SLP) against a landmark Bombay High Court ruling. The case clarifies that once a company ceases to exist due to a court-approved amalgamation, any assessment order passed in… Read More »
Logistics Ad-hoc Profit Estimation Rejected: ITAT Mumbai Rules in Favour of Assessee The Legal Issue The primary legal question was whether an Assessing Officer (AO) is justified in rejecting the books of account under Section 145(3) and resorting to an ad-hoc profit estimation (8% of turnover) solely because: Some vendor confirmations were missing (despite a… Read More »
CIT(E) Oversteps Bounds: Surplus and Fee Receipts No Ground to Deny 80G Approval The Legal Issue The core legal question was the scope of enquiry permissible for the Commissioner of Income-tax (Exemption) [CIT(E)] when considering an application for permanent approval under Section 80G(5). Specifically: Is the CIT(E) allowed to examine the application of funds, surplus… Read More »