Rule 86A allows an officer to freeze only the ITC actually available in the ledger; it does not grant the power to create a negative balance if the ledger is empty. Facts of the Case The Action: The GST authorities invoked Rule 86A to block the Input Tax Credit (ITC) of the assessee, alleging that… Read More »
Supreme Court Rejects Revenue’s Appeal; Income Tax Refunds Cannot be Set Off Against Service Tax Dues. The Conflict: The assessee was owed an Income Tax refund for AY 2018-19. Simultaneously, the Service Tax department (DGCEI) issued a Garnishee Notice under the Finance Act, 1994, ordering the Income Tax department to hand over that refund to… Read More »
High Court Quashes Old Reassessment: Bogus Purchases Are Not “Assets” for Reopening Beyond Three Years. The Legal Framework Under the amended Section 149, the Department can only issue a notice after three years if: The income escaping assessment is ₹50 lakh or more. The escaped income is represented in the form of an Asset, an… Read More »
Court Rules CSR Spend Eligible for Section 80G Deduction Despite Disallowance as Business Expense. The Dispute: Mandatory CSR vs. Tax Deductions The prohibition of CSR as a “Business Expenditure” (Section 37) does not strip it of its eligibility as a “Charitable Deduction” (Section 80G). The Background The Action: The assessee-company spent money on CSR as… Read More »
Tribunal Favors Assessee: Interest Deduction Upheld via Investment Nexus and Expansion Study Allowed as Business Expense. The Facts: The assessee, a well-known film artist, took a bank loan and invested the proceeds into Venture Capital Funds (VCF). The resulting income was offered as “Income from Other Sources.” The assessee claimed the interest paid on the… Read More »
Marketing spend is not an “International Transaction” simply because it benefits a global brand. The Dispute: The TPO argued that the Indian entity’s Advertisement, Marketing, and Promotion (AMP) spend helped build the US AE’s brand, requiring a markup/reimbursement. The Ruling: Following the “consistency principle,” the Tribunal noted that since identical facts in earlier years led… Read More »
Agricultural land does not become a “capital asset” simply because it is sold to an industrial entity for non-agricultural use. Facts of the Case The Asset: The assessee sold a plot of land during AY 2016-17. The Character: At the time of sale, the land was recorded as agricultural in government records. The Location: The… Read More »
Assam High Court: GST Registration Must Be Restored if All Pending Returns and Dues are Paid. The Chronology of the Case The Default: The Petitioner failed to file GST returns for a continuous period of six months. The Cancellation: Following a Show Cause Notice (SCN) and a personal hearing, the Superintendent cancelled the registration under… Read More »
GSTAT Orders Builder to Refund ₹98.72 Lakh Profiteered ITC Benefit with Interest and Penalty. Facts of the Case The Projects: Three RERA-registered housing projects—Pebbles, Hynish Tower-10, and Greens. The Investigation: Following complaints from homebuyers, the Standing Committee on Anti-Profiteering referred the matter to the Director General of Anti-Profiteering (DGAP). Re-investigation: After an initial report and… Read More »
Each financial year is a separate unit of assessment; clubbing them into one notice is a jurisdictional error that collapses the GST legal framework. Facts of the Case The Notice: The Deputy Commissioner issued one unified SCN covering a five-year block from FY 2018-19 to 2022-23. The Allegation: The Department alleged suppression of facts and… Read More »