Rental Income is Taxable as House Property Unless Property Dealing is the Main Business Object. The Dispute: Standard Deduction vs. Business Income The Conflict: The assessee leased out properties and claimed the income under the head “Income from House Property.” This allowed them to take the 30% Standard Deduction under Section 24(a) (now Section 21… Read More »
Registration and 80G approval cannot be denied to a new trust simply because its hospital is still under construction. The Dispute: Operational Reality vs. Charitable Intent The Conflict: A newly formed trust applied for registration (u/s 12AB) and 80G approval. Its primary goal was to build and run a hospital for the poor. The Commissioner’s… Read More »
An order without a valid DIN is non-est (legally non-existent); a delay in appealing such an order is a “bona fide” mistake. The Dispute The assessee-trust appealed a rectification order (u/s 154) with a 505-day delay. The CIT(A) dismissed the appeal as time-barred under Section 249 (now Section 358 of the 2025 Act). The Verdict… Read More »
Substantial tax benefits under Section 11 cannot be denied for technical or procedural delays in filing Form 10B. The Dispute: Timing of Registration vs. Audit Report The Conflict: * The Registration Lag: The trust was granted registration under Section 12AA in January 2017. Critically, this was after the tax return due date (October 2016) but… Read More »
Important GST Case Laws 18.04.2026 Section Case Law Title Key Legal Verdict Citation Sec 16(4)/(5) Manjunatha Exports ITC Time Limit: The retrospective insertion of Sec 16(5) (Finance Act 2024) overrides the previous time-bar for FY 2018-19, reviving previously denied credits. Click Here Sec 29 (CGST) Jordan Enterprises Registration: Retrospective cancellation is illegal if the Show… Read More »
Real estate developers must pass on the 1.31% additional ITC benefit to homebuyers as a price reduction. The Dispute: The Transition Windfall The Conflict: When GST was introduced, the “cascading effect” of taxes (tax on tax) was reduced because developers could now claim ITC on almost all inputs (cement, steel, services) which were previously restricted… Read More »
GST registration cannot be cancelled retrospectively if the Show Cause Notice (SCN) did not propose such a measure. The Dispute: Procedural “Ambushes” vs. Due Process The Conflict: A proprietorship trading in iron and steel was served an SCN following a physical verification of their premises. The SCN: Cited discrepancies but only proposed a standard cancellation.… Read More »
Section 16(5) overrides Section 16(4) time-limits for FY 2017-18 to 2020-21 if returns were filed by 30.11.2021. The Dispute: The 16(4) Deadlock The Conflict: For FY 2018-19, the petitioner filed their March 2019 return on 28.10.2019. The Revenue’s Stance: Under the original Section 16(4), the deadline to claim ITC for FY 2018-19 was the due… Read More »
Education Cess, SHEC, and KKC cannot be transitioned into GST as they are not cross-utilizable. The Dispute: “Dead” Cess vs. GST Credit The Conflict: The petitioner (a gold loan financing company) had accumulated credit balances of Education Cess (EC), Secondary and Higher Education Cess (SHEC), and Krishi Kalyan Cess (KKC) in their final Service Tax… Read More »
Appellate Authorities cannot dismiss appeals for non-appearance; they must pass a reasoned order on merits. The Dispute: Summary Dismissal vs. Speaking Order The Conflict: The assessee filed an appeal against a GST demand, raising specific technical grounds: Procedural Lapses: That they had replied to the show-cause notice (RFT-08) on time, but it was ignored. Natural… Read More »