Karnataka HC: No GST on Pigmy Agent Commissions as They are Bank Employees, Not Contractors. The Dispute: Business Facilitator vs. Bank Employee The Conflict: The Revenue conducted an inspection of the Rural Bank and issued Form GST DRC-01A, proposing to levy GST under the Reverse Charge Mechanism (RCM) on commissions paid to “Pigmy Agents” (doorstep… Read More »
AAR Ruling: RWA Corpus Funds Are Taxable at the Time of Receipt Without the ₹7,500 Exemption. 1. The Nature of Supply: Corpus Fund is “Supply” The Dispute: The RWA argued that the Corpus Fund is a capital contribution from members for future contingencies (like painting or lift replacement) and should not be treated as a… Read More »
Important Income Tax Case Laws 25.04.2026 Relevant Act Section / Authority Case Law Title Citation Brief Summary Income-tax Act, 1961 Sec 2(24) / 115JB Graphite India Ltd. v. CIT Click Here Capital Subsidy: Sales tax remission linked to fixed capital investment is a capital receipt; not taxable and excluded from MAT (Sec 115JB). Income-tax Act,… Read More »
Create with Flow to How to use Google’s AI Creative Studio Create with Flow to How to use Google’s AI Creative Studio Built with and for creatives, Flow is your AI creative studio powered by Google DeepMind’s most advanced models: Veo, Nano Banana, and Gemini. In this tutorial, you will learn to seamlessly… Read More »
Pre-2002 Self-Generated Trademark Transfers are Tax-Free as Cost of Acquisition is Unascertainable. I. The Sarabhai Zydus Case: Transfer of Trademarks The Dispute: The assessee transferred 22 veterinary brand names to a joint venture for ₹29.10 crores. The Revenue tried to tax this under three different heads: Capital Gains (with Nil cost), Business Income (Section 28(iv)),… Read More »
TDS Credit Denied to Agents if Underlying Income Belongs to the Principal/Farmer. The Dispute: The Agent, The Farmer, and the Missing Income The Scenario: The assessee is a commission agent at an APMC (Agricultural Produce Market Committee). He facilitates auctions where traders buy produce from farmers. The Transaction: Traders purchased agricultural produce. Under Section 194Q,… Read More »
Search Additions Based on Estimated Yield Comparisons Without Incriminating Material Are Legally Invalid. The Dispute: Expected Yield vs. Actual Yield The Scenario: The assessee, a steel re-rolling company, declared a production yield of 82.42%. However, the AO noted that during a previous search-period assessment (covering 2006-07 to 2012-13), the estimated yield was 89%. The AO’s… Read More »
SC Reaffirms: Reassessments for AY 2016-17 and Earlier Are Barred if Already Time-Expired Under Old Law. The Dispute: The SMC Group Search & The 2024 Notice The Conflict: The Revenue conducted a search on the SMC Group and suspected that the assessee had taken an “accommodation entry” (loan) from one of the group’s shell entities.… Read More »
Late Filing of Form 10DA is a Procedural Lapse; Deduction Under Section 80JJAA Cannot Be Denied if Filed Before Assessment. The Dispute: Substance vs. Procedure The Conflict: The assessee claimed a deduction for hiring new employees. However, the Assessing Officer (AO) disallowed the entire claim because the required audit report (Form 10DA) was filed after… Read More »
Scholarships for Foreign Studies Paid in India Are Domestic Application; Registration Cannot Be Denied. The Dispute: Indian Students, Foreign Degrees, and Section 11(1)(c) The Conflict: The assessee-trust applied for registration under Section 12AB. During the enquiry, the CIT(Exemption) found that the trust had granted scholarships to Indian students to study abroad. The Revenue’s Objection: The… Read More »