Important Income Tax Case Laws 27.04.2026 Relevant Act Section Case Law Title Citation Brief Summary Income Tax Sec 4 / 145 Ghanshyam Infrastructure (P.) Ltd. v. DCIT Click Here Contractual Receipts: Assessable in the year profit is offered if records fail to prove reflection in earlier returns. 8% net profit rate upheld as AO failed… Read More »
High-Tech Semen Sorting is an Exempt “Animal Husbandry Support Service” Under SAC 9986. The Dispute: High-Tech Sorting vs. Agricultural Support The Scenario: The applicant uses proprietary technology to separate X and Y chromosome-bearing sperm cells from bovine (bull) semen. The Goal: To ensure that farmers can produce female calves (high-milk yielders) rather than male calves.… Read More »
Calcutta HC: GST Officers Cannot Force Personal Appearance if Taxpayer Appears via Advocate. The Dispute: The Demand for “Physical Presence” The Conflict: The petitioner (Sunshine Enterprises, Kanpur) shipped pan masala to a buyer in Howrah. Despite having a valid tax invoice and e-way bill, the vehicle was intercepted and detained in December 2025. The Revenue’s… Read More »
Bombay HC Quashes Consolidated GST Notices: Each Financial Year Must Have a Separate SCN. The Dispute: “Bunching” vs. The Annual Clock The Conflict: The DGGI issued a consolidated SCN and a subsequent Order-in-Original (OIO) covering a broad period from April 2018 to September 2023. The Revenue’s Stand: Consolidation is a procedural convenience, especially in fraud… Read More »
Section 16(5) Overrides Deadlines: ITC for 2017-21 is Valid if Filed by Nov 2021. The Dispute: The Section 16(4) “Hard Deadline” The Conflict: For FY 2018-19, the petitioner had claimed ITC in their returns. The Original Rejection: The Revenue issued a Show Cause Notice (SCN) and a subsequent Order-in-Original (OIO) denying the credit. They cited… Read More »
High Court: GSTAT Must Independently Decide Intermediary Status Without Being Bound by Prior AAAR Orders. The Dispute: The Intermediary Export Trap The Conflict: The petitioner provided services to an entity outside India and claimed them as “Export of Services” (Zero-rated). The Revenue’s Allegation: The Department reclassified the petitioner as an “Intermediary” under Section 2(13) of… Read More »
IoT Tracking Devices Dependent on GPS are Classified as “Radio Navigational Aid Apparatus The Dispute: The Multi-Functional IoT Dilemma The Scenario: The applicant sought to import the “Alesea Reel Tracking Device,” a sophisticated electronic tool designed to be mounted on cable drums. The device aims to solve the industry problem of cable-drum management and installation… Read More »
Section 43B Cannot Disallow Unpaid Tax If It Was Not Claimed As An Expense in P&L. The Dispute: The “Not Claimed, Not Disallowed” Principle The Conflict: The assessee had an unpaid service tax liability at the end of the financial year. The Revenue’s Stand: The Assessing Officer (AO) invoked Section 43B, which states that certain… Read More »
Penalty Time-Barred After 6 Months of AO’s Reference; Excel Summaries Insufficient to Prove Cash Violations. I. Limitation Period: The “Reference Date” is Final The Dispute: The Revenue imposed a penalty under Section 271DA (for receiving ₹2 lakhs or more in cash). The taxpayer challenged this on the grounds of Limitation under Section 275(1)(c). The Revenue’s… Read More »
Penalty Time-Barred After 6 Months of AO’s Reference; Excel Summaries Insufficient to Prove Cash Violations. I. Limitation Period: The “Reference Date” is Final The Dispute: The Revenue imposed a penalty under Section 271DA (for receiving ₹2 lakhs or more in cash). The taxpayer challenged this on the grounds of Limitation under Section 275(1)(c). The Revenue’s… Read More »