SC Upholds: IBC Resolution Plan Overrides Tax Filing Delays; Losses Must Be Carried Forward. The Dispute The Situation: The assessee-company underwent the Corporate Insolvency Resolution Process (CIRP). During this time, the Resolution Professional failed to complete statutory audits or file Income Tax Returns (ITR) for AY 2018-19 and 2019-20. The New Management’s Action: Once the… Read More »
Tribunal Rules: Unrealized ‘Mark-to-Market’ Gains on Forward Contracts are Not Taxable Until Maturity. Facts of the Case The Transaction: The assessee entered into forward contracts in commodity derivatives. The Accounting: Following standard accounting practices, the assessee valued these outstanding contracts at the end of the financial year based on the current market price. This resulted… Read More »
Section 27 Income Tax Act 2025 Manner of computing profits and gains of business or profession. 85 27. The income referred to in section 26 shall be computed as per the provisions of sections 28 to 60, except section 58.
Madras High Court: Portal Notice Valid but Personal Hearing Mandatory Before Passing Ex Parte GST Order. Facts of the Case The Notice: The Department uploaded the Show Cause Notice (SCN) and subsequent reminders solely on the “View Additional Notices” tab of the GST Portal. The Default: The Petitioner did not see the notices, failed to… Read More »
Allahabad High Court: GST Appeal Limitation Runs from Date of DRC-07 Portal Upload, Not Physical Order Date. The Chronology of the Case The Interception: A consignment of networking machines was intercepted because Part-B of the e-way bill was not filled. The Penalty: A penalty order in Form GST MOV-09 was passed on 01.08.2022. The Delay:… Read More »
Madras High Court: GST Overdraft Account Attachment is Illegal; Belated Appeal Allowed Subject to 50% Pre-deposit. The Problem: The Petitioner missed the statutory deadline (3 months + 1 month) to file an appeal under Section 107. Consequently, the Appellate Authority lost the power to condone the delay, and the Department began recovery. The Court’s Solution:… Read More »
Madras High Court Quashes GST Demand on Pre-GST Works; Directs Fresh Verification of Service Dates. The Conflict The Notice: The Petitioner, a contractor for various State Government departments, was served a Show Cause Notice (SCN) under Section 73 for the periods 2017-18 to 2020-21. The Defense: The Petitioner argued that the demand included tax on… Read More »
Assam High Court Quashes GST Cancellation; Vague SCN and “Orders Under Dictation” Held Legally Void. The Chronology of the Case The SCN: The Petitioner received a Show Cause Notice (SCN) proposing to cancel their GST registration. The sole allegation was that Input Tax Credit (ITC) was availed despite not being reflected in GSTR-2B. The Objection:… Read More »
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 »