Indirect Transfer of Assets Situated in India Introduction Section 9(1)(i), through Explanation 5, deems that a share or interest in a foreign entity shall be situated in India if it derives substantial value from assets located in India. Income arising from the transfer of such share or interest is taxable in India, to the extent attributable… Read More »
Income Deemed to Accrue or Arise in India Introduction Section 9 of the Income-tax Act deems certain incomes to accrue or arise in India, even if earned outside India. These incomes are taxable in India, particularly for non-residents, unless a Double Taxation Avoidance Agreement (DTAA) provides relief. Scope of Total Income Section 5 of the Income-tax Act… Read More »
Garnishee Attachment Vacated: Protection from Recovery After ITC Reversal Facts The Transaction: The assessee had availed Input Tax Credit (ITC) based on invoices issued by a specific supplier. The Dispute: The Department initiated proceedings against the supplier, leading to an adverse order under Section 122 (Penalty for certain offences). Assessee’s Action: Simultaneously, parallel proceedings were… Read More »
SBI Self Declaration form for availing tax benefit in NRO account under DTAA SBI Self Declaration form for availing tax benefit in NRO account under DTAA The document NRI-14 is a self-declaration form used by NRO (Non-Resident Ordinary) account holders to claim tax benefits under the Double Taxation Avoidance Agreement (DTAA). 1. Purpose of… Read More »
Invalidity of Successive Provisional Attachments on Identical Grounds Facts Initial Action: On 13 December 2024, the Department issued a provisional attachment of the assessee’s bank accounts via Form GST DRC-22 under Section 83. The Assessment: During the attachment period, the assessment proceedings concluded, culminating in an Order-in-Original (OIO) dated 28 December 2025. The assessee subsequently… Read More »
Partly Agricultural and Partly Business Income Introduction Income from combined agricultural and business activities, such as tea, rubber, and coffee production, is apportioned for tax purposes. Agricultural income is exempt, while business income is taxable. Apportionment Methods Profits from manufacture and sale of tea ( Rule 8 ) : Income from growing and manufacturing tea is first computed… Read More »
Setting Aside Ex-Parte Orders: Opportunity to Reconcile GSTR-3B vs. 2A Discrepancies Facts The Period: The dispute involved two separate assessment years: 2020-21 and 2021-22. Year 2020-21: The Adjudicating Authority noticed a discrepancy between the Input Tax Credit (ITC) claimed in GSTR-3B and the credit available in GSTR-2A. Since the petitioner failed to file a reply,… Read More »
Mandatory Personal Hearing: Choice in Form DRC-06 Cannot Override Statutory Requirement Facts The Period: The dispute pertained to the assessment year 2018-19. The Notice: The Department issued Show Cause Notices (SCNs) in Form GST DRC-01 to the assessee, alleging tax or ITC discrepancies involving fraud (Section 74). The Response: The assessee filed a reply in… Read More »
IGST Refund on Exports: Prevention of Double Benefit and Repayment of Differential Drawback Facts The Transaction: Between July and September 2017 (the inception of GST), the petitioner-exporter exported stainless steel items under the “Payment of IGST” route and subsequently sought a refund of the tax paid. The Conflict: The Revenue authorities withheld the IGST refund,… Read More »
Violation of Natural Justice: Rejection of Refund Without Adjourning Hearing Facts The Application: The petitioner filed a refund application for the period May 2023 to June 2023 under Section 54 of the CGST Act. The Notice: The Department issued a notice requiring a reply within seven days and fixed a date for a personal hearing.… Read More »