Monthly Archives: May 2026

Outsourcing construction to sub-contractors does not exempt villa developers from paying GST on composite construction services.

By | May 22, 2026
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Outsourcing construction to sub-contractors does not exempt villa developers from paying GST on composite construction services. Issue Whether a developer is liable to pay GST on villa construction services when the physical construction work is entirely outsourced to a third-party contractor. Whether a separate agreement for the sale of undivided land and a separate construction… Read More »

Category: GST

State GST Officers Have Valid Cross-Empowerment Jurisdiction To Detain Goods and Impose Transit Penalties

By | May 22, 2026
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State GST Officers Have Valid Cross-Empowerment Jurisdiction To Detain Goods and Impose Transit Penalties Issue Whether State GST officers possess the legal jurisdiction under cross-empowerment principles to intercept goods and enforce Integrated Goods and Services Tax (IGST) provisions during transit through a corridor state. Whether the absence of mens rea (guilty intent) exonerates a taxpayer… Read More »

Category: GST

Kerala Devaswom Recruitment Board must register and pay GST on examination fees collected from candidates.

By | May 22, 2026
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Kerala Devaswom Recruitment Board must register and pay GST on examination fees collected from candidates. Issue Whether a statutory autonomous body funded by state grants is liable to obtain registration under Section 22 or Section 24 of the CGST/KSGST Act, 2017. Whether examination fees collected from candidates by a recruitment board for selecting personnel constitute… Read More »

Category: GST

Income Tax Case Law Digest 21.5.2026

By | May 22, 2026
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Income Tax Case Law Digest 21.5.2026 Relevant Act Section Case Law Title Brief Summary Citation PBPT Act, 1988 Section 2 Smt. Saryu Miglani v. Initiating Officer, ACIT Benami Prohibition Unit Handing over demonetized cash to a third party to deposit in an entity’s bank account and routing it back via banking channels constitutes a benami… Read More »

Approved IBC Resolution Plan Extinguishes Prior Tax Demands But Preserves Brought Forward Business Losses

By | May 22, 2026
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Approved IBC Resolution Plan Extinguishes Prior Tax Demands But Preserves Brought Forward Business Losses Issue Whether the Revenue department can raise fresh tax demands against a corporate debtor for additions relating to a period prior to the National Company Law Tribunal (NCLT) approval date, if no such claim was placed before the NCLT. Whether the… Read More »

Reassessment is unsustainable as the property was purchased from a different entity than alleged.

By | May 22, 2026
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Reassessment is unsustainable as the property was purchased from a different entity than alleged. Issue Whether the Assessing Officer legally assumed jurisdiction for reassessment under Section 147 when the underlying search information inaccurately identified the seller of the property. Whether an addition for unexplained investments under Section 69 can be sustained solely based on unverified… Read More »

Capital gains cannot be charged if a development agreement remains purely on paper without consideration or possession transfer.

By | May 22, 2026
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Capital gains cannot be charged if a development agreement remains purely on paper without consideration or possession transfer. Issue Whether a capital gains tax liability under Section 45 can be triggered in a given assessment year when a Joint Venture Agreement and Power of Attorney are signed, but remain completely unacted upon with no transfer… Read More »

Provisional Attachment Under PBPT Act Extends Only to Actual Benami Properties, Not to Abettor’s Assets

By | May 22, 2026
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Provisional Attachment Under PBPT Act Extends Only to Actual Benami Properties, Not to Abettor’s Assets Issue Whether the provisional attachment of an individual’s personal properties can legally continue under Section 24 of the Prohibition of Benami Property Transactions Act (PBPT Act), 1988, if their legal status is shifted from a “beneficial owner” to an “abettor”… Read More »

Corporate guarantee commissions require a 50:50 interest-saving split, and Section 14A disallowances cannot increase book profits.

By | May 22, 2026
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Corporate guarantee commissions require a 50:50 interest-saving split, and Section 14A disallowances cannot increase book profits. Issue Whether the Transfer Pricing Officer (TPO) should allocate 100% of interest savings to a corporate guarantee or apply a 50:50 split between the assessee and its Associated Enterprise (AE) under the interest-saving approach. Whether an Assessing Officer (AO)… Read More »

Charitable trust’s 430-day delay in filing Form No. 10 condoned due to reasonable cause of honorary accountant’s omission.

By | May 22, 2026
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Charitable trust’s 430-day delay in filing Form No. 10 condoned due to reasonable cause of honorary accountant’s omission. Issue Whether a 430-day delay in filing Form No. 10 for accumulation of income under Section 11(2) should be condoned under Section 119(2)(b) when the omission was caused by an honorary accountant and its rejection causes genuine… Read More »