Transit State Authorities Cannot Levy Penalties or Detain Inter-State Consignments Absent Domestic Tax Incidence Issue Whether GST authorities of a transit State (Uttar Pradesh) have the legal jurisdiction to detain goods and impose penalties under section 129 of the CGST/SGST Act for procedural lapses (such as the absence of an e-Tax Invoice), when the inter-State… Read More »
Pre-Adjudication Garnishee Letters Issued to Customers Prior to Assessment Order Declared Legally Invalid Issue Whether the GST authorities can legally issue garnishee notices or recovery letters under sections 79 or 83 of the CGST Act to a taxpayer’s customers, demanding third-party remittances prior to the formal issuance of an Order-in-Original (OIO) that finalizes the tax… Read More »
Seven Days Pre-Arrest Notice Directed by Trial Court Upheld as Valid Measure of Natural Justice Issue Whether a judicial direction requiring the GST Department to give seven days’ prior notice to respondents before taking any coercive action (such as arrest) constitutes an impermissible “blanket restraint” on statutory investigation powers under the CGST Act, when the… Read More »
INCOME TAX CASE LAWS DIGEST 08.06.2026 Relevant Act Section Case Law Title Citation Brief Summary Income Tax Act, 1961 Section 192 & Section 201 State Bank of India vs. ITO, TDS Click Here The assessee-bank was held liable as an “assessee in default” under section 201 because it failed to deduct TDS under section 192… Read More »
Supreme Court Dismisses Special Leave Petition Upholding Stepping Up of Pay for Seniors Earning Less Than Juniors Issue Whether the Department can deny the “stepping up of pay” to senior employees to bring them at par with their juniors—who draw a higher salary due to advance increments received upon passing a departmental examination later in… Read More »
Mechanical Technical Approval Granted Under Section 153D Without Application of Mind Vitiates Search Assessments Issue Issue I (Mechanical Approval under Section 153D): Whether an assessment framed under section 153C is legally sustainable if the Joint Commissioner of Income Tax (JCIT) grants statutory approval under section 153D using the nomenclature “Technical Approval,” implying a routine formality… Read More »
Tribunal Can Remand Matter to Direct Valuation Officer Reference for Disputed Asset Allocation Under Section 50C Issue Whether the Income Tax Appellate Tribunal, while exercising its appellate powers under section 254, has the legal authority to remand a matter and direct the Assessing Officer to refer a property valuation to the Departmental Valuation Officer (DVO),… Read More »
Final Trust Registration Relates Back to Provisional Period and Infrastructure Capital Expenditure Qualifies as Valid Application of Income Issue Issue I (Doctrine of Relating Back): Whether a charitable trust holding provisional registration can be denied tax exemption under section 11 on the ground that its final registration, though granted later following a remand by the… Read More »
Telecom Company Secures Complete Victory Across Major Corporate, International Tax, and Accounting Reconciliation Issues Issue Whether multiple ad hoc additions and disallowances made by the Assessing Officer concerning business discounts, international interconnect charges, spectrum amortisation, outstanding government loans, timing-based ledger mismatches, and rule-based calculations without actual exempt income can be legally sustained under the Income-tax… Read More »
Chartered Accountant Acting as Conduit for Client Tax Payments Cannot Be Taxed for Unexplained Bank Deposits Issue Whether substantial cash/credit deposits found in the bank account of a Chartered Accountant can be added to his income as “unexplained money” under section 69A of the Income-tax Act, when the corresponding debit entries and tax challans establish… Read More »