Monthly Archives: July 2026

Composite GST Show Cause Notices Covering Multiple Financial Years Are Legally Unsustainable And Must Be Quashed

By | July 7, 2026
0 Comment

Composite GST Show Cause Notices Covering Multiple Financial Years Are Legally Unsustainable And Must Be Quashed Issue Whether a consolidated or composite Show Cause Notice (SCN) issued under Section 73 of the CGST/SGST Act covering multiple financial years (2019-2020 to 2023-2024) is legally sustainable, or if the tax authorities are mandated to issue separate, year-wise… Read More »

INCOME TAX CASE LAW 06.07.2026

By | July 7, 2026
0 Comment

INCOME TAX CASE LAW 06.07.2026 Relevant Act Section Case Law Title / Issuing Authority Citation / Notification No. Brief Summary Income-tax Act, 1961 TDS Exemption (IFSC Units) Central Board of Direct Taxes (CBDT) Click Here Exempts TDS under Section 194 (noted as 393 in edit) on lease rent or supplemental lease rent paid to eligible… Read More »

Reassessment based on financial notes previously scrutinized during the original assessment constitutes an impermissible change of opinion.

By | July 7, 2026
0 Comment

Reassessment based on financial notes previously scrutinized during the original assessment constitutes an impermissible change of opinion. Issue Whether the Assessing Officer can legally initiate reassessment proceedings under Section 148 to disallow foreign currency transaction losses and warranty provisions when both items were fully disclosed in the original financial notes, explicitly scrutinized via Section 142(1)… Read More »

An assessment order giving effect to an appellate decision beyond the statutory limitation period is a nullity and must be quashed.

By | July 7, 2026
0 Comment

An assessment order giving effect to an appellate decision beyond the statutory limitation period is a nullity and must be quashed. Issue Whether an assessment order passed by the Assessing Officer to give effect to a CIT(A) appellate order is legally sustainable when it is issued beyond the strict three-month statutory limitation period prescribed under… Read More »

Petitioner permitted to amend e-filed writ petition challenging Section 147A without producing original papers.

By | July 7, 2026
0 Comment

Petitioner permitted to amend e-filed writ petition challenging Section 147A without producing original papers. Issue Whether a petitioner can be permitted to amend an e-filed writ petition to challenge the constitutional validity (vires) of Section 147A without producing the untraceable original physical petition papers, and whether formal re-verification can be dispensed with. Facts The Background:… Read More »

Reassessment under Section 147 is valid if third-party seized material does not directly belong to assessee.

By | July 7, 2026
0 Comment

Reassessment under Section 147 is valid if third-party seized material does not directly belong to assessee. Issue Whether the Assessing Officer can validly initiate reassessment proceedings under Section 147 based on independent investigation of third-party search data, where the seized material does not directly belong, pertain, or relate to the assessee, thereby rendering the special… Read More »

Trading additions are restricted to a profit percentage when corresponding sales are accepted as genuine.

By | July 7, 2026
0 Comment

Trading additions are restricted to a profit percentage when corresponding sales are accepted as genuine. Trading additions are restricted to a profit percentage when corresponding sales are accepted as genuine. Issue Whether the revenue department is legally justified in seeking a full or enhanced addition for alleged bogus purchases under Section 69 when the corresponding… Read More »

Reassessment notice is quashed where reasons fail to establish a rational nexus with income escapement.

By | July 7, 2026
0 Comment

Reassessment notice is quashed where reasons fail to establish a rational nexus with income escapement. Reassessment notice is quashed where reasons fail to establish a rational nexus with income escapement. Issue Whether a reassessment notice issued under Section 148 is legally sustainable when the Assessing Officer relies entirely on general penny-stock information from the Investigation… Read More »

Reopening assessment based on assumptions of business incoherence from high-value bank entries is impermissible.

By | July 7, 2026
0 Comment

Reopening assessment based on assumptions of business incoherence from high-value bank entries is impermissible. Reopening assessment based on assumptions of business incoherence from high-value bank entries is impermissible. Issue Whether the revenue department can legally initiate reassessment proceedings under Section 148 based on assumptions that high-value bank transactions are incoherent with business activity, when all… Read More »

Telecom rulings favor assessee on TP adjustments, spectrum depreciation, and distributor discounts.

By | July 7, 2026
0 Comment

Telecom rulings favor assessee on TP adjustments, spectrum depreciation, and distributor discounts. Issue Whether Transfer Pricing (TP) adjustments are sustainable when based on controlled comparables, lack adjustments for economic risks, or treat business-linked Advertisement, Marketing, and Promotion (AMP) expenses as a separate brand-promotion transaction. Whether a telecom operator can claim depreciation on 3G spectrum rights,… Read More »