Monthly Archives: July 2026

Estimation of business income by applying a reasonable profit rate on turnover precludes separate additions for cash deposits under Section 69A.

By | July 7, 2026
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Estimation of business income by applying a reasonable profit rate on turnover precludes separate additions for cash deposits under Section 69A. Issue Whether the Assessing Officer is legally justified in estimating a hardware trading firm’s business income by applying a 2% net profit rate on its disclosed turnover when the assessee fails to produce its… Read More »

Disallowances for unverified TDS items are upheld while crystallized expenses and business write-offs are allowed.

By | July 7, 2026
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Disallowances for unverified TDS items are upheld while crystallized expenses and business write-offs are allowed. Issue Whether tax disallowances under Section 40(a)(ia) apply to unverified consultancy components and unconfirmed interest payments, and whether crystallized expenses, group-invoiced costs, routine electricity bills, written-off sundry balances, and business customer advances are deductible without attracting Section 68 or Section… Read More »

Disallowance stands upheld for unverified TDS components, but crystallized expenses and legitimate business write-offs are allowable.

By | July 7, 2026
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Disallowance stands upheld for unverified TDS components, but crystallized expenses and legitimate business write-offs are allowable. Issue Whether tax disallowance under Section 40(a)(ia) applies to unverified or unsupported consultancy components and interest payments where corresponding payees have not proved tax compliance. Whether business expenses that crystallized in the relevant year, expenses invoiced to group concerns,… Read More »

Cancellation under Section 12AA(3) for financial diversion is valid prospectively from the order date.

By | July 7, 2026
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Cancellation under Section 12AA(3) for financial diversion is valid prospectively from the order date. Issue Whether a Show Cause Notice detailing search and survey findings can be quashed as vague or lacking particulars. Whether incriminating materials, including cash and fund diversions to a Managing Trustee’s concerns, justify the cancellation of a trust’s charitable registration. Whether… Read More »

Form 5 cannot be denied when a technical portal error mistakenly misallocates a timely tax settlement payment.

By | July 7, 2026
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Form 5 cannot be denied when a technical portal error mistakenly misallocates a timely tax settlement payment. Issue Whether the revenue department is legally mandated to rectify a portal-driven technical error, delink misallocated payments, and issue Form 5 to conclude all proceedings when a taxpayer has fulfilled all conditions and paid the full amount prescribed… Read More »

Supreme Court stays order holding physical service dates override electronic portal service dates for GST appeal limitations.

By | July 7, 2026
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Supreme Court stays order holding physical service dates override electronic portal service dates for GST appeal limitations. Supreme Court stays order holding physical service dates override electronic portal service dates for GST appeal limitations. Issue Whether the date of physical/offline communication of a GST notice or order prevails over the date of electronic service on… Read More »

CBDT exempts TDS on aircraft and ship lease payments to IFSC…

By | July 7, 2026
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CBDT exempts TDS on aircraft and ship lease payments to IFSC… Notification No. 74/2026 & 75/2026 (Dated 03-07-2026) MINISTRYOF FINANCE (Department of Revenue) (CENTRALBOARDOFDIRECTTAXES) NOTIFICATION New Delhi 3rdJuly, 2026 S.O. 3609(E).—In exercise of the powers conferred by section 400(1) read with section 147 of the Income-tax Act, 2025 (30 of 2025) (hereinafter referred to as… Read More »

GST CASE LAW 04.07.2026

By | July 7, 2026
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GST CASE LAW 04.07.2026 Relevant Act Section Case Law Title Citation Brief Summary West Bengal GST Act, 2017 Classification / Rate Notification Sage Organics (P.) Ltd., In re Click Here 1. Non-alcoholic beverage preps without fruit pulp/juice used as bases for dilution fall under HSN 2202 99 90 (Taxable @ 20% CGST + 20% SGST).… Read More »

Supreme Court stays order holding physical service dates override electronic portal service dates for GST appeal limitations.

By | July 7, 2026
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Supreme Court stays order holding physical service dates override electronic portal service dates for GST appeal limitations. Supreme Court stays order holding physical service dates override electronic portal service dates for GST appeal limitations. Issue Whether the date of physical/offline communication of a GST notice or order prevails over the date of electronic service on… Read More »

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

By | July 7, 2026
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Composite GST Show Cause Notices Covering Multiple Financial Years Are Legally Unsustainable And Must Be Quashed Issue Whether a consolidated Show Cause Notice (SCN) issued under Section 73 of the CGST/SGST Act covering multiple financial years (2019–20 to 2021–22) is legally sustainable, or if the tax authorities are mandated to issue separate notices for each… Read More »