Monthly Archives: August 2026

Omission of Rule 89(4B) Without Saving Clause Invalidates Pending SCNs and Consequential GST Orders

By | August 5, 2026
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Omission of Rule 89(4B) Without Saving Clause Invalidates Pending SCNs and Consequential GST Orders Omission of Rule 89(4B) Without Saving Clause Invalidates Pending SCNs and Consequential GST Orders Issue Whether the omission of Rule 89(4B) of the CGST Rules via Notification No. 20/2024–Central Tax without a saving clause invalidates show cause notices and consequential Orders-in-Original… Read More »

INCOME TAX CASE LAW 01.08.2026

By | August 5, 2026
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INCOME TAX CASE LAW 01.08.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 2(15) Amaltash Residents Welfare Association v. CIT(E) Activities limited strictly to RWA members with benefits confined to a determinate group are governed by the principle of mutuality and do not qualify as “charitable.” Rejection of Sec 12AB… Read More »

Revenue Appeals Below Monetary Limits Are Dismissed Absent Applicable Exceptions Under CBDT Circular 5/2024

By | August 5, 2026
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Revenue Appeals Below Monetary Limits Are Dismissed Absent Applicable Exceptions Under CBDT Circular 5/2024 Issue Whether a Revenue appeal involving a tax effect below the prescribed CBDT monetary limit can be entertained under the exception clause of Paragraph 3.1(h) of CBDT Circular No. 5/2024 when no substantial question of law arises from the Tribunal’s order.… Read More »

Partial Refunds Must Be Adjusted First Against Accrued Interest and Balance Against Principal Tax Component

By | August 5, 2026
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Partial Refunds Must Be Adjusted First Against Accrued Interest and Balance Against Principal Tax Component Issue Whether a partial tax refund issued by the Revenue during appellate or rectification proceedings should be adjusted first against the interest accrued up to that date under Section 244A, or directly against the principal tax component refundable to the… Read More »

Unexplained Delay in Recording Satisfaction Note Invalidates Section 153C Reassessment Proceedings Against Other Person

By | August 5, 2026
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Unexplained Delay in Recording Satisfaction Note Invalidates Section 153C Reassessment Proceedings Against Other Person Issue Whether a notice issued under Section 153C is legally valid when the Assessing Officer of the searched person delays recording the mandatory satisfaction note by 22 months after completing the search assessment, failing the “immediately after” test established by judicial… Read More »

Supreme Court Disposes Revenue SLP Binding Reassessment Extension Validity Under TLA Act to Rajeev Bansal Ruling

By | August 5, 2026
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Supreme Court Disposes Revenue SLP Binding Reassessment Extension Validity Under TLA Act to Rajeev Bansal Ruling Issue Whether reassessment notices issued under unamended Section 148 after April 1, 2021, for AYs 2013-14 and 2014-15 relying on TLA Act notifications are valid or time-barred under the substituted legal regime. Facts For Assessment Years 2013-14 and 2014-15,… Read More »

Pending Rectification Appeal Does Not Bar Reassessment Under Section 148 Based On Fresh Section 135A Information

By | August 5, 2026
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Pending Rectification Appeal Does Not Bar Reassessment Under Section 148 Based On Fresh Section 135A Information Pending Rectification Appeal Does Not Bar Reassessment Under Section 148 Based On Fresh Section 135A Information Issue Whether the issuance of a reassessment notice under Section 148 based on independent information received under Section 135A is jurisdictionally barred or… Read More »

Enhanced 60% Tax Rate and Surcharge Under Amended Section 115BBE Applies Prospectively From AY 2017-18

By | August 5, 2026
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Enhanced 60% Tax Rate and Surcharge Under Amended Section 115BBE Applies Prospectively From AY 2017-18 Issue Whether the enhanced tax rate of 60% with a 25% surcharge under Section 115BBE and penalty under Section 271AAC, introduced by the Taxation Laws (Second Amendment) Act, 2016, applies retrospectively to cash deposits made during Financial Year 2016-17 (Assessment… Read More »

Mandatory Interest Provisions under Sections 234C and 244A Require Factual Verification and Accurate Recomputation by AO

By | August 5, 2026
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Mandatory Interest Provisions under Sections 234C and 244A Require Factual Verification and Accurate Recomputation by AO Issue Whether the levy of deferment interest under Section 234C requires factual verification of advance tax liability and payment dates at the level of the Assessing Officer. Whether a claim regarding short grant of statutory interest on tax refund… Read More »

High Court Sets Aside Order and Remands Matter to Tribunal for Deciding Section 144B Non-Compliance

By | August 5, 2026
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High Court Sets Aside Order and Remands Matter to Tribunal for Deciding Section 144B Non-Compliance Issue Whether the Tribunal erred in confirming a 12.5% disallowance on purchases without deciding the fundamental jurisdictional issue of non-issuance of a mandatory draft show-cause notice under Section 144B(6)(xi) and without evaluating the complete documentary evidence on merits. Facts The… Read More »