Excessive Recovery via Refund Adjustment During Pending Appeal 1. The Core Dispute: Recovery vs. Stay of Demand The central issue in this case involves the Assessing Officer (AO) adjusting current income tax refunds against a disputed penalty (under Section 270A) from a previous year that is currently under appeal. The Problem: The Income Tax Department… Read More »
Depreciation Must Be “Actually Allowed” to Invoke Section 50 Taxation 1. The Core Dispute: Mandatory Depreciation vs. Statutory Reality The case revolves around the sale of two motor cars by an assessee, resulting in a capital loss. The assessee sought to set off this loss against Long-Term Capital Gains (LTCG) arising from the sale of… Read More »
State Transport Corporation vs. Revenue (Multiple Assessment Years) 1. Conversion of Loan Interest into Equity (Section 41(1)) The Assessing Officer (AO) argued that converting outstanding interest into equity share capital constituted a “remission or cessation” of liability, making it taxable as deemed profit. Legal Analysis: Section 41(1) applies when a taxpayer obtains a benefit through… Read More »
ITAT Rules: Revised Audit Report Correcting Professional Error Must Be Considered in Rectification 1. The Core Dispute: A “Copy-Paste” Professional Error The assessee faced a tax demand due to a mechanical addition made during the processing of their return under Section 143(1). The Error: The Chartered Accountant (CA) filed a Tax Audit Report (TAR) in… Read More »
Case Summary: ITAT Rules on Sikkim Resident Exemptions, Genuine Gifts, and Cash Loan Penalties I. Exemption for “Old Settlers” of Sikkim (Section 10(26AAA)) The primary issue involved whether an individual, residing in Sikkim since before its merger with India but not holding a “Sikkim Subject Certificate,” could claim income tax exemption. The Dispute: The Assessing… Read More »
Case Summary: Capital Subsidy for Industrial Growth vs. Reduction of Asset Cost (Section 43(1)) 1. The Core Dispute: “Purpose Test” vs. Cost Meeting The Assessing Officer (AO) argued that the capital subsidy received by the assessee for setting up a 1.40 MW Small Hydro Power (SHP) Project was directly related to the acquisition of plant… Read More »
IMPORTANT GST CASE LAWS 03.02.2026 Relevant Act Section Case Law Title Brief Summary Citation IGST Act, 2017 Section 13(8)(b) Commissioner of Delhi GST v. Global Opportunities (P.) Ltd. [Landmark SC Victory for Consultants] The Supreme Court dismissed the Revenue’s SLP, confirming that education consultants are not intermediaries. Providing counseling to students for foreign universities on… Read More »
Andhra Pradesh High Court: Composite GST Assessment Orders for Multiple Years Held Illegal 1. The Core Dispute: “Bunching” of Financial Years The petitioner challenged a single, composite assessment order that covered a span of nearly five years (July 2017 to January 2022). The Issue: The Revenue issued a single Show Cause Notice (SCN) and followed… Read More »
Supreme Court Conclusively Settles “Intermediary” Dispute for Education Consultants 1. The Core Dispute: Agency vs. Independent Export The Revenue challenged the GST refund claims of Indian educational consultancies (like Global Opportunities and KC Overseas). The Revenue’s Stand: They argued that these consultants were “Intermediaries” under Section 2(13) of the IGST Act because they facilitated the… Read More »
Gross and Net GST revenue collections for the month of Jan, 2026 Feb 1st, 2026 Please click on the link below to view the gross and net GST revenue collections for the month of Jan, 2026. https://tutorial.gst.gov.in/downloads/news/final_approved_monthly_gst_data_for_publishing_jan_2026_01022026.pdf