Case Summary: High Court Quashes “Negative Blocking” of Electronic Credit Ledger 1. The Core Dispute: Blocking Non-Existent Credit The jurisdictional GST authority blocked the Electronic Credit Ledger (ECL) of the assessee. However, since the ledger had a Nil balance at the time, the department recorded a negative entry. The Problem: By inserting a negative balance,… Read More »
Kerala AAR Ruling: GST Exemption for Skin Disease Treatments 1. The Core Issue: Healthcare vs. Cosmetic Treatment The applicant, a Kochi-based clinical establishment, sought an advance ruling on whether services provided for treating specific dermatological conditions qualify for GST exemption. The primary question was whether these treatments constitute “healthcare services” or taxable “cosmetic/aesthetic treatments.” Ailments… Read More »
GSTN Launches New “Application for Unbarring Returns” Module The Goods and Services Tax Network (GSTN) has operationalized a new online facility on the GST Portal, allowing taxpayers to request the unblocking of returns that have been system-barred due to non-filing. Key Highlights of the Module: The Problem: Under Rule 59(6) of the CGST Rules,… Read More »
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 03.01.2026 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 »