A notional foreign exchange gain that arises from the year-end revaluation of a loan that is on the capital account is not taxable income. Issue Is the notional gain, arising from the revaluation of a foreign currency loan given to a subsidiary, taxable as income, especially when the loan is a capital asset and not… Read More »
Appellate Authority Can Re-Adjudicate Refunds Based on New Evidence and Facts: Orissa High Court The Orissa High Court ruled that the Appellate Authority is fully empowered to re-adjudicate refund claims by taking into consideration new documentary evidence, facts, and legal arguments presented by the taxpayer, provided the documents pertain to the original refund application. Key… Read More »
Business Closure is Not a Ground for ITC Refund: Sikkim High Court Upholds Statutory Limits Court’s Affirmation of Statutory Limitations The Sikkim High Court ruled that a refund claim for unutilised Input Tax Credit (ITC) filed due to a business closure is not maintainable. The court set aside an earlier Single Judge’s order that had… Read More »
A cancellation order is invalid if it ignores the taxpayer’s reply and gives no reasons. Issue Is a retrospective cancellation of a GST registration legally valid if the final order does not appear to have considered the taxpayer’s reply to the show-cause notice and fails to provide any specific reasons justifying the retrospective application of… Read More »
Seized residential CCTV footage can only be accessed with strict safeguards to protect the taxpayer’s privacy. Issue How should tax authorities handle the seizure and inspection of CCTV footage from a taxpayer’s residential premises in a way that balances the legitimate needs of an investigation with the taxpayer’s fundamental right to privacy? Facts During a… Read More »
A lawyer’s computer can’t be searched without their presence due to attorney-client privilege. Issue What is the correct legal procedure for tax authorities to follow when searching a lawyer’s office and examining their computer, in order to protect the highly sensitive legal principle of attorney-client privilege? Facts GST officials conducted a search and seizure operation… Read More »
A court will relegate a taxpayer to file a statutory appeal instead of hearing a writ petition, but may grant an extended time to file that appeal. Issue Should a taxpayer who has failed to reply to a show-cause notice and has missed the deadline for filing a statutory appeal be allowed to challenge the… Read More »
A Commissioner cannot initiate revision proceedings under Section 263 to review an Assessing Officer’s order if an appeal against that same order is already pending before the Commissioner (Appeals). Issue Can a Commissioner invoke their revisionary jurisdiction under Section 263 of the Income-tax Act, 1961, to revise an Assessing Officer’s order, if an appeal filed… Read More »
Reassessment notices must be issued in a faceless manner after April 1, 2021. Issue Are reassessment proceedings that are initiated by a jurisdictional Assessing Officer in the traditional, physical manner legally valid after the amendments that were introduced by the Finance Act, 2021, which mandated a new and faceless procedure for such actions? Facts The… Read More »
A reassessment order is invalid if it completely ignores the taxpayer’s detailed reply to the show-cause notice. Issue Is a reassessment order legally valid if the Assessing Officer passes it without considering or even referring to the detailed reply and documentary evidence that was submitted by the taxpayer in response to the show-cause notice? Facts… Read More »