Reassessment is valid if it’s based on specific information about bogus purchases. Issue Is a reassessment proceeding legally valid if it is initiated based on specific information from an Investigation Wing, supported by evidence like bank statements, suggesting that the assessee has taken accommodation entries in the form of bogus purchases? Facts The Assessing Officer… Read More »
A write-off of accrued interest income is an allowable bad debt, provided that the interest was offered to tax in a previous year. Issue Is a moneylender entitled to a bad debt deduction under Section 36(1)(vii) of the Income-tax Act, 1961, for writing off accrued interest income, if that interest was duly offered to tax… Read More »
An assessment order that is passed in the name of a non-existing company that has already merged with another entity is a legal nullity and is void from the beginning. Issue Is a reassessment order legally valid if it is passed in the name of a company that has already ceased to exist due to… Read More »
Provisional sanction of refund claims on the basis of identification and evaluation of risk by the system Instruction No. 06/2025-GST File No.:CBIC-20006/4/2025-GST Government of India Ministry of Finance Department of Revenue Central Board Indirect Taxes & Customs GST Policy Wing New Delhi, dated 3rdOctober, 2025 To, All thePrincipal Chief Commissioners /Chief Commissioners of Central Tax… Read More »
Uploading a notice to the GST portal is a valid service. Issue Is a GST demand order legally invalid if the preliminary, pre-show cause notice in Form DRC-01A was not issued, and if the subsequent notices and the final order were served on the taxpayer only by uploading them to the GST portal? Facts A… Read More »
A taxpayer gets a fresh hearing if an order is uploaded to an obscure portal tab. Issue What is the appropriate legal remedy for a taxpayer who misses the statutory deadline to file an appeal because the final adjudication order was uploaded to the “Additional notices and orders” tab on the GST portal instead of… Read More »
A single, consolidated show-cause notice (SCN) is valid for multiple years in large-scale GST fraud cases, and the proper remedy against the final order is a statutory appeal, not a writ petition. Issue Is a single, consolidated show-cause notice (SCN) that covers multiple financial years legally permissible under Section 74 of the CGST Act, 2017,… Read More »
An unregistered Power of Attorney (POA) is not a “transfer” for capital gains tax. Issue Does the act of giving an unregistered Power of Attorney to a developer for the purpose of constructing on a property, without a formal and registered agreement for sale, constitute a “transfer” under Section 2(47)(v) of the Income-tax Act, 1961,… Read More »
Reopening an assessment on a settled issue is an invalid “change of opinion”. Issue Can an Assessing Officer validly reopen a completed assessment under Section 148 of the Income-tax Act, 1961, to disallow a claim that was already examined and allowed during the original scrutiny, especially when the underlying legal issue has been decided in… Read More »
Reassessment is invalid if an NRI’s income is from an exempt NRE account. Issue Can reassessment proceedings be validly initiated against a Non-Resident Indian (NRI) for high-value transactions in their bank account, when the taxpayer provides a clear explanation that the account is a Non-Resident (External) – NRE – account and the income earned in… Read More »