Sales Denied by Customers or Returned Unserved are Taxable as Bogus Cash Credits. The Dispute: Genuine Sales vs. Accommodation Entries The Conflict: The assessee reported sales of approximately ₹11.04 lakhs. The Assessing Officer (AO) suspected these were bogus entries intended to inflate turnover or introduce unaccounted cash into the books. The Investigation (AY 2004-05): The… Read More »

If the AO fails to refer a property to the DVO despite the taxpayer’s request, the Section 50C addition is void and cannot be “re-done” after the deadline. The Dispute: Circle Rate vs. The “Approaching Deadline” The Conflict: The assessee sold a property below the “Circle Value” (Stamp Duty Value). The AO’s Action: Invoked Section… Read More »

Rental Income is Taxable as House Property Unless Property Dealing is the Main Business Object. The Dispute: Standard Deduction vs. Business Income The Conflict: The assessee leased out properties and claimed the income under the head “Income from House Property.” This allowed them to take the 30% Standard Deduction under Section 24(a) (now Section 21… Read More »

Registration and 80G approval cannot be denied to a new trust simply because its hospital is still under construction. The Dispute: Operational Reality vs. Charitable Intent The Conflict: A newly formed trust applied for registration (u/s 12AB) and 80G approval. Its primary goal was to build and run a hospital for the poor. The Commissioner’s… Read More »

An order without a valid DIN is non-est (legally non-existent); a delay in appealing such an order is a “bona fide” mistake. The Dispute The assessee-trust appealed a rectification order (u/s 154) with a 505-day delay. The CIT(A) dismissed the appeal as time-barred under Section 249 (now Section 358 of the 2025 Act). The Verdict… Read More »

Substantial tax benefits under Section 11 cannot be denied for technical or procedural delays in filing Form 10B. The Dispute: Timing of Registration vs. Audit Report The Conflict: * The Registration Lag: The trust was granted registration under Section 12AA in January 2017. Critically, this was after the tax return due date (October 2016) but… Read More »

Real estate developers must pass on the 1.31% additional ITC benefit to homebuyers as a price reduction. The Dispute: The Transition Windfall The Conflict: When GST was introduced, the “cascading effect” of taxes (tax on tax) was reduced because developers could now claim ITC on almost all inputs (cement, steel, services) which were previously restricted… Read More »

GST registration cannot be cancelled retrospectively if the Show Cause Notice (SCN) did not propose such a measure. The Dispute: Procedural “Ambushes” vs. Due Process The Conflict: A proprietorship trading in iron and steel was served an SCN following a physical verification of their premises. The SCN: Cited discrepancies but only proposed a standard cancellation.… Read More »

Section 16(5) overrides Section 16(4) time-limits for FY 2017-18 to 2020-21 if returns were filed by 30.11.2021. The Dispute: The 16(4) Deadlock The Conflict: For FY 2018-19, the petitioner filed their March 2019 return on 28.10.2019. The Revenue’s Stance: Under the original Section 16(4), the deadline to claim ITC for FY 2018-19 was the due… Read More »