I. Assessment Beyond Limited Scrutiny Scope is Invalid, Order Set Aside Issue: Whether an Assessing Officer (AO) can expand the scope of a “limited scrutiny” assessment to include issues not originally identified for examination (specifically, recharacterizing share transactions as an adventure in the nature of trade and disallowing capital loss), thereby exceeding jurisdiction, contrary to… Read More »
I. Reassessment Notice in Name of Non-Existent Amalgamated Company is Null and Void Issue: Whether a notice issued under Section 148 of the Income-tax Act, 1961, for reopening a completed assessment (under Section 143(3)) in the name of an erstwhile company that has amalgamated with another entity, is valid, especially when the department was already… Read More »
Advisory regarding non-editable of auto-populated liability in GSTR-3B Jun 7th, 2025 1.GST Portal provides a pre-filled GSTR-3B, where the tax liability gets auto-populated based on the outward supplies declared in GSTR-1/ GSTR-1A/ IFF. As of now taxpayers can edit such auto populated values in form GSTR 3B itself. 2.With introduction of form GSTR 1A, taxpayer… Read More »
I. Allocation of Employee Benefit Expenses to Agricultural Activities Upheld Due to Nature of Work Issue: Whether the Assessing Officer (AO) was justified in allocating employee benefit expenses to agricultural activities on a proportionate basis, when the assessee claimed a much lower allocation, and the nature of the agricultural activity was specialized and labor-intensive. Facts:… Read More »
Exemption Under Section 11 Not Deniable Solely for Late Filing of Form 10B if Filed Before 143(1) Order/Intimation Issue: Whether a charitable or religious trust’s claim for application of income under Section 11 of the Income-tax Act, 1961, can be denied solely on the ground that the assessee or its auditor failed to file Form… Read More »
I. Denial of Section 11 Exemption for Advances/Loans to Related Parties/Entities to be Reverified by AO, Considering Purpose and Past History Issue: Whether a charitable trust, registered under Section 12A and claiming exemption under Section 11, can be denied the benefit of exemption due to alleged contravention of Section 11(5) read with Section 13(1)(d) for… Read More »
Reopening of Assessment for Penny Stock LTCG Unjustified Without Independent Inquiry Proving Accommodation Entry Issue: Whether the reopening of assessment under Section 147 of the Income-tax Act, 1961, based on the allegation that Long-Term Capital Gains (LTCG) claimed as exempt under Section 10(38) from the sale of shares were essentially unexplained income from accommodation entries… Read More »
Charitable Trust Engaged in Microfinance as Main Business Object Not Eligible for Exemption Under Section 11(1) or 11(4A) Issue: Whether a charitable trust primarily engaged in microfinance (lending money to self-help groups and charging processing fees) can claim exemption under Section 11(1) or Section 11(4A) of the Income-tax Act, 1961, when microfinance is its main… Read More »
IMPORTANT GST CASE LAWS 07.06.2025 SECTION CASE LAW TITLE Brief Summary Citation Relevant Act 2(4) of CGST Act Goyal Trading Co. v. Union of India High Court Bench’s Territorial Jurisdiction for GST Matters Based on Assessee’s Place of Business/Search, Not Just Adjudicating Authority’s Location Click Here Central Goods and Services Tax Act, 2017 2(13) of… Read More »
Demand Order Quashed: Non-Upload of Order on Portal and Lack of Proper Communication Violates Natural Justice Issue: Whether a demand order (DRC-07) and its preceding proceedings are valid if the order is not uploaded on the GST portal or properly communicated to the assessee via email, thereby denying the assessee knowledge of the order and… Read More »