Composite GST SCN Covering Multiple Years is Invalid: Karnataka High Court Issue Whether a single “composite” Show Cause Notice (SCN) issued under Sections 73 or 74 of the CGST/KGST Act can legally club together multiple financial years, tax periods, or block periods into one consolidated demand. Facts The Notice: The petitioner received a single,… Read More »
Natural Justice: Matter Remanded Due to Lack of Effective Opportunity via “Additional Notices Tab” Key Highlights of the Case The Dispute: The petitioner-assessee, a regular return filer, was slapped with a tax demand under Section 73 (determination of tax not involving fraud). They claimed the SCN and the final order were never “noticed” because… Read More »
Karnataka HC Restores GST Registration and Remands Ex-Parte Order for Fresh Adjudication Key Highlights of the Case The Mismatch: The petitioner’s GST registration was cancelled in August 2022 for non-filing. Despite the cancellation, the Department issued a Section 73 notice for FY 2018-19 and passed an ex-parte order in March 2024 confirming a demand of… Read More »
IMPORTANT INCOME TAX CASE LAWS 23.01.2026 Relevant Act Section Case Law Title Brief Summary Citation PBPT Act, 1988 Section 24 (Attachment) Balkar Singh v. Initiating Officer [No Substitution of Property] While confirming a provisional attachment order, the Initiating Officer cannot substitute the originally attached property with a different one. Section 24(4) permits only “continuance” of… Read More »
TDS Credit Rulings: Timing Differences and Sister Concern Credits I. TDS Credit Follows the Income (Cash vs. Mercantile System) Issue: How should TDS credit be handled when an assessee follows the Cash System of accounting (taxable on receipt), but their clients follow the Mercantile System (deducting TDS on accrual)? Facts: The Mismatch: Clients deducted TDS… Read More »
Employee Not Liable for TDS Deducted but Not Deposited by Employer Issue Whether an employee can be asked to pay tax again (via a tax demand) if the employer has already deducted Tax Deducted at Source (TDS) from their salary but failed to deposit it with the Government due to liquidation or other reasons.… Read More »
Jurisdictional AO Cannot Issue Section 148 Notices; Faceless Scheme is Mandatory Issue Whether a notice under Section 148 (for income escaping assessment) and the subsequent assessment order passed by a Jurisdictional Assessing Officer (JAO) are valid, given the provisions of Section 151A which mandate a Faceless Assessment scheme. Facts Assessment Year: 2017-18. The Action:… Read More »
CSR Expenditure is Eligible for Section 80G Deduction; Mandatory Nature is Irrelevant Issue Whether a company can claim a tax deduction under Section 80G (donations) for expenditure incurred to meet its mandatory Corporate Social Responsibility (CSR) obligations under the Companies Act, 2013. Facts Assessment Year: 2020-21. The Spend: The assessee spent Rs. 98.69 lakhs… Read More »
Inherited Gold Sale Accepted: 2001 Valuation Report & Mother’s Affidavit Sufficient Proof Issue Whether the sale proceeds of gold jewellery can be treated as “Unexplained Cash Credit” (Section 68) if the assessee cannot produce the original purchase bills of her deceased father or a registered Will, despite having a valuation report from 2001. Facts… Read More »
Landowner in JDA Can Use Project Completion Method; Not Bound by Developer’s Percentage Completion Method Issue Whether the Assessing Officer (AO) can compel a landowner (who holds land as stock-in-trade) to adopt the Percentage Completion Method (PCM) for recognizing revenue from a Joint Development Agreement (JDA), merely because the developer of the project follows that… Read More »