ROUTE DEVIATION WITHOUT INTENT TO EVADE TAX ATTRACTS GENERAL PENALTY U/S 125, NOT DETENTION U/S 129 ISSUE Whether the interception and detention of goods under Section 129 solely on the ground of “change of route” by the driver is sustainable in the absence of any mens rea (intention) to evade tax, or whether such… Read More »
OMISSION OF RULE 96(10) WITHOUT SAVING CLAUSE NULLIFIES PENDING PROCEEDINGS ISSUE Whether the omission of Rules 89(4B) and 96(10) of the CGST Rules by Notification No. 20/2024, without any specific saving clause, renders all pending proceedings (Show Cause Notices, Adjudication Orders, Appeals) based on these rules redundant and invalid ab initio. FACTS The Change:… Read More »
SUBSIDIARY SERVING PARENT CO. ON COST-PLUS MODEL IS EXPORTER OF SERVICE, NOT INTERMEDIARY ISSUE Whether services provided by an Indian wholly-owned subsidiary to its foreign parent company—involving IT infrastructure management, content creation, and customer support on a “Cost Plus Markup” basis—constitute an “Export of Service” (Zero Rated) or an “Intermediary Service” (taxable in India).… Read More »
IMPORTANT INCOME TAX CASE LAWS 19.12.2025 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 4 (Capital vs. Revenue) SRF Ltd. v. ACIT, LTU Excise duty subsidies, interest subsidies under TUFS, and proceeds from the transfer of Certified Emission Reductions (Carbon Credits) are all held to be capital receipts and not… Read More »
JURISDICTION OF PCIT TO CANCEL TRUST REGISTRATION AFTER TRANSFER U/S 127 ISSUE Whether the Principal Commissioner of Income Tax (PCIT) has the jurisdiction to cancel the registration of a charitable trust under Section 12AA/12AB, or if such power is exclusively vested with the Commissioner (Exemption), particularly when the case has been transferred to the… Read More »
NO INTEREST DISALLOWANCE U/S 36(1)(iii) IF PARTNERS’ DRAWINGS ARE COVERED BY INTEREST-FREE FUNDS ISSUE Whether the Assessing Officer is justified in disallowing interest expenditure under Section 36(1)(iii) on the ground that interest-bearing overdraft funds were diverted for partners’ drawings (resulting in negative capital balances), even when the assessee-LLP possessed ample interest-free funds to cover… Read More »
LIMITATION FOR RECTIFICATION APPLICATION STARTS FROM DATE OF SERVICE OF ORDER ISSUE Whether the limitation period (currently 6 months) for filing a rectification application before the Tribunal under Section 254(2) commences from the date of the passing of the order or from the date on which the order is actually served upon the assessee.… Read More »
CUSTOMER ADVANCES ADJUSTED AGAINST SALES ARE NOT UNEXPLAINED CASH CREDITS (SECTION 68) ISSUE Whether advances received from customers for the sale of jewelry can be treated as “unexplained cash credits” (loan creditors) under Section 68 merely because the assessee did not furnish detailed creditworthiness proof like a loan creditor, even though the advances were… Read More »
REASSESSMENT NOTICE TIME-BARRED: AO MUST ISSUE FINAL NOTICE WITHIN 7 DAYS OF REPLY IF LIMITATION EXPIRED ISSUE Whether a reassessment notice issued under Section 148 (New Regime) is time-barred if the Assessing Officer fails to issue it within 7 days of receiving the assessee’s reply to the Section 148A(b) notice, specifically in cases where… Read More »
REVISED FORM 10 FILED DURING SEARCH ASSESSMENT RELATES BACK TO ORIGINAL; ACCUMULATION ALLOWED ISSUE Whether a charitable trust, having filed its original Form 10 (for accumulation of income) within the due date under Section 139(1), can subsequently file a Revised Form 10 claiming a higher accumulation during search assessment proceedings under Section 153A, and… Read More »