Deduction Under Section 54 Allowed as Payment Was Proven by Sale Deed and Bank Records. Issue Can an Assessing Officer (AO) validly disallow a deduction under Section 54 for the purchase of a new residential property on the ground of non-disclosure of the payment mode, even when the taxpayer provides substantial documentary evidence, including a… Read More »
AO Must Investigate Land Use Before Restricting Section 54F Exemption. Issue When an assessee purchases a large plot of land and constructs a small dwelling unit on it, can the Assessing Officer (AO) restrict the capital gains exemption under Section 54F to a “reasonable” portion of the land without conducting a detailed factual inquiry into… Read More »
A deduction for prior-year unpaid liabilities is allowed under Section 43B, but only to the extent that the assessee can furnish concrete proof of payment. Issue Is an assessee entitled to claim a deduction under Section 43B for statutory liabilities (like Service Tax, TDS, PF) that were disallowed in a previous assessment year, and what… Read More »
A trust’s income must be assessed under Sections 11-13 once its tax registration is restored. Issue Once a charitable trust’s registration under Section 12A is restored by an appellate authority, must the Assessing Officer (AO) assess its income according to the special provisions for trusts, or can the additions made on the basis of the… Read More »
Income from the sale of foundation seeds qualifies as agricultural income and is exempt from tax. Issue Whether income derived from the production and sale of foundation seeds can be classified as “agricultural income” and thus be eligible for exemption under Section 10(1) of the Income-tax Act. Facts The assessee, a company involved in the… Read More »
IMPORTANT GST CASE LAWS 16.10.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 6 Tansam Engineering and Construction Company v. Commissioner, CGST and Central Excise, Rourkela When State GST authorities initiate proceedings (issuing a DRC-01A or SCN) for wrongful Input Tax Credit (ITC) under Section 74, Central GST authorities are barred from taking… Read More »
Confiscation of Excess Stock is Impermissible; Regular Assessment is the Correct Path. Issue Can the GST authorities resort to the harsh measure of confiscating goods under Section 130 for an alleged excess of stock found during a survey of a business premise, or is the proper legal recourse limited to initiating assessment proceedings under Section… Read More »
Detention of Goods Upheld for Lack of Delivery Challan During Weighment Trip. Issue Can goods in transit be lawfully detained and penalized under Section 129 of the CGST Act for not being accompanied by any prescribed documents (like a delivery challan), even if the movement is for a short distance to a weighbridge for which… Read More »
Waiting for a Rectification Order is Sufficient Cause to Condone a Minor Delay in Appeal. Issue Can the time a taxpayer spends waiting in good faith for a decision on a rectification application be considered a “sufficient cause” to condone a minor delay in filing a statutory appeal under the GST Act? Facts The assessee… Read More »
The Supreme Court upheld the High Court’s order, which balanced the release of recovered GST funds with conditions to secure the revenue’s interest pending an appeal. Issue What conditions can be imposed on a taxpayer for the release of an amount recovered by tax authorities, pending the disposal of a statutory appeal, to balance the… Read More »