GST Demand Order Cannot Exceed SCN Amount; HC Quashes Order in Violation of Section 75(7). Issue Whether an adjudication order (Order-in-Original) is legally sustainable if it confirms a tax demand significantly higher than the amount proposed in the Show Cause Notice (SCN), and whether this violates the statutory mandate of Section 75(7) of the CGST… Read More »
HC Sets Aside Excessive Penalty Imposed Beyond SCN Amount; Directs Reconsideration Limited to Penalty Quantum Issue Whether an adjudicating authority can impose a penalty in the final order that exceeds the amount proposed in the Show Cause Notice (SCN) or the tax determined, and whether such an order violates the mandatory provisions of Section 75(7)… Read More »
Writ Rejected in Bogus Invoicing Case; Cancelled Registration No Excuse for Ignoring Portal Notices Issue Whether a taxpayer can invoke writ jurisdiction to challenge a GST demand order on the grounds of “non-service” because the order was uploaded to the GST portal after their registration was cancelled, especially when they had prior knowledge of the… Read More »
Writ Against Search Dismissed Due to Delay and Existence of Final Order; Liberty Granted to File Appeal Issue Challenge to Search: Can a taxpayer file a writ petition to challenge the validity of an inspection/search (under Section 67) and the authorization (under Rule 139) nearly two years after the event and after a final adjudication… Read More »
IMPORTANT INCOME TAX CASE LAWS 19.11.2025 Relevant Section Case Law Title Brief Summary Citation Relevant Act Section 2(15) & 11 Agrasen Medical Relief & Research Society v. Income-tax Officer (Exemption) Exemption under Section 11 allowed for a charitable society running a hospital, as over 85% of receipts (including corpus) were applied to charitable purposes. The… Read More »
Supreme Court Disposes of Revenue’s SLP in Light of Rajeev Bansal Judgment: TOLA Applies, But Time Limits Strictly Enforced Issue Whether the reassessment notice issued under Section 148 on 31-07-2022 for Assessment Year 2014-15 is barred by limitation, considering the interplay between the new reassessment regime (Finance Act, 2021) and the time extensions granted under… Read More »
Analysis: Matching Principle Inapplicable to Cash System; Interest Fully Deductible 1. The Issue Whether an investment company following the cash system of accounting can claim a full deduction for interest paid on borrowed capital under Section 36(1)(iii), or if the Assessing Officer (AO) can disallow a portion of it by applying the “matching principle” to… Read More »
Penalty for “Misreporting” Deleted: Third-Party Software Entries Without Cross-Examination Are Insufficient Evidence Issue Whether a penalty under Section 270A for “misreporting of income” (levied at 200%) can be sustained when the underlying additions were made solely on the basis of digital evidence (a ledger named ‘SABARI’ in ‘JPACK’ software) seized from a third party (‘MJPL’)… Read More »
Commission Agent Entitled to Full TDS Credit u/s 194Q/194A Even if Only Commission is Offered to Tax. Issue Whether a licensed commission agent (Kachha Arhtiya) is entitled to claim full credit for Tax Deducted at Source (TDS) under Section 194Q (on purchase of goods) and Section 194A (on interest), which was deducted by purchasers on… Read More »
Consolidated, Generic Approval for Search Assessments is Invalid and Voids the Order. Issue Whether a single, consolidated approval letter from a competent authority, which gives a generic direction to pass assessment orders for multiple assessment years (in a search case) without any reference to the specific facts or seized material, constitutes a valid prior approval… Read More »