Remand for GSTR-1 & GSTR-3B Mismatch Analysis (FY 2020-21) 1. The Core Dispute: Clerical Error vs. Tax Liability The dispute arose from a significant discrepancy identified between the assessee’s GSTR-1 (Statement of Outward Supplies) and GSTR-3B (Monthly Summary Return). The Revenue noted that the liability reported in GSTR-3B was less than that in GSTR-1, leading… Read More »
No Anti-Profiteering Contravened in Post-GST Construction Projects 1. The Core Dispute: Alleged Profiteering on Post-GST Bookings An applicant (homebuyer) who booked a flat in 2019 in the residential project ‘Urban-67A’, Gurugram, alleged that the developer failed to pass on the benefit of Input Tax Credit (ITC). The buyer contended that under Section 171, the developer… Read More »
Permission for Manual GSTR-3B Filing to Correct Omitted ITC (FY 2020-21) 1. The Core Dispute: Omitted ITC & Lack of Rectification Mechanism The petitioner inadvertantly omitted claiming Input Tax Credit (ITC) for January and February 2021 in their original GSTR-3B for the quarter ending March 2021. Discovery of Error: The mistake was noticed during the… Read More »
Statutory Release of Seized Goods and Bank Accounts (FY 2021-22) 1. The Core Dispute: Failure to Meet Statutory Timelines In March 2022, tax authorities conducted a search and seizure operation, resulting in the seizure of gold, silver, and cash, followed by the provisional attachment of the petitioner’s bank accounts. The petitioner challenged the continued retention… Read More »
IMPORTANT INCOME TAX CASE LAWS 07.02.2026 Relevant Act Section Case Law Title Brief Summary Citation Informant Guidelines 2007 Scheme Gopal Dhanjibhai Bhimani v. ITD [Informant Rights] Reward entitlement is not a “discretionary gift.” Where an informant provided specific tax evasion data, the Revenue cannot withhold the Final Reward indefinitely. A reasoned decision must be passed… Read More »
Invalidation of JAO Notices u/s 148 due to Mandatory Faceless Procedure (Section 151A) 1. The Core Dispute: JAO vs. Faceless Authority The petitioner challenged a reassessment notice issued under Section 148 and the subsequent assessment order. The primary contention was that the Jurisdictional Assessing Officer (JAO) lacked the legal authority to initiate these proceedings after… Read More »
Character of Land in Revenue Records Prevails Over Actual Usage for Section 50C (AY 2011-12) 1. The Core Dispute: Multiplicative Factor for Circle Rate The assessee sold a property located in a ‘Lal Dora’ area (historically residential/agricultural village land). While the property was built on agricultural land, it was being used commercially as a godown… Read More »
Cost of Acquisition in Joint Development Agreements (JDA) (AY 2022-23) 1. The Core Dispute: Is the Constructed Area “Free”? The assessee, a landowner, entered into a JDA where they gave up 45% of their land share to a developer. In exchange, the developer constructed a building and gave the assessee 55% of the constructed area.… Read More »
Taxation of Employee Welfare Trusts at Normal AOP Rates (AY 2022-23) 1. The Core Dispute: Discretionary Trust vs. Welfare Exception The Assessing Officer (AO) treated the assessee-trust as a standard discretionary trust. Because the shares of the beneficiaries (the employees) were not specifically defined in the trust deed, the AO invoked Section 167B to tax… Read More »
Retrospective Disallowance of Education Cess and the Definition of Assessing Officer (AY 2020-21) I. Education Cess: Retrospective Disallowance & Revisionary Powers The assessee-company claimed Education Cess as a business expenditure under Section 37(1). The Assessing Officer (AO) initially allowed the claim during limited scrutiny. However, the Principal Commissioner (PCIT) invoked Section 263 (Revisionary Jurisdiction) to… Read More »