Cash Credit Addition on Share Capital Not Involving Cash: Deleted Issue: Whether an addition under Section 68 of the Income-tax Act, 1961, can be made on account of unexplained cash credits in the form of share capital and share premium, when the assessee-company received shares of other private limited companies in lieu of its own… Read More »
Capital Gains on Property Received in Company Liquidation: FMV at Distribution Date as Cost of Acquisition Upheld Issue: Whether, upon receipt of an immovable property by an assessee during the liquidation of a company in proportion to its shareholding, the cost of acquisition for computing capital gains on the subsequent sale of that property should… Read More »
I. Black Money Act Penalty for Undisclosed Foreign Asset: Life Insurance Policy Not Owned by Assessee Issue: Whether an assessee is liable to penalty under Section 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, for not disclosing a foreign life insurance policy in Schedule FA of the… Read More »
I. Charitable Trust Registration: Cancellation for Community-Specific Object Not Justified Due to Consistency Rule Issue: Whether the Commissioner (Exemption) was justified in cancelling the registration of an assessee-trust, established in 1930, on the ground that it was set up to impart religious education to a particular caste/community (Marwari Brahmin and Maheshwari Vaishyas), thereby deeming it… Read More »
Reassessment for Bogus LTCG: AO’s Application of Mind Upheld, Reopening Justified Issue: Whether the Assessing Officer (AO) mechanically reopened an assessment under Section 147 based solely on an investigation wing report, or if there was independent application of mind justifying the reopening to examine alleged bogus Long Term Capital Gains (LTCG) / Short Term Capital… Read More »
I. Interest on Inter-Corporate Deposits and Interest-Free Loans to Associates: Commercial Expediency Upheld Issue: Whether interest expenditure claimed by an assessee-company on inter-corporate deposits should be disallowed when it has also advanced interest-free loans to its associate concerns, given that the profitability of the associate concerns impacts the assessee’s financial status and business. Facts: The… Read More »
Interest Income Accrual for NPA Debtor: No Accrual if Recovery Doubtful, but No TDS Credit Without Corresponding Income Part I: Accrual of Interest Income (In favor of assessee) Issue: Whether interest income accrues to an assessee (a partnership firm) on an advance given to a company (‘D’) when the debtor company is in severe financial… Read More »
IMPORTANT GST CASE LAWS 21.05.2025 Section Case Law Title Brief Summary Citation Relevant Act 8 (Compensation to States Act, 2017) Mercedes-Benz India (P.) Ltd. v. Union of India Ground Clearance for motor vehicles for compensation tax levy prior to 26-7-2023 must be considered in laden condition; Notification No. 3/2023-CC (Rate) is prospective. Click Here Goods… Read More »
Compensation Cess on Motor Vehicles: Ground Clearance in Laden Condition for Pre-July 2023 Period Issue: Whether the Compensation Cess of 22% under Sr. No. 52B of the Cess Notification is applicable to motor vehicles for the period September 2017 to July 2022 based on ground clearance in an unladen condition, or if the measurement should… Read More »
Non-Diligence in Checking GST Portal: Assessee Directed to Appeal Despite Wrong Tab Upload Issue: Whether an order passed based on a Show Cause Notice (SCN) uploaded under the ‘additional notices and orders’ tab instead of the ‘notices and orders’ tab on the GST portal, coupled with the assessee’s alleged inability to access the portal and… Read More »