Deletion of penalty by the Tribunal warrants quashing of criminal prosecution for tax evasion. Issue Whether a criminal prosecution for a willful attempt to evade tax under Section 276C(1) can be sustained or must be quashed if the Income Tax Appellate Tribunal has already deleted the penalty levied for concealment of income on the exact… Read More »
Objective Evidence of Fraudulent Invoices and Missing Physical Deliveries Justifies Blocking of Input Tax Credit under Rule 86A Issue Whether the tax department’s decision to block the petitioner’s Input Tax Credit (ITC) of approximately ₹4.11 crore under Rule 86A of the CGST Rules was legally valid, based on objective “reasons to believe” that the underlying… Read More »
Court Upholds Extended Limitation for Wrongful ITC and Validates November 2024 Assessment Orders Court Upholds Extended Limitation for Wrongful ITC and Validates November 2024 Assessment Orders Issue Issue I (Extended Period of Limitation): Whether the tax department is justified in invoking the extended period of limitation under Section 74 based on the wrongful availment of… Read More »
Ex-Parte Assessment Order Involving GSTR Mismatches Set Aside And Remanded Due To Timing Differences In Government TDS Reporting Issue Whether an ex-parte assessment order imposing tax, interest, and Section 74 penalties due to variations between GSTR-1/GSTR-3B and Form GSTR-7 can be sustained when the discrepancy arises because government departments report transactions and deposit TDS only… Read More »
Invocation of Section 74 Is Valid on Prima Facie Material but Material Errors Require Remand Invocation of Section 74 Is Valid on Prima Facie Material but Material Errors Require Remand Issue Whether the revenue authorities are legally entitled to invoke the fraud machinery under Section 74 based on the prima facie standard of “where it… Read More »
Rule 257 One-Year Practice Requirement for Income Tax Practitioner Registration is Statutorily Valid and Enforceable Issue Whether Rule 257 of the Income-tax Rules, 2026, which mandates a minimum of one year of prior appearance/practice before Income Tax Authorities to qualify for registration as an Income Tax Practitioner, is ultra vires or inconsistent with Section 515… Read More »
Textile machinery replacement expenditure is remanded for fresh verification under Supreme Court repair guidelines. Issue Whether the expenditure incurred by a textile manufacturing company on replacing independent, sophisticated plant and machinery can be classified as a deductible revenue expenditure or “current repairs,” or if it must be treated as a capital expenditure. Facts The assessee… Read More »
Parallel scrutiny and audit proceedings are valid separate actions under GST despite structural corporate changes. Issue Whether the revenue department can legally run separate, parallel audit-based and scrutiny-based proceedings for the same period under Sections 65 and 61 of the CGST/TNGST Act, and whether a Show Cause Notice under Section 74 is valid if it… Read More »
Parallel scrutiny and audit proceedings are valid separate actions under GST despite structural corporate changes. Issue Whether the revenue department can legally run separate, parallel audit-based and scrutiny-based proceedings for the same period under Sections 65 and 61 of the CGST/TNGST Act, and whether a Show Cause Notice under Section 74 is valid if it… Read More »
Reassessment based on financial notes previously scrutinized during the original assessment constitutes an impermissible change of opinion. Issue Whether the Assessing Officer can legally initiate reassessment proceedings under Section 148 to disallow foreign currency transaction losses and warranty provisions when both items were fully disclosed in the original financial notes, explicitly scrutinized via Section 142(1)… Read More »