Tag Archives: HIGH COURT OF MADRAS

Cancellation under Section 12AA(3) for financial diversion is valid prospectively from the order date.

By | July 7, 2026
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Cancellation under Section 12AA(3) for financial diversion is valid prospectively from the order date. Issue Whether a Show Cause Notice detailing search and survey findings can be quashed as vague or lacking particulars. Whether incriminating materials, including cash and fund diversions to a Managing Trustee’s concerns, justify the cancellation of a trust’s charitable registration. Whether… Read More »

Interest remains mandatory on belated tax payments even if discharged via DRC-03 before SCN.

By | July 7, 2026
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Interest remains mandatory on belated tax payments even if discharged via DRC-03 before SCN. Issue Whether statutory interest under Section 50 is legally leviable on differential tax paid voluntarily via Form GST DRC-03 after being pointed out by the department but before the issuance of a formal Show Cause Notice. Whether the department can invoke… Read More »

Total deductions under Heading C cannot exceed the eligible business profits after factoring Section 80-IA reliefs.

By | July 6, 2026
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Total deductions under Heading C cannot exceed the eligible business profits after factoring Section 80-IA reliefs. Issue Whether the restriction contained in Section 80-IA(9) requires the deduction allowed under Section 80-IA to be reduced directly from the Gross Total Income during computation, or if it merely caps the quantum of concurrent deductions claimed under Heading… Read More »

GSTR-1 and GSTR-3B mismatch due to delayed customer payments must be adjudicated under Section 73.

By | July 6, 2026
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GSTR-1 and GSTR-3B mismatch due to delayed customer payments must be adjudicated under Section 73. Issue Whether the tax authority was justified in invoking the extended period of limitation and imposing a 100% penalty under Section 74 for an outward supply mismatch between GSTR-1 and GSTR-3B, or if the matter should be examined under Section… Read More »

Waiver of interest and penalty cannot be denied solely for depositing tax under the wrong head if the full liability was discharged within the statutory timeframe.

By | July 6, 2026
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Waiver of interest and penalty cannot be denied solely for depositing tax under the wrong head if the full liability was discharged within the statutory timeframe. Issue Whether the tax authority was justified in rejecting the petitioner’s application for waiver of interest and penalty under Section 128A of the CGST/TNGST Act solely because a portion… Read More »

Clubbing multiple financial years into a single GST demand notice and order is legally valid.

By | July 6, 2026
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Clubbing multiple financial years into a single GST demand notice and order is legally valid. Issue Whether the tax authority can legally issue a single/composite Show Cause Notice (SCN) and a single Order-in-Original covering multiple financial years (from 2017-18 to 2022-23) under Section 74 of the CGST/TNGST Act, or if bunching multiple tax periods in… Read More »

Section 80-IB deduction does not reduce profits for computing Section 80HHC deduction; matter remanded.

By | July 4, 2026
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Section 80-IB deduction does not reduce profits for computing Section 80HHC deduction; matter remanded. Issue Whether the restriction under Section 80-IA(9) requires the deduction under Section 80-IB to be reduced from business profits before computing the Section 80HHC deduction, or if it merely restricts the final allowability of the total deductions. Facts For the assessment… Read More »

Deduction under Section 80-IB excludes DEPB/duty drawback; Section 80-IA vs 80-HHC computation issue is remanded.

By | July 4, 2026
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Deduction under Section 80-IB excludes DEPB/duty drawback; Section 80-IA vs 80-HHC computation issue is remanded. Issue Issue 1: Whether the relief under Section 80-IA must be deducted from business profits before computing the export deduction under Section 80-HHC, and whether this needs to be re-evaluated based on recent Supreme Court precedent. Issue 2: Whether incentives… Read More »

Foreign bank operations win relief on disallowances under Section 14A, 37, and 115JA regimes

By | July 4, 2026
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Foreign bank operations win relief on disallowances under Section 14A, 37, and 115JA regimes Issue Whether the various additions and disallowances made by the Assessing Officer concerning Section 14A exempt income expenses, broken period interest on stock-in-trade, MAT applicability to banking companies, gross taxation of foreign currency loans, intra-entity transactions with the Head Office, taxability… Read More »

GST Authorities Can Lawfully Recover Crystallized Partnership Firm Dues From a Partner’s Personal Bank Account Under Section 79

By | July 3, 2026
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GST Authorities Can Lawfully Recover Crystallized Partnership Firm Dues From a Partner’s Personal Bank Account Under Section 79 Issue Whether the GST authorities can lawfully issue a garnishee recovery notice under Section 79(1)(c)(i) to attach the personal bank account of a partner for the crystallized tax liabilities of a partnership firm, without invoking the provisional… Read More »