Invoking Section 74 Instead of Section 74A Invalidation Because It Wrongly Doubles the Taxpayer’s Penalty Issue Whether an assessing authority can cure the wrong invocation of Section 74 instead of Section 74A for the assessment period 2024–25 as a mere clerical error, when choosing the wrong section directly alters the taxpayer’s penalty liability from 50%… Read More »
Sprinkling Jaggery Water on Raw Tobacco Is Not Manufacture; Falls Under Heading 2401 As Unmanufactured Tobacco Issue Whether the manual processing of raw tobacco—specifically sprinkling jaggery water, shade drying, and bulking—transforms it into a “manufactured” product classifiable under HSN 2403, or if it retains its character to remain classified as “unmanufactured tobacco” under Heading 2401.… Read More »
Cognizance of Income Tax offences taken after July 1, 2024 requires a mandatory prior hearing under BNSS. Issue Whether the first proviso to Section 223(1) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS)—which mandates that a Magistrate cannot take cognizance of an offence without giving the accused an opportunity of being heard—applies to criminal complaints… Read More »
Best Judgment Reassessment Is Invalid If Return Filed Is Completely Ignored By Assessing Officer Issue Whether a draft assessment order passed on a “best judgment” basis under Section 144, on the false premise that the assessee failed to file a return of income, is legally sustainable when the return was actually filed in response to… Read More »
Exclusive reliance on portal upload to serve orders without alternative modes justifies condoning appeal delay. Exclusive reliance on portal upload to serve orders without alternative modes justifies condoning appeal delay. Issue Whether uploading an assessment order solely on the GST portal constitutes sufficient communication to trigger the strict limitation period for filing an appeal, especially… Read More »
Extended Limitation Justified for Fictitious ITC, but SCN Omission Nullifies Gobichettipalayam Adjudication Order Issue Whether the Department was justified in invoking the extended period of limitation based on inspection findings of circular trading, and whether a final tax demand (DRC-07) can be sustained without issuing a prior Show Cause Notice (DRC-01) following a court-ordered remand.… Read More »
Statutory GST interest and penalties cannot be waived by courts due to contractual tax disputes. Issue Whether a court can direct tax authorities to waive statutory interest, penalties, or time limits, and allow out-of-statute return modifications, because of a dispute over an incremental GST burden between a contractor and a government employer under a transitional… Read More »
Extended Period Invocation Is Valid for Missing Job Work Records but Revenue Neutrality Requires Adjudication Verification Issue Whether the tax department was legally justified in invoking the extended period of limitation under Section 74 to treat unrecorded job work transfers as deemed supplies, and whether the matter should be remanded to verify the taxpayer’s defense… Read More »
Assistant Commissioner Lacks Legal Jurisdiction to Adjudicate Show Cause Notices Issued by the DGGI Issue Whether an Assistant Commissioner has the legal competence and jurisdiction to adjudicate a Show Cause Notice (SCN) issued by the Directorate General of GST Intelligence (DGGI) under the CGST/IGST framework, or if such powers are exclusively vested in higher-ranking officers.… Read More »
Conscious and Intentional Claim of False Tax Exemption to Evade Tax Rightly Attracts Concealment Penalty Issue Whether a penalty for concealment of income under Section 271(1)(c) is legally sustainable when an assessee pays advance tax on capital gains but subsequently claims a false exemption under Section 10 in her return of income, asserting the claim… Read More »