Mandatory Contractual Site Restoration Provisions Are Fully Deductible and Cannot Be Added Back to Book Profits Issue Whether a provision for site restoration expenses made pursuant to a mandatory contract with the Government of India is allowable as a business deduction under Section 37(1) of the Income-tax Act, 1961. Whether such a provision constitutes an… Read More »
Contractual Site Restoration Provisions Are Fully Deductible and Reassessment Lacking Recorded Reasons Is Invalid Issue Whether a provision made for site restoration expenses by a non-resident petroleum company under a Production Sharing Contract is an allowed business deduction under Section 37(1) and an ascertained liability for Section 115JA book profit computation. Whether a reassessment undertaken… Read More »
GST Proceedings Are Valid Against Legal Heirs with Recovery Confined to Inherited Estates Issue Whether GST assessment proceedings can be initiated and tax liability, interest, or penalties determined against a legal heir after the death of the proprietor and subsequent closure of the business for past tax periods (FY 2018-19). Facts The petitioner is the… Read More »
Denial of ITC Solely for Want of Transport Documents Without Testing Genuineness of Supply is Unsustainable Denial of ITC Solely for Want of Transport Documents Without Testing Genuineness of Supply is Unsustainable Issue Whether the Department is justified in denying Input Tax Credit (ITC) to the petitioner solely due to the absence of lorry receipts… Read More »
Supreme Court’s COVID-19 Limitation Extensions Validated Lower Court ITC Denial Proceedings Beyond Normal Deadlines Supreme Court’s COVID-19 Limitation Extensions Validated Lower Court ITC Denial Proceedings Beyond Normal Deadlines Issue Whether the Department’s show cause notice and subsequent demand order for Input Tax Credit (ITC) mismatches during the fiscal year 2017-18 were barred by limitation under… Read More »
Unexplained trade credits are taxable under Section 68 as income from other sources and ineligible for Section 80-IA business deductions. Issue Whether undisclosed trade credits can be treated as business profits eligible for deductions under Section 80-IA, or if they must be assessed as deemed income from other sources under Section 68 when the assessee… Read More »
Assessment orders completed during non-pending settlement applications remain fully valid and enforceable upon application rejection. Issue Whether assessment orders passed by an Assessing Officer are void for lack of jurisdiction or become unenforceable under sections 245HA and 153 upon the subsequent rejection of a settlement application, when those applications were filed after January 31, 2021,… Read More »
Extended GST Limitation Period Validly Invoked Due to Turnover Under-Declaration Against High Seigniorage Fees Issue Whether the revenue department validly invoked the extended period of limitation under Section 74 of the CGST/TNGST Act to demand tax on suppressed outward supplies, where the petitioner’s declared turnover was drastically lower than the volume indicated by the high… Read More »
Orders Denying Capital Gains Exemption Set Aside for Failure to Consider Alternative Section 54EB Claim Issue Whether the tax authorities’ blanket denial of a capital gains exemption constituted a non-application of mind because they failed to consider the assessee’s alternative request to evaluate the reinvested long-term capital gains under Section 54EB after Section 54B was… Read More »
High Court will not interfere with Appellate Tribunal’s condonation of delay unless arbitrary or perverse. Issue Whether the High Court, exercising appellate jurisdiction, should interfere with the Appellate Tribunal’s decision to condone a 763-day delay in filing a statutory appeal by the Revenue, when the Tribunal exercised its discretion in the interest of substantial justice.… Read More »