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. 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. 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. 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. 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 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 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 »
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 »