Tag Archives: HIGH COURT OF MADRAS

Textile machinery replacement expenditure is remanded for fresh verification under Supreme Court repair guidelines.

By | July 10, 2026
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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.

By | July 7, 2026
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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.

By | July 7, 2026
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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.

By | July 7, 2026
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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 »

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 »