Insights & Resources

CBDT’s latest amendment prescribes conditions for VC Funds & IFSC Finance Companies under Sections 10(23FB) & 94B of the Income-Tax Act.

Delhi HC reinforces adherence to Delhi HC rules reassessment notices issued beyond statutory limitation invalid.

Kerala High Court upholds State GST officers’ authority to issue SCNs under CGST Act, clarifying cross-empowerment provisions.

The Delhi High Court enforced strict procedural safeguards under the CGST Act, holding that seized goods cannot be retained beyond six months without prior notice and justification. The judgment in Kashish Optics Ltd. reaffirms the time-bound and rights-protective nature of s. 67(7), aligning it with due process principles and jurisprudence under the Customs Act.

Delhi HC affirms proportionality in GST penalties, ruling that minor e-way bill lapses shouldn’t attract severe fines under Section 129.

In Minal Shroff v. ITO, the ITAT quashed a reassessment under Section 147 for relying solely on third-party alerts, without any fresh inquiry or tangible material. This case reaffirms critical safeguards for taxpayers and clarifies that the ‘reason to believe’ must be the AO’s own, not borrowed.

The Supreme Court rules that the MFN clause in DTAAs is not automatic and requires government notification under the Income-tax Act, 1961.

CBIC revises GST arrest guidelines, mandating written grounds of arrest to ensure procedural compliance and safeguard legal rights.

Orissa HC rules that assessees facing TDS prosecution under s. 276B can seek compounding under s. 320 CrPC per CBDT Circular guidelines.

In a key ruling, the Kerala High Court upheld the revisional powers of the Principal Commissioner of Income Tax under Section 263 of the Income-tax Act, 1961. The Court affirmed that failure by the Assessing Officer to conduct proper inquiries or provide reasoning for allowing deductions renders the assessment both erroneous and prejudicial to Revenue, thereby justifying intervention.

The AP High Court rules that setting up solar power plants is a composite supply under GST, rejecting the works contract classification.

The Ahmedabad ITAT, in Mukesh Rasiklal Shah v. ACIT, ruled that income acquired through fraudulent means remains taxable in the year of accrual, even if recovered later by the government. The Tribunal rejected the assessee’s claim for deduction under Section 57, reinforcing the principle that illegality does not shield income from taxation. The ruling exposes gaps in prosecution efforts and raises policy questions around double taxation and restitution.

The Gauhati HC examines the balance between GST detention powers and personal liberty, emphasising procedural safeguards and proportionality

CBIC updates guidelines for arrest and bail under GST, aligning with judicial directions to ensure procedural transparency and safeguards.

The Supreme Court rules that share capital reduction qualifies as a ‘transfer’ under tax law, impacting capital gains taxation.

CBIC clarifies GST compliance for online services, requiring suppliers to record recipients' states to ensure accurate tax allocation.

Delhi High Court rules arrest under CGST Act illegal due to failure to provide written grounds of arrest, violating statutory safeguards.

The Bombay High Court quashes reassessment proceedings, highlighting that reopening assessments without fresh evidence is unlawful.

This case clarifies the interplay between LTCG exemptions under Section 10(38) and MAT computations under Section 115JB of the IT Act.

Delhi ITAT rules that digital service receipts under the India-Singapore DTAA are not ‘royalty’ or ‘FTS’, offering clarity on taxability.