IMPORTANT INCOME TAX CASE LAWS 17.02.2026 Section Case Law Title Core Ruling / Summary Citation Section 11 ACIT v. Anandilal & Ganesh Podar Society [Applied Income] Provisions for gratuity and leave encashment on an actuarial basis constitute the “application of income” u/s 11, even without immediate cash outflow. Click Here Section 54F Mahesh Shrivastava v.… Read More »
Quashing of Reassessment Due to Incompetent Sanctioning Authority 1. The Core Dispute: Old Regime Approval in a New Regime Era The primary issue revolved around the validity of a notice issued under Section 148 after the total overhaul of the reassessment regime by the Finance Act, 2021. The Assessing Officer (AO) initiated reassessment for AY… Read More »
Limitation of Section 50C Deeming Fiction to Capital Gains Computation and Protection of Section 54F Exemption 1. Scope of Section 50C: Finality of Reference Values The assessee sold land for ₹1.30 crores, but the Sub-Registrar valued it at ₹5.75 crores. After a legal battle involving the Collector of Stamps and the Board of Revenue, the… Read More »
Quashing of Criminal Proceedings and Arrest Warrants Following Acceptance of Compounding Fees for TDS Defaults 1. The Core Dispute: Revival of Criminal Trial After Compounding The department launched a prosecution against the assessee-company and its directors for failing to deposit Tax Deducted at Source (TDS) under Section 276B. After a stay from the High Court,… Read More »
Classification of Jewellery Savings Scheme Benefits as Sales Incentives and Not Taxable Interest 1. The Dispute: Are Monthly Savings “Deposits” or “Advances”? The assessee, a franchise agent of a prominent jewellery company, operated a Golden Harvest Scheme (GHS). The Mechanism: Customers deposited 11 monthly installments. Upon completion, at the time of purchasing jewellery, the company… Read More »
Provisions as Application of Income for Trusts 1. The Core Dispute: Accrued Liability vs. Cash Outflow The assessee, a charitable trust running educational institutions, followed Accounting Standard-15 (AS-15) to calculate provisions for gratuity and leave encashment. These provisions were determined through an actuarial valuation, reflecting the trust’s statutory and employment obligations for the year. Assessing… Read More »
IMPORTANT GST CASE LAWS 17.01.2026 Section Case Law Title Core Ruling / Summary Citation Section 54 Union of India v. Torrent Power Ltd. [Landmark SC Ruling] If tax incidence (IGST on ocean freight) was passed to consumers, the refund must go to the Consumer Welfare Fund, not the company. Click Here Rule 86A Dua Metals… Read More »
Condonation of Delay and Amnesty Window (CBIC Notification No. 53/2023) 1. The Core Dispute: Amnesty Scheme vs. Statutory Timeline The petitioner, a registered works contractor, failed to file an appeal within the normal 120-day statutory period against an assessment order (Ext.P2). However, on November 2, 2023, the CBIC issued Notification No. 53/2023 (Ext.P5), which provided… Read More »
Reconciliation and Remand in GSTR-1 vs. GSTR-3B Mismatch Cases 1. The Core Dispute: Return Mismatch vs. Fraud Allegations The appellant faced a tax demand of approximately ₹27 Lakhs due to a discrepancy between the outward tax liability declared in GSTR-1 (higher) and the tax paid in GSTR-3B (lower) for FY 2018-19. Proper Officer’s Stand: Initially… Read More »
Quashing of Consolidated SCN and Composite Assessment Orders 1. The Core Dispute: “Bunching” of Multiple Financial Years The primary legal challenge was the practice of “bunching”—where the tax department issues a single Show Cause Notice (SCN) and a single Assessment Order covering multiple financial years (e.g., FY 2019-20 to 2023-24). Petitioner’s Stand: Argued that each… Read More »