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Format of Certificate of Non-Availment of ITC by Recipient of Goods

kraajagopal80@gmail.com — Fri, 12 Jun 2026 13:41:03 +0000

The article explains that where recipients never avail ITC on rejected goods, no reversal is required upon issuance of credit notes under Section 34. Proper documentation can support GST compliance during audits and departmental proceedings.

The post Format of Certificate of Non-Availment of ITC by Recipient of Goods appeared first on TaxGuru.

TDS on Residential Rent paid by companies : 2% vs 10% rule

apkireturn — Fri, 12 Jun 2026 13:37:49 +0000

Companies renting residential properties often struggle with choosing between 2% and 10% TDS. The key takeaway is that the correct rate depends on whether the arrangement is a pure lease, equipment rental, or a service contract.

The post TDS on Residential Rent paid by companies : 2% vs 10% rule appeared first on TaxGuru.

ITAT Upholds Section 154 Rectification as Payments from Accumulated Funds to Registered Trusts Escaped Assessment

cavkshetty — Fri, 12 Jun 2026 13:34:40 +0000

Mumbai ITAT held that payments from accumulated income to institutions registered under Section 12AA attracted Section 11(3)(d). The Tribunal ruled that rectification under Section 154 was valid as the omission was a mistake apparent from the record.

The post ITAT Upholds Section 154 Rectification as Payments from Accumulated Funds to Registered Trusts Escaped Assessment appeared first on TaxGuru.

Representation Against GST Action on Bona Fide Buyers in Karnataka

S PRASAD — Fri, 12 Jun 2026 13:28:39 +0000

The representation seeks safeguards against automatic ITC reversals arising from supplier defaults and retrospective cancellations. It emphasizes that bona fide buyers deserve fair treatment and a meaningful opportunity to prove genuine transactions.

The post Representation Against GST Action on Bona Fide Buyers in Karnataka appeared first on TaxGuru.

Telangana HC Sets Aside GST Assessment Over Multiple SCNs for Same Period

ADV AKRUTI GOYAL — Fri, 12 Jun 2026 13:22:09 +0000

The Telangana High Court dealt with the legality of issuing multiple show cause notices for the same tax period without adjudicating the earlier notice. The Court set aside the ex parte assessment order and directed a fresh adjudication after granting the taxpayer an opportunity to respond.

The post Telangana HC Sets Aside GST Assessment Over Multiple SCNs for Same Period appeared first on TaxGuru.

Telangana HC Restores GST Appeal Rejected Over Pre-Deposit Technicality

ADV AKRUTI GOYAL — Fri, 12 Jun 2026 13:20:15 +0000

The issue was whether a GST appeal filed within limitation could be dismissed merely because the mandatory pre-deposit was not made simultaneously with the appeal filing. The Telangana High Court held that such rejection was unjustified when the pre-deposit was subsequently made during the pendency of the appeal.

The post Telangana HC Restores GST Appeal Rejected Over Pre-Deposit Technicality appeared first on TaxGuru.

Telangana HC Allows Delayed GST Appeal After Bank Account Attachment

ADV AKRUTI GOYAL — Fri, 12 Jun 2026 13:19:37 +0000

The issue was whether a taxpayer could pursue a statutory appeal after approaching the High Court against a GST demand order and subsequent bank attachment notice.

The post Telangana HC Allows Delayed GST Appeal After Bank Account Attachment appeared first on TaxGuru.

Mumbai ITAT Rejects Excess PE Attribution: Revenue Sharing with UK Office Upheld in Cross-Border M&A Deals

cavkshetty — Fri, 12 Jun 2026 13:13:36 +0000

Mumbai ITAT held that the Revenue could not attribute the entire execution revenue from cross-border deals to the Indian PE without adequate evidence. The Tribunal upheld revenue sharing based on actual functions performed by overseas offices.

The post Mumbai ITAT Rejects Excess PE Attribution: Revenue Sharing with UK Office Upheld in Cross-Border M&A Deals appeared first on TaxGuru.

Mumbai ITAT Reiterates: Surplus from Members’ Contributions Not Taxable Under Doctrine of Mutuality

cavkshetty — Fri, 12 Jun 2026 13:08:39 +0000

Mumbai ITAT held that maintenance charges and other collections received exclusively from members of a co-operative society are exempt under the doctrine of mutuality. Surplus generated from such receipts does not constitute taxable income.

The post Mumbai ITAT Reiterates: Surplus from Members’ Contributions Not Taxable Under Doctrine of Mutuality appeared first on TaxGuru.

Suspicion Cannot Replace Evidence When Property Investment Is Fully Explained: ITAT Mumbai

cavkshetty — Fri, 12 Jun 2026 13:00:32 +0000

ITAT Mumbai ruled that additions under Section 69 cannot be sustained merely on suspicion when the entire property investment is supported by documentary evidence. The Tribunal emphasized that conjectures cannot substitute proof.

The post Suspicion Cannot Replace Evidence When Property Investment Is Fully Explained: ITAT Mumbai appeared first on TaxGuru.

GSTAT Mumbai Issues Notice on Operational Launch & Appeal Filing

editor7 — Fri, 12 Jun 2026 12:55:51 +0000

GSTAT Mumbai Bench has officially commenced functioning, making it mandatory for taxpayers within its jurisdiction to file appeals before the Tribunal. The notice outlines filing procedures, scrutiny requirements, and applicable procedural rules.

The post GSTAT Mumbai Issues Notice on Operational Launch & Appeal Filing appeared first on TaxGuru.

ROC Imposes Penalty as Incorrect AGM Date Was Filed in AOC-4 XBRL

Editor — Fri, 12 Jun 2026 12:52:02 +0000

ROC Kolkata held that filing Form AOC-4 XBRL with an incorrect AGM date amounted to a contravention of Rule 8(3). The order clarifies that certifying signatories are responsible for the accuracy of statutory e-forms and attachments.

The post ROC Imposes Penalty as Incorrect AGM Date Was Filed in AOC-4 XBRL appeared first on TaxGuru.

ROC Imposes Penalty for Multiple Private Placement Filing Errors

Editor — Fri, 12 Jun 2026 12:51:47 +0000

ROC Delhi penalised a company and its officers for three separate compliance failures linked to a private placement of shares. The order highlights that errors in disclosures, e-forms, and attachments can attract penalties under Section 450.

The post ROC Imposes Penalty for Multiple Private Placement Filing Errors appeared first on TaxGuru.

ROC Imposes Penalty as Incorrect AGM Due Date Was Filed in Form AOC-4

Editor — Fri, 12 Jun 2026 12:50:18 +0000

ROC Kolkata held that mentioning an incorrect AGM due date in Form AOC-4 constituted a violation of Rule 8(3). The company and certifying director were penalised despite admitting the mistake as inadvertent.

The post ROC Imposes Penalty as Incorrect AGM Due Date Was Filed in Form AOC-4 appeared first on TaxGuru.

Voluntary Disclosure Does Not Eliminate Liability for Duplicate DIN: ROC Pune

Editor — Fri, 12 Jun 2026 12:49:45 +0000

ROC Pune held that possession of more than one Director Identification Number constitutes a violation of Section 155 of the Companies Act. Despite the absence of mala fide intent, penalty under Section 159 was imposed for the default.

The post Voluntary Disclosure Does Not Eliminate Liability for Duplicate DIN: ROC Pune appeared first on TaxGuru.

ROC Imposes Penalty as Incorrect AGM Dates Were Reported in Form AOC-4

Editor — Fri, 12 Jun 2026 12:48:08 +0000

ROC Kolkata held that incorrect disclosure of AGM and AGM due dates in Form AOC-4 constituted a violation of Rule 8(3). The company and certifying director were penalised despite describing the error as a clerical mistake.

The post ROC Imposes Penalty as Incorrect AGM Dates Were Reported in Form AOC-4 appeared first on TaxGuru.

ROC Imposes Penalty as Share Certificates Were Issued 67 Days Beyond Statutory Deadline

Editor — Fri, 12 Jun 2026 12:47:17 +0000

ROC Delhi held that delay in issuing share certificates to subscribers violated Section 56(4)(a) of the Companies Act. The company and its officers were penalised despite subsequently rectifying the default.

The post ROC Imposes Penalty as Share Certificates Were Issued 67 Days Beyond Statutory Deadline appeared first on TaxGuru.

ROC Penalizes Company for Issuing PAS-4 Before Filing MGT-14

editor2 — Fri, 12 Jun 2026 12:46:54 +0000

ROC held that circulating the private placement offer letter before filing Form MGT-14 violated Section 42(3) and Rule 14(8). The case underscores the importance of completing prerequisite filings before initiating private placement offers.

The post ROC Penalizes Company for Issuing PAS-4 Before Filing MGT-14 appeared first on TaxGuru.

Penalty Imposed for Incorrect CSR Disclosures in AOC-4 XBRL Filing

editor8 — Fri, 12 Jun 2026 12:46:36 +0000

ROC Cuttack held that responsibility for inaccurate information in e-forms rests with the authorised signatory and certifying professional under Rule 8(3). The company itself escaped penalty in the circumstances of the case.

The post Penalty Imposed for Incorrect CSR Disclosures in AOC-4 XBRL Filing appeared first on TaxGuru.

ROC Bangalore Imposes Penalty for Failure to Maintain Functional Registered Office

editor7 — Fri, 12 Jun 2026 12:43:09 +0000

ROC Bangalore found a violation of Section 12 after a statutory notice could not be served at the companys registered office. The company and its directors admitted the default and accepted the penalties.

The post ROC Bangalore Imposes Penalty for Failure to Maintain Functional Registered Office appeared first on TaxGuru.

ROC Imposes Penalty as PAS-3 Was Filed 61 Days Late After Share Allotment

editor4 — Fri, 12 Jun 2026 12:42:14 +0000

Penalties were imposed not only on the company but also on its officers in default for delayed filing of the return of allotment. The ruling emphasizes directors' responsibility in ensuring adherence to corporate compliance requirements.

The post ROC Imposes Penalty as PAS-3 Was Filed 61 Days Late After Share Allotment appeared first on TaxGuru.

Penalty for Converting Shareholder Loans into Equity Without Prior Special Resolution

editor8 — Fri, 12 Jun 2026 12:31:52 +0000

ROC Bangalore held that converting loans into equity without obtaining prior approval under Section 62(3) violates the Companies Act. Such transactions must comply with the appropriate share issuance provisions.

The post Penalty for Converting Shareholder Loans into Equity Without Prior Special Resolution appeared first on TaxGuru.

ROC Imposes Penalty as Loan-to-Equity Conversion Lacked Prior Special Resolution

editor4 — Fri, 12 Jun 2026 12:31:11 +0000

The order arose from the allotment of shares against loans received from shareholders and directors without satisfying the conditions prescribed under Section 62(3). The ruling reiterates that post-facto adjustments cannot substitute mandatory corporate approvals.

The post ROC Imposes Penalty as Loan-to-Equity Conversion Lacked Prior Special Resolution appeared first on TaxGuru.

Inadvertent Duplicate DIN: MCA imposes Penalty of ₹10.18 Lakh

Editor6 — Fri, 12 Jun 2026 12:29:53 +0000

The ROC Kolkata held that possessing more than one Director Identification Number violates Section 155 of the Companies Act, attracting penalties under Section 159. Directors must ensure that only one valid DIN is maintained at all times.

The post Inadvertent Duplicate DIN: MCA imposes Penalty of ₹10.18 Lakh appeared first on TaxGuru.

ROC Imposes Penalty for 87-Day Delay in Holding Mandatory Board Meeting

editor7 — Fri, 12 Jun 2026 12:28:34 +0000

The ROC Bangalore penalised a company and its directors after finding that the next Board Meeting was convened 87 days beyond the statutory limit under Section 173(1). The company had voluntarily admitted the default through a suo motu application.

The post ROC Imposes Penalty for 87-Day Delay in Holding Mandatory Board Meeting appeared first on TaxGuru.

Delay in Filing PAS-3 After Share Allotment Attracts ROC Penalty

editor2 — Fri, 12 Jun 2026 12:28:01 +0000

ROC held that failure to file Form PAS-3 within 15 days of share allotment violated Section 42(8) of the Companies Act. The company and its directors were penalized for the 61-day delay in compliance.

The post Delay in Filing PAS-3 After Share Allotment Attracts ROC Penalty appeared first on TaxGuru.

Delay in Filing MGT-14 for CCD Issue Attracts Section 117(2) Penalty

Editor6 — Fri, 12 Jun 2026 12:27:06 +0000

The ROC Haryana held that failure to file MGT-14 within 30 days of passing a special resolution for issuance of CCDs constitutes a violation under Section 117(2). Companies must adhere to statutory timelines even when the default is subsequently rectified.

The post Delay in Filing MGT-14 for CCD Issue Attracts Section 117(2) Penalty appeared first on TaxGuru.

Penalty Imposed for Incorrect Purpose Selection in MGT-14 Filing for CCD Allotment

editor8 — Fri, 12 Jun 2026 12:26:25 +0000

ROC Haryana held that mentioning an incorrect purpose in e-Form MGT-14 constitutes a violation under Rule 8(3) read with Section 450 of the Companies Act. However, the penalty was reduced due to the company's Small Company and Start-up status.

The post Penalty Imposed for Incorrect Purpose Selection in MGT-14 Filing for CCD Allotment appeared first on TaxGuru.

ROC Clarifies Reduced Penalty Applies as Default Was Not Continuing in Nature

editor4 — Fri, 12 Jun 2026 12:25:31 +0000

Although the show cause notice referred to the maximum penalty applicable for continuing contraventions, the adjudicating officer treated the lapse as a one-time offence. This resulted in a lower penalty under the Companies Act framework.

The post ROC Clarifies Reduced Penalty Applies as Default Was Not Continuing in Nature appeared first on TaxGuru.

Wrong Purpose in MGT-14 Filing Attracts Penalty Despite Inadvertent Error

Editor6 — Fri, 12 Jun 2026 12:24:15 +0000

The ROC Haryana held that incorrectly stating the purpose of filing in e-Form MGT-14 constitutes a violation under Rule 8(3) read with Section 450 of the Companies Act. Companies must ensure accuracy in MCA filings, as inadvertent mistakes can still result in penalties.

The post Wrong Purpose in MGT-14 Filing Attracts Penalty Despite Inadvertent Error appeared first on TaxGuru.

ROC Imposes Penalty for Failure to Make Mandatory Disclosures in CCD Issue

editor2 — Fri, 12 Jun 2026 12:22:45 +0000

ROC held that omission of prescribed disclosures in the explanatory statement for a CCD issuance violated Section 62(1)(c) and Rule 13(2)(d). The company and its officers were penalized under Section 450 after admitting the default.

The post ROC Imposes Penalty for Failure to Make Mandatory Disclosures in CCD Issue appeared first on TaxGuru.

Late Fee vs General Penalty: Has the Madras High Court Drawn a Line Between Delayed Filing and Non-Filing of Returns?

CA. Shafaly Girdharwal — Fri, 12 Jun 2026 12:08:02 +0000

The Madras High Court held that complete failure to file the annual return can attract both late fee under Section 47 and general penalty under Section 125. The ruling distinguishes non-filing from delayed filing, potentially widening GST penalty exposure.

The post Late Fee vs General Penalty: Has the Madras High Court Drawn a Line Between Delayed Filing and Non-Filing of Returns? appeared first on TaxGuru.

Madras HC Upholds both GST Late Fee & Penalty for Non-Filing of GSTR-9

CA Sandeep Kanoi — Fri, 12 Jun 2026 12:03:07 +0000

The Madras High Court held that failure to file the annual return in Form GSTR-9 attracts late fee under Section 47(2) of the CGST Act. It further ruled that penalty under Section 125 is permissible where no separate penalty is prescribed for such default.

The post Madras HC Upholds both GST Late Fee & Penalty for Non-Filing of GSTR-9 appeared first on TaxGuru.

Mumbai ITAT Deletes Entire Bogus Purchase Addition: General Hawala Statements Cannot Override Site-Level Evidence

cavkshetty — Fri, 12 Jun 2026 12:00:14 +0000

The Tribunal ruled that information from the Sales Tax Department and generic statements of alleged hawala dealers are insufficient without transaction-specific evidence. The key takeaway is that direct documentary proof carries greater evidentiary value.

The post Mumbai ITAT Deletes Entire Bogus Purchase Addition: General Hawala Statements Cannot Override Site-Level Evidence appeared first on TaxGuru.

CAAS Urges Responsible AI Use in GST Administration

editor4 — Fri, 12 Jun 2026 11:58:24 +0000

CAAS suggested that while favourable outcomes may be automated, adverse actions should require a named officer's approval supported by recorded reasons. The proposal seeks to balance technological efficiency with procedural fairness.

The post CAAS Urges Responsible AI Use in GST Administration appeared first on TaxGuru.

CAAS Urges Human Accountability & Wider Access in SC’s Draft AI Regulations

Editor6 — Fri, 12 Jun 2026 11:53:44 +0000

CAAS welcomed the Supreme Court's draft AI regulations while proposing changes to improve implementation at the filing counter. The key takeaway is that innovation should be accompanied by practical safeguards for litigants and professionals.

The post CAAS Urges Human Accountability & Wider Access in SC’s Draft AI Regulations appeared first on TaxGuru.

CAAS Urges ICAI to Raise NCE & LLP Financial Statement Threshold to ₹10 Crore

editor4 — Fri, 12 Jun 2026 11:48:03 +0000

CAAS emphasized that smaller businesses may require adequate time, software readiness, and stakeholder awareness before adapting to the revised framework. The recommendation seeks a phased and sustainable implementation model.

The post CAAS Urges ICAI to Raise NCE & LLP Financial Statement Threshold to ₹10 Crore appeared first on TaxGuru.

CASS Demands State-Wide Acceptance of ICAI-Compliant DIC Certificates

Editor6 — Fri, 12 Jun 2026 11:45:55 +0000

CAAS has requested the Gujarat Industries Commissionerate to direct all DIC offices to accept certificates containing ICAI-mandated safeguard clauses. The representation argues that professional standards cannot be overridden by rigid departmental formats.

The post CASS Demands State-Wide Acceptance of ICAI-Compliant DIC Certificates appeared first on TaxGuru.

CASS Objects as Electricity Duty Authorities Insist on Rigid CA Certificate Formats

editor4 — Fri, 12 Jun 2026 11:43:12 +0000

CAAS urged Gujarat authorities to stop rejecting certificates merely because they do not mirror prescribed formats. The representation argues that ICAI-compliant disclosures should be accepted if all required information has been duly certified.

The post CASS Objects as Electricity Duty Authorities Insist on Rigid CA Certificate Formats appeared first on TaxGuru.

Pollution Boards Cannot Force CAs to Certify Future Events as Facts: CAAS

Editor6 — Fri, 12 Jun 2026 11:38:54 +0000

CAAS has urged CPCB to discontinue certificate formats requiring Chartered Accountants to certify proposed investments as completed facts. The representation argues that such requirements conflict with established professional standards.

The post Pollution Boards Cannot Force CAs to Certify Future Events as Facts: CAAS appeared first on TaxGuru.

No addition regarding commission income earned by PSPL as it was not an undisclosed income

divyarathi — Fri, 12 Jun 2026 11:35:59 +0000

Additions made by attributing the commission income earned by PSPL as undisclosed income of the Assessees were held unsustainable in law and were directed to be deleted across all relevant assessment years as Revenue had failed to establish inflation of purchase prices; accrual of PSPL’s commission income to assessees; any flow back of funds to the Assessees; or that PSPL was a sham or fictitious entity.

The post No addition regarding commission income earned by PSPL as it was not an undisclosed income appeared first on TaxGuru.

Healthcare Services Through Partner Hospital Eligible for GST Exemption: Karnataka HC

a2zbimaljain — Fri, 12 Jun 2026 11:21:13 +0000

The High Court held that healthcare services remain exempt even when delivered through another hospital under a revenue-sharing arrangement. Classification must follow the true nature of the supply rather than the contractual structure.

The post Healthcare Services Through Partner Hospital Eligible for GST Exemption: Karnataka HC appeared first on TaxGuru.

Ex-Parte GST Assessment Quashed as Taxpayer Was Given Only One Day to Reply

a2zbimaljain — Fri, 12 Jun 2026 11:16:55 +0000

The Karnataka High Court held that granting only one day's time to respond to a show cause notice violates principles of natural justice. The ex-parte assessment order was set aside and the matter remanded for fresh adjudication.

The post Ex-Parte GST Assessment Quashed as Taxpayer Was Given Only One Day to Reply appeared first on TaxGuru.

Denial of Cross-Examination Not Fatal to GST Fraudulent ITC Proceedings: Madras HC

a2zbimaljain — Fri, 12 Jun 2026 11:15:07 +0000

The Madras High Court held that cross-examination is not an absolute right in GST adjudication. Where allegations of fraudulent ITC can be rebutted through invoices, e-way bills and transportation records, denial of cross-examination alone does not vitiate proceedings.

The post Denial of Cross-Examination Not Fatal to GST Fraudulent ITC Proceedings: Madras HC appeared first on TaxGuru.

Customs Duty Waived on Nuclear Power Imports till 31st January 2026

editor4 — Fri, 12 Jun 2026 10:04:18 +0000

Government issues Section 28A notification exempting customs duty on nuclear power generation goods under tariff item 84013000 imported till Jan 31, 2026.

The post Customs Duty Waived on Nuclear Power Imports till 31st January 2026 appeared first on TaxGuru.

CBIC Revises Customs Tariff Values for Palm Oil, Soybean Oil & Brass Scrap from 12th June 2026

Editor — Fri, 12 Jun 2026 09:55:17 +0000

CBIC has continued existing tariff values for edible oils, precious metals, brass scrap, and areca nuts under Notification No. 54/2026-Customs (N.T.). The decision ensures continuity in customs duty calculations by avoiding any changes in valuation benchmarks.

The post CBIC Revises Customs Tariff Values for Palm Oil, Soybean Oil & Brass Scrap from 12th June 2026 appeared first on TaxGuru.

RBI invites comments on Harmonisation and Consolidation of Instructions on Control / Assurance Functions

editor7 — Fri, 12 Jun 2026 09:52:25 +0000

RBI has issued draft amendment directions to harmonise governance standards for risk management, compliance, and internal audit functions. The proposals aim to enhance accountability, independence, and board oversight across regulated entities.

The post RBI invites comments on Harmonisation and Consolidation of Instructions on Control / Assurance Functions appeared first on TaxGuru.

RBI Seeks Public Feedback on Standardised Approach for Counterparty Credit Risk (SA-CCR)

editor8 — Fri, 12 Jun 2026 09:50:20 +0000

RBI has released draft amendment directions on the Standardised Approach for Counterparty Credit Risk after reviewing legal and regulatory developments. Stakeholders have been invited to submit comments by July 1, 2026.

The post RBI Seeks Public Feedback on Standardised Approach for Counterparty Credit Risk (SA-CCR) appeared first on TaxGuru.

SEBI Extends Merchant Banker Compliance Deadlines Due to Operational Challenges

Editor6 — Fri, 12 Jun 2026 09:47:37 +0000

SEBI has granted additional time for merchant bankers to comply with SBU segregation and revised net worth norms after industry participants highlighted implementation difficulties. The circular aligns major financial compliance milestones with the financial year-end.

The post SEBI Extends Merchant Banker Compliance Deadlines Due to Operational Challenges appeared first on TaxGuru.

FIR alleging non payment of dues in NCLT liquidation proceedings was quashed

divyarathi — Fri, 12 Jun 2026 09:35:39 +0000

FIR registered against officials and the liquidator of Punj Lloyd Ltd. (PLL), which alleged non‑payment of subcontractor dues and misuse of Goods and Services Tax (GST) input credits in connection with the Gas Authority of India Ltd (GAIL) pipeline project was quashed as mere breach of contractual obligations, delayed payments, GST disputes, or financial reconciliation issues did not constitute the offence of cheating unless fraudulent or dishonest intention existed from the inception of the transaction.

The post FIR alleging non payment of dues in NCLT liquidation proceedings was quashed appeared first on TaxGuru.

Experience of Partners, Not Firm Age, Should Determine Co-Operative Audit Eligibility: KSCAA

editor3 — Fri, 12 Jun 2026 09:31:44 +0000

KSCAA has urged Karnataka authorities to assess empanelment eligibility based on the audit experience of Chartered Accountants within a firm rather than the firm's age. The representation emphasizes that professional competence should prevail over technical considerations relating to firm reconstitution.

The post Experience of Partners, Not Firm Age, Should Determine Co-Operative Audit Eligibility: KSCAA appeared first on TaxGuru.

ITC Cannot Be Denied Solely for Absence of Lorry Receipts & Weighment Slips: Madras HC

mukesh5076 — Fri, 12 Jun 2026 09:27:51 +0000

The issue was whether ITC could be denied solely because the taxpayer failed to produce lorry receipts and weighment slips despite possessing tax invoices and dealing with a registered supplier.

The post ITC Cannot Be Denied Solely for Absence of Lorry Receipts & Weighment Slips: Madras HC appeared first on TaxGuru.

Section 127 & 263 Orders Quashed as Assessee Was Denied Fair Hearing During COVID

CA AJAY KUMAR AGRAWAL — Fri, 12 Jun 2026 09:25:37 +0000

The High Court held that merely issuing a notice is insufficient if the assessee is not informed of further developments or given a meaningful opportunity to be heard. The decision underscores the importance of compliance with procedural safeguards in jurisdiction transfer matters.

The post Section 127 & 263 Orders Quashed as Assessee Was Denied Fair Hearing During COVID appeared first on TaxGuru.

Kerala HC Condones 676-Day ITAT Appeal Delay Due to Auditor Lapse

CA AJAY KUMAR AGRAWAL — Fri, 12 Jun 2026 09:24:53 +0000

The Kerala High Court condoned a 676-day delay in filing an ITAT appeal after finding that the assessee had bona fide relied on its auditors to file the appeal. The Court held that specific and plausible explanations indicating absence of deliberate inaction justified a liberal approach in the interest of justice.

The post Kerala HC Condones 676-Day ITAT Appeal Delay Due to Auditor Lapse appeared first on TaxGuru.

ITAT Allows Indexation on Construction Cost as Sale Deed Already Contained Building Details

CA AJAY KUMAR AGRAWAL — Fri, 12 Jun 2026 09:24:25 +0000

The Chennai ITAT ruled that indexation benefits under Section 48 cannot be denied when construction details are already part of the registered sale deed. The Tribunal held that annexures forming part of the sale deed cannot be treated as additional evidence.

The post ITAT Allows Indexation on Construction Cost as Sale Deed Already Contained Building Details appeared first on TaxGuru.

ITAT Deletes Bogus Purchase Addition as Cross-Examination Was Not Granted

CA AJAY KUMAR AGRAWAL — Fri, 12 Jun 2026 09:20:14 +0000

The Tribunal observed that reliance on third-party statements without providing cross-examination rendered the additions legally unsustainable. The judgment highlights the procedural safeguards available to taxpayers in search-related proceedings.

The post ITAT Deletes Bogus Purchase Addition as Cross-Examination Was Not Granted appeared first on TaxGuru.

Employee Cannot Be Punished for Employer’s TDS Default: Bangalore ITAT

cavkshetty — Fri, 12 Jun 2026 09:15:08 +0000

The key issue was whether the absence of corresponding entries in Form 26AS justified denial of TDS credit. The ITAT held that employees should not suffer adverse consequences due to the employer's failure to comply with TDS obligations.

The post Employee Cannot Be Punished for Employer’s TDS Default: Bangalore ITAT appeared first on TaxGuru.

Reassessment Proceedings Held Void as Jurisdiction Was Assumed Beyond Limitation Period

CA AJAY KUMAR AGRAWAL — Fri, 12 Jun 2026 09:10:36 +0000

The Tribunal ruled that reassessment proceedings initiated on the basis of an invalid Section 148 notice were void ab initio. It observed that where jurisdiction itself is lacking, the proper course is to annul the proceedings rather than remand the matter. The decision underscores the mandatory nature of statutory limitation periods.

The post Reassessment Proceedings Held Void as Jurisdiction Was Assumed Beyond Limitation Period appeared first on TaxGuru.

ITAT Allows Final Section 35D Deduction and ESOP Recharge Expense

CA AJAY KUMAR AGRAWAL — Fri, 12 Jun 2026 09:09:04 +0000

Bangalore ITAT held that the Revenue cannot deny the fifth-year deduction under Section 35D after consistently allowing the claim in previous years. The ruling reinforces the principle of consistency in tax assessments.

The post ITAT Allows Final Section 35D Deduction and ESOP Recharge Expense appeared first on TaxGuru.

Why Choose the Statutory Audit Domain During Articleship

Ammar Ahmad — Fri, 12 Jun 2026 09:05:05 +0000

Statutory audit offers exposure to accounting, taxation, compliance, internal controls, and business operations during articleship. The key takeaway is that it helps CA students build a versatile skill set and a strong professional foundation.

The post Why Choose the Statutory Audit Domain During Articleship appeared first on TaxGuru.

Mere Filing of Form 10 Cannot Create Taxable Income: Bangalore ITAT Deletes ₹2 Crore Addition Against Educational Trust

cavkshetty — Fri, 12 Jun 2026 09:00:42 +0000

The Revenue treated a ₹2 crore accumulation disclosed in Form No. 10 as unaccounted income of the trust. The Tribunal ruled that procedural filings cannot substitute evidence of actual income and deleted the addition.

The post Mere Filing of Form 10 Cannot Create Taxable Income: Bangalore ITAT Deletes ₹2 Crore Addition Against Educational Trust appeared first on TaxGuru.

GSTR-1 vs GSTR-3B: What’s the Difference and Which One Do You File First?

legaldev — Fri, 12 Jun 2026 08:54:26 +0000

The issue concerns confusion regarding the purpose and sequencing of GSTR-1 and GSTR-3B filings. The key takeaway is that GSTR-1 should be filed first to ensure proper ITC flow and avoid reconciliation mismatches and scrutiny.

The post GSTR-1 vs GSTR-3B: What’s the Difference and Which One Do You File First? appeared first on TaxGuru.

How to Get Drug License in India: Step-by-Step Process

Compliance Calendar LLP — Fri, 12 Jun 2026 08:52:54 +0000

Drug Licenses are essential for businesses involved in selling, distributing, manufacturing, or importing medicines. The licensing system safeguards public health and ensures regulatory compliance.

The post How to Get Drug License in India: Step-by-Step Process appeared first on TaxGuru.

GSTAT Committee Proposes Rule Changes to Ease Appeals

CA Jatin Minocha — Fri, 12 Jun 2026 08:47:23 +0000

The Committee recommended replacing daily cause lists with weekly schedules and permitting supplementary lists when necessary. The proposal seeks to enhance predictability and administrative efficiency in tribunal proceedings.

The post GSTAT Committee Proposes Rule Changes to Ease Appeals appeared first on TaxGuru.

Wrong PAN, Wrong Addition: ITAT Deletes ₹2.35 Crore Addition

cavkshetty — Fri, 12 Jun 2026 08:00:04 +0000

The Tribunal examined whether an incorrect statement of financial transactions filed by a bank could lead to reassessment and addition in the wrong person's hands. It ruled that admitted reporting errors must be rectified and cannot form the sole basis for taxation.

The post Wrong PAN, Wrong Addition: ITAT Deletes ₹2.35 Crore Addition appeared first on TaxGuru.

Software Sale Not Royalty: Bangalore ITAT Follows Engineering Analysis, Rejects Revenue’s Plea Despite Review Petition

cavkshetty — Fri, 12 Jun 2026 07:45:18 +0000

The Revenue sought to tax software distribution income as royalty despite judicial precedents to the contrary. The Tribunal dismissed the appeal, reaffirming that software sales do not automatically attract royalty taxation.

The post Software Sale Not Royalty: Bangalore ITAT Follows Engineering Analysis, Rejects Revenue’s Plea Despite Review Petition appeared first on TaxGuru.

No Double Deduction If Loan-Funded Application Was Excluded Earlier: Bangalore ITAT Allows Trust’s Loan Repayment Claim

cavkshetty — Fri, 12 Jun 2026 07:35:50 +0000

The Revenue disallowed loan repayments alleging double deduction of charitable expenditure. The Tribunal ruled that documentary evidence established that no double claim had been made and directed deletion of the addition.

The post No Double Deduction If Loan-Funded Application Was Excluded Earlier: Bangalore ITAT Allows Trust’s Loan Repayment Claim appeared first on TaxGuru.

No Exempt Income, No Section 14A Disallowance: Bangalore ITAT Deletes ₹43.42 Lakh Addition

cavkshetty — Fri, 12 Jun 2026 07:24:10 +0000

The issue was whether expenditure could be disallowed under Section 14A read with Rule 8D when the assessee had not earned any exempt income during the relevant year.

The post No Exempt Income, No Section 14A Disallowance: Bangalore ITAT Deletes ₹43.42 Lakh Addition appeared first on TaxGuru.

Bangalore ITAT Rules SBN Deposits Received Before 31.12.2016 Are Not Unexplained Cash Credits

cavkshetty — Fri, 12 Jun 2026 07:15:07 +0000

The issue was whether SBN deposits accepted by a co-operative society during demonetisation could be added under Section 68 solely because the notes ceased to be legal tender.

The post Bangalore ITAT Rules SBN Deposits Received Before 31.12.2016 Are Not Unexplained Cash Credits appeared first on TaxGuru.

Why GST Authorities Cannot Retain Redemption Fine After Dropping Section 130 Penalty

RAVINDRA KUMAR RASTOGI — Fri, 12 Jun 2026 06:30:42 +0000

This analysis explains why a redemption fine under Section 130(2) cannot be sustained once authorities conclude that Section 130 lacks jurisdictional applicability. Excess stock cases must instead be addressed under Sections 73 or 74 of the GST Act.

The post Why GST Authorities Cannot Retain Redemption Fine After Dropping Section 130 Penalty appeared first on TaxGuru.

GST in India: Shift toward Destination based Taxation

Debnavi Kumari Samanta — Fri, 12 Jun 2026 04:39:17 +0000

GST allocates tax revenue to the state where goods and services are consumed rather than produced. The key takeaway is that stronger consumer markets often translate into higher state GST collections.

The post GST in India: Shift toward Destination based Taxation appeared first on TaxGuru.

Can Section 74 Be Invoked for Form 26AS & GSTR-1 Mismatches?

S PRASAD — Fri, 12 Jun 2026 03:41:26 +0000

The article questions the use of Section 74 for mere reconciliation differences between Form 26AS and GSTR-1. The key takeaway is that fraud provisions require evidence of deliberate tax evasion, not routine mismatches.

The post Can Section 74 Be Invoked for Form 26AS & GSTR-1 Mismatches? appeared first on TaxGuru.

Private Company Debenture Issuance: Legal Guide Under Companies Act

Urmila Pahal — Fri, 12 Jun 2026 03:16:36 +0000

This article explains the legal framework governing debenture issuance by private companies under the Companies Act, 2013. The key takeaway is that compliance with Sections 42 and 71, ROC filings, and security requirements is essential for a valid issue.

The post Private Company Debenture Issuance: Legal Guide Under Companies Act appeared first on TaxGuru.

Inter-State Registered Office Shifting Under Companies Act, 2013: Procedure, Forms & Timelines

csrohit91 — Thu, 11 Jun 2026 15:47:32 +0000

This guide explains the complete legal procedure for transferring a registered office from one State to another under the Companies Act, 2013. The key takeaway is that shareholder approval and Regional Director consent are mandatory for interstate shifting.

The post Inter-State Registered Office Shifting Under Companies Act, 2013: Procedure, Forms & Timelines appeared first on TaxGuru.

SEBI Proposes Harmonized Price Bands to Prevent Divergence in Multi-Listed Scrip Prices

Editor6 — Thu, 11 Jun 2026 15:18:21 +0000

SEBI has proposed a uniform framework for fixing price bands and pre-open base prices for scrips listed on multiple exchanges. The move seeks to address price divergence caused by non-trading on one or more exchanges.

The post SEBI Proposes Harmonized Price Bands to Prevent Divergence in Multi-Listed Scrip Prices appeared first on TaxGuru.

Calcutta HC Refuses to Quash Section 160 Cr.P.C. Notices as They Form Part of Investigation

CA Sandeep Kanoi — Thu, 11 Jun 2026 12:30:07 +0000

The High Court held that notices issued under Section 160 Cr.P.C. are an integral component of criminal investigation and cannot ordinarily be quashed. However, it issued safeguards to protect the petitioner's right to seek legal remedies.

The post Calcutta HC Refuses to Quash Section 160 Cr.P.C. Notices as They Form Part of Investigation appeared first on TaxGuru.

ITAT Deletes Section 69 Addition as Seized Loose Document Lacked Corroborative Evidence

CA Sandeep Kanoi — Thu, 11 Jun 2026 12:28:50 +0000

The Tribunal held that an incomplete document recovered from an employee's laptop could not justify an addition under Section 69 without supporting evidence. The absence of cross-examination and independent verification weighed against the Revenue.

The post ITAT Deletes Section 69 Addition as Seized Loose Document Lacked Corroborative Evidence appeared first on TaxGuru.

Section 122(1A), Penalty on Partners & Double Jeopardy Debate: Is Article 20(2) Really Irrelevant?

CA. Shafaly Girdharwal — Thu, 11 Jun 2026 12:26:57 +0000

The debate examines why GST penalties under Section 122(1A) may survive a direct challenge under Article 20(2). The key takeaway is that tax penalties are generally treated as civil consequences rather than criminal punishments.

The post Section 122(1A), Penalty on Partners & Double Jeopardy Debate: Is Article 20(2) Really Irrelevant? appeared first on TaxGuru.

Capital Spending on School Infrastructure is Application of Income: ITAT Delhi

CA Sandeep Kanoi — Thu, 11 Jun 2026 12:15:03 +0000

The ITAT held that once registration under Section 12AB was ultimately granted on the basis of the original application, the doctrine of relating back applied. As a result, exemption under Sections 11 and 12 could not be denied for the relevant assessment year.

The post Capital Spending on School Infrastructure is Application of Income: ITAT Delhi appeared first on TaxGuru.

Consolidated GST SCN for Six Years Unsustainable: Kerala HC

CA Sandeep Kanoi — Thu, 11 Jun 2026 12:12:59 +0000

The Kerala High Court set aside a consolidated notice issued for FY 2019-20 to 2024-25. It held that separate notices must be issued for each assessment year in line with earlier precedents.

The post Consolidated GST SCN for Six Years Unsustainable: Kerala HC appeared first on TaxGuru.

CA Acting as Conduit for Clients’ Tax Payments Cannot Be Taxed on Deposits: ITAT Chennai

CA Sandeep Kanoi — Thu, 11 Jun 2026 12:11:51 +0000

The ITAT Chennai ruled that funds received by a Chartered Accountant for remitting clients' taxes could not be treated as unexplained money. Documentary evidence showing corresponding tax payments led to deletion of the additions.

The post CA Acting as Conduit for Clients’ Tax Payments Cannot Be Taxed on Deposits: ITAT Chennai appeared first on TaxGuru.

Revised Return Not Essential Before Appellate Authorities for Additional Tax Claims

CA Sandeep Kanoi — Thu, 11 Jun 2026 12:09:03 +0000

ITAT Mumbai held that appellate forums can entertain additional claims even without a revised return. The matter was remanded to the AO for verification of the alleged double taxation claim.

The post Revised Return Not Essential Before Appellate Authorities for Additional Tax Claims appeared first on TaxGuru.

Coercive GST Recovery Stayed as Section 73 Demand Sought to Override Sanctioned Refund Orders: Orissa HC

CA Sandeep Kanoi — Thu, 11 Jun 2026 12:05:37 +0000

The Court granted interim protection after observing that proceedings under Section 73 appeared to nullify refund orders sanctioned under Section 54 without invoking the appellate remedy under Section 107.

The post Coercive GST Recovery Stayed as Section 73 Demand Sought to Override Sanctioned Refund Orders: Orissa HC appeared first on TaxGuru.

Partners Liable for GST Penalty if They Benefited from Tax Evasion: Gauhati HC

CA Sandeep Kanoi — Thu, 11 Jun 2026 11:58:54 +0000

The Gauhati High Court held that partners who retained benefits from GST violations and acted behind such transactions can be penalized under Section 122(1A). The ruling clarifies that liability extends beyond the taxable entity in appropriate cases.

The post Partners Liable for GST Penalty if They Benefited from Tax Evasion: Gauhati HC appeared first on TaxGuru.

Daughter’s Bank Account Can’t Be Frozen for Father’s Tax Dues: Telangana HC

ADV AKRUTI GOYAL — Thu, 11 Jun 2026 11:46:33 +0000

The Telangana High Court held that recovery proceedings under Section 226(3) cannot automatically extend to a daughter's bank account merely because she is related to the assessee.

The post Daughter’s Bank Account Can’t Be Frozen for Father’s Tax Dues: Telangana HC appeared first on TaxGuru.

SC Upholds Conviction as Concurrent Findings Showed No Legal Infirmity

CA Sandeep Kanoi — Thu, 11 Jun 2026 11:39:02 +0000

The Supreme Court refused to interfere with concurrent findings of guilt, holding that revisional courts have limited powers to reappreciate evidence. It also upheld the direction that multiple sentences should run concurrently.

The post SC Upholds Conviction as Concurrent Findings Showed No Legal Infirmity appeared first on TaxGuru.

SC Restores Corruption Trial as Defence Evidence Cannot Be Tested at Discharge Stage

CA Sandeep Kanoi — Thu, 11 Jun 2026 11:36:41 +0000

The Supreme Court held that disputed explanations regarding assets and loans must be examined during trial and cannot form the basis for discharge. The High Court's order discharging the accused was set aside.

The post SC Restores Corruption Trial as Defence Evidence Cannot Be Tested at Discharge Stage appeared first on TaxGuru.

Foreign LTC Travel Is a Concession, Not a Service Right: Madras HC

CA Sandeep Kanoi — Thu, 11 Jun 2026 11:34:39 +0000

The Madras High Court held that overseas travel under LTC was merely an administrative concession without statutory backing. Its withdrawal did not violate service conditions or employees' rights.

The post Foreign LTC Travel Is a Concession, Not a Service Right: Madras HC appeared first on TaxGuru.

Bank Cannot Be Treated as TDS Defaulter for Complying With HC Orders

CA Sandeep Kanoi — Thu, 11 Jun 2026 11:31:27 +0000

The Court held that an employer acting in accordance with interim judicial directions restraining TDS deduction cannot be treated as an assessee in default under Section 201 of the Income Tax Act.

The post Bank Cannot Be Treated as TDS Defaulter for Complying With HC Orders appeared first on TaxGuru.

ITAT Deletes TDS Demand on LFC Payments as Bank Followed HC Orders

CA Sandeep Kanoi — Thu, 11 Jun 2026 11:29:44 +0000

ITAT Ahmedabad held that a bank could not be treated as an assessee in default for non-deduction of TDS on LFC payments when it acted in compliance with binding interim directions of the Madras High Court. The Tribunal deleted demands raised under Sections 201(1) and 201(1A).

The post ITAT Deletes TDS Demand on LFC Payments as Bank Followed HC Orders appeared first on TaxGuru.

Jharkhand HC Directs Protection and Rehabilitation of Rape Survivors

Sanjeev Sirohi — Thu, 11 Jun 2026 11:20:36 +0000

The Court directed trial courts to award just and reasonable compensation to survivors irrespective of conviction, acquittal, or absconding of the accused. It also ordered authorities to release compensation within thirty days.

The post Jharkhand HC Directs Protection and Rehabilitation of Rape Survivors appeared first on TaxGuru.

Telangana HC Upholds Rejection of Updated Return During Pending Scrutiny Assessment

ADV AKRUTI GOYAL — Thu, 11 Jun 2026 11:12:10 +0000

The Telangana High Court held that an assessee cannot file an updated return under Section 139(8A) once assessment proceedings have commenced or are completed. The ruling clarifies that the third proviso to Section 139(8A) bars updated returns after issuance of scrutiny notices.

The post Telangana HC Upholds Rejection of Updated Return During Pending Scrutiny Assessment appeared first on TaxGuru.

RBI Forex Swap Facility for PSU Borrowings: ECB Cost and FX Impact

srikant83 — Thu, 11 Jun 2026 11:00:59 +0000

RBI has introduced a concessional forex swap facility allowing eligible PSUs to hedge ECB and OFCB exposures at a fixed 1.50% cost. The move significantly reduces exchange rate uncertainty and improves borrowing cost predictability.

The post RBI Forex Swap Facility for PSU Borrowings: ECB Cost and FX Impact appeared first on TaxGuru.

Section 62(4) of Income-tax Act 2025: Closed List of Specified Professions Remains Unreformed

VIJAY R SINGH AND CO — Thu, 11 Jun 2026 10:54:41 +0000

The Income-tax Act, 2025 continues the old specified professions framework without addressing longstanding classification issues. The key takeaway is that professionals still face uncertainty over presumptive taxation and audit eligibility.

The post Section 62(4) of Income-tax Act 2025: Closed List of Specified Professions Remains Unreformed appeared first on TaxGuru.

ITAT Quashes Assessments as Section 153D Approval Was Granted Mechanically

CA Sandeep Kanoi — Thu, 11 Jun 2026 10:47:24 +0000

The Department argued that Section 292BC validated the approval despite alleged deficiencies, but the Tribunal rejected this contention. It held that the amendment could not apply to approvals granted before 1 April 2021. The ruling clarified that subsequent legislative changes could not cure defects in earlier approvals.

The post ITAT Quashes Assessments as Section 153D Approval Was Granted Mechanically appeared first on TaxGuru.

Transferred Winding-Up Proceedings Cannot Bypass IBC Threshold Requirements: NCLAT

CA Sandeep Kanoi — Thu, 11 Jun 2026 10:46:39 +0000

The NCLAT held that winding-up proceedings transferred to the NCLT must satisfy the threshold applicable under the IBC at the time of consideration. Since the operational debt claims were below Rs. 1 crore, the petitions were held to be non-maintainable.

The post Transferred Winding-Up Proceedings Cannot Bypass IBC Threshold Requirements: NCLAT appeared first on TaxGuru.

Karnataka HC Restores GST Proceedings for non-consideration of submitted documents

CA Sandeep Kanoi — Thu, 11 Jun 2026 10:45:19 +0000

The High Court set aside the Order-in-Original after noting the petitioner's grievance that submitted documents were not considered due to formatting issues. The matter was remanded for fresh adjudication with an opportunity to present all records.

The post Karnataka HC Restores GST Proceedings for non-consideration of submitted documents appeared first on TaxGuru.

ITC Cannot Be Denied Merely Due to Supplier’s Failure to Deposit GST: Gauhati HC

CA Sandeep Kanoi — Thu, 11 Jun 2026 10:43:52 +0000

The Court held that denial of input tax credit cannot be justified solely because the selling dealer failed to deposit tax, where the purchasing dealer acted bona fide and complied with statutory requirements.

The post ITC Cannot Be Denied Merely Due to Supplier’s Failure to Deposit GST: Gauhati HC appeared first on TaxGuru.

ITAT Remands Section 80P Deduction Dispute as Earlier Tribunal Ruling Was Not Considered

CA Sandeep Kanoi — Thu, 11 Jun 2026 10:41:37 +0000

The Chennai ITAT restored the matter to the CIT(A), holding that the appellate authority failed to examine a prior Tribunal decision in the assessee's own case involving similar issues.

The post ITAT Remands Section 80P Deduction Dispute as Earlier Tribunal Ruling Was Not Considered appeared first on TaxGuru.

Interest on Enhanced Compensation Taxable under Section 56(2)(viii) post 2009 amendments

CA Sandeep Kanoi — Thu, 11 Jun 2026 10:37:13 +0000

The Chandigarh ITAT ruled that interest received on enhanced compensation is taxable under Section 56(2)(viii), holding that post-2009 amendments govern the issue despite claims for exemption under Section 10(37).

The post Interest on Enhanced Compensation Taxable under Section 56(2)(viii) post 2009 amendments appeared first on TaxGuru.