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No Specific Charge, No Penalty: Mumbai ITAT Cancels Section 270A Levy for Defective Notice

cavkshetty — Tue, 02 Jun 2026 13:26:18 +0000

The Tribunal held that a penalty notice must clearly state the specific limb of Section 270A being invoked. Absence of such specification was held fatal to the penalty proceedings.

The post No Specific Charge, No Penalty: Mumbai ITAT Cancels Section 270A Levy for Defective Notice appeared first on TaxGuru.

Corporate Guarantor Faces CIRP as Limitation starts From Demand Notice, Not NPA Classification

CA Sandeep Kanoi — Tue, 02 Jun 2026 10:15:06 +0000

The Tribunal held that for a guarantee payable on demand, limitation begins from the date the guarantee is invoked and not from the NPA date. Since the guarantee was invoked in 2025, the Section 7 petition was held to be within limitation.

The post Corporate Guarantor Faces CIRP as Limitation starts From Demand Notice, Not NPA Classification appeared first on TaxGuru.

Service Tax Demand Quashed as Iron Ore Excavation and Grading Held to Be Mining Service

CA Sandeep Kanoi — Tue, 02 Jun 2026 10:12:54 +0000

CESTAT Bangalore held that excavation, extraction, grading, and sorting of iron ore are mining-related activities taxable only under Mining Services from 01.06.2007. The Tribunal ruled that such activities could not be taxed under Business Auxiliary Service for the earlier period.

The post Service Tax Demand Quashed as Iron Ore Excavation and Grading Held to Be Mining Service appeared first on TaxGuru.

Cenvat Demand Set Aside as Proportionate Credit Reversal Satisfied Rule 6 Requirements

CA Sandeep Kanoi — Tue, 02 Jun 2026 10:12:25 +0000

CESTAT Delhi held that proportionate reversal of Cenvat credit attributable to inputs and input services used for generating exempted electricity is sufficient compliance with Rule 6(3)(i). The Tribunal therefore set aside the demand and penalty.

The post Cenvat Demand Set Aside as Proportionate Credit Reversal Satisfied Rule 6 Requirements appeared first on TaxGuru.

ITAT Allows Section 54F Deduction as Substantial Construction & Habitable House Were Established

CA Sandeep Kanoi — Tue, 02 Jun 2026 10:05:18 +0000

The ITAT Jaipur held that deduction under Section 54F cannot be denied merely due to delay in completing construction when the assessee had substantially constructed a habitable residential house within the prescribed period. The Tribunal directed deletion of the addition.

The post ITAT Allows Section 54F Deduction as Substantial Construction & Habitable House Were Established appeared first on TaxGuru.

Foreign Assets, RSUs and Foreign Bank Accounts in ITR: Schedule FA Reporting, Notices & Penalty

CA VARUN GUPTA — Tue, 02 Jun 2026 10:03:45 +0000

Resident taxpayers holding foreign assets or financial interests may be required to file returns and disclose such assets regardless of income levels. Failure to comply can lead to regulatory consequences.

The post Foreign Assets, RSUs and Foreign Bank Accounts in ITR: Schedule FA Reporting, Notices & Penalty appeared first on TaxGuru.

CCPA Penalises Physics Wallah as Pre-Ticked Donation Checkbox Constituted Basket Sneaking

CA Sandeep Kanoi — Tue, 02 Jun 2026 10:00:42 +0000

The Authority found that a pre-selected donation mechanism added charges unless consumers actively opted out, impairing informed choice and constituting an unfair trade practice.

The post CCPA Penalises Physics Wallah as Pre-Ticked Donation Checkbox Constituted Basket Sneaking appeared first on TaxGuru.

CCPA Imposes Penalty on McAfee as “Accept Risk” Renewal Prompt Was Dark Pattern: CCPA

CA Sandeep Kanoi — Tue, 02 Jun 2026 09:58:11 +0000

CCPA held that a subscription renewal interface using the phrase Accept Risk amounted to multiple prohibited dark patterns, including confirm shaming and forced action. A penalty was imposed despite subsequent modifications to the interface.

The post CCPA Imposes Penalty on McAfee as “Accept Risk” Renewal Prompt Was Dark Pattern: CCPA appeared first on TaxGuru.

CESTAT Grants CENVAT Credit on Angles, Beams and Plates Due to Manufacturing Use

CA Sandeep Kanoi — Tue, 02 Jun 2026 09:55:08 +0000

CESTAT Kolkata held that CENVAT credit on items such as MS Angles, Beams, Channels, and Plates is admissible where they are essential for manufacturing final products. The denial order was set aside.

The post CESTAT Grants CENVAT Credit on Angles, Beams and Plates Due to Manufacturing Use appeared first on TaxGuru.

CESTAT Sets Aside Sponsorship Service Tax Demand as Tax Was Already Paid by Service Provider

CA Sandeep Kanoi — Tue, 02 Jun 2026 09:54:14 +0000

The Tribunal held that service tax cannot be demanded again when the service provider has already collected and deposited the tax. The balance sponsorship service tax demand was therefore quashed.

The post CESTAT Sets Aside Sponsorship Service Tax Demand as Tax Was Already Paid by Service Provider appeared first on TaxGuru.

Modular Kitchen Baskets Not Classifiable Under Furniture Heading as Specific Tariff Entry Prevails

CA Sandeep Kanoi — Tue, 02 Jun 2026 09:51:29 +0000

The Tribunal held that modular kitchen baskets, racks, and similar products retain their identity as household articles and cannot be classified as parts of furniture merely because they are fixed in cabinets or drawers. The customs demand based on classification under Chapter 94 was set aside.

The post Modular Kitchen Baskets Not Classifiable Under Furniture Heading as Specific Tariff Entry Prevails appeared first on TaxGuru.

ITAT Deletes Section 68 Addition as Suspicion Cannot Replace Evidence in Penny Stock Case

CA Sandeep Kanoi — Tue, 02 Jun 2026 09:50:25 +0000

The Tribunal held that generalized investigation reports cannot substitute for concrete evidence against an assessee. Since the transactions were supported by documents and no direct evidence of undisclosed income existed, the addition was deleted.

The post ITAT Deletes Section 68 Addition as Suspicion Cannot Replace Evidence in Penny Stock Case appeared first on TaxGuru.

Karnataka HC Remands Reassessment Case as SC Directed Fresh Review After Section 147A Amendment

CA Sandeep Kanoi — Tue, 02 Jun 2026 09:43:27 +0000

The High Court set aside the Single Judge’s order and remitted the matter for fresh consideration following the Supreme Court’s directions on the retrospective insertion of Section 147A. The assessee was granted liberty to challenge the amended provision.

The post Karnataka HC Remands Reassessment Case as SC Directed Fresh Review After Section 147A Amendment appeared first on TaxGuru.

Section 148 Notice by JAO Remanded by ITAT Nagpur for Reconsideration

CA Sandeep Kanoi — Tue, 02 Jun 2026 09:41:31 +0000

The Tribunal sent the matter back to the Commissioner (Appeals) for fresh adjudication after the assessee challenged the validity of the Section 148 notice. The issue relating to notices issued by a Jurisdictional Assessing Officer instead of a Faceless Assessing Officer was left open for reconsideration.

The post Section 148 Notice by JAO Remanded by ITAT Nagpur for Reconsideration appeared first on TaxGuru.

ITAT Upholds ₹37.20 Lakh Addition Because Survey Found Unaccounted Excess Stock

CA Sandeep Kanoi — Tue, 02 Jun 2026 09:37:36 +0000

The Tribunal upheld the addition after finding that excess stock discovered during survey was physically verified and admitted by the assessee. The later retraction was rejected as unsupported and delayed.

The post ITAT Upholds ₹37.20 Lakh Addition Because Survey Found Unaccounted Excess Stock appeared first on TaxGuru.

Service Tax Demand Set Aside as Screening & Grading of Iron Ore was Mining Service not BAS

CA Sandeep Kanoi — Tue, 02 Jun 2026 09:31:25 +0000

CESTAT Bangalore held that screening and grading of iron ore are mining-related activities covered under the taxable category of Mining Services. The Tribunal ruled that such activities could not be classified as Business Auxiliary Service.

The post Service Tax Demand Set Aside as Screening & Grading of Iron Ore was Mining Service not BAS appeared first on TaxGuru.

Foreigners Seeking Medical Treatment in India: Visa Rules, FRRO Obligations & Amendments

Abhinarayan Mishra — Tue, 02 Jun 2026 09:24:29 +0000

The article explains visa requirements, documentation, and compliance obligations for foreign nationals seeking medical treatment in India. Choosing the correct visa category is essential to avoid legal issues.

The post Foreigners Seeking Medical Treatment in India: Visa Rules, FRRO Obligations & Amendments appeared first on TaxGuru.

GST Show Cause Notice Upheld as Taxability of Annuity Requires Factual Determination

CA Sandeep Kanoi — Tue, 02 Jun 2026 08:36:36 +0000

The Telangana High Court refused to quash a GST show cause notice, holding that the question whether annuity payments were exempt or taxable required detailed factual examination. The Court ruled that such issues cannot be conclusively decided in writ proceedings.

The post GST Show Cause Notice Upheld as Taxability of Annuity Requires Factual Determination appeared first on TaxGuru.

SC Declines Interference as GST Dispute Arose From Show Cause Notice

CA Sandeep Kanoi — Tue, 02 Jun 2026 08:35:17 +0000

The Supreme Court refused to interfere at the show cause notice stage, holding that the dispute should be examined through adjudication proceedings. It left all GST exemption and circular-related issues open for determination by the authorities.

The post SC Declines Interference as GST Dispute Arose From Show Cause Notice appeared first on TaxGuru.

Reassessment Quashed as AO Relied on Incorrect AIR Information: ITAT Amritsar

CA Sandeep Kanoi — Tue, 02 Jun 2026 08:34:19 +0000

ITAT Amritsar held that reassessment proceedings were invalid because the reopening was based on factually incorrect AIR information. The Tribunal ruled that failure to verify bank records before issuing notice showed non-application of mind.

The post Reassessment Quashed as AO Relied on Incorrect AIR Information: ITAT Amritsar appeared first on TaxGuru.

Reassessment Quashed as Reasons Recorded Were Based on Incorrect Facts on Return Filing

CA Sandeep Kanoi — Tue, 02 Jun 2026 08:32:34 +0000

ITAT Chandigarh held that reassessment proceedings were invalid because the Assessing Officer relied on factually incorrect assumptions regarding the filing of return and property purchase. The reopening was therefore quashed as unsustainable in law.

The post Reassessment Quashed as Reasons Recorded Were Based on Incorrect Facts on Return Filing appeared first on TaxGuru.

Reassessment Quashed as Reasons Recorded Contained Wrong Return Date & Income Figures

CA Sandeep Kanoi — Tue, 02 Jun 2026 08:30:42 +0000

ITAT Chandigarh held that reassessment proceedings were invalid because the Assessing Officer recorded incorrect facts regarding the return filing date and declared income. The Tribunal ruled that such defective reasons could not support a valid belief of escaped income.

The post Reassessment Quashed as Reasons Recorded Contained Wrong Return Date & Income Figures appeared first on TaxGuru.

Money Mule Activities in India: Legal Implications and Consequences

ADV. GIRIRAJ D BHATTAD — Tue, 02 Jun 2026 08:24:35 +0000

Individuals who receive or transfer funds on behalf of others may face prosecution under various Indian laws. The article explains the legal risks, penalties, and regulatory consequences associated with money mule activities.

The post Money Mule Activities in India: Legal Implications and Consequences appeared first on TaxGuru.

Analysis of Notifications and Circulars for Week Ending 31st May 2026

ypbhola — Tue, 02 Jun 2026 08:22:00 +0000

A comprehensive review of significant developments across Income Tax, GST, Customs, DGFT, SEBI, MCA, IBBI, and RBI. The update highlights important judicial decisions and regulatory changes issued during 25–31 May 2026.

The post Analysis of Notifications and Circulars for Week Ending 31st May 2026 appeared first on TaxGuru.

Taxation of Co-operative Societies under New Income Tax Act, 2025

Rohan1983 — Tue, 02 Jun 2026 08:17:29 +0000

The Income Tax Act, 2025 preserves the key deduction previously available under Section 80P through Section 149. Most tax incentives for eligible co-operative activities remain intact.

The post Taxation of Co-operative Societies under New Income Tax Act, 2025 appeared first on TaxGuru.

PPIRP Resolution Plans Cannot Avail SEBI Relaxations as They Fall Under Section 54L

editor3 — Tue, 02 Jun 2026 08:11:34 +0000

NSE has clarified that regulatory exemptions available for Section 31 IBC resolution plans do not extend to plans approved under Section 54L in the PPIRP framework. Listed entities must comply with all applicable SEBI requirements.

The post PPIRP Resolution Plans Cannot Avail SEBI Relaxations as They Fall Under Section 54L appeared first on TaxGuru.

Cousin Can Be Independent Director as Cousins Are Not ‘Relatives’ Under LODR Rules

Editor6 — Tue, 02 Jun 2026 08:09:25 +0000

SEBI clarified that a cousin does not fall within the statutory definition of a relative under the Companies Act and LODR Regulations. Therefore, a cousin of a promoter-group member may be eligible for appointment as an Independent Director, subject to other conditions.

The post Cousin Can Be Independent Director as Cousins Are Not ‘Relatives’ Under LODR Rules appeared first on TaxGuru.

India Secures Duty-Free Access for 99.38% Exports Through India–Oman CEPA

Editor — Tue, 02 Jun 2026 08:08:29 +0000

The India–Oman Comprehensive Economic Partnership Agreement became operational on 1 June 2026 after completion of required procedures. The agreement provides extensive market access across goods, services, investment, and professional mobility.

The post India Secures Duty-Free Access for 99.38% Exports Through India–Oman CEPA appeared first on TaxGuru.

ROC Imposes Penalty as Incorrect Attachment Was Filed in AOC-4 Form

Editor — Tue, 02 Jun 2026 08:07:13 +0000

The Registrar of Companies penalized the company and its authorized signatory after an incorrect document was attached with Form AOC-4. The order held that filing defective statutory records constitutes a contravention despite subsequent rectification requests.

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

Chilli Grinding Job Work GST Issue Left Undecided Due to Withdrawal of AAR Application

CA Sandeep Kanoi — Tue, 02 Jun 2026 07:57:33 +0000

Karnataka AAR disposed of the application after the applicant informed that GST demand orders on the same issue were already under appellate consideration. No ruling was given on the merits.

The post Chilli Grinding Job Work GST Issue Left Undecided Due to Withdrawal of AAR Application appeared first on TaxGuru.

Large futures positions alone cannot establish Share Price manipulation/Fraud: SC

CA Sandeep Kanoi — Tue, 02 Jun 2026 07:51:35 +0000

The Supreme Court held that SEBI failed to establish fraud and market manipulation in RPL futures transactions. While disgorgement was quashed, penalties for violation of position-limit disclosure requirements were upheld.

The post Large futures positions alone cannot establish Share Price manipulation/Fraud: SC appeared first on TaxGuru.

GST Advance Ruling Application Withdrawn as ITC Time-Limit Issue Was Outside AAR Jurisdiction

CA Sandeep Kanoi — Tue, 02 Jun 2026 07:50:58 +0000

Karnataka AAR disposed of the application after observing that a request for extension of the ITC availment deadline did not fall within matters covered under Section 97(2) of the CGST Act.

The post GST Advance Ruling Application Withdrawn as ITC Time-Limit Issue Was Outside AAR Jurisdiction appeared first on TaxGuru.

Factory Canteen ITC Allowed Only to Extent of Actual Employer Expenditure

CA Sandeep Kanoi — Tue, 02 Jun 2026 07:49:10 +0000

The authority clarified that ITC cannot be claimed on amounts recovered from employees toward canteen facilities. Credit is restricted to the expenditure actually incurred by the employer.

The post Factory Canteen ITC Allowed Only to Extent of Actual Employer Expenditure appeared first on TaxGuru.

Portfolio Investment Positions by Counterpart Economy (formerly CPIS) – India: FAQs

Editor — Tue, 02 Jun 2026 07:35:24 +0000

RBI has clarified reporting requirements, valuation methods, submission procedures, and entity obligations under the Portfolio Investment Positions survey. The FAQs aim to improve the quality and consistency of cross-border investment data reporting.

The post Portfolio Investment Positions by Counterpart Economy (formerly CPIS) – India: FAQs appeared first on TaxGuru.

SC Refuses Writ Relief Due to Alternative GST Appeal Remedy, Allows Delayed Appeal Filing

CA Sandeep Kanoi — Tue, 02 Jun 2026 07:32:36 +0000

SC declined interference as statutory GST appeal was available, but allowed appeal within eight weeks and protected it from dismissal for delay.

The post SC Refuses Writ Relief Due to Alternative GST Appeal Remedy, Allows Delayed Appeal Filing appeared first on TaxGuru.

Annual Survey on Computer Software & ITES Exports: RBI FAQs

editor2 — Tue, 02 Jun 2026 07:30:54 +0000

RBI has reiterated that software and ITES exporters must submit the annual survey based on the previous financial year. The guidelines outline reporting timelines, filing methods, and compliance requirements.

The post Annual Survey on Computer Software & ITES Exports: RBI FAQs appeared first on TaxGuru.

Survey on Foreign Liabilities & Assets of Mutual Fund AMCs in India: FAQs

editor2 — Tue, 02 Jun 2026 07:30:46 +0000

RBI requires mutual funds to report foreign liabilities and assets annually for compilation of Balance of Payments and International Investment Position statistics. The survey must be filed each year by the prescribed deadline.

The post Survey on Foreign Liabilities & Assets of Mutual Fund AMCs in India: FAQs appeared first on TaxGuru.

Natural Justice & Plenary Interventions: Deconstructing SC’s Verdict in Hathiramji Mutt Case

RAVINDRA KUMAR RASTOGI — Tue, 02 Jun 2026 06:37:40 +0000

The Supreme Court quashed the removal of a Mathadhipati after finding that relied-upon documents were not properly supplied and the enquiry process violated principles of natural justice. A fresh enquiry was ordered through an independent mechanism.

The post Natural Justice & Plenary Interventions: Deconstructing SC’s Verdict in Hathiramji Mutt Case appeared first on TaxGuru.

Round-Tripping in Indian Foreign Exchange Law: Regulatory Suspicion Without Statutory Prohibition

Sourabh Bohra — Tue, 02 Jun 2026 06:31:00 +0000

This article explains why FEMA does not explicitly prohibit round-tripping transactions and how regulators instead control them through overseas investment and FDI rules. It highlights the importance of commercial substance and regulatory compliance.

The post Round-Tripping in Indian Foreign Exchange Law: Regulatory Suspicion Without Statutory Prohibition appeared first on TaxGuru.

DGFT Grants Wider QCO Exemption to SEZ Imports to Align FTP with SEZ Law

Editor — Tue, 02 Jun 2026 06:23:36 +0000

DGFT has expanded the exemption from Quality Control Orders for imports by SEZ Units and Developers. The amendment aligns the Foreign Trade Policy with the SEZ Act and clarifies compliance obligations for DTA clearances.

The post DGFT Grants Wider QCO Exemption to SEZ Imports to Align FTP with SEZ Law appeared first on TaxGuru.

DGFT Notifies Six New SIONs to Enable Faster Advance Authorisation Approvals

Editor — Tue, 02 Jun 2026 06:22:57 +0000

DGFT has introduced six new Standard Input Output Norms under the Chemical and Allied Product Group. The notification allows Regional Authorities to grant Advance Authorisations directly, reducing delays and eliminating case-by-case referrals.

The post DGFT Notifies Six New SIONs to Enable Faster Advance Authorisation Approvals appeared first on TaxGuru.

CBDT Notifies Infrastructure Sub-Sectors as Eligible Businesses Under Income Tax Act 2025

Editor — Tue, 02 Jun 2026 06:22:36 +0000

The Central Government has specified infrastructure sub-sectors from the Updated Harmonised Master List as eligible businesses under Schedule V of the Income-tax Act, 2025. The notification expands the scope of recognized infrastructure activities for tax purposes.

The post CBDT Notifies Infrastructure Sub-Sectors as Eligible Businesses Under Income Tax Act 2025 appeared first on TaxGuru.

Stag Inflation And Recession

shuvo chakraborty — Tue, 02 Jun 2026 05:30:30 +0000

The article argues that recurring policy interventions have failed to resolve deep-rooted economic problems. It suggests that prolonged neglect of structural issues could push the global economy from recession into stagflation.

The post Stag Inflation And Recession appeared first on TaxGuru.

Procedural Fairness Is Not an Empty Ritual: SC Reasserts Constitutional Sanctity of Natural Justice

CA. Shafaly Girdharwal — Tue, 02 Jun 2026 05:14:58 +0000

The Supreme Court held that adjudicatory proceedings cannot survive when authorities rely on undisclosed material or deny meaningful hearing. The ruling reinforces that procedural fairness is a constitutional requirement, not a mere formality.

The post Procedural Fairness Is Not an Empty Ritual: SC Reasserts Constitutional Sanctity of Natural Justice appeared first on TaxGuru.

Disallowance of Car & Telephone Expenses Deleted as Company Cannot Have Personal Expenses

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:19:44 +0000

The Delhi High Court held that personal-use disallowance principles applicable to individuals cannot automatically apply to companies. The Tribunal’s order sustaining disallowance of one-sixth of car and telephone expenses was set aside.

The post Disallowance of Car & Telephone Expenses Deleted as Company Cannot Have Personal Expenses appeared first on TaxGuru.

Parallel GST Proceedings Cannot Continue as Section 6(2)(b) Bars Duplicate Adjudication

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:18:29 +0000

The case involved simultaneous proceedings by Central and State GST authorities concerning the same tax period and subject matter. The High Court directed both authorities to coordinate and ensure that only one authority continues adjudication in accordance with the Supreme Court’s ruling.

The post Parallel GST Proceedings Cannot Continue as Section 6(2)(b) Bars Duplicate Adjudication appeared first on TaxGuru.

Challenge to Pan Masala Cess Notice Dismissed as SCN Was Only a Proposal

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:16:43 +0000

The Allahabad High Court held that the impugned notice merely proposed a cess demand and did not contain a final determination. The petitioner was directed to pursue statutory remedies by filing objections before the authority.

The post Challenge to Pan Masala Cess Notice Dismissed as SCN Was Only a Proposal appeared first on TaxGuru.

Kerala HC Allows ITC Claim as Section 16(5) Overrides Section 16(4) Time Limit

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:15:59 +0000

The Court held that the non-obstante clause in Section 16(5) prevails over Section 16(4). Since the returns were filed before the prescribed cut-off date, the ITC denial was set aside.

The post Kerala HC Allows ITC Claim as Section 16(5) Overrides Section 16(4) Time Limit appeared first on TaxGuru.

SC Declines Interference as No Substantial Question of Law Arose on 6% Bogus Purchase Addition

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:14:27 +0000

The High Court upheld the ITAT’s restriction of disallowance to 6% of alleged bogus purchases, holding that similar issues involving the same accommodation entry group had already been decided in earlier cases.

The post SC Declines Interference as No Substantial Question of Law Arose on 6% Bogus Purchase Addition appeared first on TaxGuru.

Section 270A Penalty Deleted as Assessed Income Matched Income Declared in Reassessment Return

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:09:38 +0000

The ITAT Hyderabad held that no under-reporting of income existed where the income declared in the return filed under Section 148 was accepted without any addition. The penalty under Section 270A was deleted.

The post Section 270A Penalty Deleted as Assessed Income Matched Income Declared in Reassessment Return appeared first on TaxGuru.

GST Section 74 Order Kept in Abeyance Due to Pending Second Appeal & Portal Glitch

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:08:46 +0000

The Madras High Court held that a Section 74 order could remain in abeyance where a second appeal could not be filed due to a GST portal glitch. The Court directed the appeal to be taken on file and left the issue of Section 74 applicability open.

The post GST Section 74 Order Kept in Abeyance Due to Pending Second Appeal & Portal Glitch appeared first on TaxGuru.

67% Abatement Cannot Be Denied Merely Because It Was Not Claimed in ST-3 Returns: CESTAT Kolkata

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:06:44 +0000

The dispute concerned denial of 67% abatement on construction and works contract services involving supply of materials. CESTAT held that substantive tax benefits cannot be refused solely due to failure to claim them in ST-3 returns. The Service Tax demand and related penalty were consequently set aside.

The post 67% Abatement Cannot Be Denied Merely Because It Was Not Claimed in ST-3 Returns: CESTAT Kolkata appeared first on TaxGuru.

Importer Can Challenge Enhanced Customs Value Despite Consent Letter: CESTAT Allahabad

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:05:40 +0000

The dispute concerned whether importers lose their right to contest enhanced valuation after submitting consent letters during customs clearance. CESTAT held that written acceptance does not extinguish the statutory right to challenge reassessment.

The post Importer Can Challenge Enhanced Customs Value Despite Consent Letter: CESTAT Allahabad appeared first on TaxGuru.

Form 26A Certificate issuance Cannot Be Directed Without Verification of Statutory Conditions: Delhi HC

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:03:54 +0000

The Delhi High Court held that RTI replies showing tax return filings and bank entries did not establish that specific payments were accounted for in taxable income. As a result, no ground existed to review the earlier dismissal of the writ petition.

The post Form 26A Certificate issuance Cannot Be Directed Without Verification of Statutory Conditions: Delhi HC appeared first on TaxGuru.

GST Order Quashed as Notice Was Uploaded Only on Portal After Registration Cancellation

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:01:43 +0000

The High Court held that portal-only service of a show cause notice after GST registration cancellation violated natural justice. The tax order was quashed, with liberty granted to issue a proper notice.

The post GST Order Quashed as Notice Was Uploaded Only on Portal After Registration Cancellation appeared first on TaxGuru.

Rajasthan HC Denies GST Bail as Written Grounds of Arrest Were Properly Supplied

CA Sandeep Kanoi — Mon, 01 Jun 2026 15:00:34 +0000

The Court rejected the challenge to arrest legality after finding that written grounds of arrest were furnished and acknowledged by the accused. Bail was denied considering the prima facie evidence and magnitude of the alleged fake ITC fraud.

The post Rajasthan HC Denies GST Bail as Written Grounds of Arrest Were Properly Supplied appeared first on TaxGuru.

Retrospective GST Registration Cancellation Quashed as SCN Did Not Propose It

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:58:54 +0000

The Delhi High Court held that GST registration could not be cancelled retrospectively when the show cause notice did not indicate such action. The order was quashed as it travelled beyond the scope of the notice.

The post Retrospective GST Registration Cancellation Quashed as SCN Did Not Propose It appeared first on TaxGuru.

Income Tax Notices Quashed as Proceedings Were Initiated Against a Deceased Person

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:58:04 +0000

The Rajasthan High Court held that proceedings cannot be initiated against a person who has already expired. The notices were quashed, with liberty granted to the Department to proceed in accordance with law against legal representatives.

The post Income Tax Notices Quashed as Proceedings Were Initiated Against a Deceased Person appeared first on TaxGuru.

Cenvat Credit Reversal Upheld as Trading Activity Was Not a Taxable Service: CESTAT Bangalore

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:54:31 +0000

The Tribunal held that Cenvat credit is available only in relation to taxable services and not for trading activities. The case was remanded for recalculation of admissible reversal for the normal period.

The post Cenvat Credit Reversal Upheld as Trading Activity Was Not a Taxable Service: CESTAT Bangalore appeared first on TaxGuru.

Real Estate Company Not a Shell Entity Merely Due to Low Turnover and Profits

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:53:09 +0000

The ITAT held that reassessment cannot be sustained when the Assessing Officer merely relies on an Investigation Wing report without independent verification. The reassessment order was quashed due to lack of independent application of mind.

The post Real Estate Company Not a Shell Entity Merely Due to Low Turnover and Profits appeared first on TaxGuru.

Excise Demand Quashed as Definition of ‘Relative’ Does Not Extend to Corporate Entities

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:51:55 +0000

The Tribunal followed its own earlier rulings in the appellant’s cases and held that the dispute was no longer open to reconsideration. The impugned order was set aside accordingly.

The post Excise Demand Quashed as Definition of ‘Relative’ Does Not Extend to Corporate Entities appeared first on TaxGuru.

Service Tax Demand Quashed as Gold Sale Margin Was Trading Income, Not Commission: CESTAT Bangalore

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:49:48 +0000

The dispute concerned service tax on the profit margin earned from the sale of imported gold. CESTAT held that the margin arose from trading activity and not from any consignment agent service rendered to the supplier.

The post Service Tax Demand Quashed as Gold Sale Margin Was Trading Income, Not Commission: CESTAT Bangalore appeared first on TaxGuru.

Cenvat Credit Allowed as Sales Commission Qualifies as Sales Promotion: CESTAT Kolkata

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:47:53 +0000

The Tribunal held that services of commission agents fall within the scope of “sales promotion” under Rule 2(l) of the Cenvat Credit Rules. As a result, the demand denying Cenvat credit on sales commission services was set aside.

The post Cenvat Credit Allowed as Sales Commission Qualifies as Sales Promotion: CESTAT Kolkata appeared first on TaxGuru.

GST Registration Cancellation Quashed as Order Failed to Record Reasons: Gauhati HC

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:45:19 +0000

The Gauhati High Court set aside a GST registration cancellation order after finding it to be a non-speaking order without recorded reasons. The matter was restored to the stage of the show cause notice.

The post GST Registration Cancellation Quashed as Order Failed to Record Reasons: Gauhati HC appeared first on TaxGuru.

Madras HC Quashes GST Order as Retrospective Amendment Cured ITC Defect

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:44:15 +0000

The Madras High Court set aside a GST demand based on delayed ITC claims after noting that Sections 16(5) and 16(6), inserted retrospectively, cured the defect relied upon in the proceedings.

The post Madras HC Quashes GST Order as Retrospective Amendment Cured ITC Defect appeared first on TaxGuru.

HC Stays GST Demand as Delhi Jal Board’s Status as Local Authority Requires Determination

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:42:26 +0000

The dispute concerns whether works contracts executed for the Delhi Jal Board attract GST at 12% or 18%. The High Court held that the legal issue regarding DJB’s status as a local authority requires consideration and stayed the show cause notice proceedings.

The post HC Stays GST Demand as Delhi Jal Board’s Status as Local Authority Requires Determination appeared first on TaxGuru.

Section 80IB Deduction Cannot Be Reduced by Section 80HHC Deduction During Computation: ITAT Delhi

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:40:51 +0000

The dispute concerned whether deduction under Section 80IB should be reduced by the amount already allowed under Section 80HHC. ITAT held that deductions can be computed independently, provided the aggregate deduction does not exceed eligible profits.

The post Section 80IB Deduction Cannot Be Reduced by Section 80HHC Deduction During Computation: ITAT Delhi appeared first on TaxGuru.

ITAT Condones 700-Day Appeal Delay as Notices Were Allegedly Sent to Wrong Address

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:40:05 +0000

The Tribunal held that the assessee’s delayed appeals warranted condonation in light of an earlier decision on similar facts. The appeals were sent back to the CIT(A) for adjudication on merits.

The post ITAT Condones 700-Day Appeal Delay as Notices Were Allegedly Sent to Wrong Address appeared first on TaxGuru.

GST Demand Quashed as Reply to SCN & Hearing Request Were Ignored

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:35:48 +0000

The Orissa High Court set aside GST demand and rectification orders after finding that the taxpayer’s reply and request for personal hearing were not properly considered. The matter was remanded for fresh adjudication.

The post GST Demand Quashed as Reply to SCN & Hearing Request Were Ignored appeared first on TaxGuru.

GST Demand Challenge Rejected as No Violation of Natural Justice Was Established

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:34:27 +0000

The High Court dismissed a challenge to a GST demand order, holding that the taxpayer should first avail the statutory appeal under Section 107. The Court found no exceptional circumstances warranting interference under Article 226.

The post GST Demand Challenge Rejected as No Violation of Natural Justice Was Established appeared first on TaxGuru.

GST Refund Order Set Aside as Authority Failed to Consider Taxpayer’s Submissions

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:33:22 +0000

The Court observed that the authority rejected the refund claim without recording specific findings on the issues raised. The dispute was remanded for fresh examination and a speaking order.

The post GST Refund Order Set Aside as Authority Failed to Consider Taxpayer’s Submissions appeared first on TaxGuru.

GST Assessment Orders Set Aside as They Lacked Mandatory DIN Number

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:31:36 +0000

While noting the delay in filing the writ petition, the Court entertained the challenge because the assessment orders lacked a DIN. The orders were set aside and remanded for fresh adjudication.

The post GST Assessment Orders Set Aside as They Lacked Mandatory DIN Number appeared first on TaxGuru.

ITAT Restores Appeal as Taxpayer Could Not Respond to SCN Due to Illness

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:29:50 +0000

The appeal was dismissed as time-barred due to a 43-day delay in filing. ITAT held that medical records substantiated the assessee’s health issues and restored the appeal for decision on merits.

The post ITAT Restores Appeal as Taxpayer Could Not Respond to SCN Due to Illness appeared first on TaxGuru.

Delhi HC Quashes Reassessment Notice as It Was Issued Beyond Ten-Year Limitation

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:26:31 +0000

The Court held that a Section 148 notice issued on 31.03.2024 for AY 2013-14 exceeded the statutory ten-year limitation period. The reassessment notice was therefore quashed as time-barred.

The post Delhi HC Quashes Reassessment Notice as It Was Issued Beyond Ten-Year Limitation appeared first on TaxGuru.

ITAT Condoned 524-Day Delay as Assessee Was Unaware of Assessment Order

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:25:23 +0000

ITAT Mumbai condoned a 524-day delay in filing an appeal after finding that the assessee remained unaware of the assessment order due to communications being routed through his tax consultant. The matter was remanded for adjudication on merits.

The post ITAT Condoned 524-Day Delay as Assessee Was Unaware of Assessment Order appeared first on TaxGuru.

Section 68 Addition Deleted as Revenue Failed to Prove Round-Tripping by Assessee

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:23:58 +0000

Allahabad High Court held that share capital additions under Section 68 cannot be sustained merely on doubts about the investor’s source of funds. In the absence of evidence showing that the money originated from the assessee and was routed back, the addition was unsustainable.

The post Section 68 Addition Deleted as Revenue Failed to Prove Round-Tripping by Assessee appeared first on TaxGuru.

ITAT Allows Subsidiary Investment Write-Off as Business Loss as Investment Was Made for Commercial Expediency

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:22:28 +0000

ITAT remanded the issue of applying DTAA rates to dividends paid to non-resident shareholders because crucial documents such as TRCs and related records were not available on record.

The post ITAT Allows Subsidiary Investment Write-Off as Business Loss as Investment Was Made for Commercial Expediency appeared first on TaxGuru.

ITAT Allows Full Tax Exemption on BSNL VRS Compensation as It Qualifies as Retrenchment Compensation

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:20:21 +0000

ITAT Pune held that compensation received under BSNL VRS-2019 falls under Section 10(10B) as retrenchment compensation and is exempt from tax. The Tribunal directed reassessment of tax liability and grant of refunds after verification.

The post ITAT Allows Full Tax Exemption on BSNL VRS Compensation as It Qualifies as Retrenchment Compensation appeared first on TaxGuru.

Section 2(22)(e) Addition Cannot Be Made on Non-Shareholder Entity: Calcutta HC

CA Sandeep Kanoi — Mon, 01 Jun 2026 14:18:15 +0000

Calcutta High Court held that deemed dividend under Section 2(22)(e) can be taxed only in the hands of a registered or beneficial shareholder. The Revenues appeal was dismissed following binding judicial precedents.

The post Section 2(22)(e) Addition Cannot Be Made on Non-Shareholder Entity: Calcutta HC appeared first on TaxGuru.

Reassessment Notice Upheld as Time Allowed for Reply Is Excluded While Computing Limitation: Delhi HC

CA AJAY KUMAR AGRAWAL — Mon, 01 Jun 2026 13:46:08 +0000

The Delhi High Court held that the period granted to an assessee for filing a reply under Section 148A(b) must be excluded while calculating limitation under Section 149. Since the Assessing Officer acted within the permissible period, the reassessment proceedings were upheld.

The post Reassessment Notice Upheld as Time Allowed for Reply Is Excluded While Computing Limitation: Delhi HC appeared first on TaxGuru.

Section 54F Deduction Allowable Despite Delayed Registration of Flat: ITAT Bangalore

CA AJAY KUMAR AGRAWAL — Mon, 01 Jun 2026 13:45:11 +0000

ITAT Bangalore held that exemption under Section 54F cannot be denied merely because the sale deed was registered after two years. Substantial investment and acquisition of rights in the property within the prescribed period were considered sufficient compliance.

The post Section 54F Deduction Allowable Despite Delayed Registration of Flat: ITAT Bangalore appeared first on TaxGuru.

ITAT Allows Carry Forward of Capital Loss Despite DTAA Exemption on Capital Gains

CA AJAY KUMAR AGRAWAL — Mon, 01 Jun 2026 13:44:10 +0000

The Tribunal held that long-term capital losses can be carried forward even when long-term capital gains are exempt under the India–Mauritius DTAA. Exempt gains do not enter the computation of total income and therefore cannot absorb the losses.

The post ITAT Allows Carry Forward of Capital Loss Despite DTAA Exemption on Capital Gains appeared first on TaxGuru.

ITAT Deletes LTCG Addition as DVO cannot Reduce FMV Backed by Registered Valuer Report

CA AJAY KUMAR AGRAWAL — Mon, 01 Jun 2026 13:43:41 +0000

The Surat ITAT held that for assessment years prior to AY 2013-14, the DVO had no authority under Section 55A to reduce the fair market value adopted by an assessee based on a registered valuer’s report. The resulting LTCG addition was therefore deleted.

The post ITAT Deletes LTCG Addition as DVO cannot Reduce FMV Backed by Registered Valuer Report appeared first on TaxGuru.

ITAT Deletes Expense Disallowance as Revenue Failed to Prove Personal Use

CA AJAY KUMAR AGRAWAL — Mon, 01 Jun 2026 13:39:25 +0000

The Tribunal held that business promotion, petrol, and travel expenses cannot be disallowed merely on assumptions of possible personal use. In the absence of specific defects or evidence, ad hoc disallowance under Section 37(1) was deleted.

The post ITAT Deletes Expense Disallowance as Revenue Failed to Prove Personal Use appeared first on TaxGuru.

ITAT Quashes Reassessment as Alleged Escaped Income Was Below ₹50 Lakh Threshold

CA AJAY KUMAR AGRAWAL — Mon, 01 Jun 2026 13:38:46 +0000

The Mumbai ITAT held that reassessment initiated beyond three years was invalid because the alleged escaped income was only ₹5 lakh, far below the ₹50 lakh requirement under Section 149(1)(b). As a result, the reassessment and consequential assessment order were quashed.

The post ITAT Quashes Reassessment as Alleged Escaped Income Was Below ₹50 Lakh Threshold appeared first on TaxGuru.

Gross and Net GST revenue collections for the month of May, 2026

editor8 — Mon, 01 Jun 2026 13:33:37 +0000

Gross GST collections reached ₹1.94 lakh crore in May 2026, registering 3.2% growth. The increase was driven largely by a 19.1% rise in GST revenue from imports despite a decline in domestic collections.

The post Gross and Net GST revenue collections for the month of May, 2026 appeared first on TaxGuru.

SEBI Proposes Review of Framework for Calculation of Net Distributable Cash Flows for InvITs

editor4 — Mon, 01 Jun 2026 13:33:11 +0000

Following representations from the Bharat InvITs Association, SEBI has proposed amendments to NDCF computation rules. The draft includes safeguards such as unitholder approval and enhanced disclosures.

The post SEBI Proposes Review of Framework for Calculation of Net Distributable Cash Flows for InvITs appeared first on TaxGuru.

Letterhead of Company, its Contents & Identity of a Company

CS Deepak Amrutkar — Mon, 01 Jun 2026 13:25:49 +0000

Section 12(3) of the Companies Act, 2013 mandates specific disclosures on company letterheads. Failure to mention the CIN and other prescribed details can result in statutory penalties.

The post Letterhead of Company, its Contents & Identity of a Company appeared first on TaxGuru.

Google’s Keyword Empire and Business of Borrowed Goodwill

Abhisikta Nandy — Mon, 01 Jun 2026 13:23:26 +0000

The court ruled that using a registered trademark as a keyword to divert online traffic can amount to trademark infringement. The key takeaway is that invisible keyword use may attract liability when it exploits a brand’s commercial reputation.

The post Google’s Keyword Empire and Business of Borrowed Goodwill appeared first on TaxGuru.

Mere Investigation Wing Alert Is Not ‘Reason to Believe’: ITAT Quashes Penny Stock Reopening

cavkshetty — Mon, 01 Jun 2026 13:20:04 +0000

The assessee had fully disclosed the share transactions and claimed exemption under Section 10(38) in the original return. The ITAT ruled that reopening was unsustainable because the reasons recorded did not demonstrate how any income had actually escaped assessment.

The post Mere Investigation Wing Alert Is Not ‘Reason to Believe’: ITAT Quashes Penny Stock Reopening appeared first on TaxGuru.

Using ITC for 10% Pre Deposit Is Not a Crime: Allahabad High Court

S PRASAD — Mon, 01 Jun 2026 13:19:37 +0000

The High Court held that using Input Tax Credit for the mandatory 10% GST appeal pre-deposit is not a criminal act. It ruled that professional advice given within the framework of GST law cannot be prosecuted as cheating or conspiracy.

The post Using ITC for 10% Pre Deposit Is Not a Crime: Allahabad High Court appeared first on TaxGuru.

GST Impact on Ceramic & Sanitaryware Industry

CA Jhalaria — Mon, 01 Jun 2026 13:14:55 +0000

Introduction: In India, GST has disrupted the traditional methods of managing compliance and taxation in most industries. For the ceramic and sanitaryware industry, a segment of the construction and housing value chain, the advent of GST has brought advantages as well as complications. For producers, traders, and customers, appreciation of its implications is critical. Key […]

The post GST Impact on Ceramic & Sanitaryware Industry appeared first on TaxGuru.

How to Respond to an Income Tax Notice

Adv. Sudarshan Raturi — Mon, 01 Jun 2026 13:14:17 +0000

Income tax notices are often issued for verification, mismatches, or compliance checks and do not always indicate wrongdoing. Understanding the notice, verifying its authenticity, and responding on time are crucial to avoiding penalties.

The post How to Respond to an Income Tax Notice appeared first on TaxGuru.

How to Avoid Higher Circle Rate Addition When Property Registration Is Delayed

CA VARUN GUPTA — Mon, 01 Jun 2026 13:13:05 +0000

The law permits taxpayers to adopt the stamp duty value on the agreement date instead of the registration date where prescribed conditions are satisfied. This relief helps prevent unfair tax additions arising solely from a later increase in circle rates.

The post How to Avoid Higher Circle Rate Addition When Property Registration Is Delayed appeared first on TaxGuru.

NCLAT Upholds NCLT Order Reducing IRP Remuneration to ₹50,000 Per Month During Stay Period

divyarathi — Mon, 01 Jun 2026 13:11:37 +0000

Fee reduction of ₹50,000 for the Interim Resolution Professional (IRP) ordered by NCLT was reasonable, given that the IRP’s role was restricted by an interim stay on the constitution of the Committee of Creditors (CoC) between February 28 and September 1, 2023.

The post NCLAT Upholds NCLT Order Reducing IRP Remuneration to ₹50,000 Per Month During Stay Period appeared first on TaxGuru.

Section 87A & Section 156 Rebate: Why Tax May Still Be Payable Below ₹12 Lakh

CA VARUN GUPTA — Mon, 01 Jun 2026 13:05:46 +0000

Many taxpayers assume that income up to Rs. 12 lakh is completely tax-free under the new regime. The key takeaway is that Section 87A provides a rebate, not an exemption, and tax may still arise on special-rate income.

The post Section 87A & Section 156 Rebate: Why Tax May Still Be Payable Below ₹12 Lakh appeared first on TaxGuru.

IPL Franchise Fees, Celebrity Hospitality and Website Expenses allowed as Revenue Expenditure

divyarathi — Mon, 01 Jun 2026 13:05:16 +0000

Periodic or annual fees paid to a sports governing body to sustain annual league participation rights qualify as operational revenue expenses, not capital investments. Hospitality, travel, and boarding expenses incurred on celebrities and VIPs were fully deductible if they were used strategically to amplify brand visibility, ticket distribution, and corporate sponsorships.

The post IPL Franchise Fees, Celebrity Hospitality and Website Expenses allowed as Revenue Expenditure appeared first on TaxGuru.

Himachal Pradesh HC Grants Interim Relief to Petitioner in Toll Fee Dispute

YASHPAL — Mon, 01 Jun 2026 13:04:07 +0000

The issue was whether a toll contractor should receive relief after the government significantly reduced toll rates shortly after awarding the contract. The High Court granted interim protection against contract cancellation, subject to payment of a reduced monthly amount, and directed the committee to decide the representation expeditiously.

The post Himachal Pradesh HC Grants Interim Relief to Petitioner in Toll Fee Dispute appeared first on TaxGuru.

ALP Cannot Be Determined at Nil Without Comparable Analysis: ITAT Ahmedabad

Adv (CA) Vijay Gupta — Mon, 01 Jun 2026 13:01:15 +0000

ITAT Ahmedabad held that the Transfer Pricing Officer cannot determine the arm’s length price of intra-group services at Nil merely based on assumptions regarding benefit or commercial necessity.

The post ALP Cannot Be Determined at Nil Without Comparable Analysis: ITAT Ahmedabad appeared first on TaxGuru.

Liquor Trader Gets Relief as ITAT Reduces GP Rate to 3.13% & Deletes Separate Expense Disallowance

cavkshetty — Mon, 01 Jun 2026 13:00:56 +0000

The Tribunal found no distinguishing factors between the assessee and another liquor trader whose GP rate of 3.13% had been accepted by the Department. In the absence of justification for a higher rate, the GP estimation was reduced from 4% to 3.13%.

The post Liquor Trader Gets Relief as ITAT Reduces GP Rate to 3.13% & Deletes Separate Expense Disallowance appeared first on TaxGuru.