TaxGuru.in - Daily Newsletter

Bombay HC Quashes 138 Crore GST Demands Against Non-Existent Vodafone Entities

Ca.yogesh_porwal — Wed, 06 May 2026 15:20:48 +0000

The Bombay High Court held that GST proceedings initiated against a company that ceased to exist after merger were void ab initio. The Court ruled that Section 87 of the CGST Act does not permit fresh notices against non-existent entities.

The post Bombay HC Quashes 138 Crore GST Demands Against Non-Existent Vodafone Entities appeared first on TaxGuru.

Failure to File GST Returns Can Be Treated as Wilful Suppression: Sriba Nirman Case

S PRASAD — Wed, 06 May 2026 15:18:54 +0000

The High Court observed that filing GST returns is the statutory mechanism for disclosing tax liability. Failure to file returns while issuing taxable invoices was treated as concealment amounting to suppression of facts.

The post Failure to File GST Returns Can Be Treated as Wilful Suppression: Sriba Nirman Case appeared first on TaxGuru.

Tax Implications of Investing in FDs, MFs, PMS and AIFs

Anish Dasharathi — Wed, 06 May 2026 15:11:49 +0000

The article explains how equity mutual funds, PMS, and AIFs are taxed compared to Fixed Deposits under current income tax rules. It highlights that long-term equity investments continue to enjoy lower tax rates than interest income from FDs.

The post Tax Implications of Investing in FDs, MFs, PMS and AIFs appeared first on TaxGuru.

ITAT Remands Case as CIT(A) Ignored Survey Findings on Accommodation Entries

Adv (CA) Vijay Gupta — Wed, 06 May 2026 14:50:11 +0000

The ITAT Mumbai set aside the CIT(A) order after finding that crucial survey findings and Tally data relating to accommodation entries were not properly examined. The Tribunal directed the Assessing Officer to conduct a fresh examination of the transactions and related evidence.

The post ITAT Remands Case as CIT(A) Ignored Survey Findings on Accommodation Entries appeared first on TaxGuru.

Presumptive Taxation Simplified as Income Tax Act 2025 Merges 44AD, 44ADA & 44AE

MOHIT SINGH — Wed, 06 May 2026 14:47:55 +0000

The Income Tax Act, 2025 replaces Sections 44AD, 44ADA, and 44AE with a unified Section 58 framework. While the structure has been simplified, presumptive taxation rates and turnover limits largely remain unchanged.

The post Presumptive Taxation Simplified as Income Tax Act 2025 Merges 44AD, 44ADA & 44AE appeared first on TaxGuru.

Rupee Borrowings by Resident Individuals from NRIs/OCIs: Recent Amendments

DHANUSH D BOLAR — Wed, 06 May 2026 14:45:52 +0000

The 2026 FEMA amendment removes uncertainty surrounding INR borrowings by resident individuals from NRIs and OCI relatives. The RBI has now prescribed clear conditions relating to fund receipt channels and repayment rules.

The post Rupee Borrowings by Resident Individuals from NRIs/OCIs: Recent Amendments appeared first on TaxGuru.

New Income Tax Rule 46(8): Mandatory Daily Backup of Digital Books in India

Neeraj Bhagat & Co. — Wed, 06 May 2026 14:22:23 +0000

Rule 46(8) of the Income-tax Rules, 2026 requires businesses maintaining electronic books to create daily backups on servers located in India. The provision strengthens data localisation, audit readiness, and financial record accessibility.

The post New Income Tax Rule 46(8): Mandatory Daily Backup of Digital Books in India appeared first on TaxGuru.

Compliance Calender for Listed Companies

NupurGupta — Wed, 06 May 2026 14:20:20 +0000

SEBI has restructured the LODR compliance framework through amendments affecting quarterly, annual, and event-based disclosures. The revised framework extends filing timelines, removes certain compliance requirements, and standardizes reporting obligations for listed entities.

The post Compliance Calender for Listed Companies appeared first on TaxGuru.

CCPA Penalises Seller for Selling Non-BIS Toys Through Snapdeal

CA Sandeep Kanoi — Wed, 06 May 2026 14:05:07 +0000

CCPA held that sale of toys without mandatory BIS certification violated the Consumer Protection Act and Toys Quality Control Order. The Authority imposed a penalty and directed future compliance with mandatory standards.

The post CCPA Penalises Seller for Selling Non-BIS Toys Through Snapdeal appeared first on TaxGuru.

PFRDA Launches NPS Sanchay to Simplify Pension Access for Informal Sector Workers

editor7 — Wed, 06 May 2026 14:03:57 +0000

PFRDA has introduced NPS Sanchay as a simplified National Pension System variant aimed at expanding pension coverage for India’s informal workforce. The scheme reduces complexities in investment selection and asset allocation.

The post PFRDA Launches NPS Sanchay to Simplify Pension Access for Informal Sector Workers appeared first on TaxGuru.

Holds Builder Liable for Profiteering Due to Failure to Pass ITC Benefit Uniformly: GSTAT

CA Sandeep Kanoi — Wed, 06 May 2026 13:10:52 +0000

GSTAT held that the builder failed to uniformly pass on additional GST input tax credit benefits to homebuyers in a housing project. The Tribunal directed refund of the remaining profiteered amount with 18% interest.

The post Holds Builder Liable for Profiteering Due to Failure to Pass ITC Benefit Uniformly: GSTAT appeared first on TaxGuru.

Cabinet Approves ECLGS 5.0 to Support Businesses Hit by West Asia Crisis

editor7 — Wed, 06 May 2026 13:09:30 +0000

The Union Cabinet approved ECLGS 5.0 to provide guaranteed emergency credit support to MSMEs, non-MSMEs, and airlines facing liquidity stress due to the West Asia conflict. The scheme offers up to 100% guarantee coverage and aims to protect jobs and supply chains.

The post Cabinet Approves ECLGS 5.0 to Support Businesses Hit by West Asia Crisis appeared first on TaxGuru.

Prudential Norms on Specified Non-financial Assets (SNFA) Directions

Editor — Wed, 06 May 2026 13:05:09 +0000

RBI issued draft directions governing acquisition and treatment of specified non-financial assets acquired during recovery of non-performing loans. The framework introduces valuation, disclosure, and disposal requirements for regulated entities.

The post Prudential Norms on Specified Non-financial Assets (SNFA) Directions appeared first on TaxGuru.

Power of Attorney in Tax Proceedings: Legal Validity & Scope

Adv. Sudarshan Raturi — Wed, 06 May 2026 08:28:31 +0000

The article explains how Power of Attorney has become essential in modern tax practice because of increasing digitization and faceless proceedings. It highlights the importance of proper authorization for smooth representation before tax authorities.

The post Power of Attorney in Tax Proceedings: Legal Validity & Scope appeared first on TaxGuru.

When Late Filing Becomes Suppression: Section 74 Risk After Sriba Nirman

CA. Shafaly Girdharwal — Wed, 06 May 2026 08:23:07 +0000

The Andhra Pradesh High Court held that failure to file monthly GSTR-3B returns can amount to suppression of facts under Section 74 of the CGST Act. The ruling increases exposure to 100% penalty where wilfulness is established.

The post When Late Filing Becomes Suppression: Section 74 Risk After Sriba Nirman appeared first on TaxGuru.

Sale of Capital Goods under GST: When to Apply Section 18(4) & 18(6)

Bhavik — Wed, 06 May 2026 08:21:35 +0000

The article explains the legal distinction between ITC reversal on opting for composition and tax liability on sale of capital goods. It clarifies when Section 18(4) and Section 18(6) apply under GST law.

The post Sale of Capital Goods under GST: When to Apply Section 18(4) & 18(6) appeared first on TaxGuru.

GST Refund Orders Quashed as AO Ignored Clarificatory Amendment to Rule 89(5)

CA Sandeep Kanoi — Wed, 06 May 2026 08:14:03 +0000

The Court ruled that refund claims under inverted duty structure cannot be restricted using the earlier anomalous formula once Rule 89(5) was amended to remove inconsistencies. The authorities were directed to reconsider the refund claims under the amended provisions.

The post GST Refund Orders Quashed as AO Ignored Clarificatory Amendment to Rule 89(5) appeared first on TaxGuru.

RTI Cannot Be Used to Obtain Spouse’s Income Details for Maintenance Dispute: Delhi HC

CA Sandeep Kanoi — Wed, 06 May 2026 08:09:45 +0000

The Delhi High Court held that income tax returns and taxable income details are personal information protected under Section 8(1)(j) of the RTI Act. The Court ruled that such information cannot be disclosed merely because it is sought in a matrimonial dispute.

The post RTI Cannot Be Used to Obtain Spouse’s Income Details for Maintenance Dispute: Delhi HC appeared first on TaxGuru.

Foreign Exchange Management (Authorised Persons) Regulations, 2026

Editor — Wed, 06 May 2026 08:06:49 +0000

RBI notified the Foreign Exchange Management (Authorised Persons) Regulations, 2026 introducing revised eligibility, compliance, and operational conditions for authorised persons. The regulations also restructure forex operations through new categorisation and oversight mechanisms.

The post Foreign Exchange Management (Authorised Persons) Regulations, 2026 appeared first on TaxGuru.

Revisiting Grandfathering under GAAR: Rule 10U Amendment and Its Impact on Tiger Global

Aman Khurana — Wed, 06 May 2026 06:42:30 +0000

CBDT’s 2026 amendment strengthens grandfathering protection for investments made before the commencement of GAAR. The clarification addresses concerns created by the Tiger Global ruling regarding scrutiny of legacy investments.

The post Revisiting Grandfathering under GAAR: Rule 10U Amendment and Its Impact on Tiger Global appeared first on TaxGuru.

Karnataka HC Protects Genuine Buyers from ITC Denial Due to Supplier Default

S PRASAD — Wed, 06 May 2026 06:40:27 +0000

The Court clarified that an NGTP or non-genuine taxpayer tag is only a risk indicator and not conclusive proof against buyers. Authorities must conduct proper enquiry, examine records, and provide transaction-wise findings before rejecting ITC claims.

The post Karnataka HC Protects Genuine Buyers from ITC Denial Due to Supplier Default appeared first on TaxGuru.

PFRDA Aligns NPS Investments with SEBI Rules as Insider Trading Regulation Falls Under SEBI Domain

Editor — Wed, 06 May 2026 06:37:15 +0000

The circular clarifies that SEBI regulations on insider trading, self-dealing, and front running will apply to all NPS investment activities. PFRDA withdrew its separate framework to eliminate regulatory duplication and ensure uniform compliance standards.

The post PFRDA Aligns NPS Investments with SEBI Rules as Insider Trading Regulation Falls Under SEBI Domain appeared first on TaxGuru.

Revision of withdrawal limit for Aadhaar authenticated (e-KYC) transactions without voucher

Editor — Wed, 06 May 2026 06:36:27 +0000

The Department of Posts revised the limit for voucher-free Aadhaar-authenticated withdrawals from ₹5,000 to ₹20,000. The move strengthens paperless banking and simplifies POSB transactions through e-KYC processes.

The post Revision of withdrawal limit for Aadhaar authenticated (e-KYC) transactions without voucher appeared first on TaxGuru.

SEBI Issues AI Cybersecurity Advisory Because Advanced AI Tools Increase Vulnerability

Editor — Wed, 06 May 2026 06:35:53 +0000

SEBI warned that AI-driven tools like Mythos can rapidly identify and exploit cybersecurity weaknesses across the securities market ecosystem. The advisory mandates stronger monitoring, patch management, and coordinated cyber resilience measures for regulated entities.

The post SEBI Issues AI Cybersecurity Advisory Because Advanced AI Tools Increase Vulnerability appeared first on TaxGuru.

SEBI Defines ‘Significant Indices’ Based on ₹20,000 Crore Mutual Fund AUM Threshold

editor2 — Wed, 06 May 2026 06:33:49 +0000

SEBI released an official list of Significant Indices that includes major benchmarks such as Nifty 50, Nifty Bank, and Sensex. Index providers managing these benchmarks must comply with the SEBI (Index Providers) Regulations, 2024.

The post SEBI Defines ‘Significant Indices’ Based on ₹20,000 Crore Mutual Fund AUM Threshold appeared first on TaxGuru.

ITAT Deletes Section 271D Penalty as Cash Sale Consideration Is Not Covered by Section 269SS

CA AJAY KUMAR AGRAWAL — Wed, 06 May 2026 06:22:03 +0000

The ITAT ruled that penalty proceedings under Section 271D are invalid if the Assessing Officer fails to record satisfaction in assessment or related proceedings. Since no assessment proceedings existed in the case, the penalty was held unsustainable in law.

The post ITAT Deletes Section 271D Penalty as Cash Sale Consideration Is Not Covered by Section 269SS appeared first on TaxGuru.

ITAT Deletes On-Money Addition Due to Lack of Corroborative Evidence

CA AJAY KUMAR AGRAWAL — Wed, 06 May 2026 06:20:07 +0000

The ITAT Hyderabad held that additions for alleged cash payments cannot be sustained merely on the basis of third-party seized documents. The Tribunal ruled that absence of corroborative evidence, cash trail, or signed records makes such additions legally unsustainable.

The post ITAT Deletes On-Money Addition Due to Lack of Corroborative Evidence appeared first on TaxGuru.

Gujarat HC Upholds ITC Denial on Supplier Default

Ca.yogesh_porwal — Wed, 06 May 2026 06:06:52 +0000

Gujarat HC upheld Section 16(2)(c) of the CGST Act, allowing denial of ITC where suppliers fail to deposit GST with the government.

The post Gujarat HC Upholds ITC Denial on Supplier Default appeared first on TaxGuru.

Company & Directors Penalized by ROC for Extending Rights Issue Beyond Permissible Period

editor2 — Wed, 06 May 2026 05:59:09 +0000

The ROC imposed penalties after a company extended its rights issue offer period following requests from promoter shareholders. The adjudication order clarified that the Companies Act restricts rights issue offers from remaining open for more than 30 days.

The post Company & Directors Penalized by ROC for Extending Rights Issue Beyond Permissible Period appeared first on TaxGuru.

Bombay HC Orders ITC Unblocking as Rule 86A Restriction Expired After One Year

a2zbimaljain — Wed, 06 May 2026 05:55:34 +0000

The Court held that blocking of the electronic credit ledger under Rule 86A cannot continue beyond the statutory one-year period. It clarified that such restriction automatically lapses by operation of law regardless of pending departmental proceedings.

The post Bombay HC Orders ITC Unblocking as Rule 86A Restriction Expired After One Year appeared first on TaxGuru.

TDS Never Sleeps: How Form 26AS Triggers Tax Scrutiny

Anita Bhadra — Wed, 06 May 2026 05:32:14 +0000

The Tribunal held that TDS entries appearing in Form 26AS are sufficient material for reopening assessments when no return is filed. The ruling emphasizes that taxpayers must reconcile Form 26AS with books and returns to avoid reassessment proceedings.

The post TDS Never Sleeps: How Form 26AS Triggers Tax Scrutiny appeared first on TaxGuru.

GST Confiscation Proceedings Quashed as Stock Discrepancy Must Be Examined Under Sections 73/74

CA Sandeep Kanoi — Wed, 06 May 2026 05:28:47 +0000

The case involved GST proceedings initiated after alleged excess stock was found during a factory survey. The Court held that Section 130 proceedings were wrongly initiated and invalidated the confiscation-related orders passed by the authorities.

The post GST Confiscation Proceedings Quashed as Stock Discrepancy Must Be Examined Under Sections 73/74 appeared first on TaxGuru.

Tax Exemption at Risk for Charitable Institutions Allegedly Operated Like Businesses

CA Amresh Vashisht — Wed, 06 May 2026 05:26:20 +0000

The Income-tax Department intensified scrutiny of charitable entities after finding high surplus margins, premium pricing, and commercial-style operations. The developments show that institutions functioning like businesses may lose tax exemptions despite charitable registration.

The post Tax Exemption at Risk for Charitable Institutions Allegedly Operated Like Businesses appeared first on TaxGuru.

Unlisted Bonds Lose LTCG Benefit; No Capital Gains Exemption for Depreciable Assets under Income Tax Act 2025

CA Amresh Vashisht — Wed, 06 May 2026 05:23:20 +0000

The new law treats gains from depreciable assets as short-term capital gains for all purposes, not merely for computation. This effectively removes exemption benefits previously allowed through judicial interpretation under the old regime.

The post Unlisted Bonds Lose LTCG Benefit; No Capital Gains Exemption for Depreciable Assets under Income Tax Act 2025 appeared first on TaxGuru.

Customs Broker Cannot Be Penalised Merely for Non-Physical Verification of Client Address

CA Sandeep Kanoi — Tue, 05 May 2026 15:25:41 +0000

High Court held that customs regulations require verification through reliable documents and data, not mandatory physical inspection of a client’s premises.

The post Customs Broker Cannot Be Penalised Merely for Non-Physical Verification of Client Address appeared first on TaxGuru.

GST on Hosting Services: OIDAR Classification, RCM Liability & Latest Judgments

akshay.akac — Tue, 05 May 2026 15:18:42 +0000

This case explains how foreign digital services like hosting fall under OIDAR and become taxable imports under GST. It highlights compliance through Reverse Charge Mechanism and ITC eligibility for registered businesses.

The post GST on Hosting Services: OIDAR Classification, RCM Liability & Latest Judgments appeared first on TaxGuru.

Legal Analysis of Applicability of GST on Bar Associations

Ela Garg — Tue, 05 May 2026 15:02:11 +0000

This case explains how GST law overrides mutuality by treating associations and members as distinct taxable persons. It clarifies that internal transactions like membership fees now qualify as taxable supply.

The post Legal Analysis of Applicability of GST on Bar Associations appeared first on TaxGuru.

Political Donation Reassessment Notice Quashed as Issued by Wrong Authority

CA Sandeep Kanoi — Tue, 05 May 2026 14:55:30 +0000

The Tribunal held that notice under Section 148 was invalid as it was issued by an officer lacking jurisdiction. It relied on CBDT Instruction prescribing monetary limits. The ruling highlights strict adherence to jurisdictional norms.

The post Political Donation Reassessment Notice Quashed as Issued by Wrong Authority appeared first on TaxGuru.

RTI Appeal Rejected Due to Information Already Provided in Existing Records

Editor — Tue, 05 May 2026 14:52:25 +0000

The issue involved alleged incomplete disclosure under RTI. The authority held that all available records were already shared and no further disclosure was required.

The post RTI Appeal Rejected Due to Information Already Provided in Existing Records appeared first on TaxGuru.

Insolvency Professional Suspended Due to Failure to Disclose Conflict of Interest

Editor — Tue, 05 May 2026 14:51:23 +0000

The case involved non-disclosure of overlapping interests between contractor and resolution applicant. The authority held that lack of transparency compromised the process and imposed a three-year suspension.

The post Insolvency Professional Suspended Due to Failure to Disclose Conflict of Interest appeared first on TaxGuru.

Ad-Hoc Norms Validity Extended Till 31.03.2028 Due to DGFT Policy Amendment

Editor — Tue, 05 May 2026 14:50:49 +0000

The issue involved limited validity of norms for Advance Authorisation. The amendment extends validity to 2028, ensuring continuity and reducing compliance burden.

The post Ad-Hoc Norms Validity Extended Till 31.03.2028 Due to DGFT Policy Amendment appeared first on TaxGuru.

SEBI Proposes OBPP Reforms to Ease Business and Expand Product Offerings

editor4 — Tue, 05 May 2026 14:47:46 +0000

The consultation paper proposes allowing OBPPs to offer products regulated by IFSCA. It aligns with broader efforts to enhance cross-border investment opportunities. The proposal also ensures compliance with foreign exchange rules.

The post SEBI Proposes OBPP Reforms to Ease Business and Expand Product Offerings appeared first on TaxGuru.

SEBI Proposes Extending Early Pay-In Benefit to Options Due to Stakeholder Demand

editor4 — Tue, 05 May 2026 14:47:08 +0000

The consultation paper issued by Securities and Exchange Board of India seeks public comments on a draft circular proposing to extend the benefit of early pay-in (EPI) in the commodity derivatives segment to options contracts, in addition to its current applicability to futures contracts. Under the existing framework prescribed in the SEBI Master Circular dated […]

The post SEBI Proposes Extending Early Pay-In Benefit to Options Due to Stakeholder Demand appeared first on TaxGuru.

ITAT Chennai Allowed Section 80-IA Deduction as Consumer Tariff Held Correct Benchmark

CA Sandeep Kanoi — Tue, 05 May 2026 14:45:53 +0000

The Tribunal found that the transfer pricing adjustment was incorrectly computed using SEB sale rates. It allowed deduction based on consumer tariff rates. The decision clarifies benchmarking for captive consumption.

The post ITAT Chennai Allowed Section 80-IA Deduction as Consumer Tariff Held Correct Benchmark appeared first on TaxGuru.

Excess Stock Found in GST Survey Cannot Trigger Confiscation Proceedings: Allahabad HC

CA Sandeep Kanoi — Tue, 05 May 2026 14:45:37 +0000

The court held that initiating proceedings under the penalty provision for alleged excess stock discovered during a survey was improper. It ruled that such cases must be dealt with under assessment provisions, leading to quashing of the order.

The post Excess Stock Found in GST Survey Cannot Trigger Confiscation Proceedings: Allahabad HC appeared first on TaxGuru.

Section 130 Cannot Be Used for Excess Stock Detected in GST Survey: Allahabad HC

CA Sandeep Kanoi — Tue, 05 May 2026 14:43:52 +0000

The Court examined whether Section 130 could be used when discrepancies were found during a GST survey. It held that the correct legal route is Sections 73/74 and reinforced settled precedents.

The post Section 130 Cannot Be Used for Excess Stock Detected in GST Survey: Allahabad HC appeared first on TaxGuru.

Excess Stock During Survey Cannot Trigger GST Section 130 Action: Allahabad HC

CA Sandeep Kanoi — Tue, 05 May 2026 14:39:17 +0000

The Court examined whether confiscation proceedings under Section 130 were valid for alleged excess stock found during a survey. It held that the law mandates action under Sections 73/74, rendering the orders unsustainable.

The post Excess Stock During Survey Cannot Trigger GST Section 130 Action: Allahabad HC appeared first on TaxGuru.

Allahabad HC Quashed GST Penalty as Wrong Provision Invoked for Excess Stock During Survey

CA Sandeep Kanoi — Tue, 05 May 2026 14:37:31 +0000

The Court examined whether Section 130 proceedings were valid when excess stock was found during a survey. It held that such cases must be dealt with under Sections 73/74, rendering the penalty order unsustainable.

The post Allahabad HC Quashed GST Penalty as Wrong Provision Invoked for Excess Stock During Survey appeared first on TaxGuru.

GST Confiscation Invalid as Section 130 Used Instead of Sections 73/74 Procedure: Allahabad HC

CA Sandeep Kanoi — Tue, 05 May 2026 14:36:21 +0000

The court held that tax determination must follow Sections 73 or 74 and cannot be replaced by Section 130 proceedings. It found the action legally unsustainable. The ruling reinforces procedural compliance under GST law.

The post GST Confiscation Invalid as Section 130 Used Instead of Sections 73/74 Procedure: Allahabad HC appeared first on TaxGuru.

Oppression & Mismanagement Petition Rejected Due to Dispute Being Purely Contractual & Arbitrable

CA Sandeep Kanoi — Tue, 05 May 2026 14:27:59 +0000

The issue involved allegations of mismanagement framed under company law provisions. The Tribunal held that the core dispute arose from contractual obligations under a term sheet. It referred the matter to arbitration, emphasizing that such disputes must follow agreed dispute resolution mechanisms.

The post Oppression & Mismanagement Petition Rejected Due to Dispute Being Purely Contractual & Arbitrable appeared first on TaxGuru.

ITAT Remands Addition Due to Failure to Verify GST Turnover Instead of Bank Credits

CA Sandeep Kanoi — Tue, 05 May 2026 14:26:03 +0000

The issue involved estimation of income based solely on bank credits without supporting verification. The Tribunal remanded the case, directing assessment based on GST and VAT turnover.

The post ITAT Remands Addition Due to Failure to Verify GST Turnover Instead of Bank Credits appeared first on TaxGuru.

Gujarat HC Dismisses Appeal as Only Profit Element of Bogus Purchases Taxable

CA Sandeep Kanoi — Tue, 05 May 2026 14:24:36 +0000

The court held that only the income component of alleged bogus purchases can be taxed, not the entire transaction. It upheld the Tribunal’s restriction of addition to 6%. The ruling reinforces limits on full disallowance.

The post Gujarat HC Dismisses Appeal as Only Profit Element of Bogus Purchases Taxable appeared first on TaxGuru.

Penalty Under Section 114AA Set Aside as No False Declaration Proven: CESTAT Delhi

CA Sandeep Kanoi — Tue, 05 May 2026 14:22:00 +0000

The Tribunal held that delayed submission of required certificates constituted a procedural lapse without intent to evade duty. It reduced penalties and redemption fine. The ruling emphasizes leniency in technical non-compliance cases.

The post Penalty Under Section 114AA Set Aside as No False Declaration Proven: CESTAT Delhi appeared first on TaxGuru.

No Section 68 Addition Where Loan Repaid Through Banking Channels & Supported by Evidence

CA Sandeep Kanoi — Tue, 05 May 2026 14:20:44 +0000

The tribunal held that interest cannot be disallowed where advances to related parties are made for business purposes and out of own funds, emphasizing the principle of commercial expediency.

The post No Section 68 Addition Where Loan Repaid Through Banking Channels & Supported by Evidence appeared first on TaxGuru.

Section 263 Upheld as AO Failed to Examine Nature of ₹3.98 Crore Receipt: ITAT Chandigarh

CA Sandeep Kanoi — Tue, 05 May 2026 14:18:37 +0000

The Tribunal held that lack of inquiry into a large receipt justified revision under Section 263. It found the assessment erroneous and prejudicial to revenue. The ruling reinforces duty of proper verification.

The post Section 263 Upheld as AO Failed to Examine Nature of ₹3.98 Crore Receipt: ITAT Chandigarh appeared first on TaxGuru.

Section 271(1)(c) Penalty deleted Due to Bona Fide Claim on Lease Premium Deduction

CA Sandeep Kanoi — Tue, 05 May 2026 14:17:13 +0000

The issue involved penalty on disallowance of lease premium deduction. The Tribunal held that admission of the issue by the High Court made it debatable. It ruled that penalty cannot be imposed in such cases.

The post Section 271(1)(c) Penalty deleted Due to Bona Fide Claim on Lease Premium Deduction appeared first on TaxGuru.

Delhi HC Set Aside Anti-Profiteering Order Due to Need for Fresh Examination of Facts

CA Sandeep Kanoi — Tue, 05 May 2026 14:12:52 +0000

The issue involved alleged failure to pass on input tax credit benefits. The Court set aside the order and remanded the matter for fresh factual determination by the tribunal.

The post Delhi HC Set Aside Anti-Profiteering Order Due to Need for Fresh Examination of Facts appeared first on TaxGuru.

Delhi HC Grants Interim Relief as GSTAT Exceeded Scope of Remand Order

CA Sandeep Kanoi — Tue, 05 May 2026 14:11:34 +0000

The issue concerned whether the tribunal acted beyond the High Court’s earlier remand directions. The Court granted interim protection and restrained coercive action pending further hearing.

The post Delhi HC Grants Interim Relief as GSTAT Exceeded Scope of Remand Order appeared first on TaxGuru.

Section 271(1)(c) Penalty Cannot Be Imposed for Valuation Differences Without Proof of Inaccuracy: SC

CA Sandeep Kanoi — Tue, 05 May 2026 14:00:38 +0000

The Supreme Court held that mere differences in property valuation do not amount to furnishing inaccurate particulars. Penalty under Section 271(1)(c) requires proof of deliberate inaccuracy. The ruling clarifies that estimation disputes alone cannot justify penalty.

The post Section 271(1)(c) Penalty Cannot Be Imposed for Valuation Differences Without Proof of Inaccuracy: SC appeared first on TaxGuru.

LTCG Addition Deleted as Assessee Proved Genuine Investment Activity Through Evidence

CA Sandeep Kanoi — Tue, 05 May 2026 13:56:51 +0000

The Tribunal held that consistent investment history and documentary proof established genuineness of share transactions. Additions under Section 68 were deleted due to lack of contrary evidence.

The post LTCG Addition Deleted as Assessee Proved Genuine Investment Activity Through Evidence appeared first on TaxGuru.

GST Order Quashed as Penalty Not Mentioned in DRC-01 Form: Allahabad HC

CA Sandeep Kanoi — Tue, 05 May 2026 13:56:13 +0000

The Court set aside the order because the penalty was not disclosed in the statutory Form DRC-01. It held that demands must be clearly specified in the prescribed notice.

The post GST Order Quashed as Penalty Not Mentioned in DRC-01 Form: Allahabad HC appeared first on TaxGuru.

GST Not Applicable on Affiliation & NOC Fee collected by University: AP HC

CA Sandeep Kanoi — Tue, 05 May 2026 13:52:01 +0000

The Court held that affiliation and NOC issuance by universities are statutory duties, not business activities. Therefore, such fees cannot be treated as taxable supply under GST, and related assessment orders were set aside.

The post GST Not Applicable on Affiliation & NOC Fee collected by University: AP HC appeared first on TaxGuru.

Loose Papers Without Identifiable Link Cannot Justify Reassessment: Gujarat HC

CA Sandeep Kanoi — Tue, 05 May 2026 13:47:04 +0000

The High Court ruled that reopening based on unrelated and non-specific seized material is not permissible. It concluded that no prima facie belief of income escapement could be formed. The decision highlights limits on the use of indirect evidence.

The post Loose Papers Without Identifiable Link Cannot Justify Reassessment: Gujarat HC appeared first on TaxGuru.

Section 54 Exemption Allowed as Possession Date Considered Over Registration Date

CA Sandeep Kanoi — Tue, 05 May 2026 13:41:34 +0000

The Tribunal held that for under-construction properties, the date of possession is the relevant factor for Section 54 exemption. It rejected the reliance on registration date alone. The ruling clarifies timing criteria for capital gains exemption.

The post Section 54 Exemption Allowed as Possession Date Considered Over Registration Date appeared first on TaxGuru.

Section 263 Invalid as AO Conducted Proper Inquiry & Took Plausible View: ITAT Surat

CA Sandeep Kanoi — Tue, 05 May 2026 13:39:31 +0000

The Tribunal held that revisionary powers cannot be used to substitute the AO’s view with that of the Pr. CIT. It emphasized that such substitution is beyond Section 263. The decision protects independent assessment decisions.

The post Section 263 Invalid as AO Conducted Proper Inquiry & Took Plausible View: ITAT Surat appeared first on TaxGuru.

SC Remits Section 148A Reassessment Row Back to High Courts

CA Sandeep Kanoi — Tue, 05 May 2026 13:33:15 +0000

The issue involved whether jurisdictional officers could issue reassessment notices. The Court set aside High Court rulings after a retrospective amendment clarified their authority and remanded the matter.

The post SC Remits Section 148A Reassessment Row Back to High Courts appeared first on TaxGuru.

GST Registration Reinstated After Withdrawal of Retrospective Cancellation Order

CA Sandeep Kanoi — Tue, 05 May 2026 13:29:57 +0000

The court disposed of the petition after the State withdrew the contested GST cancellation order. Authorities were directed to restore the registration promptly. The ruling clarifies that defective orders may be withdrawn and corrected.

The post GST Registration Reinstated After Withdrawal of Retrospective Cancellation Order appeared first on TaxGuru.

Karnataka HC Sets Aside GST Order, Grants Fresh Opportunity to Taxpayer

CA Sandeep Kanoi — Tue, 05 May 2026 13:27:57 +0000

The High Court set aside the adjudication order after finding that the petitioner had not responded to the show-cause notice. It remitted the matter for reconsideration with an opportunity to present evidence.

The post Karnataka HC Sets Aside GST Order, Grants Fresh Opportunity to Taxpayer appeared first on TaxGuru.

Allahabad HC Quashed ITC Blocking Order for Failure to Record Reason to Believe

CA Sandeep Kanoi — Tue, 05 May 2026 13:27:19 +0000

The Court found that the authority acted solely on a recommendation without independent evaluation. It ruled that such action does not meet the statutory requirement of reason to believe.

The post Allahabad HC Quashed ITC Blocking Order for Failure to Record Reason to Believe appeared first on TaxGuru.

GST on Solar Projects Cannot Be Taxed at Flat 18% Due to 70:30 Rule: AP HC

CA Sandeep Kanoi — Tue, 05 May 2026 13:24:25 +0000

The court held that solar power system supplies must follow the statutory 70:30 valuation mechanism, rejecting full 18% taxation. It ruled that separate invoicing does not negate eligibility for concessional treatment.

The post GST on Solar Projects Cannot Be Taxed at Flat 18% Due to 70:30 Rule: AP HC appeared first on TaxGuru.

Income Tax: Madras HC Orders Fresh Review Due to Ignored Remand Report Evidence

CA Sandeep Kanoi — Tue, 05 May 2026 13:14:14 +0000

The Court held that failure to consider a remand report acknowledging agricultural income constituted an apparent error, leading to recall of the earlier judgment and remand for fresh adjudication.

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Advocate’s Refusal to Defend: Professional Misconduct?

Adv. Sudarshan Raturi — Tue, 05 May 2026 13:12:10 +0000

Explains when a lawyer’s refusal crosses into professional misconduct, especially in cases of discrimination or collective boycotts, and reinforces the duty to ensure access to justice.

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Bogus Purchase vs Non-Genuine Purchase in Income Tax: Key Differences, Case Laws & Tax Impact

Manish Gugliya — Tue, 05 May 2026 13:08:19 +0000

The issue concerns how purchase classification affects tax treatment. The key takeaway is that bogus purchases lead to full disallowance, while non-genuine ones attract only profit-based additions.

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Essentials of Audit And Accounting In A Company/Organisation

Soumyaranjan Adhikary — Tue, 05 May 2026 13:07:32 +0000

The issue highlights the distinction between accounting and auditing functions. The key takeaway is that independent audits ensure accuracy, compliance, and reliability of financial statements.

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RSP-based Valuation under GST: Constitutional Limits & Structural Incompatibility

Lovish Goyal — Tue, 05 May 2026 13:02:08 +0000

The issue concerns taxing goods based on retail price instead of actual transaction value. It highlights that such valuation lacks nexus with supply and may violate constitutional principles governing tax measures.

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HC Awards ₹10 Lakh Compensation For Failure To Furnish Arrest Grounds in Writing

Sanjeev Sirohi — Tue, 05 May 2026 12:57:49 +0000

The case addressed whether arrest without written grounds violates constitutional safeguards. The Court held the arrest illegal and awarded compensation for unlawful detention. It reinforces mandatory compliance with arrest procedures.

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Discrepancy In Stock And Action Under Section 130 of CGST Act, 2017

Dr. Sanjiv Agarwal — Tue, 05 May 2026 12:54:01 +0000

The ruling clarifies that unaccounted stock discovered in surveys should be assessed as tax liability under Sections 73 and 74. It holds that Section 130 confiscation proceedings are not applicable in such cases.

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Reopening Invalid Due to Change of Opinion on Same Material: Bombay HC

CA Sandeep Kanoi — Tue, 05 May 2026 12:40:25 +0000

The court examined whether reassessment could be initiated after four years based on existing records. It held that reopening founded on a change of opinion is impermissible, and such reassessment was quashed. The ruling reinforces limits on reassessment powers.

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No Substantial Question of Law Where AO Accepts Claims in Remand: Karnataka HC

CA Sandeep Kanoi — Tue, 05 May 2026 12:38:40 +0000

The case involved multiple additions challenged by the revenue after relief was granted to the assessee. The Court held that once the Assessing Officer accepted the claims in remand, no substantial question of law survives.

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SC Dismisses Penalty as Capital vs Revenue Receipt Issue Held Debatable

CA Sandeep Kanoi — Tue, 05 May 2026 12:15:53 +0000

The Supreme Court upheld deletion of penalty where the dispute involved classification of subsidy as capital or revenue receipt. It ruled that such debatable issues do not amount to furnishing inaccurate particulars. The decision reinforces limits on penalty under Section 271(1)(c).

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P&H HC Deleted Penalty as Subsidy Classification Held Debatable Issue

CA Sandeep Kanoi — Tue, 05 May 2026 12:15:02 +0000

The High Court held that classification of grant-in-aid as capital or revenue is a debatable issue. It ruled that such classification disputes do not amount to furnishing inaccurate particulars.

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Miscellaneous Application Rejected as Tribunal Lacks Power to Review Its Own Order

CA Sandeep Kanoi — Tue, 05 May 2026 12:12:39 +0000

The Tribunal held that challenges to appreciation of evidence amount to review, not rectification. It ruled that Section 254(2) permits only correction of apparent errors, leading to dismissal of the Revenue’s application.

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Penny Stock LTCG Cannot Be Treated as Bogus Without Independent Evidence: ITAT Delhi

CA Sandeep Kanoi — Tue, 05 May 2026 12:12:01 +0000

The Tribunal held that long-term capital gains cannot be disallowed solely on investigation reports and assumptions. It found that documentary evidence and investment history supported genuineness, leading to deletion of additions under Section 68.

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Bombay HC Set Aside GST Refund Rejection for Not Issuing SCN

CA Sandeep Kanoi — Tue, 05 May 2026 12:08:26 +0000

The case involved denial of GST refund without following mandatory procedure under Rule 92(3). The Court held that absence of notice and hearing invalidates the rejection and ordered fresh consideration.

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GST Appeal Delay Condoned Based on Precedent, Court Orders Fresh Hearing

CA Sandeep Kanoi — Tue, 05 May 2026 11:49:30 +0000

The case involved refusal to entertain a delayed GST appeal due to limitation. The Court followed its earlier ruling and directed authorities to hear the appeal on merits subject to statutory deposits.

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GST Appeal Delay Excused Due to Partner’s Death, Court Orders Fresh Hearing

CA Sandeep Kanoi — Tue, 05 May 2026 11:47:54 +0000

The case involved delay in filing GST appeal due to death of a key partner managing operations. The Court held that such circumstances constitute sufficient cause and directed the appeal to be heard on merits after statutory compliance.

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GST Appeal Delay Condoned Due to Medical Emergency, Court Restores Appeal Rights

CA Sandeep Kanoi — Tue, 05 May 2026 11:46:59 +0000

The case involved cancellation of GST registration and delay in filing appeal due to illness. The Court held that writ jurisdiction can override limitation where sufficient cause is shown and restored the appeal for decision on merits.

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Pre-Deposit Bars Recovery: Calcutta HC Orders Refund of Excess GST Recovery

CA Sandeep Kanoi — Tue, 05 May 2026 10:03:53 +0000

The issue involved recovery despite statutory pre-deposit under GST law. The Court held that once pre-deposit is made, further recovery must stop and excess amounts should be refunded.

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ITC Denial Based Only on GSTR-2A Mismatch Set Aside for Lack of Proper Verification: Karnataka HC

CA Sandeep Kanoi — Tue, 05 May 2026 10:01:06 +0000

The case involved denial of input tax credit solely due to return mismatch without examining records. The Court held that such mechanical reliance is invalid and ordered fresh adjudication.

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Understanding Risk-Based Internal Audit: A Learner’s Perspective

Divyansh kalra — Tue, 05 May 2026 09:53:17 +0000

This article explains how risk-based internal audit prioritises high-impact business areas over routine verification. It highlights how focusing on key risks improves efficiency and strengthens business controls.

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GST Registration Cancellation Reversed on Condition of Tax Compliance: J&K&H HC

CA Sandeep Kanoi — Tue, 05 May 2026 09:42:05 +0000

The case involved cancellation of GST registration due to non-response to a notice. The Court allowed restoration subject to filing returns and payment of tax, penalty, and interest.

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No Evidence of Rowdyism: Karnataka HC Strikes Down Police Register Entry

CA Sandeep Kanoi — Tue, 05 May 2026 09:23:48 +0000

The Court examined inclusion in a rowdy register without supporting material and found no criminal cases or evidence. It held that such listing is unlawful without tangible proof and ordered deletion of the entry.

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Constitutional Infirmity of Retrospective Section 147A of Income Tax Act, 1961

DINESH KUMAR BISHNOI — Tue, 05 May 2026 09:23:04 +0000

Examines whether retrospective tax laws can validly alter past legal interpretations. The case highlights how constitutional limits prevent legislatures from rewriting judicially settled meanings under the guise of clarification.

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Illegible Bill of Lading Leads to Refund Denial, Calcutta HC Orders Reconsideration

CA Sandeep Kanoi — Tue, 05 May 2026 09:22:36 +0000

The case involved denial of GST refund due to unclear documentation on shipping details. The Court held that the assessee must be given a chance to submit proper evidence and ordered fresh adjudication.

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Seized Data Must Be Shared If Relied Upon, Calcutta HC Clarifies in GST Case

CA Sandeep Kanoi — Tue, 05 May 2026 09:20:17 +0000

The issue involved denial of access to seized documents relied upon in a GST notice. The Court held that taxpayers must be given inspection and copies of relied documents before responding.

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GSTAT Appeals Filing Procedure and Compliances at a Glance

MOHIT SINGH — Tue, 05 May 2026 09:07:33 +0000

Explains the complete process for filing appeals before GSTAT, including the three-month limitation period and mandatory pre-deposit requirements. Highlights that compliance with procedural rules is essential for admissibility and automatic stay of recovery.

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Jharkhand HC Dismissed Writ Petition Due to Availability of Alternate GST Appeal Remedy

CA Sandeep Kanoi — Tue, 05 May 2026 08:41:57 +0000

The Court clarified that local self-government bodies are not automatically exempt from GST on all activities. It ruled that such claims require factual scrutiny and cannot bypass the statutory appellate mechanism.

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CIRP initiation for recovery amounts to misuse of Insolvency Framework: SC

CA Sandeep Kanoi — Tue, 05 May 2026 08:39:07 +0000

The Supreme Court held that the IBC cannot be used as a substitute for execution of a civil court decree. It ruled that initiating CIRP for recovery purposes amounts to misuse of the insolvency framework.

The post CIRP initiation for recovery amounts to misuse of Insolvency Framework: SC appeared first on TaxGuru.

Single-Member US LLC Tax in India: Disregarded Entity Status Explained

Editor — Tue, 05 May 2026 08:17:42 +0000

The issue concerns differing tax treatment of single-member US LLCs in India and the US. The position clarifies that India taxes global income regardless of US classification, requiring proper reporting.

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Sailing in Two Boats: Navigating Dual Regime of Income Tax Act, 1961 & 2025

icajaind — Tue, 05 May 2026 08:06:41 +0000

A clear guide explaining how both the 1961 and 2025 tax laws will coexist, and why professionals must apply each depending on the assessment year.

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