TaxGuru.in - Daily Newsletter

U/s 80P Deduction Cannot Be Withdrawn Through Section 154: ITAT Says Debatable Issues Are Beyond Rectification Powers

cavkshetty — Sat, 30 May 2026 07:05:52 +0000

The Tribunal ruled that the Assessing Officer wrongly invoked Section 154 to withdraw deduction on interest income from co-operative banks. Since the issue is subject to differing judicial interpretations, it falls outside the scope of rectification.

The post U/s 80P Deduction Cannot Be Withdrawn Through Section 154: ITAT Says Debatable Issues Are Beyond Rectification Powers appeared first on TaxGuru.

U/s 54F Relief Allowed Despite Sale Deed After Two Years- ITAT Holds Flat Booking & Substantial Payment Satisfy the Law

cavkshetty — Sat, 30 May 2026 06:54:58 +0000

The Tribunal ruled that booking a residential flat and making substantial payments toward its acquisition can amount to a purchase for Section 54F purposes. Registration at a later date does not automatically defeat the exemption claim.

The post U/s 54F Relief Allowed Despite Sale Deed After Two Years- ITAT Holds Flat Booking & Substantial Payment Satisfy the Law appeared first on TaxGuru.

SC Stays HC Ruling as GST Portal Upload Alone Was Held Insufficient Communication

CA Sandeep Kanoi — Sat, 30 May 2026 06:50:17 +0000

The Supreme Court stayed an Allahabad High Court judgment that held mere uploading of GST orders on the portal does not automatically start limitation for appeals. The dispute concerns the meaning of “communication” under Section 107 of the GST law.

The post SC Stays HC Ruling as GST Portal Upload Alone Was Held Insufficient Communication appeared first on TaxGuru.

GST on Green Trees & Timber Auctions: A Comprehensive Jurisprudential Analysis

RAVINDRA KUMAR RASTOGI — Sat, 30 May 2026 06:49:30 +0000

The taxability of forest auctioned trees depends on whether they are intended to be cut and removed. Courts and authorities have consistently held that mandatory severance converts standing trees into taxable goods.

The post GST on Green Trees & Timber Auctions: A Comprehensive Jurisprudential Analysis appeared first on TaxGuru.

BSNL VRS Compensation Fully Exempt U/s 10(10B); ITAT Also Allows Full Leave Encashment Relief to Former DOT/BSNL Employees

cavkshetty — Sat, 30 May 2026 06:42:08 +0000

ITAT ruled that employees opting for the BSNL VRS Scheme, 2019 are entitled to full exemption under Section 10(10B) on retrenchment compensation. The decision rejects the view that exemption should be capped at ₹5 lakh under Section 10(10C).

The post BSNL VRS Compensation Fully Exempt U/s 10(10B); ITAT Also Allows Full Leave Encashment Relief to Former DOT/BSNL Employees appeared first on TaxGuru.

Missed Form 10? ITAT Gives Trust a Lifeline – AO Directed to Await Condonation Decision Before Denying Section 11(2) Benefit

cavkshetty — Sat, 30 May 2026 06:28:26 +0000

The Tribunal observed that the trust had eventually filed Form 10 and sought condonation of delay. Since the issue was pending before the competent authority, the exemption dispute was restored for reconsideration.

The post Missed Form 10? ITAT Gives Trust a Lifeline – AO Directed to Await Condonation Decision Before Denying Section 11(2) Benefit appeared first on TaxGuru.

ITR-1 Then & Now: How India’s Simplest Tax Return Has Evolved for Salaried Taxpayers

CA Pratik Tripathi — Sat, 30 May 2026 06:15:38 +0000

ITR-1 has evolved from a self-declaration return to a data-reconciliation exercise backed by AIS, TIS, and Form 26AS. Salaried taxpayers must now focus on matching departmental records before filing.

The post ITR-1 Then & Now: How India’s Simplest Tax Return Has Evolved for Salaried Taxpayers appeared first on TaxGuru.

CIT(E) Cannot Act Merely on AO’s Recommendation – Independent Satisfaction Mandatory for Grant or Rejection of U/s 12AB Registration

cavkshetty — Sat, 30 May 2026 06:15:33 +0000

ITAT held that registration under Section 12AB cannot be rejected merely because the Assessing Officer or Range Head did not recommend approval. The CIT(E) must independently examine the trust’s objects, activities, and legal compliance before arriving at a decision.

The post CIT(E) Cannot Act Merely on AO’s Recommendation – Independent Satisfaction Mandatory for Grant or Rejection of U/s 12AB Registration appeared first on TaxGuru.

सरकारी विभाग की Delay condolence बनाम करदाता की Delay condolence?

SANJAY SHARMA — Sat, 30 May 2026 06:12:38 +0000

लेख इस मुद्दे का विश्लेषण करता है कि सरकारी विभागों को विलंब माफी में राहत मिलने के बावजूद करदाताओं की अपीलें limitation पर क्यों खारिज हो जाती हैं। यह अनुच्छेद 14 के तहत समानता के सिद्धांत की पड़ताल करता है।

The post सरकारी विभाग की Delay condolence बनाम करदाता की Delay condolence? appeared first on TaxGuru.

CBIC Revises Customs Tariff Values for Palm Oil, Soybean Oil and Brass Scrap from May 30, 2026

Editor — Sat, 30 May 2026 06:08:16 +0000

CBIC has updated tariff values for edible oils and brass scrap under Section 14 of the Customs Act. The notification revises benchmark customs values effective from 30 May 2026 while retaining existing values for gold and areca nuts.

The post CBIC Revises Customs Tariff Values for Palm Oil, Soybean Oil and Brass Scrap from May 30, 2026 appeared first on TaxGuru.

IRDAI Issues Warning for Shareholding Changes Without Prior Approval

Editor — Sat, 30 May 2026 06:07:26 +0000

The case involved a broker implementing substantial shareholding changes without obtaining IRDAI's prior approval as required by regulations. IRDAI held that the violation was established but issued a warning considering corrective measures and future compliance commitments.

The post IRDAI Issues Warning for Shareholding Changes Without Prior Approval appeared first on TaxGuru.

CBDT Directs Uniform Application of Sections 68 to 69D as C&AG Flags Tax Assessment Errors

Editor6 — Sat, 30 May 2026 06:06:42 +0000

CBDT has instructed tax officers to uniformly apply Sections 68 to 69D and Section 115BBE after a C&AG audit found inconsistencies in assessments and incorrect tax computations leading to revenue loss.

The post CBDT Directs Uniform Application of Sections 68 to 69D as C&AG Flags Tax Assessment Errors appeared first on TaxGuru.

DGFT Launches Electronic Certificate of Origin for India-Oman CEPA from June 1, 2026

editor8 — Sat, 30 May 2026 06:04:55 +0000

DGFT has introduced electronic Preferential Certificates of Origin through the Trade Connect platform for exports to Oman under the India-Oman CEPA. The move digitizes issuance, verification, and authentication of origin certificates.

The post DGFT Launches Electronic Certificate of Origin for India-Oman CEPA from June 1, 2026 appeared first on TaxGuru.

MCA Expands CSR Scope by Allowing Investment in Social Stock Exchange Instruments

editor7 — Sat, 30 May 2026 06:04:06 +0000

The MCA has widened CSR eligibility by recognizing subscriptions to Zero Coupon Zero Principal Instruments as a valid CSR activity. The amendment creates a new avenue for funding public welfare projects through Social Stock Exchange-listed NPOs.

The post MCA Expands CSR Scope by Allowing Investment in Social Stock Exchange Instruments appeared first on TaxGuru.

Bangalore ITAT Slams Flip-Flop by AO; Grants Full 80P Deduction Including Bank Interest to Credit Co-operative Society

cavkshetty — Sat, 30 May 2026 06:00:10 +0000

The Tribunal criticized the Assessing Officer for taking a contrary stand in later years after allowing the same deduction on identical facts in an earlier assessment. It held that such inconsistent treatment without distinguishing facts was unsustainable.

The post Bangalore ITAT Slams Flip-Flop by AO; Grants Full 80P Deduction Including Bank Interest to Credit Co-operative Society appeared first on TaxGuru.

US Taxation 2026: Business use of your home deduction

Subramanian Natarajan — Sat, 30 May 2026 05:36:19 +0000

Learn when home office expenses qualify for tax deductions under IRS rules. The article explains exclusive use, regular use, principal place of business tests, and available deduction methods.

The post US Taxation 2026: Business use of your home deduction appeared first on TaxGuru.

GST Registration Cancellation Quashed as Show Cause Notice Lacked Material Facts

CA Sandeep Kanoi — Sat, 30 May 2026 05:24:14 +0000

The High Court set aside retrospective GST registration cancellation after finding that the show cause notice failed to disclose the factual basis of the allegations. The ruling emphasizes the need for a meaningful opportunity to respond before adverse action is taken.

The post GST Registration Cancellation Quashed as Show Cause Notice Lacked Material Facts appeared first on TaxGuru.

Rajasthan HC Upholds GST on BOT Highway Project as Toll Rights Constitute Consideration for Construction Services

CA Sandeep Kanoi — Sat, 30 May 2026 05:22:35 +0000

The Court held that toll collection rights granted under a BOT concession agreement amounted to consideration for works contract services. As a result, GST liability on the road construction arrangement was upheld.

The post Rajasthan HC Upholds GST on BOT Highway Project as Toll Rights Constitute Consideration for Construction Services appeared first on TaxGuru.

Delhi HC Set Aside State GST Action Due to Overlap With Prior CGST Show Cause Notice

CA Sandeep Kanoi — Sat, 30 May 2026 05:21:11 +0000

The High Court held that an earlier CGST show cause notice involving overlapping entities could not be ignored. The State GST notice was directed to remain in abeyance pending adjudication by the CGST Authority.

The post Delhi HC Set Aside State GST Action Due to Overlap With Prior CGST Show Cause Notice appeared first on TaxGuru.

Orissa HC Stays Recovery Action as Taxpayer’s Objection to MV Tax Demand Was Still Pending

CA Sandeep Kanoi — Sat, 30 May 2026 05:18:29 +0000

The High Court directed the Tax Recovery Officer to decide the taxpayer’s pending objection after payment of arrear MV tax. It also restrained authorities from taking coercive recovery measures until the objection is adjudicated.

The post Orissa HC Stays Recovery Action as Taxpayer’s Objection to MV Tax Demand Was Still Pending appeared first on TaxGuru.

Delhi HC Sets Aside ₹160.43 Crore Addition as AO Ignored Mandatory DRP Directions

CA Sandeep Kanoi — Sat, 30 May 2026 05:16:08 +0000

The High Court held that the addition under Section 40(a)(i) could not survive because it was made contrary to the DRP’s binding directions. The assessment order was set aside to that extent.

The post Delhi HC Sets Aside ₹160.43 Crore Addition as AO Ignored Mandatory DRP Directions appeared first on TaxGuru.

Clerical Error in Tax Audit Report Cannot Be Treated as Income: ITAT Deletes Addition

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

The Tribunal held that a bank guarantee wrongly reported as a contingent liability in the tax audit report could not be added to income when it was not claimed as an expense. It directed deletion of the ₹9.41 lakh addition made on the basis of the reporting error.

The post Clerical Error in Tax Audit Report Cannot Be Treated as Income: ITAT Deletes Addition appeared first on TaxGuru.

Kerala HC Allows Reconsideration of ITC Claim as Return Was Filed Before Section 16(5) Cut-Off Date

CA Sandeep Kanoi — Sat, 30 May 2026 05:13:11 +0000

The Court examined denial of ITC and penalty imposed for alleged delayed filing of returns. It held that the return was filed before the cut-off date under Section 16(5) and directed reconsideration of the ITC claim.

The post Kerala HC Allows Reconsideration of ITC Claim as Return Was Filed Before Section 16(5) Cut-Off Date appeared first on TaxGuru.

ITAT Quashes Reassessment as Section 148 Notice Was Based on Incorrect Facts & Figures

CA Sandeep Kanoi — Sat, 30 May 2026 05:10:41 +0000

The Tribunal found that the reasons recorded for reopening contained incorrect figures and unsupported assumptions. It held that the reassessment proceedings were invalid and void ab initio due to lack of proper application of mind.

The post ITAT Quashes Reassessment as Section 148 Notice Was Based on Incorrect Facts & Figures appeared first on TaxGuru.

ITAT Restores 12A Registration Application as Bona Fide Error in Form Clause Cannot Defeat Claim

CA Sandeep Kanoi — Sat, 30 May 2026 05:09:12 +0000

The Tribunal held that a trust’s application for regular registration could not be rejected solely because the wrong clause was selected in the prescribed form. It directed the authority to treat the application under the correct provision and decide it on merits.

The post ITAT Restores 12A Registration Application as Bona Fide Error in Form Clause Cannot Defeat Claim appeared first on TaxGuru.

Section 276B Criminal Proceedings Not Quashed as Service of Notice Established Wilful Default

CA Sandeep Kanoi — Sat, 30 May 2026 05:08:32 +0000

Although the applicants highlighted the prolonged pendency of the case, the Court found that factual and legal issues remained to be examined at trial. The proceedings were therefore not quashed.

The post Section 276B Criminal Proceedings Not Quashed as Service of Notice Established Wilful Default appeared first on TaxGuru.

SC Sets Aside Bail Condition as Security Bond Was Linked to Undetermined Tax & Penalty Amount

CA Sandeep Kanoi — Sat, 30 May 2026 05:04:31 +0000

The Court held that a bail condition linked to tax and penalty amounts that were yet to be determined was vague and unenforceable. Security of disclosed assets was accepted in its place.

The post SC Sets Aside Bail Condition as Security Bond Was Linked to Undetermined Tax & Penalty Amount appeared first on TaxGuru.

Gauhati HC Declines Writ Petition as Effective GST Appellate Remedy Was Available

CA Sandeep Kanoi — Sat, 30 May 2026 05:01:38 +0000

The Court declined to exercise writ jurisdiction where a statutory appeal under Section 112 of the CGST Act was available. Liberty was granted to file the appeal before the prescribed deadline.

The post Gauhati HC Declines Writ Petition as Effective GST Appellate Remedy Was Available appeared first on TaxGuru.

GST Section 16(5) Overrides Section 16(4) as Returns Were Filed Before Cut-Off Date: Kerala HC

CA Sandeep Kanoi — Sat, 30 May 2026 05:01:01 +0000

The High Court held that returns filed before the cut-off date specified in Section 16(5) entitled the taxpayer to claim ITC. It quashed the order denying ITC based on the limitation under Section 16(4).

The post GST Section 16(5) Overrides Section 16(4) as Returns Were Filed Before Cut-Off Date: Kerala HC appeared first on TaxGuru.

Outward Freight Credit Cannot Be Denied When Supplier Bears Freight and Insurance Costs: CESTAT Kolkata

CA Sandeep Kanoi — Sat, 30 May 2026 04:55:48 +0000

CESTAT Kolkata held that Cenvat credit on Service Tax paid for outward freight and insurance was admissible where goods were delivered at the buyer’s premises and ownership passed there. The demand was set aside on merits and limitation.

The post Outward Freight Credit Cannot Be Denied When Supplier Bears Freight and Insurance Costs: CESTAT Kolkata appeared first on TaxGuru.

Income Tax Demand Quashed as Resolution Plan Extinguished Pre-CIRP Tax Dues

CA Sandeep Kanoi — Sat, 30 May 2026 04:53:59 +0000

The Gujarat High Court held that tax liabilities relating to periods before approval of a resolution plan stood extinguished under Section 31 of the IBC. Consequently, the assessment order and demand notice were quashed.

The post Income Tax Demand Quashed as Resolution Plan Extinguished Pre-CIRP Tax Dues appeared first on TaxGuru.

ITAT Orders Fresh Review as On-Money Addition Was Based on Loose Sheet

CA Sandeep Kanoi — Sat, 30 May 2026 04:52:18 +0000

The case involved additions for alleged on-money in Godhavi land transactions based on a handwritten loose sheet. The Tribunal restored the matter for fresh consideration, highlighting issues relating to evidence and assessment findings.

The post ITAT Orders Fresh Review as On-Money Addition Was Based on Loose Sheet appeared first on TaxGuru.

ITAT Quashes Section 263 Revision Because PCIT Raised New Issues Beyond SCN

CA Sandeep Kanoi — Sat, 30 May 2026 04:49:41 +0000

ITAT Delhi held that the PCIT exceeded jurisdiction by introducing issues not mentioned in the Section 263 show-cause notice. The revision order was quashed for travelling beyond the scope of the proceedings.

The post ITAT Quashes Section 263 Revision Because PCIT Raised New Issues Beyond SCN appeared first on TaxGuru.

Kerala HC Denies Interest Deduction as Borrowed Funds Were Invested as Capital in Partnership Firm

CA Sandeep Kanoi — Sat, 30 May 2026 04:34:38 +0000

The Kerala High Court held that deduction under Section 36(1)(iii) was unavailable where borrowed money was invested as capital in a partnership firm and not used for the assessee’s own business.

The post Kerala HC Denies Interest Deduction as Borrowed Funds Were Invested as Capital in Partnership Firm appeared first on TaxGuru.

IRDAI Fines Nissan Renault ₹1 Crore Over Distribution Fee Disclosure Lapses

editor4 — Fri, 29 May 2026 14:16:24 +0000

The regulator held that agreements lacking clear fee provisions undermined contractual clarity and regulatory compliance. A penalty of ₹1 crore was imposed for violations of MISP guidelines.

The post IRDAI Fines Nissan Renault ₹1 Crore Over Distribution Fee Disclosure Lapses appeared first on TaxGuru.

DGFT Revises SIONs for Chemical & Allied Products

editor2 — Fri, 29 May 2026 14:12:35 +0000

Public Notice No. 13/2026-27 revises the standard input-output requirements for several chemical products. Exporters must now follow the updated raw material consumption norms with immediate effect.

The post DGFT Revises SIONs for Chemical & Allied Products appeared first on TaxGuru.

SEBI Modifies Norms for Nomination in Demat Accounts & Mutual Fund Folios

Editor — Fri, 29 May 2026 14:11:50 +0000

SEBI modified nomination norms for demat accounts and mutual fund folios after receiving stakeholder feedback on implementation issues. The revised framework aims to simplify investor onboarding and nomination procedures.

The post SEBI Modifies Norms for Nomination in Demat Accounts & Mutual Fund Folios appeared first on TaxGuru.

MCA Adds Social Stock Exchange Instruments to CSR List

Editor — Fri, 29 May 2026 14:09:02 +0000

MCA amends Schedule VII of the Companies Act to include subscription to zero coupon zero principal instruments on Social Stock Exchange under CSR.

The post MCA Adds Social Stock Exchange Instruments to CSR List appeared first on TaxGuru.

Companies (Corporate Social Responsibility Policy) Amendment Rules, 2026

editor2 — Fri, 29 May 2026 14:03:51 +0000

MCA has amended the CSR Rules to recognize zero coupon zero principal instruments issued by Social Stock Exchange-listed NPOs. The amendment creates a new channel for CSR implementation while prescribing safeguards for fund utilization.

The post Companies (Corporate Social Responsibility Policy) Amendment Rules, 2026 appeared first on TaxGuru.

How Fresh Chartered Accountants Can Get Their First Job Faster in 2026

CA Tushar Makkar — Fri, 29 May 2026 13:59:30 +0000

The article explains how newly qualified CAs can improve placement prospects through campus registration, resume optimization, networking, and interview preparation. The key takeaway is that proactive action significantly improves job opportunities.

The post How Fresh Chartered Accountants Can Get Their First Job Faster in 2026 appeared first on TaxGuru.

Companies Act Amendments and Their Corporate Tax Implications

Aakash Varma Kakarlapudi — Fri, 29 May 2026 13:58:59 +0000

The article explains how key Companies Act amendments affect tax treatment of penalties, CSR expenditure, related party transactions, and buybacks. It highlights why corporate law changes must be evaluated alongside their income-tax implications.

The post Companies Act Amendments and Their Corporate Tax Implications appeared first on TaxGuru.

Supplier’s Supplier and Buyer’s Burden Under GST: Why a Genuine Consignor Cannot Be Forced to Prove a Third-Party Chain

S PRASAD — Fri, 29 May 2026 13:39:01 +0000

A genuine dealer can only be expected to prove his own purchase, receipt, and sale of goods. Allegations against a supplier’s supplier do not automatically justify confiscation, ITC denial, or fraud proceedings.

The post Supplier’s Supplier and Buyer’s Burden Under GST: Why a Genuine Consignor Cannot Be Forced to Prove a Third-Party Chain appeared first on TaxGuru.

Lawyers Cannot Face Criminal Prosecution Merely for Performing Professional Duties: Allahabad HC

Sanjeev Sirohi — Fri, 29 May 2026 13:34:03 +0000

The High Court held that filing appeals and adopting a legal position on behalf of a client are professional acts that cannot by themselves attract criminal liability. It quashed the FIR, charge-sheet, and cognizance order against the advocate.

The post Lawyers Cannot Face Criminal Prosecution Merely for Performing Professional Duties: Allahabad HC appeared first on TaxGuru.

Calcutta HC Rejects GST Challenge as DGGI Officers Were Held to Have Jurisdiction

CA Sandeep Kanoi — Fri, 29 May 2026 13:27:41 +0000

The Court upheld the authority of DGGI officers to initiate and pursue proceedings under the CGST Act and rejected objections regarding their status as proper officers.

The post Calcutta HC Rejects GST Challenge as DGGI Officers Were Held to Have Jurisdiction appeared first on TaxGuru.

GST AAAR Upholds Ruling as Biodegradability Determination Lies With Environmental Authorities

CA Sandeep Kanoi — Fri, 29 May 2026 13:21:54 +0000

The Rajasthan GST AAAR held that advance ruling authorities cannot determine whether bags are biodegradable or compostable. It ruled that concessional 5% GST applies only if biodegradability is established by competent authorities.

The post GST AAAR Upholds Ruling as Biodegradability Determination Lies With Environmental Authorities appeared first on TaxGuru.

Appeal Dismissed as Infructuous as Rectification Order Restored Section 80P Deduction

CA Sandeep Kanoi — Fri, 29 May 2026 13:04:51 +0000

The ITAT dismissed the appeal after a rectification order under Section 154 granted the deduction under Section 80P and corrected the assessed income. The dispute no longer survived for adjudication.

The post Appeal Dismissed as Infructuous as Rectification Order Restored Section 80P Deduction appeared first on TaxGuru.

Section 80P Deduction Disallowance Set Aside as CPC Made Adjustment Without Hearing Assessee

CA Sandeep Kanoi — Fri, 29 May 2026 13:04:04 +0000

The ITAT held that deduction under Section 80P could not be disallowed through a unilateral adjustment under Section 143(1) without providing notice and an opportunity of hearing. The appeals were allowed.

The post Section 80P Deduction Disallowance Set Aside as CPC Made Adjustment Without Hearing Assessee appeared first on TaxGuru.

Reassessment Held Void as AO Invoked Section 147 Instead of Section 153C

CA Sandeep Kanoi — Fri, 29 May 2026 12:57:39 +0000

The reassessment was based on documents found during a search conducted on another person. The Tribunal held that proceedings should have been initiated under Section 153C and not under Sections 147/148, rendering the reassessment invalid.

The post Reassessment Held Void as AO Invoked Section 147 Instead of Section 153C appeared first on TaxGuru.

ITAT Quashes Reassessment as Search-Based Material Required Action Under Section 153C, Not Section 148

CA Sandeep Kanoi — Fri, 29 May 2026 12:56:53 +0000

The Tribunal held that documents relating to the assessee were found during the search of another person. It ruled that proceedings could only be initiated under Section 153C, making the reassessment under Section 148 invalid.

The post ITAT Quashes Reassessment as Search-Based Material Required Action Under Section 153C, Not Section 148 appeared first on TaxGuru.

Appeal Dismissed as Section 143(1) Intimation Merged With Subsequent Scrutiny Assessment

CA Sandeep Kanoi — Fri, 29 May 2026 12:55:59 +0000

The ITAT held that once an assessment order under Section 143(3) was passed, the earlier intimation under Section 143(1) merged into it. As a result, the appeal against the intimation became infructuous.

The post Appeal Dismissed as Section 143(1) Intimation Merged With Subsequent Scrutiny Assessment appeared first on TaxGuru.

Charitable Trust Exemption Allowed as Delay in Form No. 10 Filing cannnot Defeat Genuine Claim

CA Sandeep Kanoi — Fri, 29 May 2026 12:54:01 +0000

The ITAT held that exemption under Sections 11 and 12 could not be denied merely due to issues relating to filing of Form No. 10. The Assessing Officer was directed to grant relief in accordance with law.

The post Charitable Trust Exemption Allowed as Delay in Form No. 10 Filing cannnot Defeat Genuine Claim appeared first on TaxGuru.

Charitable Trust Exemption Restored as Delay in Form 10B Filing Alone cannot Defeat Claim

CA Sandeep Kanoi — Fri, 29 May 2026 12:53:28 +0000

The ITAT held that exemption under Sections 11 and 12 could not be denied solely due to delayed filing of Form 10B. The matter was remanded for verification and grant of eligible exemption.

The post Charitable Trust Exemption Restored as Delay in Form 10B Filing Alone cannot Defeat Claim appeared first on TaxGuru.

Income Tax Reopening Sustained as Assessee Was Alleged Beneficiary of Accommodation Entries

CA Sandeep Kanoi — Fri, 29 May 2026 12:52:39 +0000

The Gujarat High Court upheld reopening of assessment after the Assessing Officer received information linking the assessee to alleged accommodation entries. The Court held that such information constituted tangible material sufficient to form a belief that income had escaped assessment.

The post Income Tax Reopening Sustained as Assessee Was Alleged Beneficiary of Accommodation Entries appeared first on TaxGuru.

Reassessment Notice Upheld as Information on Shell Companies Constituted Tangible Material

CA Sandeep Kanoi — Fri, 29 May 2026 12:51:42 +0000

The Gujarat High Court upheld reopening of assessment based on information received from the Kolkata Investigation Wing regarding alleged shell companies. The Court held that such information provided tangible material for forming a belief that income had escaped assessment.

The post Reassessment Notice Upheld as Information on Shell Companies Constituted Tangible Material appeared first on TaxGuru.

Delhi HC Allows Reassessment as DRI Information on Alleged Bogus Purchases Constituted Tangible Material

CA Sandeep Kanoi — Fri, 29 May 2026 12:49:46 +0000

The case concerned reopening of completed income tax assessments based on information received from DRI and Central Excise authorities. The Delhi High Court held that such information constituted tangible material sufficient to justify reassessment proceedings.

The post Delhi HC Allows Reassessment as DRI Information on Alleged Bogus Purchases Constituted Tangible Material appeared first on TaxGuru.

SC Dismisses GST Challenge Because Effective Statutory Appeal Remedy Was Available

CA Sandeep Kanoi — Fri, 29 May 2026 12:45:11 +0000

The case concerned a penalty order arising from alleged quantity discrepancies and missing supporting documents. The Supreme Court upheld the High Courts view that factual issues should be examined by the appellate authority rather than through writ proceedings.

The post SC Dismisses GST Challenge Because Effective Statutory Appeal Remedy Was Available appeared first on TaxGuru.

Calcutta HC Dismissed GST Appeal as Effective Alternative Remedy Was Available

CA Sandeep Kanoi — Fri, 29 May 2026 12:44:30 +0000

The Division Bench held that issues relating to weight discrepancy and penalty involved disputed questions of fact. The Court ruled that such matters should be decided through the statutory appellate mechanism rather than in writ proceedings.

The post Calcutta HC Dismissed GST Appeal as Effective Alternative Remedy Was Available appeared first on TaxGuru.

Calcutta HC Dismisses GST Writ as Statutory Appeal Remedy Was Available

CA Sandeep Kanoi — Fri, 29 May 2026 12:43:44 +0000

The case concerned a challenge to a detention and penalty order passed under Section 129(3) of the CGST Act. The High Court refused to interfere, holding that the petitioner had an effective appellate remedy under Section 107.

The post Calcutta HC Dismisses GST Writ as Statutory Appeal Remedy Was Available appeared first on TaxGuru.

Meat & Fish Content Above 20% Not Enough for Chapter 16 Classification: Kerala AAAR

CA Sandeep Kanoi — Fri, 29 May 2026 12:14:43 +0000

The Kerala AAAR held that various packaged curries, rice products, and meat-based preparations are classifiable under HSN 21069099. The ruling emphasized that the classification must be based on the nature of the final ready-to-eat product rather than individual ingredients.

The post Meat & Fish Content Above 20% Not Enough for Chapter 16 Classification: Kerala AAAR appeared first on TaxGuru.

GST Payable on Wetland Conversion Fee as Land Conversion Is Not a Panchayat Function: AAAR Kerala

CA Sandeep Kanoi — Fri, 29 May 2026 12:10:17 +0000

The Kerala AAAR held that fees paid to convert wetland into dry land are subject to GST under reverse charge. The Authority ruled that land conversion is distinct from land improvement and is not covered by the Panchayat-function exemption under Article 243G.

The post GST Payable on Wetland Conversion Fee as Land Conversion Is Not a Panchayat Function: AAAR Kerala appeared first on TaxGuru.

AAAR Declines to Rule on GST Exemption as Parallel Section 73 Proceedings Had Already Been Adjudicated

CA Sandeep Kanoi — Fri, 29 May 2026 12:04:06 +0000

The authority found that the underlying GST dispute had already been addressed in adjudication proceedings. To maintain judicial propriety, it declined to record findings on exemption eligibility.

The post AAAR Declines to Rule on GST Exemption as Parallel Section 73 Proceedings Had Already Been Adjudicated appeared first on TaxGuru.

GST on Goa PWD Permission, Road Cutting & Ground Rent Charges Payable Under RCM

CA Sandeep Kanoi — Fri, 29 May 2026 11:56:42 +0000

AAAR Goa declined to examine fresh arguments on taxability and upheld the reverse charge liability on charges collected by Goa PWD. The authority held that new issues cannot be raised for the first time at the appellate stage.

The post GST on Goa PWD Permission, Road Cutting & Ground Rent Charges Payable Under RCM appeared first on TaxGuru.

Supply of Drinking Water to IIT Goa Through Tankers Exempt from GST: AAAR

CA Sandeep Kanoi — Fri, 29 May 2026 11:52:29 +0000

The Goa AAAR held that drinking water supplied through tankers to IIT Goa students is GST-exempt because the exclusion for purified water had already been removed from Entry 99. The ruling emphasizes that the amended notification must be applied for supplies made after 18 July 2022.

The post Supply of Drinking Water to IIT Goa Through Tankers Exempt from GST: AAAR appeared first on TaxGuru.

Brake Hoses ClassifiableUnder HSN 4009 as Essential Character Remains Vulcanized Rubber

CA Sandeep Kanoi — Fri, 29 May 2026 11:47:44 +0000

The Haryana AAAR held that Brake Hoses are primarily composed of vulcanized rubber and retain their essential character as rubber hoses. Accordingly, they were classified under HSN 4009 and made taxable at 18% GST.

The post Brake Hoses ClassifiableUnder HSN 4009 as Essential Character Remains Vulcanized Rubber appeared first on TaxGuru.

GST AAAR Denies Export Benefit as Services Were Held to Be Intermediary Services

CA Sandeep Kanoi — Fri, 29 May 2026 11:46:04 +0000

The Haryana AAAR held that consulting and market support services provided to a Malaysian company were intermediary services under the IGST Act. As the place of supply was held to be in India, the services did not qualify as exports or zero-rated supplies.

The post GST AAAR Denies Export Benefit as Services Were Held to Be Intermediary Services appeared first on TaxGuru.

The Most Ignored Yet Essential Pillar of Indian Democracy: The Advocate Community

kamthania — Fri, 29 May 2026 11:27:24 +0000

The article examines the critical role advocates play in safeguarding constitutional rights and ensuring access to justice. It argues that stronger welfare and institutional support for advocates is vital for preserving democracy and the rule of law.

The post The Most Ignored Yet Essential Pillar of Indian Democracy: The Advocate Community appeared first on TaxGuru.

DPDP act 2023 & Role of Tax Advocate

kamthania — Fri, 29 May 2026 11:22:18 +0000

The article explains the Digital Personal Data Protection Act, 2023, including its scope, key definitions, individual rights, and compliance requirements. It highlights how the law strengthens digital privacy while imposing responsibilities on organizations handling personal data.

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Can CMA do Bank Audits in India

shardaassociates — Fri, 29 May 2026 11:20:21 +0000

The article examines whether the Income Tax Amendment Bill, 2026 expanded CMA authority to bank audits. It clarifies that while CMAs gained a larger role in tax-related work, statutory and concurrent bank audits remain reserved for Chartered Accountants.

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Bonafide Purchaser’s Dilemma Under GST: Has Gujarat HC Court Shut the Door?

hxr740 — Fri, 29 May 2026 10:41:06 +0000

The Gujarat High Court upheld the constitutional validity of Section 16(2)(c) of the CGST Act, holding that ITC is unavailable if the supplier fails to deposit GST. The key takeaway is that bona fide purchasers remain subject to statutory ITC conditions despite having fulfilled their own obligations.

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Assignment of Leasehold Rights Is Transfer of Immovable Property, Not a Service: Bombay HC

Shweta Jain — Fri, 29 May 2026 10:33:06 +0000

The High Court held that assignment of leasehold rights amounts to transfer of an interest in immovable property and not a supply of services. The ruling clarifies that such transactions fall outside the scope of GST.

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Approval Requirements for Related Party Transactions – Listed & Unlisted Companies

Vikas — Fri, 29 May 2026 10:27:14 +0000

The article explains when Audit Committee, Board, and shareholder approvals are required for Related Party Transactions. It provides a practical framework for determining the correct approval level under the Companies Act and SEBI regulations.

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PRGI Compliance in India: Rules & Requirements Guide

Compliance Calendar LLP — Fri, 29 May 2026 10:25:45 +0000

The PRP Act, 2023 replaced the old RNI framework with a fully digital compliance system administered by PRGI. Publishers must now comply with registration, annual filing, and disclosure requirements to avoid penalties and cancellation risks.

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Role of Health Insurance in Safeguarding Your Family’s Financial & Lifestyle Aspirations

Editor — Fri, 29 May 2026 10:18:33 +0000

The article explains how hospitalisation and treatment costs can affect savings meant for education, housing, and retirement. It highlights the role of family health insurance in shielding financial plans from unexpected medical expenses.

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Borrowing by Private Limited Companies under Companies Act, 2013

Jyoti Mittal — Fri, 29 May 2026 10:06:26 +0000

The article explains when private companies can rely on MCA exemptions to borrow through board approval alone. It highlights the borrowing thresholds and default conditions that determine whether shareholder approval is required.

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SC Upholds NI Act Prosecution of Office Bearers Who Signed Loan Documents Despite Not Signing Dishonoured Cheque

cavkshetty — Fri, 29 May 2026 09:35:13 +0000

The Supreme Court ruled that vicarious liability under the NI Act cannot arise solely from holding an office in a society or company. The key test is whether there is specific material showing involvement in the conduct of the entity’s affairs and the transaction in question.

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₹50.13 Lakh Seized Cash Held Benami; Subsequent ITR Filing Cannot Defeat Proceedings

cavkshetty — Fri, 29 May 2026 09:15:05 +0000

The key issue was whether cash falls within the definition of property under the PBPT Act. The Tribunal ruled that cash is a tangible movable asset and may be confiscated as benami property when ownership and source remain unverified.

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FEMA Tribunal Lifts Property Seizure After Repatriation; Section 37A Not for Perpetual Attachment

cavkshetty — Fri, 29 May 2026 09:00:01 +0000

The case examined whether Indian assets could remain seized after foreign asset value was repatriated. The Tribunal ruled that once the objective of Section 37A is fulfilled, continued attachment loses its basis.

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Home Loan: Boon or Burden under New Income Tax, 2025

Husain Tinwala — Fri, 29 May 2026 08:58:10 +0000

The article explains how home loan interest and principal repayments can reduce tax liability under the old tax regime. It also highlights why the new regime may limit these benefits for many borrowers.

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True Nature of CCDs: Liability, Equity or Judicial Ambiguity?

Editor6 — Fri, 29 May 2026 08:49:58 +0000

The article argues that Compulsorily Convertible Debentures qualify as financial liabilities under Ind AS 32. It explains why certain judicial remarks treating CCDs as equity may be non-binding obiter dicta rather than authoritative legal principles.

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IBC resolution process facilitated realisation of over ₹4 lakh crore for creditors

Editor — Fri, 29 May 2026 08:42:16 +0000

The Ministry of Corporate Affairs highlighted that the IBC resolution process facilitated creditor recoveries exceeding ₹4 lakh crore by March 2026. The milestone demonstrates the Code’s effectiveness in maximizing value and improving insolvency outcomes.

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DPDP Act : Digital Privacy is Now a Legal Right

carishi — Fri, 29 May 2026 08:02:17 +0000

The DPDP Act, 2023 creates a legal framework for collecting, processing, and protecting digital personal data in India. Learn the rights of individuals, obligations of businesses, and penalties for non-compliance.

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SAFEMA directs Bank Account Release on Deposit of Alleged Crime Proceeds

cavkshetty — Fri, 29 May 2026 08:00:49 +0000

The appellant claimed the disputed funds were received unknowingly and had attempted to return them. The Tribunal granted relief by ordering release of the attached account after deposit of the entire disputed sum.

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US vs India Corporate Tax: The Compliance Gap MNCs Underestimate

Abhinav Vats — Fri, 29 May 2026 08:00:13 +0000

Focusing solely on the federal corporate tax rate can lead to major compliance surprises. Businesses entering the US must also navigate complex state and local tax obligations that vary widely by jurisdiction.

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Why Stock Auditors Must Check Licence Validity Alongside Inventory?

CA Neeraj Rastogi — Fri, 29 May 2026 07:58:41 +0000

A perfect stock valuation can still conceal serious lending risks if critical operating licences have expired. Auditors should verify licence validity to identify threats to a bank’s security.

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Critical Issues In First Appeal And Second Appeal Under GST

gstrajender — Fri, 29 May 2026 07:56:26 +0000

The article explains how limitation under Sections 107 and 112 is calculated from communication of orders and why delayed appeals face serious risks. It highlights the importance of preserving proof of service and complying with statutory timelines.

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Mere Relationship to Alleged Betting Operator Not Enough to Freeze Assets: SAFEMA

cavkshetty — Fri, 29 May 2026 07:45:16 +0000

The Tribunal held that bank accounts cannot remain frozen merely because the account holder is related to a suspect or under investigation. The ED must first establish a prima facie connection between the property and proceeds of crime.

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Asset Freeze on Non-Accused Family Members Upheld During Pending PMLA Proceedings

cavkshetty — Fri, 29 May 2026 06:35:38 +0000

The Tribunal held that retention of seized assets can continue under Section 8(3) when a PMLA prosecution complaint is already pending. The key takeaway is that ED need not file a fresh or supplementary complaint for every newly seized asset.

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Genuine Educational Activities Prevail Over Alleged Irregularities: Delhi ITAT Restores Trust Registration

cavkshetty — Fri, 29 May 2026 06:00:35 +0000

The ITAT held that registration under Sections 12AA/12AB cannot be cancelled when the trust continues to genuinely carry out its educational objects. Alleged fund diversion and related-party transactions must be examined during assessment and taxation proceedings instead.

The post Genuine Educational Activities Prevail Over Alleged Irregularities: Delhi ITAT Restores Trust Registration appeared first on TaxGuru.

Leave Encashment Disallowance Set Aside as Revised ₹25 Lakh Limit Was Recognized

CA Sandeep Kanoi — Fri, 29 May 2026 04:43:30 +0000

The ITAT set aside the lower authorities’ orders after considering CBDT Notification No. 31/2023, which increased the leave encashment exemption limit to ₹25 lakh.

The post Leave Encashment Disallowance Set Aside as Revised ₹25 Lakh Limit Was Recognized appeared first on TaxGuru.

Appeal Succeeds as Beneficial CBDT Notification Applied to Leave Encashment Claim

CA Sandeep Kanoi — Fri, 29 May 2026 04:42:30 +0000

The ITAT allowed relief after considering CBDT Notification No. 31/2023, which increased the leave encashment exemption limit to ₹25 lakh. The assessment and appellate orders were set aside.

The post Appeal Succeeds as Beneficial CBDT Notification Applied to Leave Encashment Claim appeared first on TaxGuru.

Leave Encashment Addition Deleted as ITAT Applied Revised CBDT Exemption Limit

CA Sandeep Kanoi — Fri, 29 May 2026 04:41:18 +0000

The ITAT held that leave encashment of ₹7.65 lakh was fully exempt as it fell within the revised ₹25 lakh ceiling under Notification No. 31/2023. The disallowance made by the lower authorities was deleted.

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Leave Encashment Exemption Dispute Remanded as CIT(A) Must Reconsider Claim Afresh

CA Sandeep Kanoi — Fri, 29 May 2026 04:40:18 +0000

The ITAT restored the matter to the CIT(A) for fresh adjudication of the leave encashment exemption claim. The assessee was directed to substantiate the claim with supporting material.

The post Leave Encashment Exemption Dispute Remanded as CIT(A) Must Reconsider Claim Afresh appeared first on TaxGuru.

Retired Bank Employee Gets Relief as Leave Encashment Was Within Revised ₹25 Lakh Limit

CA Sandeep Kanoi — Fri, 29 May 2026 04:39:07 +0000

The ITAT held that leave encashment of ₹6.97 lakh was fully exempt as it fell within the revised ₹25 lakh ceiling under Notification No. 31/2023. The appeal was allowed accordingly.

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Leave Encashment Addition Deleted as CBDT Increased Exemption Ceiling to ₹25 Lakh

CA Sandeep Kanoi — Fri, 29 May 2026 04:38:08 +0000

The ITAT allowed exemption of the entire leave encashment amount after noting that the revised ₹25 lakh ceiling exceeded the amount received on retirement. The appeal was allowed by applying the enhanced exemption limit.

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Full Section 10(10AA) Benefit Granted as Leave Encashment Was Below ₹25 Lakh Threshold

CA Sandeep Kanoi — Fri, 29 May 2026 04:37:08 +0000

The ITAT held that leave encashment of ₹20.29 lakh received on retirement qualified for exemption as it was within the revised ₹25 lakh ceiling. The Assessing Officer was directed to allow the full claim.

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Tax Demand Deleted as Leave Encashment Amount Was Below Revised Exemption Ceiling

CA Sandeep Kanoi — Fri, 29 May 2026 04:36:57 +0000

The ITAT allowed exemption of ₹15.93 lakh towards leave encashment after applying the revised ₹25 lakh ceiling under Notification No. 31/2023. The tax demand raised by the CPC was deleted.

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Full Leave Encashment Exemption Allowed as Revised ₹25 Lakh Limit Covered Claim

CA Sandeep Kanoi — Fri, 29 May 2026 04:35:57 +0000

The dispute concerned restriction of leave encashment exemption to ₹3 lakh. The Tribunal allowed the full claim after applying the revised exemption limit of ₹25 lakh.

The post Full Leave Encashment Exemption Allowed as Revised ₹25 Lakh Limit Covered Claim appeared first on TaxGuru.

Full Leave Encashment Exemption Allowed as Revised ₹25 Lakh Limit Covered Entire Claim

CA Sandeep Kanoi — Fri, 29 May 2026 04:34:51 +0000

The ITAT held that leave encashment of ₹17.68 lakh qualified for exemption under Section 10(10AA) since it was within the revised ₹25 lakh ceiling. The appeal was allowed on the basis of the enhanced exemption limit.

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Full Leave Encashment Exemption Allowed as Claim Was Below Revised ₹25 Lakh Limit

CA Sandeep Kanoi — Fri, 29 May 2026 04:33:51 +0000

The dispute concerned partial denial of leave encashment exemption under Section 10(10AA). The Tribunal granted relief after finding that the amount claimed fell within the revised exemption limit.

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Leave Encashment Dispute Remanded as Assessee Was Denied Opportunity of Hearing

CA Sandeep Kanoi — Fri, 29 May 2026 04:32:46 +0000

The assessee challenged the reduction of leave encashment exemption through a rectification order. The ITAT ruled that the absence of an opportunity of hearing necessitated fresh proceedings.

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