TaxGuru.in - Daily Newsletter

Delhi HC Grants Bail Under PMLA Reason: Woman Accused Not Automatically Subject to Section 45 Twin Cond

CA Sandeep Kanoi — Sun, 17 May 2026 05:12:30 +0000

Delhi HC held that proviso to Section 45 of PMLA grants discretionary relief to women accused and stringent twin bail conditions would not ordinarily apply unless exceptional circumstances exist.

The post Delhi HC Grants Bail Under PMLA Reason: Woman Accused Not Automatically Subject to Section 45 Twin Cond appeared first on TaxGuru.

ITAT Quashes Reassessment as AO Changed Reason from Fake Loan Entries to Penny Stock LTCG

CA Sandeep Kanoi — Sun, 17 May 2026 05:06:49 +0000

The ITAT Ahmedabad held that reassessment under Section 147 was invalid because the Assessing Officer reopened the case for fictitious loan entries but made additions for alleged bogus LTCG from penny stock transactions. The Tribunal ruled that changing the basis of reopening is not permissible in law.

The post ITAT Quashes Reassessment as AO Changed Reason from Fake Loan Entries to Penny Stock LTCG appeared first on TaxGuru.

Gauhati HC Quashes GST Cancellation as Order Lacked Reasons Under FORM GST REG-19

CA Sandeep Kanoi — Sun, 17 May 2026 05:05:34 +0000

Gauhati High Court held that cancellation of GST registration without assigning reasons in FORM GST REG-19 was illegal and violated statutory requirements. The Court restored the matter and granted the taxpayer fresh opportunity to respond.

The post Gauhati HC Quashes GST Cancellation as Order Lacked Reasons Under FORM GST REG-19 appeared first on TaxGuru.

CESTAT Remands Appeal as Commissioner Ignored Affidavit Explaining Delay in Filing

CA Sandeep Kanoi — Sun, 17 May 2026 05:03:06 +0000

CESTAT Delhi remanded the matter after finding that the Commissioner (Appeals) failed to consider the appellant’s affidavit and explanation regarding delayed receipt of the order. The Tribunal held that the facts and circumstances required fresh examination.

The post CESTAT Remands Appeal as Commissioner Ignored Affidavit Explaining Delay in Filing appeared first on TaxGuru.

CESTAT Mumbai Upholds SAD Credit Demand Due to Non-Reversal on Inputs

CA Sandeep Kanoi — Sun, 17 May 2026 04:57:45 +0000

CESTAT Mumbai upheld demand, interest, and penalty for failure to reverse SAD Cenvat credit on imported inputs transferred between units. The Tribunal held that extended limitation was valid due to suppression in ER-1 returns.

The post CESTAT Mumbai Upholds SAD Credit Demand Due to Non-Reversal on Inputs appeared first on TaxGuru.

Criminal Case Quashed as Former Director Had Resigned Before ITR Filing Default

CA Sandeep Kanoi — Sun, 17 May 2026 04:55:33 +0000

The Madras High Court quashed prosecution under Sections 276CC and 278B after finding that the petitioner had resigned as director before the relevant assessment year. The Court relied on Form No.32 filed with the Registrar of Companies.

The post Criminal Case Quashed as Former Director Had Resigned Before ITR Filing Default appeared first on TaxGuru.

Automatic Soap Dispenser Cannot Be Classified as Toiletry Spray Since Product Only Dispenses Foam: CESTAT Bangalore

CA Sandeep Kanoi — Sun, 17 May 2026 04:51:39 +0000

The Tribunal referred to HSN notes stating that Chapter 9616 does not cover dispersing appliances falling under Chapter 8424. Based on this reasoning, the imported soap dispenser was classified under CTI 8424 89 90.

The post Automatic Soap Dispenser Cannot Be Classified as Toiletry Spray Since Product Only Dispenses Foam: CESTAT Bangalore appeared first on TaxGuru.

Bombay HC Quashes GST Order as Proceedings Were Initiated Against Amalgamated Entity

CA Sandeep Kanoi — Sun, 17 May 2026 04:48:25 +0000

Bombay High Court held that GST proceedings initiated against a company that had ceased to exist after amalgamation were void ab initio. The Court quashed the demand order passed in the name of the amalgamating entity.

The post Bombay HC Quashes GST Order as Proceedings Were Initiated Against Amalgamated Entity appeared first on TaxGuru.

Patna HC Orders Hearing on Road Contract Payment & GST Dispute

CA Sandeep Kanoi — Sun, 17 May 2026 04:46:23 +0000

High Court directed authorities to examine claims relating to additional road work, carriage charges, GST differential, and deductions from running bills. The Court refrained from deciding the merits and ordered consideration of pending representations.

The post Patna HC Orders Hearing on Road Contract Payment & GST Dispute appeared first on TaxGuru.

Section 69A Addition Cannot Survive Merely on Ground That Explanation Was an Afterthought: ITAT Delhi

CA Sandeep Kanoi — Sun, 17 May 2026 04:43:05 +0000

The Tribunal held that tax authorities cannot reject documentary evidence solely by labeling the explanation as an afterthought. Proper verification and rebuttal of evidence are necessary before sustaining additions under Section 69A.

The post Section 69A Addition Cannot Survive Merely on Ground That Explanation Was an Afterthought: ITAT Delhi appeared first on TaxGuru.

Routine Administrative Workload Cannot Justify Delay in Filing Appeal: ITAT Bangalore

CA Sandeep Kanoi — Sun, 17 May 2026 04:41:11 +0000

ITAT Bangalore dismissed the Revenue’s appeal after holding that the Assessing Officer failed to provide adequate reasons for delayed filing. The Tribunal ruled that routine official workload could not justify condonation of delay.

The post Routine Administrative Workload Cannot Justify Delay in Filing Appeal: ITAT Bangalore appeared first on TaxGuru.

Tax Deposit During GST Raid Cannot Automatically Be Treated as Voluntary: Bombay HC

CA Sandeep Kanoi — Sun, 17 May 2026 04:36:45 +0000

Bombay High Court observed that payments made while search proceedings are continuing may not automatically qualify as voluntary deposits. Court granted tax authorities an opportunity to take corrective steps if refund entitlement exists.

The post Tax Deposit During GST Raid Cannot Automatically Be Treated as Voluntary: Bombay HC appeared first on TaxGuru.

Income Tax Penalty Matter Restored as Quantum Appeal Was Still Pending Before CIT(A)

CA Sandeep Kanoi — Sun, 17 May 2026 04:32:36 +0000

ITAT Delhi held that penalty proceedings under Section 271(1)(c) should not be decided before disposal of the related quantum appeal. The matter was restored to the CIT(A) for fresh adjudication.

The post Income Tax Penalty Matter Restored as Quantum Appeal Was Still Pending Before CIT(A) appeared first on TaxGuru.

CESTAT Sets Aside Service Tax Demand as Exporter Was Not Recipient of Foreign Bank Services

CA Sandeep Kanoi — Sun, 17 May 2026 04:31:21 +0000

CESTAT Chennai held that an exporter cannot be taxed under reverse charge for foreign bank charges deducted from export proceeds where no service recipient relationship was established with the foreign bank.

The post CESTAT Sets Aside Service Tax Demand as Exporter Was Not Recipient of Foreign Bank Services appeared first on TaxGuru.

ITAT Deletes Duplicate Capital Gains Addition Due to Amended Sale Deed Error

CA Sandeep Kanoi — Sun, 17 May 2026 04:27:05 +0000

The Tribunal held that two sale deeds represented the same transaction because one was merely an amendment correcting a survey number error. It directed deletion of the duplicate addition made by the Assessing Officer.

The post ITAT Deletes Duplicate Capital Gains Addition Due to Amended Sale Deed Error appeared first on TaxGuru.

Assessment Upheld as Material Seized in Search Can Be Used Even if Search Is Later Challenged

CA Sandeep Kanoi — Sun, 17 May 2026 04:22:35 +0000

The Delhi High Court held that material recovered during a search can validly form the basis of reassessment proceedings even if the search is later alleged to be illegal. The Court ruled that proceedings initiated on the basis of such material do not automatically become void.

The post Assessment Upheld as Material Seized in Search Can Be Used Even if Search Is Later Challenged appeared first on TaxGuru.

Kerala HC Upholds Rejection of Delayed Income Tax Refund Claim Due to Five-Year CBDT Limit

CA Sandeep Kanoi — Sun, 17 May 2026 04:21:10 +0000

The Kerala High Court held that delay condonation applications under Section 119(2)(b) must comply with the revised five-year limitation prescribed by CBDT circulars. The Court ruled that authorities cannot entertain applications filed beyond the revised period.

The post Kerala HC Upholds Rejection of Delayed Income Tax Refund Claim Due to Five-Year CBDT Limit appeared first on TaxGuru.

CPC Cannot Change AOP Status to Co-operative Society in ITR Processing: ITAT Ahmedabad

CA Sandeep Kanoi — Sun, 17 May 2026 04:18:21 +0000

ITAT Ahmedabad held that CPC cannot suo motu reclassify an apartment owners association as a co-operative society while processing returns under Section 143(1). The Tribunal deleted the Rs. 97,690 demand after finding the adjustment beyond the scope of prima facie processing.

The post CPC Cannot Change AOP Status to Co-operative Society in ITR Processing: ITAT Ahmedabad appeared first on TaxGuru.

Madras HC Upholds Prosecution for Wilful Tax Default Under Section 276C(2)

CA Sandeep Kanoi — Sun, 17 May 2026 04:15:52 +0000

The Madras High Court refused to quash prosecution under Section 276C(2) after noting continued non-payment of admitted tax liability and prolonged default. The Court held that issues raised by the assessee should be decided during trial.

The post Madras HC Upholds Prosecution for Wilful Tax Default Under Section 276C(2) appeared first on TaxGuru.

Tripura HC Grants Leave as Trial Court Ordered Release Despite Confirmed Gold Confiscation

CA Sandeep Kanoi — Sun, 17 May 2026 04:12:08 +0000

Tripura High Court granted leave to challenge release of seized gold after noting that confiscation orders had already been upheld by appellate authorities and CESTAT. The Court held that the trial court’s release order prima facie contradicted those finalized confiscation proceedings.

The post Tripura HC Grants Leave as Trial Court Ordered Release Despite Confirmed Gold Confiscation appeared first on TaxGuru.

CESTAT Sets Aside Customs Demand Due to Absence of Mandatory SCN

CA Sandeep Kanoi — Sun, 17 May 2026 04:10:48 +0000

CESTAT Mumbai held that a mere demand notice cannot replace the statutory show cause notice required under Section 28 of the Customs Act. The Tribunal ruled that recovery proceedings initiated without proper notice were legally unsustainable.

The post CESTAT Sets Aside Customs Demand Due to Absence of Mandatory SCN appeared first on TaxGuru.

CESTAT Rejects Cenvat Credit Claim as Amount Was Not Paid Towards CVD

CA Sandeep Kanoi — Sun, 17 May 2026 04:09:43 +0000

The Tribunal found that the Settlement Commission’s duty calculations did not establish any CVD component for certain advance licences, making the corresponding credit claim unsustainable.

The post CESTAT Rejects Cenvat Credit Claim as Amount Was Not Paid Towards CVD appeared first on TaxGuru.

ITAT Delhi Restores Appeal in Case Selected for Scrutiny Due to 0.33% Net Profit

CA Sandeep Kanoi — Sun, 17 May 2026 04:08:11 +0000

ITAT Delhi held that an appeal dismissed ex-parte by NFAC should still be decided on merits under Section 250 of the Income Tax Act. The Tribunal restored the matter for fresh adjudication after granting one final opportunity to the assessee.

The post ITAT Delhi Restores Appeal in Case Selected for Scrutiny Due to 0.33% Net Profit appeared first on TaxGuru.

Calcutta HC Upholds Commercial Division Transfer as Property Was Used as Office Space

CA Sandeep Kanoi — Sun, 17 May 2026 04:05:25 +0000

The Calcutta High Court held that a dispute arising from a conveyance relating to office premises satisfied the definition of a commercial dispute under the Commercial Courts Act, 2015.

The post Calcutta HC Upholds Commercial Division Transfer as Property Was Used as Office Space appeared first on TaxGuru.

IPO Readiness: Hidden Governance & Compliance Gaps

CS Radhika Moharir — Sun, 17 May 2026 03:48:53 +0000

Explore key governance and compliance gaps uncovered during IPO due diligence, including POSH, filings, capital structure and records.

The post IPO Readiness: Hidden Governance & Compliance Gaps appeared first on TaxGuru.

Bar Associations Can’t Punish Lawyers for Court Appearnce despite Boycott Calls: Tripura HC

Sanjeev Sirohi — Sun, 17 May 2026 03:36:33 +0000

Tripura High Court held that Bar Associations cannot penalize advocates for attending courts despite boycott calls, protecting lawyers’ professional duties to clients.

The post Bar Associations Can’t Punish Lawyers for Court Appearnce despite Boycott Calls: Tripura HC appeared first on TaxGuru.

TDS Provisions, Rates & Procedures under Income-tax Act, 2025

CA ASHISH JAIN — Sat, 16 May 2026 14:47:06 +0000

Comprehensive guide on TDS under Income Tax Act, 2025 covering new sections, payment codes, forms, due dates, compliance rules and key changes.

The post TDS Provisions, Rates & Procedures under Income-tax Act, 2025 appeared first on TaxGuru.

GST ITC Cannot Be Denied Solely Due to NGTP Supplier Tag

S PRASAD — Sat, 16 May 2026 14:26:02 +0000

The article discusses how GST authorities are increasingly reversing ITC based on upstream NGTP allegations without proving fraud by the immediate buyer. It highlights judicial views that genuine buyers cannot be burdened with proving unknown upstream transactions.

The post GST ITC Cannot Be Denied Solely Due to NGTP Supplier Tag appeared first on TaxGuru.

GST Department Audit under Section 65: Common Audit Issues

CA Lokesh Aggarwal — Sat, 16 May 2026 14:24:52 +0000

The article explains common objections raised during GST departmental audits under Section 65, including ITC mismatches, GSTR reconciliation issues, and reverse charge disputes. It also discusses judicial rulings supporting taxpayers in genuine ITC claims.

The post GST Department Audit under Section 65: Common Audit Issues appeared first on TaxGuru.

E-Adjudication & Virtual Hearings Transforming Corporate Governance

Ishwari Garud — Sat, 16 May 2026 14:17:43 +0000

The article explains how digital adjudication systems, virtual hearings, and online compliance platforms are reshaping India’s corporate regulatory framework. It highlights benefits such as transparency, efficiency, and reduced procedural delays.

The post E-Adjudication & Virtual Hearings Transforming Corporate Governance appeared first on TaxGuru.

SC Dismisses Byju Raveendran’s Appeal, Allows IRP Enquiry to Proceed Expeditiously

CA Sandeep Kanoi — Sat, 16 May 2026 14:01:54 +0000

Supreme Court upheld restoration of original Committee of Creditors and ruled that IRP could not independently reclassify financial creditors after constitution of CoC under IBC framework.

The post SC Dismisses Byju Raveendran’s Appeal, Allows IRP Enquiry to Proceed Expeditiously appeared first on TaxGuru.

Rule 8 Valuation Inapplicable on Job Work Goods Returned to Principal Manufacturer

CA Sandeep Kanoi — Sat, 16 May 2026 13:58:10 +0000

CESTAT Chennai held that Rule 8 of the Central Excise Valuation Rules applies only when goods are consumed by the assessee or on its behalf. Since the plastic caps were used by the principal manufacturer and not captively consumed by the job worker, the duty demand was set aside.

The post Rule 8 Valuation Inapplicable on Job Work Goods Returned to Principal Manufacturer appeared first on TaxGuru.

ITAT Sets Aside CIT(A) Order for Ignoring Bombay HC Interim Relief on Section 10(23C) Exemption Claim

CA Sandeep Kanoi — Sat, 16 May 2026 13:56:36 +0000

The Mumbai ITAT held that the appellate authority failed to consider pending writ petitions and interim directions of the Bombay High Court regarding exemption under Section 10(23C)(via). The matter was remanded for reconsideration after final disposal of the writ petitions.

The post ITAT Sets Aside CIT(A) Order for Ignoring Bombay HC Interim Relief on Section 10(23C) Exemption Claim appeared first on TaxGuru.

Delayed Form 10B Filing Not Enough to Deny Section 11 Exemption Exemption

CA Sandeep Kanoi — Sat, 16 May 2026 13:53:35 +0000

The ITAT Chennai held that exemption under Section 11 cannot be denied merely because Form 10B was not filed along with the return, when it was available before processing under Section 143(1). The Tribunal directed CPC to amend the intimation and consider the audit report.

The post Delayed Form 10B Filing Not Enough to Deny Section 11 Exemption Exemption appeared first on TaxGuru.

SC allows Depreciation on Leased Assets as Actual Physical Use Not Mandatory

CA Sandeep Kanoi — Sat, 16 May 2026 13:50:25 +0000

The Supreme Court dismissed the Revenue’s challenge to depreciation claims on leased assets after the Bombay High Court held that leasing constituted business use under Section 32. The ruling reaffirmed that physical use by the assessee is not necessary where assets are used in the leasing business.

The post SC allows Depreciation on Leased Assets as Actual Physical Use Not Mandatory appeared first on TaxGuru.

Service Tax Demand Based Solely on ST-3 & ITR Mismatch Unsustainable: CESTAT Allahabad

CA Sandeep Kanoi — Sat, 16 May 2026 13:39:27 +0000

CESTAT Allahabad held that service tax demand raised merely on differences between ST-3 returns and Income Tax Returns without proper examination of records was unsustainable in law.

The post Service Tax Demand Based Solely on ST-3 & ITR Mismatch Unsustainable: CESTAT Allahabad appeared first on TaxGuru.

No AED on Pre-Budget Stock Cleared After Levy Date; Excise Duty Arises on Manufacture, Not Removal: CESTAT Ahmedabad

CA Sandeep Kanoi — Sat, 16 May 2026 13:36:34 +0000

CESTAT Ahmedabad held that Additional Excise Duty introduced from 11.07.2014 could not be imposed on goods manufactured before the levy came into force, even if cleared later.

The post No AED on Pre-Budget Stock Cleared After Levy Date; Excise Duty Arises on Manufacture, Not Removal: CESTAT Ahmedabad appeared first on TaxGuru.

Election Affidavit Suppression Can Be Challenged Only Through Election Petition: Madras HC

CA Sandeep Kanoi — Sat, 16 May 2026 13:33:05 +0000

The Madras High Court held that disputes regarding alleged false or incomplete election affidavit disclosures must be raised through an election petition. The Court ruled that such issues cannot be examined in a writ petition under Article 226.

The post Election Affidavit Suppression Can Be Challenged Only Through Election Petition: Madras HC appeared first on TaxGuru.

Madras HC Remands Matter on Sequential Deduction Under Sections 80IB & 80HHC Following SC Ruling

CA Sandeep Kanoi — Sat, 16 May 2026 13:15:54 +0000

The Madras High Court held that taxable income was not properly computed where deduction under Section 80IB was reduced before calculating Section 80HHC relief. The matter was remanded for fresh assessment in line with the Supreme Court ruling in Shital Fibers Ltd.

The post Madras HC Remands Matter on Sequential Deduction Under Sections 80IB & 80HHC Following SC Ruling appeared first on TaxGuru.

ITR Forms for AY 2026-27: Which Form to File and Key Changes

cachandanshahi@gmail.com — Sat, 16 May 2026 12:40:24 +0000

The article explains all ITR forms applicable for AY 2026-27 and highlights key changes in capital gains, buyback taxation, and foreign asset reporting. It emphasizes selecting the correct form to avoid defective return consequences under Section 139(9).

The post ITR Forms for AY 2026-27: Which Form to File and Key Changes appeared first on TaxGuru.

RTI Filed Seeking Mamata Banerjee’s Advocate Enrolment & Practising Status Before BCI

Y.BALACHANDER REDDY — Sat, 16 May 2026 12:31:46 +0000

An RTI application sought details regarding enrolment, certificate of practice, and practising status under the Advocates Act, 1961. The applicant also requested records relating to non-practising advocate classification and Bar Council verification procedures.

The post RTI Filed Seeking Mamata Banerjee’s Advocate Enrolment & Practising Status Before BCI appeared first on TaxGuru.

Curbing India’s Cash in Circulation Surge Through Pragmatic GST Reforms

PrakashCh — Sat, 16 May 2026 11:31:24 +0000

The article explains how rigid GST compliance and fear of penalties are pushing small businesses back into cash transactions. It suggests simplified GST reforms and composition scheme expansion to encourage formalisation.

The post Curbing India’s Cash in Circulation Surge Through Pragmatic GST Reforms appeared first on TaxGuru.

Invoice Management System (IMS) Explained: How to Reconcile ITC

Rohan1983 — Sat, 16 May 2026 11:30:31 +0000

The new Invoice Management System (IMS) will introduce real-time invoice matching and automated ITC verification under GST. Businesses will need stronger compliance systems and accurate invoice reporting.

The post Invoice Management System (IMS) Explained: How to Reconcile ITC appeared first on TaxGuru.

ITR Filing AY 2026-27 Begins: Don’t Rush Yet

CA Rahul Dwivedi — Sat, 16 May 2026 11:29:46 +0000

The Income Tax Department has enabled ITR-1 and ITR-4 filing utilities for AY 2026-27. Taxpayers are advised to verify AIS, TDS, and Form 26AS details before filing returns.

The post ITR Filing AY 2026-27 Begins: Don’t Rush Yet appeared first on TaxGuru.

Kerala AAR Rejects GST Advance Ruling Plea Due to Hypothetical Queries

CA Sandeep Kanoi — Sat, 16 May 2026 10:57:50 +0000

The Kerala AAR held that advance ruling applications cannot be based on hypothetical scenarios or academic questions. The Authority rejected the application because it did not relate to any actual or proposed supply undertaken by the applicant.

The post Kerala AAR Rejects GST Advance Ruling Plea Due to Hypothetical Queries appeared first on TaxGuru.

Kerala AAR Grants GST Exemption on Inpatient Ayurvedic Services

CA Sandeep Kanoi — Sat, 16 May 2026 10:54:21 +0000

The Kerala AAR held that medicines, consumables, room rent, and ancillary services provided during inpatient treatment form part of a composite healthcare supply. Such inpatient healthcare services qualify for GST exemption under Notification No. 12/2017.

The post Kerala AAR Grants GST Exemption on Inpatient Ayurvedic Services appeared first on TaxGuru.

GST on Used Gunny Bags at 5% Because Reusable Bags Not Treated as Scrap: Kerala AAR

CA Sandeep Kanoi — Sat, 16 May 2026 10:53:02 +0000

Kerala AAR held that used gunny bags sold after cattle feed manufacturing are reusable packing bags under HSN 6305 and not scrap. The ruling clarified that GST would apply at 5% if the sale value does not exceed Rs. 2500 per piece.

The post GST on Used Gunny Bags at 5% Because Reusable Bags Not Treated as Scrap: Kerala AAR appeared first on TaxGuru.

GST on Member-Facilitator Transactions: Kerala AAR Rejects Plea Due to Prior Adjudication

CA Sandeep Kanoi — Sat, 16 May 2026 10:52:46 +0000

The Kerala AAR rejected an advance ruling application after noting that the issue of GST applicability on member transactions had already been adjudicated in earlier proceedings. The Authority held the application was barred under Section 98(2) of the CGST Act.

The post GST on Member-Facilitator Transactions: Kerala AAR Rejects Plea Due to Prior Adjudication appeared first on TaxGuru.

No GST Under RCM on Honorarium Paid to Temple Board Members as They Are Not Directors: Kerala AAR

CA Sandeep Kanoi — Sat, 16 May 2026 10:51:33 +0000

The Authority ruled that the President and Members of the statutory temple board are not “directors” under GST notifications. Accordingly, reverse charge GST was held inapplicable on honorarium and sitting fees.

The post No GST Under RCM on Honorarium Paid to Temple Board Members as They Are Not Directors: Kerala AAR appeared first on TaxGuru.

Mandarin Juice Concentrate Not Classifiable as Orange Juice: CESTAT Mumbai

CA Sandeep Kanoi — Sat, 16 May 2026 10:45:44 +0000

CESTAT Mumbai ruled that mandarin juice concentrate falls under “juice of any other single citrus fruit” and not orange juice because the Customs Tariff separately classifies oranges and mandarins. The Tribunal upheld duty demand for the normal period but quashed penalties and extended limitation.

The post Mandarin Juice Concentrate Not Classifiable as Orange Juice: CESTAT Mumbai appeared first on TaxGuru.

Gujarat HC Quashes GST Registration Cancellation Due to Vague SCN

CA Sandeep Kanoi — Sat, 16 May 2026 10:17:13 +0000

The Gujarat High Court held that a GST cancellation notice lacking material particulars cannot sustain cancellation proceedings. The Court restored the registration after finding both the notice and cancellation order vague and non-speaking.

The post Gujarat HC Quashes GST Registration Cancellation Due to Vague SCN appeared first on TaxGuru.

Buyback Gains Taxable Under Section 46A as Section 47(iv) Conditions Not Met: ITAT Bangalore

CA Sandeep Kanoi — Sat, 16 May 2026 10:14:56 +0000

The ITAT Bangalore held that gains arising from buyback of shares are taxable under Section 46A because the conditions prescribed under Section 47(iv) were not satisfied. The Tribunal found that the parent company did not hold the entire share capital through itself or nominees.

The post Buyback Gains Taxable Under Section 46A as Section 47(iv) Conditions Not Met: ITAT Bangalore appeared first on TaxGuru.

Transfer of Development Rights Not Taxable as Service as It Involves Immovable Property: CESTAT

CA Sandeep Kanoi — Sat, 16 May 2026 10:12:40 +0000

The CESTAT Delhi held that transfer of land development rights amounts to transfer of immovable property and not a taxable service. The Tribunal set aside the service tax demand, holding that such transactions fall outside Section 65B(44) of the Finance Act.

The post Transfer of Development Rights Not Taxable as Service as It Involves Immovable Property: CESTAT appeared first on TaxGuru.

WhatsApp Chats without proof of completed transactions Cannot Justify Section 69A Additions: ITAT Mumbai

CA Sandeep Kanoi — Sat, 16 May 2026 10:11:21 +0000

ITAT Mumbai held that incomplete WhatsApp chats without proof of completed transactions cannot justify additions under Section 69A. The Tribunal found that the chats lacked corroborative evidence showing actual payment of money.

The post WhatsApp Chats without proof of completed transactions Cannot Justify Section 69A Additions: ITAT Mumbai appeared first on TaxGuru.

Section 271AAC Penalty Unsustainable After Assessment Is Quashed: ITAT Delhi

CA Sandeep Kanoi — Sat, 16 May 2026 10:06:32 +0000

ITAT Delhi held that penalty under Section 271AAC cannot survive once the underlying Section 153C assessment is quashed. The Tribunal deleted the penalty after noting that the quantum assessment itself no longer existed.

The post Section 271AAC Penalty Unsustainable After Assessment Is Quashed: ITAT Delhi appeared first on TaxGuru.

ITAT Delhi Quashes Section 153C Action Due to Absence of Section 65B Certificate

CA Sandeep Kanoi — Sat, 16 May 2026 10:05:25 +0000

ITAT Delhi held that electronic evidence seized during search proceedings cannot be relied upon without mandatory certification under Section 65B of the Evidence Act. The Tribunal ruled that initiation of Section 153C proceedings based on uncertified electronic records was invalid.

The post ITAT Delhi Quashes Section 153C Action Due to Absence of Section 65B Certificate appeared first on TaxGuru.

ITAT Delhi Restricts Bogus Purchase Addition to Profit Element Only

CA Sandeep Kanoi — Sat, 16 May 2026 10:04:33 +0000

ITAT Delhi held that where sales are accepted and purchases are supported by invoices and banking transactions, only the profit element embedded in alleged bogus purchases can be taxed. The Tribunal restricted the addition by applying the average profit rate instead of sustaining the entire disallowance.

The post ITAT Delhi Restricts Bogus Purchase Addition to Profit Element Only appeared first on TaxGuru.

GST on Hospitality Industry: Hotel Accommodation, Restaurant GST Rates, ITC & Rule 42 Reversal

Saqif Muchale — Sat, 16 May 2026 09:57:04 +0000

This article explains updated GST rates, ITC rules, SAC classifications, and compliance requirements applicable to hotels and hospitality businesses. It also covers restaurant services, banquet halls, transportation, and ancillary services.

The post GST on Hospitality Industry: Hotel Accommodation, Restaurant GST Rates, ITC & Rule 42 Reversal appeared first on TaxGuru.

The Day India Was Told To Stop Buying Gold

cajatinrathor — Sat, 16 May 2026 09:43:35 +0000

The article explains how excessive gold imports are creating economic pressure on India despite gold’s deep cultural importance. It highlights the growing push toward productive investments and long-term economic growth.

The post The Day India Was Told To Stop Buying Gold appeared first on TaxGuru.

Complete Guide to Company Strike Off Under Companies Act 2013

Vaishali Kumari — Sat, 16 May 2026 09:42:07 +0000

This guide explains the legal process for striking off companies under Section 248 of the Companies Act, 2013. It covers eligibility, procedures, ROC powers, and the legal consequences of company dissolution.

The post Complete Guide to Company Strike Off Under Companies Act 2013 appeared first on TaxGuru.

Practical FAQs on filing of Form GSTR-3B

editor2 — Sat, 16 May 2026 09:40:54 +0000

ICAI clarified that ITC wrongly reversed under Table 4(B)(1) instead of Table 4(B)(2) can still be reclaimed within statutory timelines. The FAQs explain how taxpayers can rectify such reporting errors through future GSTR-3B adjustments.

The post Practical FAQs on filing of Form GSTR-3B appeared first on TaxGuru.

GST Recovery Stayed as Mere Upload of Order on Portal Without Proper Service was Insufficient

UBR Legal Advocates — Sat, 16 May 2026 08:22:09 +0000

The Tripura High Court stayed GST recovery proceedings after finding prima facie non-compliance with section 169 of the CGST Act regarding service of the adjudication order.

The post GST Recovery Stayed as Mere Upload of Order on Portal Without Proper Service was Insufficient appeared first on TaxGuru.

Section 143(1) PF/ESI Disallowance Invalid Before SC’s Checkmate Ruling Due to Debatable Legal Position

CA Pawan Garg — Sat, 16 May 2026 08:20:42 +0000

ITAT Delhi held that disallowance of delayed PF and ESI deposits through Section 143(1) adjustment was unsustainable because the issue was highly debatable at the relevant time.

The post Section 143(1) PF/ESI Disallowance Invalid Before SC’s Checkmate Ruling Due to Debatable Legal Position appeared first on TaxGuru.

CCPA Penalises Coaching Institutes for misleading advertisements

Editor — Sat, 16 May 2026 07:57:03 +0000

The CCPA imposed penalties on coaching institutes after finding that advertisements highlighted successful candidates while hiding the actual courses undertaken by them. The Authority held that such concealment amounted to misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019.

The post CCPA Penalises Coaching Institutes for misleading advertisements appeared first on TaxGuru.

ICAI Clarifies 60-Tax Audit Ceiling for UDIN Generation from April 2026

Editor — Sat, 16 May 2026 07:54:28 +0000

The FAQs explain how the 60 Tax Audit assignment ceiling will operate through the UDIN system from 1 April 2026. ICAI clarified which audit forms will count toward the limit and how assignments across firms, branches, and revised reports will be treated.

The post ICAI Clarifies 60-Tax Audit Ceiling for UDIN Generation from April 2026 appeared first on TaxGuru.

ROC Penalises Company for Missing Contact Details on Letterhead

editor8 — Sat, 16 May 2026 07:00:45 +0000

ROC Cuttack imposed penalties for failure to print mandatory contact information on company letterheads under Section 12(3)(c). The ruling stresses strict compliance with statutory disclosure requirements in official documents.

The post ROC Penalises Company for Missing Contact Details on Letterhead appeared first on TaxGuru.

ROC Imposes Penalty as Company Letterheads Lacked Mandatory Contact Details

editor4 — Sat, 16 May 2026 06:59:48 +0000

ROC Cuttack penalised a company and its directors for violating Section 12(3)(c) of the Companies Act after finding that official letterheads omitted mandatory details such as telephone number, email, and website address.

The post ROC Imposes Penalty as Company Letterheads Lacked Mandatory Contact Details appeared first on TaxGuru.

ROC Imposes Penalty as Company Failed to Appoint Mandatory CFO for Six Years

editor4 — Sat, 16 May 2026 06:45:43 +0000

ROC Cuttack penalised a company and its directors for not appointing a whole-time Chief Financial Officer despite paid-up capital exceeding the statutory threshold under the Companies Act.

The post ROC Imposes Penalty as Company Failed to Appoint Mandatory CFO for Six Years appeared first on TaxGuru.

ROC Imposes Penalty for Failure to Appoint Independent Directors After Crossing ₹100 Crore Turnover

Editor — Sat, 16 May 2026 06:37:42 +0000

ROC Delhi penalised a company and its directors after it failed to appoint mandatory independent directors despite crossing the prescribed turnover threshold. The authority held that prolonged non-compliance under Section 149(4) attracted maximum penalty under Section 172 of the Companies Act.

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ROC imposes Penalty as MGT-14 Was Filed Several Years After Passing Resolutions

Editor — Sat, 16 May 2026 06:36:40 +0000

ROC Delhi penalised a company and its directors after special resolutions relating to preferential allotment were filed years beyond the statutory deadline. The authority held that repeated delays under Section 117 attracted maximum penalties under the Companies Act, 2013.

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ROC Imposes Penalty for Failure to Disclose Secretarial Standards Compliance in Board Report

Editor — Sat, 16 May 2026 06:25:31 +0000

ROC Mumbai penalised a company and its Managing Director for omitting disclosure regarding compliance with Secretarial Standards in the Board Report. The authority held that the omission violated Section 118(10) read with Section 134(5)(f) of the Companies Act, 2013.

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CBDT Revises monetary limits for jurisdiction of Wards & Circles in JAO charges in Delhi

editor7 — Sat, 16 May 2026 06:19:04 +0000

The Income Tax Department increased monetary thresholds for assigning cases between ITOs and D/ACITs in Delhi Region. The revised limits aim to streamline jurisdictional allocation and improve administrative efficiency in tax assessments.

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Govt Raises SAED on ATF Exports to Rs. 16 per Litre from 16 May 2026

editor4 — Sat, 16 May 2026 06:15:33 +0000

CBIC revised SAED on ATF exports to Rs. 16 per litre effective 16 May 2026, impacting aviation fuel exporters and export duty costs.

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SAED on Petrol and Diesel Exports Revised from 16 May 2026

editor4 — Sat, 16 May 2026 06:14:08 +0000

The Ministry of Finance amended the central excise notification issued in March 2026 by revising rates applicable to specified goods. The notification cites public interest and introduces revised per litre duty rates effective from 16 May 2026.

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SEBI issues Master Circular on Surveillance of Securities Market

editor7 — Sat, 16 May 2026 06:10:10 +0000

SEBI issued a revised Master Circular consolidating surveillance-related directions for stock exchanges, listed companies, intermediaries, and fiduciaries. The circular strengthens insider trading compliance through automated trading window restrictions and updated surveillance mechanisms.

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SEBI Clarifies PAN Rules for FPIs as New Income-Tax Forms Created Onboarding Difficulties

Editor — Sat, 16 May 2026 06:08:54 +0000

SEBI issued clarifications after revised PAN application forms under the Income-tax Rules, 2026 created compliance challenges for Foreign Portfolio Investors. The relaxations simplify documentation and ease PAN allotment procedures for FPIs.

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CBIC Revises Tariff Values for Gold, Silver & Edible Oils from May 16, 2026

editor8 — Sat, 16 May 2026 06:07:30 +0000

CBIC has updated customs tariff values for gold, silver, palm oil, soybean oil, and brass scrap through Notification No. 46/2026-Customs (N.T.). The revised rates will apply from 16 May 2026 for import valuation purposes.

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No Service of 143(1) Intimation = No Delay in Appeal – ITAT Revives TDS Credit Claim After 15 Years

cavkshetty — Sat, 16 May 2026 05:56:32 +0000

The Tribunal ruled that the limitation period for appeal commenced only when the assessee first received the ITBA screenshot revealing the basis of the outstanding demand.

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GST Exemption Allowed as Similar Packaging Does Not Amount to Brand Name Usage

a2zbimaljain — Sat, 16 May 2026 05:54:06 +0000

The Madras High Court held that common packaging elements, graphics, and colour schemes do not automatically create a “brand name” under GST law. The ruling clarifies that exemption cannot be denied merely due to visual similarity where enforceable brand rights are relinquished.

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Bombay HC Quashes Ocean Freight IGST Levy as Importer Is Not Service Recipient

a2zbimaljain — Sat, 16 May 2026 05:48:55 +0000

The Bombay High Court held that importers under CIF contracts cannot be taxed under reverse charge for ocean freight since they are not recipients of the transportation service. The Court quashed the show cause notice and ruled the levy beyond statutory charging provisions.

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5-Day Share Trade Cannot Automatically Become ‘Bogus Penny Stock’: ITAT Mumbai

cavkshetty — Sat, 16 May 2026 05:41:11 +0000

The Tribunal ruled that a genuine share transaction resulting in a short-term loss cannot automatically be treated as a make-believe or accommodation entry transaction. The assessee’s regular trading history supported the genuineness of the transactions.

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Fuel Crisis: Impact on India’s Economy and Global Markets

Soumyaranjan Adhikary — Sat, 16 May 2026 05:36:06 +0000

Escalating geopolitical tensions around the Strait of Hormuz triggered sharp increases in crude oil prices and heightened fears of global supply disruptions. The analysis highlights India’s growing import vulnerability and the broader impact on financial markets.

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Interplay of GST & Criminal Law: A Judicial Scrutiny of FIRs & Prosecutions

RAVINDRA KUMAR RASTOGI — Sat, 16 May 2026 05:31:45 +0000

Courts held that GST offences covered under the CGST Act must follow the special procedure prescribed under the statute. Authorities cannot invoke IPC provisions to avoid mandatory safeguards like prior sanction for prosecution.

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AO Cannot Apply Post-2018 “Look-Through” Valuation Retrospectively – ITAT Deletes Massive Section 56 Additions

cavkshetty — Sat, 16 May 2026 05:28:31 +0000

ITAT Mumbai deleted additions exceeding ₹10.57 crore made under section 56(2)(vii)(c) after finding that the Assessing Officer wrongly adopted an amended valuation approach retrospectively. The Tribunal upheld the CIT(A)’s deletion in entirety.

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ROC Penalises Company as Board Meeting Minutes Were Not Serially Numbered

Editor — Sat, 16 May 2026 05:27:37 +0000

ROC Mumbai penalised a company and its directors after finding that board meeting minute books were not maintained in accordance with Secretarial Standards. The authority held that absence of serial numbering in minute books violated Section 118 of the Companies Act, 2013.

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Telangana HC Sets Aside GST Registration Cancellation Due to Vague SCN

CA Sandeep Kanoi — Sat, 16 May 2026 05:25:03 +0000

The High Court quashed the GST cancellation proceedings after finding that the show cause notice did not specify the alleged contraventions or shortcomings. The Court held that absence of material particulars violated the prescribed procedure under GST law.

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C-Forms Cannot Be Denied for ENA Supply Since GST Council Deferred Tax Decision: Madras HC

CA Sandeep Kanoi — Sat, 16 May 2026 05:23:39 +0000

The Madras High Court held that manufacturers of alcoholic liquor cannot be denied C-Forms for inter-State ENA purchases because the GST Council had consciously maintained status quo on ENA taxation. The Court ruled that GST indecision cannot obstruct the right to trade.

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ITAT Dismisses Revenue Appeal as CPC Adjustments Were Already Deleted in Scrutiny Assessment

CA Sandeep Kanoi — Sat, 16 May 2026 05:22:40 +0000

The Tribunal ruled that additions proposed by CPC under Section 143(1)(a) ceased to survive after the Assessing Officer deleted them in the final scrutiny assessment order. As a result, further appeals relating to the original intimation became infructuous.

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GST Adjudication Order Invalid as Proper Consideration of Objections Was Missing

CA Sandeep Kanoi — Sat, 16 May 2026 05:18:16 +0000

The Himachal Pradesh High Court set aside a GST demand order after finding that the taxpayer’s detailed reply and supporting documents were not considered before passing the order. The Court directed fresh adjudication through a reasoned order.

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Failure to Appoint Woman Director: ROC Chennai imposes Penalty

editor8 — Sat, 16 May 2026 05:16:51 +0000

ROC Chennai held that an Additional Director who was not regularised at the AGM could not be treated as an officer in default during the violation period. The ruling highlights the importance of director status while fixing liability under the Companies Act.

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Accrued Income Cannot Be Deferred Just Because Receipt Is Delayed – ITAT Upholds Taxability on Mercantile Basis

cavkshetty — Sat, 16 May 2026 05:16:42 +0000

The Tribunal ruled that an assessee following mercantile accounting must offer interest income to tax on accrual basis, irrespective of delayed receipt. Failure to disclose the full accrued amount in the relevant year justified reassessment and addition.

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Calcutta HC Allows Withdrawal of Writ Appeals, Grants Section 14 Limitation Benefit for Fresh Statutory Appeals

CA Sandeep Kanoi — Sat, 16 May 2026 05:16:00 +0000

The Calcutta High Court permitted withdrawal of appeals after noting that the constitutional validity issue had already been settled. The Court allowed the appellant to pursue fresh appeals on merits before the appellate authority.

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ITAT Deletes Software Cost Mark-Up Addition Holding Pure Reimbursement Is Not Profit-Making Service

CA Sandeep Kanoi — Sat, 16 May 2026 05:10:38 +0000

The ITAT Delhi ruled that reimbursement of software costs to foreign AEs on a cost-to-cost basis could not be treated as a profit-generating intra-group service. The Tribunal deleted the transfer pricing adjustment after finding the benchmarking method adopted by the TPO unjustified.

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Separate Penalty on Partner Not Sustainable Once Partnership Firm Penalized: CESTAT Ahmedabad

CA Sandeep Kanoi — Sat, 16 May 2026 05:09:38 +0000

CESTAT Ahmedabad held that once a partnership firm is penalized under customs law, a separate penalty on its partner for the same contravention cannot be imposed in absence of specific statutory provision.

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Madras HC Allows Fresh Reply in NDH-4 Rejection Cases Due to Opportunity of Hearing

CA Sandeep Kanoi — Sat, 16 May 2026 05:07:57 +0000

The Madras High Court permitted Nidhi companies to submit fresh replies against NDH-4 rejection orders and directed authorities to reconsider the applications after granting a hearing. The Court kept the challenge to the validity of the amended provisions open.

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Rajasthan HC Denies Bail as Alleged GST Evasion Involved Organized Fake Invoice Syndicate

CA Sandeep Kanoi — Sat, 16 May 2026 05:04:53 +0000

The Rajasthan High Court refused bail in a case involving alleged large-scale GST evasion through fake firms, bogus invoices, and fraudulent e-way bills. The Court held that serious economic offences involving deep-rooted conspiracies require a stricter approach in bail matters.

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DCF Valuation Cannot Be Rejected Using Hindsight – ITAT Deletes ₹36.54 Crore Section 56(2)(viib) Addition

cavkshetty — Sat, 16 May 2026 05:04:36 +0000

ITAT Mumbai ruled that replacing projected cash flows with actual profits while applying the DCF method is legally impermissible. The decision reaffirmed that DCF valuation is inherently based on future estimates and business expectations.

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Rajasthan HC Quashes GST Demand as SCN Reopened Issues Already Decided by Advance Ruling

CA Sandeep Kanoi — Sat, 16 May 2026 05:02:46 +0000

The Rajasthan High Court held that GST authorities cannot reopen issues already adjudicated by the Authority for Advance Ruling without fresh material or change in facts. The Court quashed show cause notices alleging misclassification of tobacco products under Section 74 of the CGST Act.

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Section 68 Addition Crashes – ITAT Mumbai Says Suspicion & Investigation Wing Reports Cannot Replace Evidence

cavkshetty — Sat, 16 May 2026 04:52:41 +0000

ITAT Mumbai held that additions under section 68 cannot survive where the Assessing Officer failed to conduct independent verification of alleged accommodation entries. Reliance solely on third-party investigation reports was rejected.

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Agricultural Land Also Covered by Section 56(2)(x) – ITAT Upholds Addition Based on DVO Valuation

cavkshetty — Sat, 16 May 2026 04:40:11 +0000

The Tribunal upheld tax addition where agricultural land was acquired below stamp duty valuation and DVO-determined fair market value. It ruled that agricultural status of land does not exclude applicability of section 56(2)(x).

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