Latest court orders, judgments, and legal developments from Indian courts — AI-curated and summarized.
The Madras High Court ruled that the option for bad debt deduction under Section 36(1)(vii-a) is exclusively the assessee's, and not to be overridden by the Assessing Officer. This ruling emphasizes taxpayer rights regarding deductions.
The Supreme Court ruled that income received from an Association of Persons (AOP) constitutes profit share, not revenue share, and thus is not taxable in the hands of its members. This ruling clarifies the tax treatment of AOP income distributions.
India has defined Virtual Digital Assets (VDAs) for tax purposes, establishing compliance measures for TDS and other income sources. This includes provisions for gifts and mining income, clarifying the parameters for taxation in the crypto space.
The Karnataka High Court ruled that the retrospective amendment of Section 16(5) of the CGST Act extended the eligibility for claiming ITC for returns filed before November 30, 2021.
The Bombay High Court ruled that GST show cause notices under Section 74 cannot consolidate assessments from multiple financial years, emphasizing the independent nature of each year's tax assessments.
The Bombay High Court has quashed a GST adjudication order that imposed a demand beyond the amounts mentioned in the corresponding show cause notice, citing violation of Section 75(7).
The Andhra Pradesh High Court ruled that a composite GST assessment covering multiple financial years infringed statutory provisions and required individual assessments for each year.
The Bombay High Court overturned a GST refund rejection order for lack of proper reasoning, ruling that such decisions must contain specific findings and a rationale to ensure transparency.
The Madras High Court ruled that challenges to GST proceedings under Section 74 must be directed to the appellate authority rather than through writ petitions, emphasizing adherence to statutory remedies.
The Calcutta High Court has dismissed an appeal regarding the classification of polypropylene leno bags, confirming they are classified as plastic articles under Chapter 39 and not as textiles. This ruling clarifies the categorization of such products in accordance with tariff schedules.
The Allahabad High Court is reviewing the validity of GST Input Tax Credit restrictions imposed due to supplier defaults, potentially impacting taxpayers' rights to claim ITC.
The Calcutta High Court has reinforced that a Container Freight Station (CFS) operator cannot avoid liability for Customs charges based on the absence of formal sanction for the officer's position. The ruling emphasizes the importance of the substance of transactions over formal procedural aspects.