Latest court orders, judgments, and legal developments from Indian courts — AI-curated and summarized.
In a significant ruling, the ITAT has determined that interest earned on margin money used for opening letters of credit is taxable as business income under the Income Tax Act.
The ITAT held that documented purchases cannot be deemed bogus solely based on a supplier's GST compliance issues. The ruling underscores the importance of evidence linking a purchaser to fraudulent transactions.
The Telangana High Court ruled that share premium received from a non-resident shareholder on a fresh share issue is considered a capital receipt, not taxable income. This decision has important implications for taxation practices in corporate finance.
In a recent ruling, the ITAT determined that ₹5.25 crore in demonetised cash could not be taxed in the hands of the taxpayer due to a lack of substantial evidence linking the cash to the individual. The case emphasizes the importance of clear linkage in tax assessments.
Clarification has been issued regarding the tax implications and FEMA regulations concerning money remitted from children living abroad, including ITR reporting and documentation requirements.
The Telangana High Court ruled that share premium received from a non-resident shareholder during a fresh share issue is categorized as a capital receipt and not taxable income.
The Telangana High Court ruled that reassessment proceedings under the Income Tax Act cannot be challenged prematurely under Article 226. This ruling clarifies the scope of judicial review at preliminary stages.
The ITAT has ruled that a taxpayer cannot be taxed for demonetisation cash if they did not open a bank account. The decision is backed by evidence including an FIR and forensic report.
The Rajasthan AAR has ruled that a 5% GST rate is applicable to job work involving handicrafts, provided certain conditions are met regarding classification and exemption. This clarifies the tax structure for artisans and industries.
The Uttarakhand High Court has permitted an application for revocation of GST registration that was canceled due to non-filing of returns, contingent upon the applicant filing due returns and payments. This decision underlines the court's approach to balancing compliance and relief.
The Karnataka High Court has ruled that a mandatory pre-deposit in service tax appeals can be discharged through transitional CENVAT credit, thereby relieving unnecessary financial burdens on appellants.
The ITAT has ruled against a ₹15.35 lakhs addition to a taxpayer's income, affirming that sales suppression was unproven based on GST records and other documents. The ruling stresses the importance of evidentiary standards in tax assessments.