Court News
Latest court orders, judgments, and legal developments from Indian courts — AI-curated and summarized.
Tax Tribunal Procedures Revised
The Supreme Court has revised the procedures for income tax tribunal hearings, affecting the manner in which cases are to be conducted.
ITAT Upholds Section 12AB Rejection as Trust Deed Allowed Benefits Outside India
The Patna ITAT upheld the rejection of a trust's Section 12AB registration based on findings that its deed permitted income applications for individuals residing outside India, emphasizing limitations under Section 11.
Delhi HC Allows Inspection of Foreign Tax Documents as Fair Cross-Examination Rights Must Be Protected
The Delhi High Court ruled that while documents obtained through official international channels are presumed genuine, they must still meet proof requirements under Section 78 of the Indian Evidence Act.
ITAT Delhi Deletes Section 69A Addition as Sales Were Recorded in Books
The ITAT Delhi ruled that Section 69A cannot be applied when the Assessing Officer acknowledged that the transactions were recorded in the books of accounts, remanding the matter for verification of sales records.
ITAT Allows Carry Forward of LTCG Loss as Section 54F Exemption Must Be Applied First
The Mumbai ITAT held that the exemption under Section 54F must be applied before invoking set-off provisions under Section 70(3). Consequently, the assessee was allowed to carry forward the long-term capital loss distinctly.
SC Upholds Delay Condonation in Form 10B Filing as Audit Report Was Already Submitted
The Supreme Court dismissed an appeal against the Bombay High Court's order allowing a delay in the submission of Form 10B, confirming that sufficient cause was shown for the delay.
Ex Parte GST Assessment Set Aside Due to GSTR-7 TDS Reporting Variations: Madras HC
The Madras High Court set aside a GST assessment order due to discrepancies between GSTR-1, GSTR-3B, and GSTR-7 returns in government contracts and ordered a fresh adjudication.
GST Portal Technical Failure Cannot Prevent QRMP Exit: Calcutta HC
The Calcutta High Court mandated backend modifications by the GSTN authorities after the GST portal failed to process a taxpayer's request to exit the QRMP Scheme, allowing monthly GST return filing effective March 2026.
Telangana HC Allows Assessee to Pursue GST Appeal Over ITC Mismatch Dispute
The Telangana High Court ruled that the time spent on rectification applications and writ proceedings can be accounted for in assessing delay condonation for a GST appeal, allowing the assessee to appeal.
Adverse GST Orders Quashed for No Personal Hearing: Bombay HC
The Bombay High Court quashed GST adjudication orders due to the absence of a personal hearing, emphasizing that Section 75(4) necessitates a hearing even if no responses to notices were submitted.
No Section 271D Penalty Without Recorded Satisfaction: Telangana HC
The Telangana High Court ruled against imposing a Section 271D penalty due to the absence of any recorded satisfaction in the assessment order, affirming the precedent from the Supreme Court.
Demonetisation Cash Deposit Addition Sent Back due to Natural Justice Violation
The ITAT Delhi ruled that the assessee was not provided with an adequate hearing, leading to the remand of the case regarding cash deposit additions for reassessment.
SC Upholds Quashing of Section 148 Notices Issued to Foreign GE Group Entities
The Supreme Court upheld a Delhi High Court decision quashing Section 148 reassessment notices against multiple foreign entities of the GE Group, citing insufficient tangible material.
No TDS on Bandwidth Payments as IPLC Charges Are Not Royalty: Madras HC
The Madras HC ruled that payments for bandwidth services do not qualify as royalty, thus exempting them from TDS liabilities. The Court dismissed the Revenue’s arguments regarding equipment usage.
Email Denials by Flat Buyers Cannot Override Financial Records in GST Profiteering Case: GSTAT
The GSTAT ruled that customer emails denying receipt of Input Tax Credit (ITC) benefits do not outweigh official financial records. The Tribunal upheld the recognition of price adjustments as a legitimate way of passing on GST benefits.
GSTAT Orders Fresh Review After Finding Possible Error in GST Profiteering Calculation
The GSTAT directed the Director General of Anti-Profiteering (DGAP) to re-examine the profiteering calculations due to a potential miscalculation in the Input Tax Credit figures. The Tribunal has requested additional documents and a supplementary report.
Bombay HC Allows Second GST Refund Claim for Missed Export Invoice
The Bombay High Court clarified that GST law does not prohibit the filing of a second refund application for the same quarter, ruling in favor of a taxpayer seeking a second refund claim for a missed export invoice.
ITAT Quashes Section 143(1) Adjustment as No Prior Notice Issued
The ITAT Hyderabad ruled that adjustments under Section 143(1)(a) cannot be made without prior notice to the assessee. The Tribunal quashed the tax adjustment process due to the lack of an opportunity for the taxpayer to respond.
AO’s Own Penalty Order Sinks Reassessment: ITAT Holds First Section 147 Order ‘Infructuous’
The ITAT ruled that dual reassessment orders for the same assessment year, transaction, and addition are impermissible. The first reassessment order was deemed legally unsustainable, invalidating the proceeding.
SEZ Lease Rentals Are Business Income, Not House Property: ITAT Mumbai
The Mumbai ITAT confirmed that lease rentals from Special Economic Zones (SEZ) and IT parks should be classified as taxable business income, referencing CBDT Circular No. 16/2017 and relevant judicial precedents.
Madras HC Allows Time-Share Membership Fees to Be Spread Over Contract Period
The Madras High Court concluded that upfront time-share membership fees are not wholly taxable in the year received due to the long-term contractual obligations associated with accommodation services, allowing the fees to be amortized.
No Fresh Share Premium, No Section 68 Addition: ITAT Mumbai
The Mumbai ITAT ruled that corporate social responsibility (CSR) donations qualify for deduction under Section 80G provided all statutory conditions are met. It further clarified that disallowance under Section 37 does not preclude Section 80G relief.
Section 271D Proceedings Cannot Start Without AO Satisfaction: Telangana HC
The Telangana High Court asserted that while the Joint Commissioner holds the authority to impose penalties, the initiation of Section 271D proceedings requires recorded satisfaction during the assessment. The absence of such satisfaction invalidates the penalty.
Section 12A Exemption Cannot Be Denied Due to Wrong Audit Form Filing: Calcutta HC
The Calcutta High Court ruled that filing an audit report incorrectly in Form 10BB instead of Form 10B is a procedural error that should not negate substantive exemption rights under Section 12A. The authority must decide on the condonation application expediently.
Calcutta HC Sets Aside Section 154 Order Passed Beyond Limitation Period
The Calcutta High Court declared a rectification order under Section 154 invalid due to being issued after the expiration of the statutory limitation period. The order and all related recovery actions were consequently quashed.
Wrong Section Mention Is Curable, But Addition Needs Valid Legal Basis: ITAT Mumbai
The Mumbai ITAT ruled that discrepancies in loan repayment figures due to an unpresented cheque cannot solely justify additions under Section 68. The Tribunal ordered limited verification of subsequent payments to clarify taxability.
Section 69C Addition Deleted as Customs Assessable Value Is Not Proof of Unexplained Expenditure
The Tribunal concluded that discrepancies between customs assessable value and invoice value do not automatically permit additions under Section 69C. It clarified that revenue must first demonstrate actually unexplained expenditure.
Educational Trust Registration Renewal Cannot Be Denied Over Earlier Allegations
The PCIT was found to have improperly conflated renewal and cancellation proceedings under Section 12AB(4). The Court upheld that previous allegations could not obstruct the renewal of the trust's registration, especially since the Settlement Commission had acknowledged its charitable activities.
ITAT Bangalore Quashes ₹7,778 Cr 143(1) Adjustment After 143(2) Notice
The Bangalore ITAT ruled that once a notice under Section 143(2) initiates regular scrutiny assessment, the Department cannot resort to summary processing under Section 143(1). This decision quashed substantial GST-related adjustments which were deemed without jurisdiction.
Telangana HC Grants Interim Protection Pending GSTAT Appeal
The Telangana High Court ordered that no coercive recovery action should be taken against the taxpayer if 10% of the assessed GST liability is deposited within the stipulated period.
Telangana HC Allows Delayed GST Appeal After Writ Petition
In a recent ruling, the Telangana High Court permitted a taxpayer to file a delayed appeal against a GST assessment order, emphasizing sympathetic consideration due to prior writ proceedings.
Important Income Tax Return Due Dates for Financial Year 2025-2026
An overview of crucial due dates for filing Income Tax Returns for the Financial Year 2025-2026 across various categories of taxpayers.
When Does Money Become Taxable? Capital vs. Revenue Receipt
This article analyzes the distinction between capital and revenue receipts under tax law, including taxability and key practical differences.
Key ITR Filing Mistakes to Avoid for AY 2026-27
An overview of common errors to avoid when filing Income Tax Returns (ITR) for the Assessment Year 2026-27, covering mistakes such as deadline confusion and AIS mismatches.
ITAT Deletes Section 40A(3) Disallowance as No Single Cash Payment Exceeded Rs. 10,000
The ITAT Delhi confirmed the deletion of disallowance under Section 40A(3), stating that no individual cash payment exceeded Rs. 10,000, which was merely an administrative action involving multiple workers.
Notional Interest Addition Deleted Because Only Real Income Can Be Taxed: ITAT Delhi
The ITAT Delhi upheld the deletion of a notional interest addition, affirming that hypothetical income cannot be taxed, as only actual income is subject to taxation.
Calcutta HC Orders Refund as Section 245 Adjustment Exceeded 20% of Disputed Demand
The Calcutta High Court directed refunds after determining that adjustments of refunds exceeding 20% of the disputed tax demand during an appeal were unjustifiable.
CIT(A) cannot enhance income on issues not examined by AO: ITAT Mumbai
The ITAT Mumbai ruled that the Commissioner of Income Tax (Appeals) cannot enhance income on issues that were not considered by the Assessing Officer during the assessment process.