Blocked for Two and a Half Years: Madras HC Says Rule 86A’s One-Year Limit on ITC Blocking Isn’t a Suggestion
The Story Rule 86A of the CGST Rules is meant to be a fire extinguisher, not a life sentence: the
GST Updates
Income Tax
Books Don’t Decide Taxes: ITAT Hands Reliance Jio a ₹11,003 Crore Win — and Clears Its Overseas Telecom Payments of Royalty/FTS Tax Too
The Story Here’s a question every accountant has quietly wrestled with at some point: if you capitalise an expense in
Case Law, Income Tax
A 12-Year Fight Over ₹59 Crore: Delhi HC Says the Taxman Can’t Keep Excess TDS Just Because the Return Came in Response to a Section 148 Notice
The Delhi High Court holds that the Income Tax Department cannot deny credit or refund of excess TDS merely because the return was filed in response to a Section 148 reassessment notice rather than under Section 139.
Case Law, GST Updates
No Signature, No Notice: Rajasthan HC Quashes GST Demand Because the Show Cause Notice Was Never Authenticated
The Rajasthan High Court holds that a GST show cause notice and order bearing neither a digital nor physical signature cannot be sustained — a system-generated reference number is not authentication under Rule 26(3) of the CGST Rules.
Case Law, GST Updates
Two High Courts Now Agree: Uploading a GST Notice on the Portal Alone Doesn’t Count as Service
The Punjab & Haryana High Court holds the GST common portal was never notified for service of notices or orders under Section 146 — and the Rajasthan High Court, applying that reasoning, condones a 645-day appeal delay.
Case Law, GST Updates
Tata Steel Wins ₹1,781 Crore GST Relief: Supreme Court Applies Its Own Week-Old “No Mechanical Fraud” Rule to India’s Largest Steel Producer
The Supreme Court quashes a ₹890.52 crore GST demand and equal penalty against Tata Steel, holding — for the second time in a week — that Section 74’s extended limitation cannot be invoked by mechanically alleging fraud or suppression without foundational facts in the notice itself.
Case Law, GST Updates
Raised Jurisdiction Only After Losing on Merits? Allahabad HC Says Doctrine of Election Bars the Belated Challenge
The Allahabad High Court (Lucknow Bench) holds that a taxpayer who contested a GST show cause notice on merits, and raised a jurisdiction objection only after losing, is barred by the doctrine of election from a writ challenge — and must pursue the statutory appellate remedy instead.
Case Law, GST Updates
Additional ITC Benefit Withheld From 25 Homebuyers: GSTAT Orders 18% Interest From July 2017, Rejects Builder’s Waiver Argument
GSTAT’s Principal Bench holds that a builder who passed on the bulk of an additional GST input tax credit benefit to homebuyers, but fell short for 25 buyers, must pay the shortfall with 18% interest running from 1 July 2017 — rejecting the builder’s argument that interest waivers on delayed customer payments should apply.
AI, Case Law, GST Updates
AI-Generated Case Laws in a GST Order: Gujarat HC Quashes Proceedings, Issues Verification Protocol, Warns of Contempt
The Gujarat High Court quashes a GST cancellation order after finding the tax officer relied exclusively on AI-generated, non-existent case laws — and directs strict human verification of AI-assisted legal research going forward, warning that non-compliance will amount to contempt.
Case Law, GST Updates
Mechanical Invocation of “Fraud” Cannot Extend GST Limitation: Supreme Court Quashes Section 74 Notice, Sets Out What a Valid SCN Must Contain
The Supreme Court holds that a GST Section 74 show cause notice cannot invoke the extended limitation period merely by using the words “fraud,” “wilful misstatement” or “suppression of facts” — the notice itself must specify the allegations. G.R. Infra Projects’ SCN quashed.