Disallowance of set-off against undisclosed income detected in searches restricts use of losses and unabsorbed depreciation.
The amendment bars set off or carry forward set off of any loss or unabsorbed depreciation against undisclosed income included in total income where such income is detected by a search under section 132, a requisition under section 132A, or a survey under section 133A (other than under sub section (2A)), thereby preventing application of losses or unabsorbed depreciation against that undisclosed income. (AI Summary)

Refund route for tax borne under payor agreements established, with AO refund application and appellate remedy available.
A new refund route permits persons who have borne tax under an agreement to apply to the Assessing Officer for refund, with an appellate remedy if dissatisfied, replacing the prior exclusive immediate-appeal procedure for payments after the commencement date. Separately, unexplained cash credits will be treated as explained only if the source of funds is also satisfactorily explained in the hands of the creditor or entry-provider, subject to an exception for well-regulated entities and registered venture capital entities. (AI Summary)

Updated return filing permits correction of omitted income on additional tax; departmental appeals deferred pending higher court law decisions.
A Budget proposal permits taxpayers to file an Updated Return to declare omitted or misstated income by paying additional tax within a prescribed period from the end of the relevant assessment year, promoting voluntary compliance and avoiding protracted departmental adjudication. Separately, the department will defer filing appeals in cases where the question of law is identical to one pending before the jurisdictional High Court or Supreme Court until that question is decided, reducing repetitive litigation. (AI Summary)

TDS on immovable property now applies on the higher of contract value or stamp duty value; threshold exemptions retained.
Transferees must deduct TDS at one per cent at the time of payment or credit, calculated on the higher of the consideration paid/credited to the transferor or the stamp duty value of the immovable property; no deduction is required where both the consideration and stamp duty value are less than fifty lakh rupees. (AI Summary)

GST reforms: procedural simplification and compliance measures to streamline returns and strengthen input tax credit controls.
Tax measures in Budget 2022-23 focus on simplifying administration and promoting voluntary compliance rather than broad taxpayer relief. GST-related legislative and procedural amendments are proposed to facilitate filing and strengthen compliance: rationalised return filing, cancellation of registrations of non-filers, removal of two-way communication in returns, conditional restrictions on input tax credit utilisation, transferability in electronic cash ledgers between distinct persons, extended rectification and credit/debit-note timelines, and an interest rule applying to wrongly availed input tax credit only upon utilisation (with effect from 1 July 2017). (AI Summary)

Tax exemption for COVID-19 medical and death payments: employer payments non-taxable; non-employer payments capped for family.
Proposed amendments exclude from taxable perquisites any employer payment for an employee's or family member's actual COVID 19 medical expenditure and provide that sums received for COVID 19 medical expenses or ex gratia death payments to family members (employer payments without limit; payments from others subject to an aggregate cap and timing/notification conditions) shall not be treated as income received without consideration. "Family" is aligned to the existing statutory explanation and the changes operate retrospectively from 1 April 2020. (AI Summary)

Interest on TDS and TCS defaults now payable per assessing officer order, clarifying computation and taxpayer liability.
Amendments provide that where the Assessing Officer makes an order for default in deduction under section 201(1) or for default in collection under section 206C(6A), the interest payable for failure to deduct/collect or to pay the deducted/collected amount shall be as determined by that Assessing Officer's order, clarifying computation and tying liability to the AO's determination. (AI Summary)

Taxation of digital assets and gifts proposed, with withholding, limited deductions, surcharge measures and a return correction window.
Proposals establish taxation of digital asset transfers and gifts with withholding at source, limit deductions to cost of acquisition and disallow set off of other losses, impose a surcharge on long term capital gains, restrict business deductions for cess or surcharge, and permit filing of corrected returns within a prescribed window; related measures include adjustments to cooperative society tax parameters, employer pension contribution limits, and the introduction of a digital rupee alongside banking and insolvency reforms. (AI Summary)

Minimum Alternate Tax reduction for cooperatives leads to lower tax burden and extended window for filing updated returns.
Budget 2022-23 reduces Minimum Alternate Tax for cooperative societies, extends start up tax incentives by one year, lowers the concessional corporate tax rate, prescribes a rate for long term capital gains, and imposes a standalone tax on transfers of specified digital assets permitting only cost of acquisition as a deduction. (AI Summary)

Reclassification beyond the show-cause notice invalid; classification-based valuation enhancement unsustainable without specific notice and evidence.
Reclassification and resulting valuation enhancement are unsustainable where the altered tariff headings were not specified in the show cause notice; adjudicating authorities must confine determinations to matters raised in the notice and independently apply relevant tariff chapter notes rather than rely solely on Textile Committee advice. Liability and penalties remain payable for undeclared goods discovered on examination. (AI Summary)

Income tax notice under Section 148 blocked after approval of IBC resolution plan; post plan tax claims not maintainable.
Income-tax notices under Section 148 cannot be issued against a corporate debtor in respect of claims once a resolution plan under the IBC has been approved and made effective; tax liabilities qualifying as operational creditor claims must be addressed through the insolvency process and not by post plan notice issuance. The court found that the tax authority failed to justify why the claim was not raised before the resolution professional or adjudicating authority and held the post plan notice to be without jurisdiction, quashing the notice and recognising Article 226 maintainability where proceedings are wholly without jurisdiction. (AI Summary)

Input tax credit eligibility limited to invoices reported by suppliers in GSTR 1/IFF that appear in GSTR 2B, requiring invoice wise matching.
Only invoices or debit notes the supplier has furnished in GSTR 1 or IFF and which appear in GSTR 2B may be claimed as input tax credit; the test is document wise matching against GSTR 2B, not aggregate reconciliation. Certain categories (imports, import of services, ISD credits, supplies from unregistered persons) are excluded from this restriction. Taxpayers should maintain invoice level reconciliation, park non matched credits in a Deferred/Unreconciled ITC account and enforce vendor filing and contractual indemnities to preserve ITC. (AI Summary)

Parallel criminal and adjudicatory proceedings under customs law may proceed concurrently absent clear prejudice to the accused.
The Customs Act allows concurrent administrative adjudication and criminal prosecution for specified customs offences, with criminal sanctions for knowing mis declaration, fraudulent evasion, dealing in confiscatable goods, fraudulent drawback claims, and use of fraudulently obtained instruments. Procedural fairness in adjudication mandates service of show cause notices, disclosure of documents relied upon, and opportunity for cross examination. Absent a statutory prohibition or clear demonstration of prejudice, parallel adjudication and criminal proceedings may proceed simultaneously; suspension of adjudication requires special and adequate reasons. (AI Summary)

Restriction on electronic credit ledger must end after one year if assessee cooperates and provides documents.
Power to retain a provisional attachment and restrictions on the Electronic Credit Ledger and bank accounts beyond one year is limited where the assessee cooperates and furnishes relevant documents; statutory provisions provide that such provisional measures cease after one year unless validly re engaged, and authorities must demonstrate ongoing justification to continue restraints. (AI Summary)

Cooperative tax administration urged to reduce litigation and restore taxpayer trust after recent budget measures.
The article advocates sustaining paperless budget practices and wider IT-enabled reforms to lower tax collection costs, urging adoption of Cooperative Tax Administration that treats taxpayers with dignity and reduces avoidable proceedings and litigation. It criticises certain 2022 Budget measures for limited corrected-return opportunities and for introducing amendments with retrospective effect and expanded presumptions about taxpayers, arguing these undermine trust and goodwill between tax authorities and taxpayers. (AI Summary)

Refund of Unutilised Input Tax Credit: authority directed to decide claim after considering taxpayer's reply and new grounds.
The High Court declined to examine the constitutional challenge to the CGST refund provisions, noted Supreme Court precedent upholding those provisions, and directed the Assistant Commissioner to decide the petitioner's refund claim after considering the petitioner's reply to the show cause notice. The Court also permitted the petitioner to file additional grounds in support of the refund claim within a short timeframe before the final order is passed. (AI Summary)

Multiple adjudication orders for overlapping GST periods quashed; fresh single adjudication ordered after opportunity to be heard.
Overlapping and duplicate show cause notices resulting in multiple adjudication orders for the same GST assessment period were quashed; the matter was remitted to the competent adjudicating officer to pass a single fresh adjudication covering the full period after affording the taxpayer a reasonable opportunity to file replies and be heard, and prior ex parte determinations tied to overlapping notices were set aside. (AI Summary)

Revenue expenditure: promotional and advertising costs treated as revenue where no evidence showed creation of an intangible asset.
Promotional, advertising and publicity expenses for the Snapdeal brand were treated as revenue expenditure because the Assessing Officer failed to produce evidence that these payments created a separable intangible asset; ad hoc percentage capitalisation was unsupported and could not override the absence of proof that specific expenditures gave rise to a capital asset. (AI Summary)

e-way bill expiry does not justify suppression allegation by a tax officer when e-invoice and prior verification exist
Expiry of an e-way bill alone does not establish suppression where goods are accompanied by an e-invoice and the movement was pre-notified to authorities. The portal's extension mechanism is limited and available only to the e-way bill issuer within prescribed time windows; duplicate e-way bills for the same invoice and GSTIN are not permitted. Prior verification by a tax officer that allowed onward movement reduces the tenability of later suppression allegations based solely on lapse of validity. (AI Summary)

Advisory jurisdiction limited: tax authorities cannot demand GST payments without statutory notice and determination.
Proper officers lack advisory jurisdiction to demand payment of tax, interest or penalty before a statutory determination of liability; while a taxpayer may voluntarily pay tax with interest and a limited penalty on self-ascertainment or provisional assessment, departmental advisories or interim intimations during an ongoing investigation do not substitute for the formal show cause notice and determination procedure, and payments extracted absent that procedure may be recoverable. (AI Summary)