Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
The principal issue was whether Section 6(2)(b) CGST permits parallel adjudication by Central and State authorities where proceedings overlap. Relying on the Apex Court's delineation of "initiation of proceedings," "subject-matter," and inter-authority relations, the court held that once one authority first initiates proceedings, subsequent parallel adjudicatory proceedings by the other are barred; investigative steps not amounting to adjudication may continue. Applying that rule, no further adjudication was permitted here; the petitioner was directed to appear before the Central authority and file its response to the show-cause notice by 31.01.2026, and the petition was disposed. - HC
The principal issue was whether Section 6(2)(b) CGST permits parallel adjudication by Central and State authorities where proceedings overlap. Relying on the Apex Court's delineation of "initiation of proceedings," "subject-matter," and inter-authority relations, the court held that once one authority first initiates proceedings, subsequent parallel adjudicatory proceedings by the other are barred; investigative steps not amounting to adjudication may continue. Applying that rule, no further adjudication was permitted here; the petitioner was directed to appear before the Central authority and file its response to the show-cause notice by 31.01.2026, and the petition was disposed. - HC
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