Condonation of Delay: directoral disputes and pending company proceedings can constitute reasonable cause, allowing a belated return to be treated as ...
Revisionary jurisdiction under section 263 upheld; faceless assessments subject to revision when AO fails requisite enquiries, remitted for fresh asse...
Limited scope of processing under section 143(1): enhancement without show cause is unsustainable; remand for residency, taxation and TDS verification...
Blocking of an electronic credit ledger under Rule 86A cannot continue beyond one year from the date of imposition, because the restriction ceases by operation of law on expiry of that statutory period. The Court held that continuation of the blockage after one year was arbitrary and illegal, and directed the ledger to be unblocked. It also held that blocking input tax credit in the electronic credit ledger carries serious civil consequences and ordinarily requires a pre-decisional hearing; in the absence of exceptional reasons, failure to grant such hearing violates natural justice. The impugned blocking was therefore unsustainable, though the department was left free to take proceedings permissible in law.
Blocking of an electronic credit ledger under Rule 86A cannot continue beyond one year from the date of imposition, because the restriction ceases by operation of law on expiry of that statutory period. The Court held that continuation of the blockage after one year was arbitrary and illegal, and directed the ledger to be unblocked. It also held that blocking input tax credit in the electronic credit ledger carries serious civil consequences and ordinarily requires a pre-decisional hearing; in the absence of exceptional reasons, failure to grant such hearing violates natural justice. The impugned blocking was therefore unsustainable, though the department was left free to take proceedings permissible in law.
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