Reopening of assessment cannot rest solely on an audit party's opinion; reassessment under Section 147/148 is impermissible and power of revision shou...
Tested party selection: functional analysis identified the least complex unit as the appropriate tested party, altering the transfer pricing adjustmen...
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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