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Case Laws GST
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School affiliation services fall outside educational exemption without a direct nexus to admissions or examination conduct.
Consolidated show cause notices may combine financial years governed by Sections 73 and 74 where liabilities are segregated period-wise, each component independently meets limitation and notice requirements, the additional ingredients for fraud-based proceedings are satisfied, and no actual prejudice arises. School affiliation and affiliation-form processing charges are independent taxable supplies where they concern institutional eligibility and compliance, rather than directly and immediately relating to student admission or the conduct of examinations. A broad connection with education does not satisfy the educational-services exemption.
Case Laws GST
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Fraudulent input tax credit requires proof of fictitious supplies, absent goods receipt, and fraud-linked self-assessment, not cancellation alone.
Input tax credit from allegedly non-existent suppliers depends on proof of genuine supply and actual receipt of goods or services, not merely invoices, accounting entries, or banking-channel payments. Section 155 places the burden of establishing ITC eligibility on the claimant. Section 74 requires more than ineligible credit: the wrongful availment must be linked to fraud, wilful misstatement, or suppression to evade tax. Retrospective supplier-registration cancellation is relevant evidence but is not conclusive. A fraud-based notice must disclose facts showing fictitious suppliers, absence of supply, and a basis for inferring the recipient's knowledge or participation.
Case Laws Money Laundering
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Prolonged pre-trial incarceration may justify conditional PMLA bail when delayed trials make continued detention constitutionally disproportionate.
Section 45 of the Prevention of Money-Laundering Act remains the stringent ordinary bail threshold, requiring prosecutorial opportunity and, on opposition, reasonable grounds to believe that the accused is not guilty and unlikely to offend while on bail. Article 21 nevertheless requires a separate, fact-sensitive inquiry where prolonged pre-trial detention and an unrealistic trial timetable make custody disproportionate. Relevant factors include custody length, trial progress, remaining witnesses, secured documentary evidence, source of delay, predicate-case status, and risks of absconding or witness interference. Conditions such as passport surrender, attendance, non-contact directions, and residence disclosure may safeguard the trial.
Case Laws Income Tax
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Prospective operation of stamp-value taxation prevents retrospective application where property agreements and substantial payments predate the charging provision.
Section 56(2)(x)(b) applies to immovable property received for inadequate consideration only where its temporal and valuation conditions are satisfied. A stamp-value difference alone does not establish taxability. Where consideration was fixed and substantial payments or contractual performance occurred before the charging provision commenced, later conveyance or registration does not by itself attract the later charge. Agreement-date valuation is available only for covered transactions where consideration was fixed and paid, wholly or partly, through prescribed banking or electronic modes on or before the agreement date. The tax authority must identify the correct statutory basis and provide a meaningful opportunity to respond.
Case Laws GST
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GST cash seizure limits require statutory relevance and restitutionary interest for unlawfully retained currency following searches.
GST seizure powers cannot be used to take cash as a general investigative measure or security for a possible tax demand. Currency is excluded from goods, and "things" is confined contextually to articles useful or relevant as evidence in GST proceedings. Valid seizure and retention require recorded statutory reasons, procedural compliance and observance of return timelines. Unauthorised retention engages property protections; later return does not cure the deprivation, and accrued interest is restitutionary rather than delayed-refund interest.
Case Laws Income Tax
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Salary expense genuineness requires proof of actual services, business purpose, and fair testing of adverse third-party statements.
Under Section 37(1), salary expenditure is deductible only where it is actually incurred wholly and exclusively for business purposes and is supported by proof of genuine employment, services rendered, business nexus, and payment. Bank transfers and accounting entries alone are not conclusive. Where a third-party statement is central to an allegation of non-genuine salary, the taxpayer should receive disclosure and a meaningful opportunity to rebut it, including cross-examination where appropriate. A retracted and uncorroborated statement is vulnerable as the sole basis for disallowance.
Case Laws Income Tax
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Discounted cash flow valuation remains taxpayer-selected under prescribed rules, while tax scrutiny must identify specific valuation-date defects.
The taxpayer may elect a prescribed DCF valuation for unquoted equity shares, and scrutiny of that method does not permit substitution with Net Asset Value merely because it produces a lower fair market value. The Assessing Officer may examine projections, discount rates, terminal assumptions, computations and source data, but rejection requires demonstrably wrong facts, material errors, a wholly erroneous basis or objectively unsupported assumptions. Subsequent financial performance cannot alone invalidate a bona fide DCF valuation; the relevant inquiry remains the reasonableness of valuation-date information.
Case Laws GST
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Excess IGST on exports remains refundable when later correction triggers automated refund and reconciliation proves duplicate payment.
Refund of excess IGST paid on zero-rated exports may arise where turnover and tax are mistakenly entered under non-zero-rated supplies in FORM GSTR-3B while export invoices and shipping bills are correctly reported in FORM GSTR-1. If the exporter then pays the same IGST in the correct zero-rated field and the automated refund is credited against that later payment, the earlier payment remains a separately identifiable potential excess; its claim is not a repeat request for the same export-tax refund.
Case Laws GST
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GST registration revocation requires timely application, return compliance, payment of dues, and a reasoned statutory decision.
GST registration revocation after cancellation for return default is a conditional, time-bound process. An application under Section 30 and Rule 23 must ordinarily be filed within ninety days, subject to prescribed extension, and cannot be made until pending returns are filed and tax, interest, penalty and late fee are paid. Portal non-acceptance may permit online or physical submission where technically unavailable, but does not condone delay or ensure revocation. The competent authority must assess statutory eligibility, sufficient grounds and compliance while following notice and hearing requirements before rejection.
Case Laws Income Tax
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Reassessment limitation under TOLA requires final notices to issue within surviving time and satisfy statutory safeguards.
Reassessment limitation under TOLA is a jurisdictional restraint. Transitional notices issued between 1 April 2021 and 30 June 2021 are treated as Section 148A(b) show-cause notices, but only the surviving time remaining until 30 June 2021 is available for completing the reassessment process. Periods for supply of material and the assessee's response are excluded, but the Section 148A(d) decision, statutory approval and final Section 148 notice must issue within the remaining period. For Assessment Year 2015-16, post-1 April 2021 notices are treated as time-barred.
Case Laws Customs
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Unseized food consignments cannot face indefinite detention without lawful seizure, valid sampling, and prompt assessment.
Provisional release of an unseized imported food consignment is not mechanically governed by Section 110A, which applies to goods seized under Section 110. Customs may examine, test, verify and reassess imports, but indefinite retention without a seizure memorandum or disclosed reasons connecting the goods with confiscation is not justified. Food sampling should follow the specialised food-safety process through an authorised officer. A valid food-safety report may support conditional clearance, while classification, duty liability, confiscation and adjudication remain open. Revenue may be protected through proportionate security.
Case Laws Customs
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Anti-dumping duty recovery permits post-clearance demands and consequential import IGST where self-assessment omitted an applicable levy.
Unpaid anti-dumping duty omitted during self-assessment may be pursued through the customs recovery procedure without prior appellate modification of the self-assessment. The recovery framework applies to anti-dumping duty through statutory incorporation of provisions concerning assessment, non-levy, short-levy, interest and recovery. Where anti-dumping duty is chargeable, it forms part of the aggregate value used to compute IGST on imports, potentially creating a consequential IGST short-payment. Recovery requires accurate assessment of notification coverage, product, origin, rate, valuation, limitation and procedural safeguards.
Case Laws GST
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Project-wise anti-profiteering requires actual input tax credit measurement and area-based allocation of benefits to real-estate purchasers.
Real-estate anti-profiteering under Section 171 requires project-level identification of additional input tax credit and allocation of the saving across total project area on a per-square-foot basis. Purchase value may quantify credit attributable to project expenditure, but turnover or collections cannot serve as the allocation basis. The comparison must use pre-GST credit actually availed rather than merely available credit. GST collected on consideration inflated by an undistributed benefit forms part of the amount not passed on and remains distinct from statutory interest.
Case Laws Income Tax
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Retirement leave encashment exemption applies under the enhanced notified ceiling while preserving non-government employee classification and statutory conditions.
Section 10(10AA)(ii) governs retirement leave-encashment exemption for non-Government employees, subject to the ten-month earned-leave measure, average-salary computation, and the notified monetary ceiling. Notification No. 31/2023 specifies an enhanced ceiling of Rs. 25,00,000, is deemed effective from 1 April 2023, and certifies that retrospective effect causes no adverse effect. The enhanced ceiling is treated as a remedial rationalisation of an existing exemption and may govern pending earlier-period matters, while preserving the distinction between Government and non-Government employees.
Case Laws GST
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Transit GST jurisdiction limits detention penalties for documented inter-State supplies lacking a local taxable nexus.
Transit-State jurisdiction under GST permits interception, document production, e-way bill verification and authorised physical inspection of goods moving through an intermediate State. It does not, in a pure transit movement, support detention-related penalty for an external inter-State supply where origin and destination lie outside the intercepting State, no tax is payable there, and there is no evidence of diversion, local supply, fictitious or mismatched documents, or mismatch of goods. Cross-empowerment is administrative and does not create an independent territorial taxable nexus.
Case Laws SEBI
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Shareholder ratification cannot cure preferential-issue fund diversion when disclosed objectives are abandoned, triggering securities-market fraud and disclosure concerns.
Post-facto shareholder approval cannot retrospectively validate diversion of preferential-issue proceeds contrary to issue-specific objects disclosed to shareholders and the market. A special resolution authorises the issue but does not permit unrestricted use of proceeds. Periodic deviation reporting, audit-committee review and utilisation disclosures promote transparency; they do not enable diversion followed by later regularisation. Immediate diversion, inadequate commercial justification and missing documentation may indicate that disclosed objects were not genuinely intended to be performed. Later amendment of corporate objects or shareholder ratification cannot cure a completed securities-market disclosure breach.
Case Laws Income Tax
Show AI Summary
Cross-border software payments require copyright-right, technical-service, and permanent-establishment analysis before withholding obligations are determined under applicable treaties.
Section 195 requires withholding only from a remittance to a non-resident that includes income chargeable in India. For software, royalty depends on transfer of copyright rights, not merely the right to install, access, use, or distribute a copyrighted article under restrictive terms. Where a DTAA is more beneficial, its royalty and FTS definitions control; treaty FTS may require technology to be made available. Amounts that are neither royalty nor FTS require consideration as business profits, ordinarily taxable only where profits are attributable to a permanent establishment. Composite payments require component-wise allocation and analysis.
Case Laws GST
Show AI Summary
Personal GST penalty requires proof that the beneficiary retained benefit and directed a covered invoice or credit transaction.
Section 122(1A) may impose personal GST penalty on a registered or unregistered person only for a covered invoice or input tax credit transaction. Liability requires cumulative proof that the individual retained an identifiable personal benefit and that the transaction was conducted at that person's instance. Directorship, employment, registration, signature authority, or association with the taxable entity neither independently establishes nor excludes liability. Proceedings require transaction-specific and person-specific allegations and findings. The provision operates prospectively for underlying acts or transactions occurring on or after 01.01.2021.
Case Laws IBC
Show AI Summary
Proof of tenancy rights governs insolvency recovery of corporate-debtor premises from occupants lacking enforceable possessory interests.
Where premises form part of the corporate debtor's assets, Sections 18 and 25 of the Insolvency and Bankruptcy Code, 2016 require the resolution professional to take custody, control, preservation and protection measures. An occupant resisting recovery must prove a subsisting tenancy, leasehold interest or enforceable licence through reliable evidence of the parties' intended relationship and its essential terms. Permission to stock goods or conduct limited business activity, prolonged occupation, and business or utility records do not independently create rights in the premises. Section 60(5)(c) supports insolvency jurisdiction over asset-recovery measures connected with the insolvency estate.
Case Laws GST
Show AI Summary
GST portal service requires statutory validity and practical accessibility before ex parte adjudication can fairly proceed.
GST portal service is a statutory method under Section 169, but its use in an ex parte demand proceeding depends on effective accessibility and a meaningful opportunity to reply and be heard. Rule 142 requires electronic DRC-01 and DRC-07 summaries to operate alongside the underlying show-cause notice and reasoned order. Portal placement, complete communication, e-mail transmission, technical reliability and proof of actual access may determine whether service is effective, whether waiver applies, and whether appellate limitation begins.

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Comparison of section 375 "Procedure when assessee claims identical question of law is pending before High Court or Supreme Court." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

13 September, 2025

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Section 375 Procedure when assessee claims identical question of law is pending before High Court or Supreme Court.

Income-tax Act, 2025

At a Glance

Clause 375 of the Income Tax Bill, 2025 (Old Version) prescribes a procedure permitting an assessee to declare that a question of law arising in one tax-year is identical to a question pending before a High Court or the Supreme Court in another tax-year; if accepted, the Assessing Officer or appellate authority may apply the eventual decision in the pending matter and the assessee waives raising that question on further appeal. This measure is aimed at avoiding repetitive appeals and conserving adjudicatory resources; it affects taxpayers, revenue officers and appellate authorities. Effective date: Not stated in the document.

Background & Scope

Statutory hooks: Clause 375 sits within Part B - "Special provisions for avoiding repetitive appeals" - of the Income Tax Bill, 2025. It interacts expressly with certain provisions of the Income-tax Act, 1961 by reference to sections governing appeals and references to High Courts and the Supreme Court (sections 256, 260A, 257, 261 of the 1961 Act) and with proposed domestic appellate provisions (sections 365, 367 of the Bill). The clause covers situations in which an assessee contends that a "question of law" in a pending proceeding for one tax year (the relevant case) is identical to a question pending in another tax year (the other case), and where the other case is pending before the High Court or Supreme Court under specified routes. Definitions provided within the clause include "appellate authority", "case" and "subsequent appeal before a higher forum".

Statutory Provision Mode

Text & Scope

Clause 375 applies "Irrespective of anything contained in this Act" - signalling an overriding, special-procedure character. Key elements/ingredients:

  • An assessee must claim that (a) a question of law in his case for a tax year (referred to as the relevant case) is identical with a question of law in his case for another tax year (the other case); and (b) that question of law in the other case is pending before specified fora: High Court (reference under s.256 or appeal under s.260A of the Income-tax Act, 1961), Supreme Court (reference under s.257 or appeal under s.261 of the 1961 Act), High Court on appeal u/s 365, Supreme Court on appeal u/s 367, or in a Special Leave Petition under Article 136 against the order of the Appellate Tribunal or jurisdictional High Court.
  • The assessee may furnish a declaration to the Assessing Officer or the appellate authority, "in such form and manner, as prescribed", undertaking that if the authority applies the final decision in the other case to the relevant case, the assessee will not raise the question of law in any appeal or subsequent appeal before a higher forum.
  • Where a declaration is furnished to an appellate authority, that authority must call for a report from the Assessing Officer on the correctness of the assessee's claim and must allow the Assessing Officer an opportunity to be heard if requested.
  • The Assessing Officer or the appellate authority may admit or reject the claim by a written order; such order is final and not subject to appeal or revision.
  • If admitted, the authority may dispose of the relevant case without awaiting the final decision in the other case; when the decision in the other case becomes final, it shall be applied to the relevant case and the earlier order amended if necessary.
  • Definitions: "appellate authority" means Joint Commissioner (Appeals), Commissioner (Appeals) or the Appellate Tribunal; "case" covers proceedings for assessment of total income or imposition of penalty/fine; "subsequent appeal before a higher forum" is defined as the specified appeals u/ss 365/367 or SLP under Article 136.

Interpretation

The clause frames an administrative mechanism to prevent multiplicity of litigation by enabling the parties and revenue authorities to treat a pending higher-court decision as determinative for materially identical legal questions across tax years. The overriding phrase "Irrespective of anything contained in this Act" signals that the procedure is to be applied even if other procedural provisions might suggest otherwise. Interpretation is directed by the clause's objective language: identity of the question of law between tax years and the pendency of the other case before the enumerated higher fora are threshold requirements. The clause mandates a report and hearing where the declaration is made to an appellate authority; this denotes procedural safeguards and invites a fact-sensitive assessment by the Assessing Officer/appellate authority regarding identity and correctness of the claim.

Exceptions/Provisos

No express exceptions or provisos beyond the admission/rejection mechanism are included. The clause contemplates finality of the order under sub-section (3) - "shall be final and shall not be called in question in any proceeding by way of appeal or revision under this Act." There is no textual carve-out for interests of third parties, no express time-limit for filing the declaration, and no express provision about consequences where the other case's decision is adverse to the assessee (beyond the amendment power in sub-section (6)).

Illustrations

  • Example 1: A assesses for AY 2023-24 has a legal question on the taxability of a particular transaction. The same legal question in relation to AY 2020-21 is pending as a reference before the High Court under s.256 of the 1961 Act. A furnishes the declaration to the Commissioner (Appeals); if accepted, the Commissioner may dispose of A's AY 2023-24 proceedings consistent with the eventual High Court decision and A agrees not to raise that question in appeal. (Based solely on clause text.)
  • Example 2: B has a penalty proceeding in the Assessing Officer for AY 2021-22 and a substantially identical legal question is the subject of a Special Leave Petition pending in the Supreme Court against the Tribunal's order for AY 2019-20. B files the declaration with the AO; if admitted, the AO can dispose of AY 2021-22 and later amend the order when the Supreme Court's decision in the other case becomes final. (Based solely on clause text.)

Interplay

Clause 375 expressly cross-refers to provisions of the Income-tax Act, 1961 (sections 256/260A/257/261) and to appellate sections within the Bill (ss.365/367) as loci where the "other case" may be pending. The clause anticipates application of an eventual final decision across tax years by mandating amendment of earlier orders "in conformity" with the final decision. The clause does not reference rules or notifications for procedural particulars beyond the delegated power to prescribe form and manner; detailed forms, time limits and formats are left to subordinate legislation ("as prescribed").

Differences Between the Two Provisions and Practical Impact

Comparison of Clause 375 of the Income Tax Bill, 2025 (Old Version) with Section 375 of the Income-tax Act, 2025) shows only minor drafting and stylistic differences; no substantive change in legal effect is discernible from the texts provided.

  • Prescriptive language: The Bill (Clause 375(1)) uses "in such form and manner, as prescribed," whereas the enacted Section 375 uses "in such form and manner, as may be prescribed."
    • Practical impact: purely stylistic; the enacted version makes explicit the usual delegated-legislation formulation but produces no material change in procedure.
  • References to internal cross-references: The Bill refers to "such case being hereafter in this section referred to as the relevant case" and "such case being hereafter in this section referred to as the other case." The enacted section uses "such case being herein referred to as the relevant case" and "such case being the other case."
    • Practical impact: terminological only; no substantive effect on scope or application.
  • Sub-section wording: Clause 375(3)(b) in the Bill states "reject the claim if not so satisfied." The Act states "reject the claim if he or it is not so satisfied."
    • Practical impact: no legal difference - merely clarifies the subject (he or it) - no change to the decision-making power.
  • Heading of definitions: Clause 375(7) begins "In this section,-" while Section 375(7) begins "For the purposes of this section,-".
    • Practical impact: drafting variation only.

Overall practical impact: The differences are textual and stylistic; they do not alter the substantive procedure, the rights or obligations of the assessee, or the powers of the Assessing Officer/appellate authorities as laid down in the Bill. The functional effect - enabling an assessee to furnish a declaration seeking application of a pending higher-court decision in another tax year and thereby avoid repetitive appeals - remains the same.

Practical Implications

  • Compliance and risk areas: Taxpayers can strategically elect to trigger the clause by furnishing the prescribed declaration, but must ensure the question of law is truly identical across years - the clause requires an assessment of "identity", and mischaracterisation risks rejection. The finality of an order under sub-section (3) limits appellate challenges to the admission/rejection decision: that exclusion of review creates risk if the authority admits or rejects incorrectly; however the clause makes that decision unappealable under the Act.
  • Record-keeping/evidence: The clause mandates a report from the Assessing Officer where a declaration is submitted to an appellate authority - implying the need for contemporaneous records documenting the identical nature of the legal question, pleadings/orders in the "other case", and timelines. Taxpayers should preserve correspondence and orders establishing pendency of the other case before the specified higher courts. (Procedural specifics such as timelines/forms are Not stated in the document.)

Key Takeaways

  • Clause 375 provides an administrative mechanism to avoid repetitive appeals by allowing an assessee to bind himself not to raise an identical question of law if the authority agrees to apply the outcome of a pending higher-court case in another tax year.
  • Admission of the claim requires the Assessing Officer or appellate authority to be satisfied of identity; that admission/rejection is final and not subject to appeal or revision under the Act.
  • Where admitted, the authority may dispose of the relevant case without awaiting the higher-court decision; once the other case becomes final, the earlier order shall be amended in conformity.
  • Definitions confine the mechanism to proceedings relating to assessment of total income or imposition of penalty/fine and to specified appellate fora.
  • The clause leaves procedural particulars (forms, manner, timelines) to delegated prescription - those details are Not stated in the document.
  • No express carve-outs for third-party interests or explicit guidance on consequences where the higher court decision is adverse are provided beyond the amendment power.

Full Text:

Section 375 Procedure when assessee claims identical question of law is pending before High Court or Supreme Court.

Topics

Acts Income Tax