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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
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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
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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 406 "Payment of advance tax by assessee on his own accord." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

15 September, 2025

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Section 406 Payment of advance tax by assessee on his own accord

Income-tax Act, 2025

At a Glance

The provided document is Clause 406 of the Income Tax Bill, 2025 (Old Version) setting out the assessee's obligation to pay advance tax on his own accord. It matters because it prescribes the manner, timing and flexibility for instalment payments of advance tax by taxpayers; it affects taxpayers who are liable to pay advance tax and tax administration insofar as enforcement and compliance monitoring are concerned. Effective date or enactment date: Not stated in the document.

Background & Scope

Statutory hooks: Clause 406 refers to other provisions within the same enactment-section 404 (liability to pay advance tax), section 405 (calculation of specified sum), and section 408 (due dates of instalments). The clause is part of a Bill titled "Income Tax Bill, 2025 - Old Version." The clause addresses advance payment of tax by an assessee on his own accord. Definitions provided: the clause expressly defines "specified sum" in sub-section (3) as "current income as estimated by the assessee." No further definitions or explanatory notes are included in the clause text itself.

Statutory Provision Mode

Text & Scope

Coverage: Clause 406 imposes a duty on every person liable to pay advance tax u/s 404 to pay advance tax on the "specified sum" (current income as estimated by the assessee) calculated as per section 405. This duty applies "whether or not he has been previously assessed by way of regular assessment." The advance tax is to be paid "at the appropriate percentage" and "on or before the due date of each instalment, as specified in section 408." Sub-section (2) permits the taxpayer who has paid one or more instalments to increase or reduce advance tax payable in remaining instalments to align with revised estimation of the specified sum and the tax thereon. Sub-section (3) defines "specified sum."

Interpretation

Legislative intent indicated by the text: The clause aims to place an affirmative, self-initiated obligation on taxpayers to estimate their current income and make graduated advance tax payments at prescribed percentages by prescribed instalment dates. The provision emphasises taxpayer self-assessment and flexibility to adjust subsequent instalments when estimates change. The language "on his own accord" underscores voluntary initiation by the assessee rather than assessment-triggered demands. No express guidance on sanctions, interest, or penalties for underpayment is provided in this clause-those matters are Not stated in the document.

Exceptions/Provisos

No provisos, carve-outs or exceptions are present in Clause 406 itself. It does not exempt any class of person, nor does it state thresholds, exclusions, or special regimes (for example, for salaried taxpayers, small taxpayers, or presumptive taxpayers). Any such exclusions are Not stated in the document and would need to be located in other parts of the Bill or Rules.

Illustrations

  • Example 1: An assessee estimates current income for the year and pays the first instalment of advance tax as required by section 408 dates. Later in the year the assessee revises the estimate upwards and increases the amount payable in remaining instalments to accord with the increased specified sum. (This follows sub-section (2).)
  • Example 2: An assessee pays an instalment but subsequently estimates lower current income and reduces the amount payable in remaining instalments accordingly. (Permitted by sub-section (2).)
  • Example 3: A person who has never been subject to regular assessment but is liable u/s 404 must nevertheless comply with sub-section (1) and pay advance tax on his estimated current income. (Direct application of the opening phrase of sub-section (1).)

Interplay

The clause expressly refers to sections 404, 405 and 408 for liability, method of calculation and instalment due dates respectively, indicating that full compliance requires reading Clause 406 in conjunction with those sections. The clause itself does not reference Rules, Notifications, or Circulars. Any interplay with interest provisions for default, determination of "appropriate percentage," or administrative procedure is Not stated in the document and therefore must be read from the other specified sections or secondary legislation.

Differences Between the Two Provisions and Practical Impact

  • Minor punctuation and word-order differences in sub-section (2):

    Document 1 reads: "may increase or reduce the amount of advance tax payable in the remaining instalment or instalments to accord with specified sum and the advance tax payable thereon, and make payment of the said tax in the remaining instalment or instalments accordingly." Document 2 reads: "may increase or reduce the amount of advance tax to accord with specified sum and the advance tax payable thereon, and make payment of the said tax in the remaining instalment or instalments, accordingly."

    Practical impact: Substantively identical-both permit reconciliation of future instalments to reflect the assessee's revised estimate of current income. The corrigendum note in Document 1 corrects a typographical duplication ("tax tax").

Practical Implications

  • Compliance and risk areas: Taxpayers who fall within the ambit of section 404 must proactively estimate current income and ensure instalment payments at the "appropriate percentage" by the due dates in section 408. The clause allows later adjustments, but initial non-payment or materially inaccurate estimation may trigger consequences under other provisions (interest/penalties), which are Not stated in the document.
  • Record-keeping/evidence points: Given the self-estimation requirement, taxpayers should maintain contemporaneous records and documentation supporting the estimate of current income (working papers, projections, assumptions). The clause itself does not mandate specific records or forms-those requirements are Not stated in the document.

Key Takeaways

  • Clause 406 mandates that every person liable u/s 404 must pay advance tax on the assessee's own estimate of current income ("specified sum").
  • Advance tax must be calculated per section 405 and remitted at the appropriate percentages by the installment due dates in section 408.
  • The provision expressly permits the taxpayer to increase or reduce remaining instalments to reflect revised estimates of income and tax during the year.
  • "Specified sum" is defined as current income as estimated by the assessee; no further elaboration of "current income" is provided in the clause.
  • The clause emphasises voluntary self-compliance ("on his own accord"); enforcement, consequences for default, and specific procedural requirements are Not stated in the document.
  • Differences between the Bill (Document 2) and the enacted Section (Document 1) are typographical and ordering changes; substantive obligations remain the same. A corrigendum in the enacted text corrects a typographical duplication.

Full Text:

Section 406 Payment of advance tax by assessee on his own accord

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Acts Income Tax