Penalty for non-deduction of tax on rent paid to a Government company - reasonable cause - Penalty for non-collection of tax on construction scrap - reasonable cause Penalty for non-deduction of tax on rent paid to a Government company - reasonable cause - Penalty for failure to deduct tax from rent paid to a Government company despite a bona fide belief that the payment was exempt from tax deduction at source - HELD THAT: - The payee was substantially owned by the Government and was regarded... ... ...

Foreign tax credit denied - delayed filing of Form No. 67 - HELD THAT: - Following Real Time Data Services (P.) Ltd. [2026 (2) TMI 1060 - DELHI HIGH COURT] Tribunal held that a technical or venial breach in not furnishing Form No. 67 within the prescribed time cannot result in denial of the substantive claim for foreign tax credit. Since Form No. 67 had subsequently been furnished, the claim was required to be considered after verification of the relevant facts and documents. [Paras 6] The de... ... ...

Accumulation of charitable income - statutory 15 per cent retention - Accumulation of charitable income - Form No. 10 and extended return-filing due date - Charitable exemption - delayed furnishing of audit report Statutory 15 per cent accumulation of charitable income - Allowability of statutory accumulation of 15 per cent of income by an educational trust claiming charitable exemption - HELD THAT: - Accumulation permissible under section 11(1)(a) is distinct from the accumulation contemplat... ... ...

Peak credit theory for recycled cash deposits - Applicability of enhanced tax rate to unexplained money Peak credit theory for recycled cash deposits - Credit for explained opening cash balance and agricultural receipts - Addition for cash deposits repeatedly withdrawn and redeposited in the bank account - HELD THAT: - The bank statement and cash book showed that cash deposits were followed by self-withdrawals of similar amounts and subsequent redeposits, while aggregate debits and credits br... ... ...

TDS exemption for payments to transport contractors - Validity of declarations u/s 194C(6) - Form 26A certificates and assessee-in-default liability Declarations u/s 194C(6) - Mandatory particulars in transporters' declarations - Entitlement to non-deduction of tax on transport payments on the basis of declarations furnished by transport contractors - HELD THAT: - The format in the CBDT circular was prescribed to secure uniformity and was not mandatory by itself. However, particulars conc... ... ...

Penalty for concealment or furnishing inaccurate particulars - interest expenditure incurred for acquisition of land under an abandoned transaction was claimed as revenue expenditure HELD THAT: - The Tribunal held that, as no capital asset came into existence and the interest was incurred for the assessee's business, the interest expenditure was liable to be regarded as revenue expenditure. The principle recognised in Binani Cement Ltd. [2015 (3) TMI 849 - CALCUTTA HIGH COURT] supporte... ... ...

Valuation of closing stock - addition for undervaluation of closing stock, based on the difference between the assessee's stated net realisable value and the market realisable value - Concurrent findings of fact - Net realisable value unsupported by material - Principle of consistency HELD THAT: - The Court held that the assessee failed to establish the basis for adopting its claimed net realisable value. The Assessing Officer had adopted a realisable or market value lower than cost, and ... ... ...

Unverifiable purchases - Genuineness of purchases paid through crossed cheques - Disallowance of wages on mere presumption Unverifiable purchases - purchases paid through crossed cheques - Addition in respect of purchases from suppliers where the assessee produced purchase records, supplier details and banking documents, but the payments by crossed cheques were realised by third parties - HELD THAT: - The Tribunal restored the purchase addition without considering the material produced by the... ... ...

Revisionary jurisdiction for lack of enquiry - Difference of opinion on adequacy of enquiry - Exercise of revisionary jurisdiction in respect of assessments where the Assessing Officer had examined seized material, survey disclosures and the assessee's explanations HELD THAT: - The Assessing Officer had issued detailed notices, confronted the assessee with the seized documents and statements, considered the replies and consciously accepted the explanation. The revisionary authority procee... ... ...

Reassessment notice issued to deceased assessee - Reopening based solely on co-owner's valuation report Reassessment notice issued to deceased assessee - Legal representative's liability in reassessment - HELD THAT: - The assessee had died before the reassessment proceedings. A notice issued in the name of a dead person was invalid and the consequential order and reassessment notice were hit by section 159(2)(b) of the Act. [Paras 4] The reassessment notice and consequential order ... ... ...

Reassessment notice - Disclosure of material - Meaningful opportunity of hearing in reassessment Validity of reassessment proceedings alleging fictitious or accommodation transactions where the underlying dissemination reports and material particulars were not supplied to the assessee - HELD THAT: - A notice issued on information alleging escapement of income through fictitious or accommodation transactions must disclose the material particulars and incriminating material which prima facie co... ... ...

Capital gains - transfer of ancestral HUF land under joint development agreement - Concurrent findings of fact Long-term capital gains addition arising from agreements concerning ancestral HUF land - HELD THAT: - The finding that the documents, including the joint development agreement, did not evidence transfer of the capital asset was a factual finding supported by cogent reasons and material. The final partition decree showed that the land forming the subject of the joint development agree... ... ...

Director's liability for unrecovered company tax under section 179 - Recharacterisation of an unlisted public company as a private company - Reliance on undisclosed adverse material Recharacterisation of an unlisted public company as a private company - Lifting of corporate veil for director's tax liability - Invocation of section 179 against a director of an unlisted public company by treating it as a private company on the basis of concentrated shareholding - HELD THAT: - A company ... ... ...

Input tax credit claimed under incorrect tax heads - GSTR-2A and GSTR-3B mismatch Reversal of input tax credit claimed under CGST and SGST heads in GSTR-3B, where the appellant asserted that the corresponding credit was reflected under the IGST head in GSTR-2A - HELD THAT: - The First Appellate Authority had allowed the eligible IGST-related credit after examining the record, but sustained reversal of the remaining CGST and SGST credit. Tribunal found that reversal to be proper and held th... ... ...

Show cause notice as foundation of GST adjudication - Form GST DRC-01 as summary of show cause notice - Denial of opportunity to respond - Whether Form GST DRC-01, accompanied by a show cause notice addressed to another taxpayer, could substitute the statutory show cause notice required for initiation of demand proceedings? - HELD THAT: - Section 73(1) mandatorily requires service of a notice upon the person chargeable with tax, while Rule 142(1)(a) contemplates electronic service of Form GST... ... ...

Retrospective cancellation of GST registration without notice Whether GST registration could be cancelled retrospectively when the show cause notice did not propose or disclose retrospective cancellation? - HELD THAT: - The controversy was covered by the co-ordinate Bench decision relied upon by the petitioner M/s Bansal Casting, S.K. Enterprises and Another and M/s Shree Ram Industries [2026 (3) TMI 573 - PUNJAB AND HARYANA HIGH COURT] the applicability of which was not disputed by the reven... ... ...

Input tax credit - Claim denied for delayed filing of returns despite the extended time limit under Section 16(5). HELD THAT: - The returns for the relevant months had been filed within the cut-off date prescribed under Section 16(5). The denial of input tax credit on the basis of the time-limit under Section 16(4) could not therefore be sustained. [Paras 2] The order declining input tax credit was quashed, and the competent officer was directed to reconsider the claim and grant the benefi... ... ...

GST on school affiliation fees - Levy of GST on affiliation fees charged by a school affiliated with the Central Board of Secondary Education HELD THAT: - Accepting the respondents' submission that the nature and conditions of school affiliation with the Central Board of Secondary Education are pari materia with university affiliation, the Court applied Rajasthan Technical University vs. Union of India & Ors. [2026 (4) TMI 1641 - RAJASTHAN HIGH COURT] which governed the levy on such affil... ... ...

Input tax credit rectification application-executive time limit - Executive instructions vis-a -vis substantive statutory right Validity of rejection of a rectification application for availing input tax credit solely on the ground that it was filed beyond the six-month period prescribed by departmental circulars - HELD THAT: - Section 16(5) confers a substantive right to seek rectification for availing input tax credit and does not prescribe a period for making such application. The six-mont... ... ...

Restoration of cancelled GST registration subject to compliance conditions HELD THAT: - The Court accepted that the matter was covered by Tvl. Suguna Cutpiece Center Vs. Appellate Deputy Commissioner (ST) (GST) [2022 (2) TMI 933 - MADRAS HIGH COURT] and others and applied the conditions prescribed therein for revival of registration. [Paras 4] The cancellation order was set aside and the GST registration was directed to be restored, subject to the petitioner complying with the conditions i... ... ...