Allahabad High Court ruled that while authorities could verify documents during transit, absence of an e-Tax Invoice did not confer jurisdiction to impose penalties in a pure transit State. The Court directed release of goods and vehicles.
The Court directed the appellate authority to accept manual filing of Form GST APL-01 after the taxpayer could not upload the appeal electronically due to a technical glitch. Delay in filing was also condoned under the CGST Act.
The Supreme Court held that interest paid on borrowed funds was deductible under Section 36(1)(iii) because the loan was used for business purposes. The Court ruled that commercial expediency and composite business operations justified the deduction claim.
The Tribunal held that the reassessment notice issued on 26.07.2022 was beyond the permissible timeline under the surviving limitation principle and therefore lacked legal validity.
ITAT Mumbai held that the Commissioner of Income Tax (Exemptions) cannot impose independent or contingent conditions while granting registration under Section 12AB. The Tribunal ruled that tax benefits could not be kept subject to the outcome of a proposed Supreme Court appeal.
ITAT Mumbai held that reassessment proceedings initiated after scrutiny assessment were invalid because they relied on the same material already examined earlier. The Tribunal ruled that reassessment cannot be used to review a previously accepted claim.
The Tribunal observed that the assessee had repaid the unsecured loan along with interest after deducting TDS and the lender had offered interest income to tax. These facts supported the genuineness of the transaction and rendered the Section 68 addition unsustainable.
Mumbai ITAT held that no addition under Section 43CA could survive where difference between agreement value and DVO valuation remained within 10% tolerance band. Tribunal ruled that safe harbour benefit applies once DVO valuation substitutes stamp duty value.
The Finance Act, 2025 retrospectively amended Section 17(5)(d) of the CGST Act after the Supreme Court allowed ITC on certain commercial buildings under the functionality test. The amendment effectively reversed the earlier interpretation from July 2017.
The article explains the most common GST compliance errors leading to notices, ITC denial, and penalties in 2026. It also provides practical steps businesses can follow to reduce litigation risk.
