Madras High Court held that capital profit on the sale of the Fixed Assets of the Company cannot be taken directly to the Reserves & Surplus in the Balance Sheet and the same has to be routed through the Profit & Loss Account to arrive at the correct book profits u/s. 115JB of the Income Tax Act. Accordingly, the appeal stands dismissed.
The court held that the revised 18% GST rate is applicable, but deferred recovery of the 6% differential tax as reimbursement from government authorities was pending.
The case examined whether purchase tax liability could be enforced when system defects prevented payment. The court held that software issues causing revenue-neutral outcomes made the demand unsustainable.
The Court held that failure to upload the DRC-07 summary affects appellate rights. Recovery proceedings were stayed until compliance is completed.
The ruling clarifies that an annual return is incomplete without the reconciliation statement where required. Late filing of GSTR-9C was treated as delayed filing of the return itself, justifying penalty under GST law.
The Court held that two assessment orders for the same discrepancies and tax period cannot coexist. It quashed one order and allowed proceedings under the other to continue.
Madras High Court held that section 76 of the Central Goods and Services Tax Act, 2017 are not applicable since GST component is already remitted by GAIL [transmission vertical]. Accordingly, provisions of section 76 of CGST cannot be invoked. Hence, present petition is allowed.
The court held that issuing a single show cause notice for multiple financial years violates GST law. It ruled such “bunching” is impermissible and directed fresh year-wise notices.
The case involved denial of exemption on petroleum-based turnover due to missing evidence. The Court held that the matter should be reconsidered after giving the assessee an opportunity to submit supporting documents.
The issue was rejection of an appeal filed beyond the condonable period under GST law. The Court allowed reconsideration due to a minor nine-day delay supported by valid reasons.
