This piece explains how automated GST and income tax reforms are reshaping taxpayer compliance. The key takeaway is that technology now closely monitors filings, making accuracy essential.
The Tribunal ruled that suspicion based on penny stock lists is insufficient to sustain additions. Revenue must prove real purchase and sale transactions through demat and banking records.
Upholding the CIT(A)s order, the Tribunal held that settled law bars additions made without factual verification. The case reinforces strict limits on arbitrary taxation of loan transactions.
The court held that Section 74 cannot be used unless fraud, wilful misstatement, or suppression with intent to evade tax is specifically alleged and proved. In the absence of these ingredients, the entire GST proceeding is without jurisdiction and must fail.
The Tribunal held that interest on income-tax refund is taxable in the year of receipt and qualifies for Section 80-IA deduction, regardless of the year to which the refund relates.
Authorities have clarified that compulsory service charges violate consumer law, reaffirming that tips must be voluntary and cannot be added by default to bills.
The Court set aside cancellation of GST registration after finding that it was based solely on an invalid field visit report without witnesses or proper procedure. The ruling emphasizes that unilateral inspections cannot justify cancellation.
The Court ruled that a wrong PIN code in the e-way bill, when the address is correct and documents are valid, cannot justify seizure. The key takeaway is that minor clerical errors do not trigger Section 129 proceedings.
The Tribunal held that where identical facts existed in earlier years, the addition for alleged bogus purchases must follow past precedent. It restricted the addition to 5 percent, applying the principle of consistency.
The issue was whether receipt of shares on amalgamation attracts tax when shares are held as stock-in-trade. The Court held such substitution can trigger business income under Section 28 if the shares are realisable, reinforcing the real income principle.
