The Court declined to entertain the writ petition challenging a GST demand linked to suspected fraudulent ITC transactions. It held that factual disputes must be resolved through the appellate remedy under Section 107. The petitioner was directed to file an appeal with the required pre-deposit.
The Court held that with investigation complete and evidence being documentary, continued custody was unnecessary. Bail was granted as the offences were triable by a Magistrate and carried a maximum sentence of five years.
The Court held that penalty under Section 48(5) cannot be imposed based solely on suspicion without proof that the transaction was omitted from books. The order was set aside due to lack of evidence of intent to evade tax.
Since the 14A disallowance was already struck down on the ground that no exempt income was earned, the Tribunal held that penalty under section 270A had no legal basis. It ruled that penalty cannot survive once the underlying quantum addition ceases to exist. The key takeaway is that penalty collapses automatically when its foundation is eliminated.
ITAT Chandigarh ruled that income and valuation additions based solely on third-party digital data or statements cannot be made without corroboration from the assessee’s records, leading to deletion of disputed amounts.
The Tribunal upheld the deletion of ₹5.85 crore addition under Section 40A(3), confirming that payments to meat producers under Rule 6DD(e)(ii) are exempt.
ITAT Kolkata held that an employee cannot be denied TDS credit if the employer fails to deposit deducted tax. Once TDS is deducted from salary, it is deemed paid, and the employee’s liability does not arise. The Tribunal directed full TDS credit and deletion of the demand.
The Tribunal reinstated the entire disallowance after finding the purchases completely non-genuine. It held that estimation theory cannot apply where transactions are proven to be sham.
The Court held that interest and penalty cannot be imposed when not proposed in the show cause notice, setting aside the assessment and attachment orders.
Tribunal dismisses AO’s addition after assessing evidence, books of accounts, VAT returns, and confirmed ledgers, confirming the transactions’ authenticity.
