Tax
GST | Supreme Court Declines To Interfere With Delhi HC Refusal To Exercise Writ Jurisdiction In Fraudulent ITC Case
The Supreme Court has recently declined to interfere with a Delhi High Court order declining to entertain writ petitions challenging show cause notices alleging fraudulent availment of Input Tax Credit (ITC), holding that no good ground was made out for intervention under Article 136 of the Constitution. In an order dated January 30, 2026, a bench of Justice Manoj Misra and Justice Manmohan dismissed the special leave petitions arising from the Delhi High Court's judgment of December 5, 2025,...
PIL In Supreme Court Challenges Income Tax Law Allowing Search Of Digital Devices, Cloud Data
A public interest litigation has been filed before the Supreme Court challenging the constitutionality of provisions in the Income Tax Act, 2025 that empower tax authorities to conduct searches of “computer systems” and “virtual digital space”, including personal electronic devices, cloud servers, emails and private communications. The plea, filed under Article 32 of the Constitution by entrepreneur Vishwaprasad Alva, assails Section 247 of the Income Tax Act, 2025, as well as the corresponding...
Bombay High Court Sets Aside Composite GST Notice Against ICAD School
The Bombay High Court on Friday set aside a composite show cause notice spanning five financial years, issued to ICAD School of Learning Private Limited, a JEE and NEET coaching centre that offers hostel and mess facilities.On 6 February 2026, a Bench of Justice Anil L. Pansare and Justice Nivedita P. Mehta emphasised that consolidation defeats the statutory scheme of assessment and recovery for distinct financial years.Taking note of the GST framework, which mandates filing of returns with...
Supreme Court Issues Notice In Plea Challenging Punjab and Haryana HC Ruling Against AO Consulting Superiors Before IT Assessment
The Supreme Court on Monday issued notice on an appeal by the Income Tax Department against a Punjab and Haryana High Court judgment that held that an Assessing Officer abdicated his quasi-judicial function by repeatedly consulting superior officers before passing an assessment order. A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe issued notice on both the application seeking condonation of delay and the Special Leave Petition. The matter is listed next on March 16,...
Supreme Court Upholds Delhi High Court Ruling On Duty Drawback For Unlocked Mobile Phones
The Supreme Court has recently dismissed a Special Leave Petition filed by Customs, thereby letting stand a Delhi High Court ruling that unlocking or activating mobile phones prior to export does not disentitle exporters from claiming duty drawback. By an order dated January 30, 2026, a Bench of Justices J.B. Pardiwala and Joymalya Bagchi declined to interfere with the Delhi High Court's judgment, observing that it found “no good ground to interfere with the impugned order passed by the High...
Income Tax | Mere Disagreement On Facts With Assessing Officer No Ground to Invoke Writ Jurisdiction: Delhi High Court
The Delhi High Court has reiterated that its writ jurisdiction under Article 226 of the Constitution cannot be invoked merely because a taxpayer disputes the correctness of facts or the material relied upon by the Assessing Officer in reassessment proceedings under the Income Tax Act, 1961.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“A challenge to notice or proceedings can be considered normally, in case where the notice and proceedings are without jurisdiction. Simply...
Income Tax Act | Loan Repayment Within Two-Day Of Receipt Alone Doesn't Prove Bogus Transaction: Delhi High Court
The Delhi High Court has recently held that mere repayment of a loan within a short span of time, even within two days, does not by itself establish that the transaction was a sham or a bogus accommodation entry for the purposes of Section 68 of the Income Tax Act, 1961.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“Simply because the loan has been paid within two days, it cannot be said with certitude that the loan was not a genuine loan and was only a paper entry....
Bombay High Court Directs Mumbai Stamps Collector To Expedite Decision On Developer's Representation
The Bombay High Court has directed the Additional Collector of Stamps, Mumbai, to expeditiously decide a representation filed in 2022 by a Mumbai-based developer seeking reconsideration of the Ready Reckoner rates applicable to its residential project. A Division Bench of Justice M. S. Karnik and Justice S. M. Modak granted the Additional Collector twelve weeks from the date of communication of the order to hear the developer and decide the representation on merits. The Court also directed the...
S.148 Income Tax Act | Assessing Officer Not Required To Share Entire Record At Reassessment Notice Stage: Delhi High Court
The Delhi High Court has held that an Assessing Officer is not required to supply the entire material on record to an assessee at the stage of issuing a notice under Section 148A of the Income Tax Act ,1961 (re-assessment stage) observing that such a requirement would unnecessarily protract reassessment proceedings and enable assessees to manufacture defences.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“If it is held that every material has to be supplied to the assessee...
Wrong Attachment In Reassessment Email Does Not Invalidate Income Tax Notice: Delhi High Court
The Delhi High Court has held that an inadvertent attachment of another assessee's notice along with a reassessment email doesn't invalidate proceedings under Section 148 of the Income Tax Act, 1961, so long as the substance of the communication clearly indicates that the statutory notice was intended for the concerned assessee.A division bench of Justices Dinesh Mehta and Vinod Kumar thus dismissed the writ petition filed by an assessee challenging the continuation of reassessment proceedings...
S. 197 Income Tax Act| Delhi High Court Flags Date Mismatch Between Orders And Certificates Issued For Lower TDS, Asks CBDT To Address
The Delhi High Court has flagged an administrative issue in the processing of applications under Section 197 of the Income Tax Act, noting that a mismatch between the dates on orders and certificates issued for lower or nil tax deduction can create a misleading impression of delay. The court noted that while the certificate may be issued later, the order deciding the application often bears the date of filing of the application. A division bench of Justices Dinesh Mehta and Vinod Kumar...
GST Appeal Limitation Starts From Date Of Rejection Of Rectification Order: Gujarat High Court
Recently, the Gujarat High Court clarified that when a rectification application is filed, the limitation period for filing an appeal under Section 107 of the CGST Act runs from the date of disposal of the rectification application, not the original order. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi noted the delay in adjudication where a rectification application against an original order dated 12 August 2024 was filed on 5 November 2024, to be decided within...