Section 74 Cannot Be Invoked by Merely Using the Words “Fraud” or “Suppression”: Supreme Court Lays Down Important Safeguards     Tata Steel Ltd. v. Union of India — Section 74 GST proceedings require foundational facts, not mere allegations Can the GST Department invoke the extended limitation period under Section 74 of the CGST Act…

Section 16(5): A Second Chance for Old GST Input Tax Credit Claims     GST | Input Tax Credit | Section 16(4) | Section 16(5) | FY 2017-18 to FY 2020-21 | Finance (No. 2) Act, 2024 For years, one of the most persistent GST disputes concerned Input Tax Credit (ITC) denied merely because it…

Electricity Subsidy Taxable? Supreme Court Reiterates the “Purpose Test”     When a subsidy reduces the cost of running a business, it may be revenue – not capital A government subsidy can look like an incentive for industrial development, but its tax character does not depend merely on the broad objective mentioned in the government…

Can a CBDT Circular Override the Income Tax Act? Supreme Court Gives an Important Reminder     A circular may bind the tax officer—but it cannot bind the Court. In a recent ruling concerning Orient Crafts Ltd., the Supreme Court reiterated an important principle on the legal status of CBDT circulars and instructions. The dispute…

Builder’s Cash Receipts: When Can Unexplained On-Money Be Taxed Under Section 69A?     ITAT Mumbai | M/s Madhu Developers | ITA No. 2372/Mum/2023 | Order dated 28 November 2023 The treatment of unaccounted cash receipts from sale of flats can create a difficult tax issue for builders. If loose papers found during a survey…