Possible grounds for appeal against penalty for under utilisation of funds by Charitable or religious institutions

If a charitable or religious institution is penalised by the Income Tax Department for under-utilisation of funds (i.e. not applying 85% of its income towards its charitable/religious purposes as required under Section 11(1) of the Income Tax Act), it may appeal the penalty …

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Orissa High Court Dismisses Writ Petition as Infructuous: Attachment Order Withdrawn Following Appeal Under Section 107(7) of CGST Act 

In a recent ruling in July 2025, the Orissa High Court dismissed a writ petition challenging a provisional attachment order issued by GST authorities. The dismissal was on the ground of infructuousness, as the petitioner had already availed statutory remedy by filing an appeal under Section …

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Recent Landmark Decisions where the ITAT Dropped Penalties under Section 270A of the Income-Tax Act

Section 270A of the Income-tax Act, 1961, introduced with effect from Assessment Year 2017-18, aims to penalize cases of under-reporting and misreporting of income. It replaced the older Section 271(1)(c), streamlining the penalty mechanism with fixed rates and detailed categorization. However, despite its clarity …

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Delay in Informing Insurer Not Fatal If FIR Lodged Promptly: NCDRC Finds Cholamandalam Insurance Guilty of Deficiency in Service

The National Consumer Disputes Redressal Commission (NCDRC) has once again reaffirmed that technical delays in intimating an insurance company about a theft claim cannot override the substantive compliance of promptly lodging an FIR and cooperating with the investigation. In this ruling, the …

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Madras High Court Grants Re-Adjudication Opportunity Where Assessee Shows Willingness to Cooperate and Pay 10% of Disputed Tax

In a recent ruling, the Madras High Court reaffirmed the principle of natural justice in tax adjudication by granting the assessee another opportunity for re-adjudication where it had shown genuine willingness to cooperate and partially comply with the disputed tax …

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Patna High Court Grants Interim Stay on Erroneous Appellate Order, Directs Matter to be Raised Before Tribunal Upon Constitution

In a significant ruling, the Patna High Court granted an interim stay on the enforcement of an appellate order, observing that the said order was prima facie erroneous. The Court further directed that the matter be raised before the appropriate tribunal, once it is duly constituted. …

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Reopening Unjustified as No LTCG Exemption Was Claimed by Assessee; AO Acted on Incorrect Info from Investigation Wing: Calcutta High Court Ruling

In a significant ruling safeguarding taxpayer rights and reinforcing judicial scrutiny over reassessment proceedings, the Calcutta High Court in Vikas Rungta v. ITO quashed the reassessment initiated under Section 148 of the Income Tax Act, 1961. The Court observed that the reopening …

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Madras High Court Ruling: Order Passed Without Considering Reply and Personal Hearing Liable to Be Remanded for Fresh Adjudication

In a recent ruling, the Madras High Court reaffirmed the importance of adherence to principles of natural justice in tax adjudication. The Court held that any order passed without considering the assessee’s reply or providing an opportunity for personal hearing …

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Gujarat High Court: ITC Refund Cannot Be Denied for Non-Submission of FIRC if CA Certifies Net Foreign Exchange Receipt

In a significant ruling for exporters under the Goods and Services Tax (GST) regime, the Gujarat High Court has held that the non-submission of Foreign Inward Remittance Certificate (FIRC) alone cannot be a ground to reject Input Tax Credit (ITC) refund under Rule 89 …

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