The Growing Cost of Correcting Mistakes under the Income-Tax Act, 1961 - Part II

GSTAT: Orders online transfer of appeal wrongly filed before Principal Bench to State Bench

• In Favour of Appellant
• Citation Number : TS-242-GSTAT(DEL)-2026-GST

HC: Affirms revision u/s 263 as assessment order erroneous due lack of inquiry & incorrect application of law

• In Favour of Revenue
• Citation Number : TS-516-HC-2026(MAD)

HC: Restores injunction, flags phonetic similarity between “ESIRAFT” and Sun Pharma’s TM “RACIRAFT”

AAR: Construction of villas under JDA a taxable supply despite outsourcing entire activity

• In Favour of Applicant
• Citation Number : TS-241-AAR(KAR)-2026-GST

HC: Criticizes Appellate Authorities' for inventing new reasons not supported by records; Remands bad debt write-off case

• In Favour of Revenue
• Citation Number : TS-515-HC-2026(MAD)

Bombay HC grants interim stay on retrospective GST-levy on insurance services supplied to SEZ-units

HC: Non-opting personal hearing cannot override mandatory three hearing opportunities u/s 75(4)

• In Favour of Petitioner
• Citation Number : TS-238-HC(GUJ)-2026-GST

NCLT: Mere ‘assertion’ of convening Board meeting fails compliance u/s 286 of Companies Act, 1956

Kerala HC set to hear JAO-FAO retro amendment controversy

AAR: Pooja Oil classifiable based on intended use, market positioning, and labeling, not edibility

• In Favour of Applicant
• Citation Number : TS-240-AAR(MAH)-2026-GST

Borrowed Words, Broken Constitutional Doctrine: Section 147A & Retrospective Puzzle

HC: Opportunity for personal-hearing contingent upon Assessee filing reply requesting for an opportunity

• In Favour of Respondent
• Citation Number : TS-239-HC(MP)-2026-GST

ITAT: Income of Bank under liquidation accrues to liquidator not DICGC; Rejects diversion of income by overriding title plea

• In Favour of Both, Partially
• Citation Number : TS-514-ITAT-2026(Ahd)

ITAT: Addition basis wrong classification in ITR due to inadvertent mistake, unsustainable

• In Favour of Assessee
• Citation Number : TS-511-ITAT-2026(DEL)

ITAT: Sec. 143(2) notice issued by non-jurisdictional AO renders assessment void ab initio

• In Favour of Assessee
• Citation Number : TS-500-ITAT-2026(DEL)

ITAT: Reassessment based on Investigation Wing report sans independent inquiry invalid

• In Favour of Assessee
• Citation Number : TS-502-ITAT-2026(DEL)

ITAT: ITAT: TDS credit allowable despite timing mismatch between income recognition & deduction year, subject to verification

• In Favour of Assessee
• Citation Number : TS-505-ITAT-2026(DEL)

ITAT: Cooperative society receiving interest from another society is eligible for deduction u/s 80P(2)(d)

• In Favour of Assessee
• Citation Number : TS-504-ITAT-2026(Bang)

ITAT: Penalty u/s 271(1)(c) unsustainable due to inconsistency between initiation & final levy of penalty; Relies on Manjunatha Cotton judgment

• In Favour of Assessee
• Citation Number : TS-509-ITAT-2026(HYD)