Crack the Code

Court Room Series — Bhandari Scrap Traders v. Union of India COURT ROOM SERIES Bhandari Scrap Traders v. Union of India: Section 16(2)(c) of the CGST Act and the ITC Risk for a Bona Fide Recipient The Supreme Court's affirmation of the conditional nature of Input Tax Credit Background: The Supreme Court's decision in Bhandari Scrap Traders v. Union of India & Ors., arising out of Special Leave Petitions (Civil) Nos. 23931/2026, 24088/2026 and 24103/2026, marks an important development in the continuing controversy surrounding Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 ("CGST Act"). The controversy concerns a fundamental question under the GST regime: Can a bona fide recipient be denied Input Tax Credit ("ITC") merely because the supplier, after collecting GST from the recipient, has failed to...

INCOME TAX UPDATE: Notification No. 114/2026 dated 14 August 2026 — Key Points Subject: Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026 01 Key Points Effective date: The Rules come into force from 16 August 2026. Purpose: Provides the procedural framework for the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026, introduced under Chapter IV of the Finance Act, 2026. Valuation date: Foreign assets/income are generally valued with reference to 31 March 2026. ...

GST COURT ROOM SERIES Interest and Penalty Cannot Travel Beyond the Show Cause Notice? Analysis of the Delhi High Court decision in Sh. Bhupender Kumar Proprietor of M/s  Dabas Construction Co. vs. The Commissioner, GST, West Delhi & Another W.P.(C) 1184/2026 , HC-16-642, dt. 11.5.26 Facts The petitioner, a sole proprietor engaged in construction activities, was issued a Show Cause Notice (SCN) dated 29 December 2023 by the GST Department alleging wrongful availment of Input Tax Credit (ITC) relating to Financial Year 2018-19. According to the department, the ITC availed by the petitioner was inadmissible in view of Section 16(4) of the Central Goods and Services Tax Act, 2017, as the credit had been claimed beyond the prescribed time limit. The department further alleged that although the petitioner ultimately reversed the disputed ITC, such reversal was made only in December 2023, nearly four years after the relevant tax period. The petitioner challenged the proceedings p...

                                                                                                                                                         - CA Chaitanya Kumar Income tax Update: CBDT Circular No. 06/2026: Relief for Delay in Filing Form 10AB for Renewal of Section 80G Approval The Central Board of Direct Taxes (CBDT) has issued Circular No. 06/2026 granting relief to charitable trusts and institutions that could not file Form No. 10AB within the prescribed time for renewal of approval under Section 80G(5) of the Income-tax Act. Background Institutions enjoying approval under Section 80G are ...

        GST Update:  GSTN Advisory: Advisory on Revision of Timeline for Amendment of Aggregate Annual Turnover (AATO), 2026 ⃝ GSTN has revised the timeline for amendment of Aggregate Annual Turnover (AATO) for FY 2025-26. ⃝   The change is due to a system upgrade that will automatically update AATO as subsequent  GST returns are filed. The enhanced functionality is being implemented from 1 July 2026. ⃝   Earlier, taxpayers could amend their AATO during the month of May. ⃝   For FY 2025-26, the amendment window has been shifted to 1 July to 31 July 2026. Taxpayers can submit their AATO amendment applications only during this revised period.  The jurisdictional Tax Officer will verify the amended AATO between 1 August and 15  August 2026. ⃝   The revised process aims to improve consistency, accuracy, and uniformity of AATO across  the GST Portal. ⃝  Taxpayers should carefully verify the turnover details before su...

Consequences of Missing the ITR Filing Due Date — CoralMetrix Coral Metrix Issue 17  ·  Student Series — Income Tax Consequences of Missing the ITR Filing Due Date Shruthi Krishna Tax Consultant, CoralMetrix 31st July: The Day Your Taxes Are Due, And Your Excuses Are Not. Filing an ITR within the due date defined by the Income Tax Act of 1961 is a fundamental compliance requirement. Yet, each year, numerous taxpayers forget, file late, or deliberately fail to submit their returns on time. Many believe that having paid the correct amount of tax fulfils their obligations — treating the ITR as a mere formality. This is a costly misconception. The ITR is a separate and independent compliance requirement under the Income Tax Act. Failure to file on time can trigger a series of financial, procedural, and in extreme cases, criminal consequen...

Benefits of Filing an ITR — CoralMetrix Issue 15 CoralMetrix Issue 15 Benefits of Filing an Income Tax Return (ITR) More Than Just Tax Compliance Pathikonda Shivani Sreenath Direct Tax, CoralMetrix An Income Tax Return (ITR) is a document through which a taxpayer reports income earned during a financial year, claims eligible deductions, computes tax liability, and pays any tax due — or claims a refund. In India’s self-assessment system, taxpayers voluntarily disclose income in accordance with the Income-tax Act, 1961. With online filing, pre-filled forms, AIS, and TIS, the process is now faster and more transparent than ever. Who Should File an ITR? Individuals whose income exceeds the basic exemption limit Companies, firms, and other entities under the Act Taxpayers claiming refund of excess TDS/TCS paid ...