TaxTalks by CA. NRK

📖 2 min read 🗓️ Judgment dated 24-07-2026 ⚖️ In favour of Revenue Bought goods, paid your GST, filed everything right — but your supplier never deposited the tax. Can your ITC still be denied? The Supreme Court has now settled it: yes, it can. In Bhandari Scrap Traders vs. Union of India [2026] 188 taxmann.com 986 (SC) , the Apex Court upheld the constitutional validity of Section 16(2)(c) of the CGST Act, dismissing the challenge by purchasing dealers. 📌 What Was Challenged Purchasing dealers filed writ petitions assailing the constitutional validity of Section 16(2)(c) — or, alternatively, sought to have it read down . Their core arguments were: They had satisfied conditions in clauses (a), (aa), (b) and (ba) of Section 16(2). It was impossible to verify whether the supplier actually deposited the tax. Denial of ITC breached Articles 14, 19(1)(g), 265 and 300A of the Constitution. ITC denial should be confined only to fraudulent or collusive transactions ...

📖 2 min read 🗓️ Advisory dated 29-07-2026 Getting ready for the 1st August e-Way Bill changes? Hit pause. GSTN has put the entire rollout on hold — and even the earlier advisories are being pulled from the portal. In its latest advisory, GSTN has kept the proposed e-Way Bill enhancements on hold until further notice. Here's exactly what changed and what you need to do. 📌 The Background GSTN had earlier issued advisories on 9th June 2026 and 17th June 2026 about certain proposed enhancements to the e-Way Bill system, scheduled to go live on 1st August 2026 . Detailed FAQs on these enhancements followed on 2nd July 2026 . 🚦 What's Changed Now Item Status Proposed e-Way Bill enhancements Kept on hold until further notice Changes in production environment Not required until further communication Earlier advisories & FAQs To be withdrawn from the GST Portal ⚠️ Action point: Do not implement any of the previously announced ...

📊 INCOME TAX • HIGH COURT RULING Delhi High Court: 194C instead of 194I won't trigger Section 40(a)(ia) disallowance 📌 Case: Principal Commissioner of Income-tax vs. Jindal Saw Ltd. ⚖️ Citation: [2026] 188 taxmann.com 376 (Delhi)  |  Dated: 08-07-2026 Deducting TDS is one thing — deducting it under the correct section is another. But what happens when you deduct the right amount under the wrong provision ? The Delhi High Court has clarified that a genuine section mix-up won't cost you a disallowance, as long as tax was actually deducted. 🔍 What Happened? Deducted TDS Under Sec 194C (instead of 194I) ↓ Dept. Action "In default" + 40(a)(ia) disallowance ↓ Tribunal Set aside 201/201A order ↓ ✔ High Court: No Disallowance Assessee not in default The assessee ded...

🏛️ GST • HIGH COURT RULING Madras High Court allows appropriation of wrongly-headed tax payment 📌 Case: SYA Homes vs. Assistant Commissioner (ST) ⚖️ Citation: [2026] 188 taxmann.com 395 (Madras)  |  Dated: 07-07-2026 Ever filed your GSTR-3B and accidentally dumped the entire tax under the wrong head? The Madras High Court has just delivered welcome relief for exactly this situation — a genuine clerical slip should not cost you a second payment. 🔍 What Happened? Filed GSTR-3B Full tax → IGST ↓ Dept. Demand CGST + SGST dues ↓ "Pay again, then refund" ↓ ✔ High Court: No! Appropriate the IGST The petitioner inadvertently paid the entire tax under IGST instead of splitting it into CGST and SGST. The department passed an order demanding CGST and SGST dues. Even...

📖 2 min read 🗓️ Order dated 08-07-2026 Think your foreign account details stay abroad? Think again. Data shared by foreign tax authorities is now headed straight to your AIS — and the 90-day clock has already started. Via Order F. No. 225/73/2025-ITA-II, dated 08-07-2026 , the CBDT has authorised the DGIT (Systems), Delhi, to upload Automatic Exchange of Information (AEOI) data into the Annual Information Statement. 📌 The Legal Backing Issued under: Section 239, ITA 2025 (earlier Sec. 119, ITA 1961) Read with: Rule 245(2), IT Rules 2026 (earlier Rule 114-I(2)) Information relates to: Treaty agreements under Sections 159 & 160, ITA 2025 (earlier Sec. 90 & 90A) Lands in: AIS — Form 168 (earlier Form 26AS) ⏱️ The 90-Day Timelines Period Upload Deadline CY 2022, 2023 & 2024 Where already in DGIT's possession Within 90 days from the date of the order CY 2025 onwards Whenever it comes into his possession Within 90 days from the...

Raju Jamnadas Babani vs. DCIT: Handover Date and Family Settlements Cannot Defer or Split Tax Liability. In a significant decision impacting property sellers, the Hyderabad ITAT has reinforced the strict timelines governing property transfers. The ruling in Raju Jamnadas Babani vs. Deputy Commissioner of Income-tax (2026) clarifies that the execution date of a registered agreement to sell fixes the year of taxability, overriding later fund clearances or possession handovers. The Dispute: When Does a "Transfer" Occur? The assessee executed a registered agreement to sell a flat on March 28, 2016 (Assessment Year 2016-17) for a total consideration of ₹3.75 crore. However, the taxpayer argued that the capital gains should not be taxed in AY 2016-17 based on two main arguments: ⏳ Deferred Possession: The substantial portion of the sale consideration was received, ...