Indian Courts Void Tax Authority Actions Over Procedural Flaws

GST arrest Section 74 tax reassessment ITAT ruling procedural violation

The Allahabad High Court held that the arrest and detention of a GST assessee was illegal because the arrest memo lacked specific grounds, a place of arrest, and the mandatory CBIC‑DIN, ordering the immediate release of the individual.

The Madras High Court, hearing a batch of writ petitions, ruled that Section 74 GST notices covering multiple financial years were untenable where the proper officer failed to disclose the reasons for invoking the extended limitation period or provide jurisdiction‑supporting facts.

The Income Tax Appellate Tribunal in Kolkata dismissed a Revenue appeal, quashing a reassessment initiated beyond four years on the basis that the Assessing Officer merely changed opinion without fresh material, nullifying a ₹29.51 crore addition under Section 68.

Separately, the New Delhi bench of the ITAT reduced a ₹14.80 million addition to ₹14,800 after finding that the Assessing Officer unjustifiably extrapolated figures from seized documents without supporting evidence.

Sources

Arrest Memo Sans Specific Grounds of Arrest and CBIC-DIN Renders Detention Illegal Under GST - GST [www.caclubindia.com]

29 days ago

ITAT: Reassessment Beyond Four Years Quashed as AO Reopened Case on Mere Change of Opinion Without Fresh Material [studycafe.in]

28 days ago

Section 74 GST Notices Cannot Fail Solely Because Multiple Financial Years Are Covered: Madras HC [taxguru.in]

28 days ago

Unsupported Extrapolation Cannot Sustain Income Tax Addition: ITAT [www.taxscan.in]

28 days ago