Key Tax & GST Judicial Updates | Business Impact Summary
✅ Supreme Court on TDS for Foreign Payments
The Supreme Court has clarified that TDS on payments to non-residents cannot exceed the DTAA rate (generally 10%), even if PAN is not available. The Income Tax Department’s demand for 20% TDS under Section 206AA in cases involving Mphasis, Wipro, and Manthan Software Services was rejected.
➡ Major relief for companies making overseas remittances.
✅ Allahabad High Court on GST Registration Cancellation
The Court strongly pulled up GST authorities for cancelling registrations without valid reasons, calling it an act of “economic death” for businesses.
In the Anil Art & Craft case, a retrospective GST cancellation order was set aside. The Commercial Tax Commissioner has been directed to issue strict instructions within 15 days, including penal action against officers issuing non-speaking orders.
✅ Chhattisgarh High Court on Survey Additions (Section 133A)
In Neetu Sharma vs PCIT, the assessee disclosed during survey:
• Excess Cash – ₹3.40 lakh
• Excess Stock – ₹16.09 lakh
• Unexplained Investment – ₹10.00 lakh
➡ Total Disclosure: ₹29.49 lakh
Later retracted and not offered to tax. The key issue: Can additions survive solely on a survey statement without supporting evidence?
📌 Key Takeaway:
✔ DTAA benefits override higher domestic TDS
✔ GST cancellations must follow due process
✔ Survey statements alone may not be sufficient for additions
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