GST Notices And Orders Issued Only In Summary Forms Without Details Are Unsustainable: Calcutta High Court

The Calcutta High Court has quashed a GST adjudication order passed solely through summary online forms, holding that tax liability cannot be imposed without clearly setting out the allegations and reasons as required under law. A single-judge bench of Justice Om Narayan Rai said the manner in which the proceedings were conducted could not be sustained. “The order that has been passed and communicated to the petitioner has remained in summary form. It is bereft of any detail and sans any...

Arbitration | Mechanical Reliance On No Claim Certificate Is Non-Adjudication: Calcutta High Court

The Calcutta High Court has recently held that mechanical reliance on a 'No Claim Certificate,' without examining whether the claims raised were covered by such document, amounts to non-adjudication.A Single Bench of Justice Gaurang Kanth in an order dated January 9 explained that the mechanical reliance on such certificates, without examining the surrounding facts and evidence, amounts to non-adjudication and renders the award vulnerable to challenge. The Court observed:“Even execution of a...

Income Tax Dept Cannot Reopen Assessment on New Grounds Without Due Notice: Calcutta High Court

The Calcutta High Court has recently held that the income tax department cannot reopen a completed assessment by raising new issues without first following the mandatory procedure under the Income Tax Act. On this basis, the court set aside the reassessment notice issued against a government-owned company. Under the tax law, Sections 148 and 148A require the department to first issue a detailed notice explaining why it believes income may have escaped tax, give the taxpayer an opportunity to...

Immunity From Penalty Cannot Be Denied Once Conditions Under Income Tax Act Are Met: Calcutta High Court

The Calcutta High Court has recently clarified that the income tax department cannot deny immunity from penalty for under-reporting of income once a taxpayer meets the conditions prescribed under the law.A bench of Justice Om Narayan Rai said Section 270AA of the Income Tax Act leaves no discretion with the Assessing Officer. The provision allows immunity where the taxpayer has paid the tax demand, has not filed an appeal, and has applied for immunity within the prescribed time. It also requires...

Calcutta High Court Halts GST Recovery From Trader's Electronic Credit Ledger Pending Rectification Plea

The Calcutta High Court has stepped in to stop GST recovery from a trader's electronic credit ledger, saying the department must first decide a pending rectification plea that could wipe out the entire demand. Justice Om Narayan Rai passed the order on December 22, 2025, while hearing a writ petition filed by Tirupati Traders. In a brief but clear order, the court said that if the rectification application is allowed, “the demand raised by the order in original may not survive,” and...

Bank Can't Freeze Company's Accounts Solely Over ROC's 'Management Dispute' Tag: Calcutta High Court

The Calcutta High Court has held that a bank cannot freeze a company's accounts merely on the basis of a “management dispute” marking by the Registrar of Companies (ROC), particularly after such marking has been removed on the directions of the Ministry of Corporate Affairs (MCA).Justices Sabyasachi Bhattacharyya and Supratim Bhattacharya made the observation on January 5 while hearing appeals filed by Ravindra Pratap Singh, director of August Agents Limited, challenging the freezing of the...

Mere Apprehension of Business Loss In State Does Not Confer Writ Court Territorial Jurisdiction: Calcutta High Court

The Calcutta High Court has recently held that a petitioner's mere apprehension of business loss in West Bengal is not enough to invoke the court's territorial jurisdiction in a writ petition. A single-judge bench of Justice Om Narayan Rai, while dismissing a plea filed by a Kuwait company said that it is the infringement of a legal right that gives rise to a cause of action."The lis before this Court is only with regard to the violation of the petitioner's right to fair treatment and fair...

GST Registration Cancellation Unsustainable When Hearing & Decision Were Made By Different Authorities: Calcutta High Court

The Calcutta High Court held that a GST registration cancellation order is unsustainable where the personal hearing is granted by one authority, but the final order is passed by another. Justice Om Narayan Rai stated that, interestingly, while the notice for personal hearing was issued by the Assistant Commissioner, CGST & CX, Burrabazar Division, but the order impugned has been passed by the Superintendent. The order therefore defies the very well-settled principle that an order...

Income Tax | Reopening Not Hit By Change Of Opinion If Earlier Proceedings Dropped Due To Lack Of Evidence: Calcutta High Court

The Calcutta High Court held that the mere reopening of an assessment under Section 148 of the Income Tax Act cannot be treated as a change of opinion if the earlier proceedings were dropped due to lack of evidence. Justice Raja Basu Chowdhury stated that on the basis of a change of opinion of the assessing officer, a notice under Section 148 of the said Act cannot be issued. For a case of change of opinion to be established an assessing officer must arrive at an opinion that there has...

No Interest On Excise Duty Payable In Revenue-Neutral Situation Even Though Duty Demand Attained Finality: Calcutta High Court

The Calcutta High Court held that statutory interest under Section 11AB of the Central Excise Act is not leviable where the entire transaction is revenue-neutral and the duty paid is available as Cenvat Credit to downstream units, causing no loss to the exchequer. Justices Rajarshi Bharadwaj and Uday Kumar stated that the Tribunal has recorded a clear finding that the situation is revenue-neutral, inasmuch as the duty paid by the assessee was available as Cenvat credit to its ...

Calcutta High Court Annual Tax Digest 2025

Direct TaxAO Duty Bound To Dispose Of Assessee's Written Objections To Proposed Re-Assessment By Passing Speaking Order: Calcutta High CourtCase title: Principal Commissioner Of Income Tax 13 Kolkata Vs Champalal OmprakashCase no.: ITAT/5/2025The Calcutta High Court recently upheld an ITAT order deleting the addition of over ₹4 crore made to the income of an assessee under the Income Tax Act, 1961 in reassessment action.A division bench of Chief Justice TS Sivagnanam and Justice Bivas Pattanayak...

Pendency Of Conciliation Proceedings Under MSME Act Does Not Bar Interim Relief U/S 9 Of A&C Act To Preserve Subject Matter: Calcutta HC

The Calcutta High Court has held that pendency of conciliation proceedings does not bar the grant of limited interim relief under section 9 of the Arbitration and Conciliation Act, 1996 ("Arbitration Act"), where such relief is essential to preserve the subject matter of the dispute. Justice Gaurang Kanth held while allowing a Section 9 application filed by Rishi Chemical Works Pvt. Ltd. (“Petitioner”), appointing a Special Officer to inspect, measure, and document the existing status...