The Daily Tax Law Briefing – 04 August 2026 presents the latest judicial developments under the Goods and Services Tax (GST) and the Income-tax Act, 1961. This edition analyses nine significant judicial pronouncements, comprising four GST judgments and five Income Tax decisions, delivered by the Supreme Court of India, Rajasthan High Court, Delhi High Court, Patna High Court, Andhra Pradesh High Court and various Benches of the Income Tax Appellate Tribunal. The rulings examine important issues relating to GST exemption on university affiliation fees, limitation for statutory appeals, special audit proceedings, Section 35D deductions, condonation of delay in refund claims and taxation of political parties.
The GST section is led by the Rajasthan High Court’s landmark decision in Biyani Shikshan Samiti & Anr. v. Union of India. The Court held that affiliation granted by universities to affiliated colleges is an integral part of the educational process and qualifies for exemption under Entry 66(a) and Entry 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate). Observing that affiliation is inseparably connected with imparting education and conducting examinations, the Court quashed the GST demands and directed refund of GST already collected on affiliation fees, subject to verification that the tax burden had not been passed on to students.
Another important GST ruling came from the Rajasthan High Court in GVK Jaipur Expressway Pvt. Ltd., where the Court declined to interfere after finding that the taxpayer had failed to avail the statutory appellate remedy under Section 107 of the CGST/RGST Act within the prescribed limitation period. The Court held that uploading the adjudication order on the GST portal amounted to valid communication and reiterated that registered taxpayers are expected to regularly monitor the portal. In a separate decision, the Patna High Court granted liberty to the assessee to pursue the statutory appellate remedy under Section 107 instead of adjudicating challenges relating to unsigned notices, limitation and violation of natural justice.
The briefing also covers an important judgment of the Delhi High Court concerning special audit proceedings under Section 66 of the CGST Act. In MS Koenig Solutions Pvt. Limited, the Court noted that no valid proceedings under Section 73 survived after expiry of the statutory limitation period prescribed under the extended timeline. Consequently, the Court quashed the communication issued in Form GST ADT-03 directing a special audit as well as the consequential DRC-01, holding that continuation of the proceedings after expiry of limitation was unsustainable.
The Income Tax section analyses five significant judicial pronouncements covering international taxation, business deductions, refund claims and political party taxation. The Supreme Court dismissed the Special Leave Petition filed by the Revenue in Assistant Commissioner of Income Tax v. GE Power Solutions (Malaysia), thereby declining to interfere with the judgment of the Delhi High Court. The ITAT Pune in Coca Cola India Pvt. Ltd. upheld deletion of disallowances relating to advertisement expenses, marketing support expenses, reimbursements and depreciation by following its earlier decisions, while remanding the issue relating to deduction under Section 80G for fresh verification.
Another noteworthy decision comes from the ITAT Bengaluru in Embassy Office Parks REIT, where the Tribunal held that the deduction under Section 35D(2)(c) for expenditure incurred in connection with a public issue is available only to a company and not to a Real Estate Investment Trust (REIT) constituted as a trust. Since a REIT is governed by the special taxation regime under Chapter XII-FA and its units are neither shares nor debentures, the Tribunal upheld the disallowance of the deduction claimed in respect of IPO-related expenditure.
The briefing further includes an important judgment of the Andhra Pradesh High Court, which held that Section 119(2)(b) confers discretionary power to condone delay in genuine cases and that the six-year limitation contained in CBDT Circular No. 9/2015 cannot override the statutory discretion available under the Income-tax Act. The Court accordingly directed reconsideration of delayed refund claims on their merits. The Delhi High Court also held that a political party involved in issuing bogus donation receipts and facilitating false deduction claims could not claim exemption under Section 13A. Upholding the Tribunal’s factual findings, the Court sustained taxation of commission income under Section 56 and dismissed the appeals.
The Daily Tax Law Briefing – 04 August 2026 serves as an essential resource for advocates, chartered accountants, company secretaries, tax consultants, businesses and corporate tax teams seeking concise updates on the latest judicial developments. It provides practical insights into GST exemptions, appellate remedies, audit proceedings, business deductions, refund condonation and political party taxation while helping professionals stay informed of evolving judicial trends.
Download the complete Daily Tax Law Briefing (4 August 2026)