The Daily Tax Law Briefing – 17 July 2026 brings together the latest judicial developments under the Goods and Services Tax (GST) and Income-tax laws. This edition analyses important rulings delivered by the Calcutta High Court, Orissa High Court and the Income Tax Appellate Tribunal, covering significant issues relating to statutory limitation, service of GST orders, appellate remedies, rectification of errors, carry-forward losses, limitation for filing appeals and estimation of business income.
The GST section features two important judgments addressing procedural safeguards under the GST law. The Calcutta High Court has clarified that the limitation prescribed under Section 73 of the CGST/WBGST Act applies to the issuance of the adjudication order and not to its subsequent service. The Court distinguished between the concepts of “issue” and “service”, holding that an order digitally signed and issued within the prescribed limitation remains valid even if it is uploaded on the GST portal after the limitation period.
Another significant ruling of the Orissa High Court deals with the consequences of an erroneous classification in Form GST DRC-07. The Court observed that although disputes relating to interest and penalty ordinarily fall within the appellate framework, the peculiar facts of the case justified the exercise of writ jurisdiction because the incorrect classification of interest as tax would compel an excessive statutory pre-deposit for filing a further appeal. The appellate order was therefore set aside and the matter remanded for fresh adjudication.
The Income Tax section analyses three noteworthy judgments. The Ahmedabad Bench of the ITAT has reaffirmed that unabsorbed brought forward business losses can be set off against short-term capital gains computed under Section 50, subject to verification by the Assessing Officer. The Bangalore Bench of the ITAT has also held that mere uploading of an assessment order on the ITBA portal does not amount to valid statutory service, and that the limitation for filing an appeal must be computed from the date on which the order is actually served through a recognised statutory mode.
The Hyderabad Bench of the ITAT has further emphasised that where an assessee fails to produce reliable documentary evidence supporting its explanation regarding substantial cash deposits, the Assessing Officer is justified in estimating business income based on the available material. The Tribunal upheld the estimation of income at 8% of the business turnover, finding no infirmity in the concurrent findings of the lower authorities.
This edition provides valuable guidance on GST adjudication, limitation, appellate procedure, rectification of assessment errors, service of orders, business loss adjustments and income estimation. It serves as a practical reference for advocates, chartered accountants, company secretaries, tax consultants, businesses and corporate tax teams seeking to stay informed about the latest judicial developments in GST and Income-tax law.