The Daily Tax Law Briefing – 20 July 2026 presents the latest judicial developments under the Goods and Services Tax (GST) and Income-tax laws. This edition analyses thirteen significant judicial pronouncements, comprising three GST judgments and ten Income Tax decisions, delivered by the Supreme Court of India, Madras High Court, Telangana High Court, Delhi High Court, CESTAT Chandigarh and various Benches of the Income Tax Appellate Tribunal. The decisions address key issues relating to GST assessments, corporate guarantees, online gaming, reassessment proceedings, transfer pricing, charitable registration, search assessments, limitation and exemption under Section 54F of the Income-tax Act.
The GST section features three important judgments. The Madras High Court held that proceedings under Section 63 of the GST Act cannot be initiated against a registered person, as the provision applies only to unregistered persons, while granting liberty to the department to initiate proceedings under Sections 73 or 74, wherever applicable. The CESTAT, Chandigarh reaffirmed that corporate guarantees issued without any consideration do not constitute taxable services under the Finance Act, 1994, since consideration is an essential ingredient for levy of service tax. The Supreme Court, relying on its recent decision in Gameskraft Technologies Pvt. Ltd., directed the petitioner challenging GST proceedings relating to online fantasy sports to participate in the assessment proceedings and thereafter avail the statutory appellate remedy available under the GST law.
The Income Tax section analyses ten noteworthy decisions covering reassessment, transfer pricing, charitable institutions, search assessments and exemption provisions. The ITAT Ahmedabad reiterated that additions under Sections 68 and 69C cannot be sustained where the assessee establishes the identity, creditworthiness and genuineness of loan transactions through cogent documentary evidence. The Delhi High Court quashed reassessment proceedings initiated merely on a change of opinion, while the Madras High Court held that reassessment notices issued beyond the surviving limitation period under the amended reassessment regime are without jurisdiction. The Delhi Bench of the ITAT further held that Section 263 cannot be invoked merely because the Commissioner prefers another view where the Assessing Officer has already conducted proper enquiries and adopted a legally sustainable view.
This edition also examines significant rulings relating to Section 12AA registration for charitable institutions, the mandatory application of Section 153C where reassessment is based on material seized during a third-party search, computation of limitation in reassessment proceedings, condonation of extraordinary delay in filing appeals and the liberal interpretation of Section 54F. The Telangana High Court reaffirmed that exemption under Section 54F cannot be denied merely because completion of construction or registration of the residential property is delayed for reasons beyond the assessee’s control, provided the prescribed investment has been made within the statutory period.
The Daily Tax Law Briefing – 20 July 2026 serves as a valuable resource for advocates, chartered accountants, company secretaries, tax consultants, corporate tax teams and businesses seeking concise updates on the latest judicial developments. The briefing provides practical insights into emerging legal principles governing GST and Income-tax litigation, compliance and advisory practice.
