Daily Intelligence Capsule — 18 August 2026

Latest EditionLatest Edition — Tuesday, 18 August 2026

Calcutta High Court: ITC Mismatch Demand Confirmed Without Verifying Section 16 Conditions Set Aside

Fresh Adjudication Ordered

The Calcutta High Court sets aside an ex parte GST demand confirmed on an ITC mismatch between GSTR-3B and GSTR-2A without the proper officer first verifying fulfilment of Section 16 conditions as mandated by CBIC Circular No. 183/15/2022-GST.

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Case Law

ITAT New Delhi: Interest on Enhanced Land Acquisition Compensation Is Not Taxable as "Income from Other Sources" Where the Underlying Land Is Not a Capital Asset

ITAT New Delhi holds that interest awarded under Section 28 of the Land Acquisition Act, 1894 on compulsorily acquired rural agricultural land — not a "capital asset" under Section 2(14)(iii) — cannot be separately taxed as Income from Other Sources.

Read: ITAT New Delhi: Interest on Enhanced Land Acquisition Compensation Is Not Taxable as "Income from Other Sources" Where the Underlying Land Is Not a Capital Asset

ITAT Delhi: Capital Loss on Sale of Unlisted Shares Allowed

Physical Transfer Held Valid, Consideration Timing Not Determinative

ITAT Delhi allows a long-term capital loss on the sale of unlisted company shares, holding that physical (non-demat) transfer of unlisted shares was lawful and that the date consideration was received does not determine the date of transfer.

Read: Physical Transfer Held Valid, Consideration Timing Not Determinative

Practical Compliance Guide: Responding to a GST ITC Mismatch Notice

The Circular 183 Verification Checklist Every Practitioner Should Invoke

A practical checklist for responding to any GST demand based on an ITC mismatch between GSTR-3B and GSTR-2A, built around CBIC Circular No. 183/15/2022-GST's mandated verification steps.

Read: The Circular 183 Verification Checklist Every Practitioner Should Invoke

ITAT New Delhi: AE Subsidy to Offset Distribution Losses Is Operating Revenue

₹3.08 Crore Transfer Pricing Adjustment Deleted (Chanel India)

ITAT New Delhi holds that a routine, performance-linked subsidy paid by an associated enterprise to compensate a distributor's losses is operating revenue for transfer pricing purposes, deleting a ₹3.08 crore adjustment against Chanel (India) Pvt. Ltd.

Read: ₹3.08 Crore Transfer Pricing Adjustment Deleted (Chanel India)

Calcutta High Court: A CC/OD Account Cannot Be Classified as NPA Without Actual 90-Day Overdue or "Out of Order" Status

SARFAESI Notice Quashed

The Calcutta High Court quashes a bank's SARFAESI Section 13(2) notice, holding that a Cash Credit/Overdraft account cannot be classified as a Non-Performing Asset unless it is actually overdue for more than 90 days or genuinely "out of order."

Read: SARFAESI Notice Quashed