Daily Intelligence Capsule — 13 September 2026
Latest EditionLatest Edition — Sunday, 13 September 2026Income Tax
"Change of Opinion" Reaffirmed: Bombay HC Quashes a Six-Year-Late Reassessment on a Settled Section 54F Claim
The Bombay High Court has quashed a reassessment notice issued six years after a Section 54F capital gains claim was accepted, holding that an Assessing Officer need not discuss every issue for the law to treat it as examined.
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No 'Reason to Believe': Karnataka HC Quashes GST Registration Cancellation Built on a Fabricated Field Report
The Karnataka High Court has quashed the cancellation of two GST registrations as "fake," holding that field-verification reports containing an unrelated property's photograph and a blank report cannot meet the statutory "reason to believe" standard.
Read: No 'Reason to Believe': Karnataka HC Quashes GST Registration Cancellation Built on a Fabricated Field ReportCase Law Watch
Gauhati HC Reaffirms Bona Fide Purchaser ITC Protection Across a Scrap-Trade Batch
The Gauhati High Court (Silchar Bench) has reaffirmed, across a batch of scrap and waste-battery dealer rulings, that bona fide purchasers cannot be denied Input Tax Credit merely because a supplier failed to deposit collected tax — a more conservative route to the same outcome the Supreme Court has stayed in Sahil Enterprises (final hearing 17 September 2026).
Read: Gauhati HC Reaffirms Bona Fide Purchaser ITC Protection Across a Scrap-Trade BatchCase Law Watch
Karnataka HC: DGGI Probe Not Barred by a Prior State Inquiry
The Karnataka High Court has held that DGGI's central investigation into an alleged ₹100+ crore fake-ITC network is not barred by a prior State GST inquiry — mere information-gathering does not amount to "initiation of proceedings" under Section 6(2)(b) of the CGST Act.
Read: Karnataka HC: DGGI Probe Not Barred by a Prior State InquiryDid You Know
When the Bombay HC quashed a reassessment as "change of opinion"…
When the Bombay High Court quashed a reassessment this week as an impermissible "change of opinion," it didn't need the original assessment order to say much at all. The Court's own words: "it is not necessary for an Assessing Officer to discuss each and every issue elaborately to disclose his satisfaction." A short assessment order and an unexamined issue are two very different things in the eyes of the law.
Read: When the Bombay HC quashed a reassessment as "change of opinion"…What's the Penalty?
Your client's GST registration is cancelled as "fake" on a field-verification report…
Your client's GST registration is cancelled as "fake" on a field-verification report that turns out to show a completely different property. Is the cancellation valid — and is the registration automatically restored for good if it isn't?
Read: Your client's GST registration is cancelled as "fake" on a field-verification report…