NICAI Updates
CA Raj Chawla
Quotes of the day:
1. You will never change your life until you change something you do daily. The secret of your success is found in your daily routine. Be Positive and never accept defeat & keep trying.
2. People will Forget what you Said, People will Forget what you Did But People will never Forget what you made them Feel. So treat everyone SPECIAL.
NICAI Updates
1. Karnataka High Court judgment dated 2 February 2026 clarified the law of inheritance for Christians dying without a Will (intestate) under the Indian Succession Act, 1925, especially Sections 32 & 33.
2. The Court ruled that:
· If a Christian man dies without making a Will, and he is survived by
· Wife (widow)
· Children (lineal descendants)
· then mother will NOT get any share in the property.
3. The decision was based on Sections 32 & 33 of the Indian Succession Act, 1925, which give priority to widow and children over other relatives. The Court observed that the mother’s right arises only when there are no lineal descendants, which was not the case here.
4. ITAT Delhi examined the validity of the Principal Commissioner of Income Tax’s (PCIT) revisional order under Section 263 of the Income Tax Act in the case of Mukul Rohatgi Vs PCIT, which had set aside the assessment completed under Section 143(3) on the ground that it was erroneous and prejudicial to the interests of the Revenue. The PCIT alleged that the Assessing Officer failed to conduct adequate inquiry on issues such as classification of capital gains from funds, determination of Annual Letting Value (ALV) of properties, and initiation of penalty proceedings.
5. However, the Tribunal found that the Assessing Officer had issued statutory notices, called for relevant details, and examined the materials during scrutiny proceedings. It held that Section 263 can be invoked only when both conditions—error in the order and prejudice to Revenue—are satisfied. The Tribunal emphasized that revisional powers cannot be used merely because the PCIT holds a different opinion or seeks deeper inquiry. As inquiries had been conducted and a plausible view was taken, the Section 263 order was quashed.
6. Madras High Court has clarified that Input Tax Credit (ITC) need not be distributed on the invoice date itself, as per Rule 39(1)(a) of the GST Rules. This ruling came in the Reliance Jio case, providing much-needed clarity on the scope of the rule.
7. Key Points:
· Rule 39(1)(a) Explained_: The court interpreted the rule, stating that ITC distribution isn't tied to the invoice date.
· Reliance Jio Case_: The case involved the company's claim for ITC distribution, which led to this significant ruling.
· GST Implications_: This decision may impact how businesses handle ITC claims and distributions .
8. Understanding GST ITC:
· ITC allows businesses to claim tax credits on inputs used for business purposes.
· Proper distribution and claiming of ITC are crucial for tax compliance.
9. Follow the CA Raj Chawla NICAI Update Channel on WhatsApp to get the latest ICAI news, announcements, professional updates, and important notifications instantly Link :https://whatsapp.com/channel/0029Vb6q4i8LNSZwQ3bbxY2j
With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
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27,Barakhamba Road, New Delhi-110001
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