NICAI Update
CA Raj Chawla
Quotes of the day:
1. People don't always need Advice Sometimes all they really need is A Hand to Hold, An Ear to Listen And a Heart to Understand Them.
2. Truth is like a surgery. It hurts but it heals. A lie is like a painkiller. It gives instant relief but has side effects forever.
NICAI Update:
1. India's net direct tax collections have reached ₹22.80 lakh crore as of March 17, 2026, marking a 7.19% year-on-year growth. This impressive surge is driven by robust performances in both corporate and non-corporate tax sectors.
2. Breakdown of Tax Collections:
· Net Corporate Tax_: ₹10.91 lakh crore
· Net Non-Corporate Tax_: ₹11.32 lakh crore
· Securities Transaction Tax (STT)_: ₹55,717 crore.
3. *Bombay HC Ruling: No Irrevocability Clause Needed for S.12AB Registration*
4. Bombay High Court has ruled that the absence of an irrevocability clause in a trust deed cannot be a ground for denying registration under Section 12AB of the Income Tax Act. This decision was made in the case of Chamber of Tax Consultants Vs CIT (Exemptions) .
5. The court held that Section 12AB requires satisfaction on the objects, genuineness, and compliance of the trust, but does not mandate an explicit irrevocability clause. A trust is considered irrevocable unless it contains a provision for re-transfer or gives the transferor a right to re-assume power over the assets .
6. Allahabad High Court on February 20, 2026 ordered tenants to vacate a building which was in a bad condition and needed to be demolished. The high court said that tenancy protection laws can't compromise public safety. The building in Varanasi, was deemed urgently in need of demolition because it was in a highly dilapidated state and posed serious risk to its residents as well as passers-by.
7. Consequently, the Varanasi Nagar Nigam issued a notice on August 3, 2021 under Section 331(1)(2) * 4 the Uttar Pradesh Municipalities Act. 1959, directing demolition of the unsafe structure within seven days. For example, on August 29, 2025, a portion of the building had collapsed. disrupting traffic and posing a serious threat to public safety.
8. GST: Government of India issued Advisory on the Payment of pre-deposit while filing of appeal before First Appellate authority dated 14th March,2026. Sometimes taxpayers voluntarily pay some amount during the investigation stage using Form GST DRC-03. Later, when the taxpayer wants to file an appeal application against the demand order issued after the investigation, they are required to pay a pre-deposit to file the appeal. However, many taxpayers complain that the GST portal still asks them to pay the pre-deposit even when they have already paid more than the required amount through Form GST DRC-03.
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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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