Goods & Service Tax (GST) 8 September 2026
ITAT Upholds Rs 1.73 Crore Penalty Over GST Refund Claim
The Income Tax Appellate Tribunal (ITAT) has reinstated a Rs 1.73 crore penalty under Section 271(1)(c) after rejecting a revised GST return that contained an erroneous development expense claim exceeding Rs 5.60 crore. The tribunal ruled that a corrected return cannot override the original filing when the taxpayer promptly disowns the mistake, reinforcing strict compliance on GST refund claims.
The Income Tax Appellate Tribunal (ITAT) restored a Rs 1.73 crore penalty under Section 271(1)(c) after finding that a revised GST return with an inflated development expense claim could not replace the original filing.
- The original claim exceeded Rs 5.60 crore and was deemed erroneous.
- The tribunal held that when a taxpayer promptly disowns the mistake, the initial return remains controlling.
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