GST Demand Order Solely Relying on Income Tax Dept Findings without Independent Finding cannot be Sustained: Allahabad HC

The Allahabad High Court has ruled that a GST demand order based solely on the findings of the Income Tax Department, without any independent investigation or finding by the GST authorities, cannot be sustained. The court emphasized the need for GST authorities to conduct their own investigations before issuing demand orders. This ruling is significant as it prevents the cross-utilization of findings from different tax departments without proper validation, ensuring that taxpayers are not unfairly penalized. The decision reinforces the principle that each tax department must operate independently and base its orders on its own findings.