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ComplyAI

Judicial thinking

Case Law in 5 Minutes

Important judicial decisions, explained without the legalese.

  1. 1The Question
  2. 2Facts
  3. 3Issue
  4. 4Arguments
  5. 5Decision
  6. 6Why it matters
  7. 7Key takeaway

Demo content. The cases below are illustrative scenarios with fictional party names, created to demonstrate the format. They are not summaries of real judgments and should not be cited.

GSTDemo · Illustrative

The issue

Can a buyer who paid GST to a genuine supplier lose input tax credit because the supplier failed to deposit the tax?

Facts in brief
A textile manufacturer paid GST to its yarn supplier. The supplier collected the tax but never deposited it, and the department reversed the buyer’s credit.
What the court considered
Whether the buyer had taken reasonable steps to verify the supplier, and how far a recipient can be held responsible for a supplier’s default.

Key takeaway

Due diligence evidence — vendor verification, proof of movement of goods, payment trails — is a buyer’s best protection when supplier compliance fails.

Read in 5 min
Income TaxDemo · Illustrative

The issue

Is a payment for an off-the-shelf software licence a “royalty” requiring tax withholding?

Facts in brief
An Indian distributor bought software licences from a foreign developer for resale. It did not deduct tax. The officer treated the payments as royalty.
What the court considered
The difference between transferring a copyright and transferring a copy of a copyrighted product, read with the definition of royalty in the tax treaty.

Key takeaway

Read the licence terms closely. What rights are actually transferred often determines the tax outcome.

Read in 5 min
Companies ActDemo · Illustrative

The issue

What happens when a company fails to spend its CSR obligation and does not transfer the unspent amount on time?

Facts in brief
A listed company earmarked CSR funds for a multi-year project but missed the deadline for transferring the unspent balance to a dedicated account.
What the court considered
The distinction between ongoing and other projects under the CSR framework, and whether a procedural lapse should attract the full penalty.

Key takeaway

Classify CSR projects correctly at the outset and calendar the transfer deadline for any unspent amount.

Read in 4 min