Tax
Rental Income From Co-operative Society's Administrative Building Taxable As 'Income From House Property': Mumbai ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that rental income earned by a co-operative society from letting out its administrative building is assessable under the head “Income from House Property” and not as “Income from Other Sources.” A Bench comprising Vice President Saktijit Dey and Accountant Member Jagadish was hearing cross appeals filed...
Apple Watch Bands Classified as Watch Straps, Not Smartwatch Parts: CAAR Mumbai
The Mumbai, Customs Authority for Advance Ruling (CAAR) in a ruling dated December 23 2025, has clarified that Apple Watch Bands (Leather and Non-Leather) could not be understood in its 'popular sense' as a part of Apple Watch. Apple's Watch has a host of functionalities such as timekeeping, storage of data, voice messages, heart beat sharing, sketching via a paired IPhone. Apple's...
Excess Duty Paid On PCMX For Manufacturing Of Dettol Products Refundable As Prices Were Government Controlled: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that excess duty paid on PCMX (Para-Chloro-Meta-Xylenol) used for manufacturing Dettol products is refundable, as the prices of products were controlled by the Government. The bench opined that under such circumstances, the doctrine of unjust enrichment does not apply. Vasa Seshagiri Rao...
AI-Powered MIKO-3 Smart Robot Classified As ADP Machine, Not Electronic Toy; Exempt From Basic Customs Duty: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the AI-powered MIKO-3 smart robot performs the essential function of Automatic Data Processing (ADP) Machines and cannot be classified as an electronic toy merely because it offers learning or entertainment features. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member)...
Excise | Cutting/Slitting HR-CR Coils Not Manufacturing; Duty Paid On Non-Excisable Activity Cannot Make It Excisable: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that cutting and slitting of HR-CR coils does not amount to manufacture and therefore, payment of duty on such non-excisable activity cannot create a legal fiction to treat it as excisable. The bench further held that CENVAT (Central Value Added Tax) credit availed in respect of such activity...
Profit From Securitisation/Sell-Down Of Loan Receivables Not Taxable As Service: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that profit earned from securitisation or sell-down of loan receivables, including upfront fees and excess spread income, being in the nature of income arising from the sale of receivables, is not exigible to service tax. Ajayan T.V. (Judicial Member) and Vasa Seshagiri Rao (Technical Member)...
Service Tax | Co-Op Society Paying Rent Arrears To Local Municipality For Gas Transportation Pipeline Not Liable Under Reverse Charge : CESTAT Ahmedabad
The Ahmedabad Bench, Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the demand of service tax by treating payment of Rs. 60 lakhs to Vallabh Vidhyanagar Municipal Corporation as rent arrears and not consideration for tolerating/refraining from an act. The Bench comprising, Dr. Ajaya Krishna Vishvesha (Judicial Member) and Mr. Satendra Vikram Singh...
Calcutta High Court Annual Tax Digest 2025
Direct TaxAO Duty Bound To Dispose Of Assessee's Written Objections To Proposed Re-Assessment By Passing Speaking Order: Calcutta High CourtCase title: Principal Commissioner Of Income Tax 13 Kolkata Vs Champalal OmprakashCase no.: ITAT/5/2025The Calcutta High Court recently upheld an ITAT order deleting the addition of over ₹4 crore made to the income of an assessee under the Income Tax...
Taxpayers To Be Barred From Filing GSTR-3B Return For Excess GST ITC Claims: GSTN Issues Advisory
The Goods and Services Tax Network (GSTN) has announced that taxpayers will soon be barred from filing Goods and Services Tax (GST) Return GSTR-3B if they attempt to claim or reclaim input tax credit (ITC) in excess of the balance available in the relevant electronic ledgers. In the advisory issued on December 29, 2025, GSTN stated that negative balances and excess ITC availment will...
LiveLawBiz: Business Law Daily Round-Up: December 29, 2025
TAX APVAT | Value Added Tax Not Leviable On Offshore Sales Beyond Territorial Waters: Andhra Pradesh High CourtIncome Tax Act | Delhi High Court Sets Aside Reassessment Against MakeMyTrip Over ₹50 Crore Receipt, Cites Vague S.148A NoticesBombay High Court Upholds 18% Interest Levy On Delayed VAT Payment, Says Interest Levied Automatically Once Payment Is DelayedPunjab & Haryana High...
Ignorance Of Indian Tax Law Not 'Genuine Hardship' To Condone Delay In Filing ITR: Delhi High Court Rejects Canadian Citizen's Plea
The Delhi High Court has held that ignorance of Indian tax laws doesn't constitute “genuine hardship” to condone delay in filing an Income Tax Return (ITR) under Section 119(2)(b) of the Income Tax Act, 1961.A division bench of Justices V. Kameswar Rao and Vinod Kumar thus rejected the plea of a Canadian citizen seeking such relief on ground of being unaware of Indian tax requirements...
20% Pre-Deposit Not Mandatory For Stay Of Demand, AO Must Exercise Discretion U/S 220(6) Income Tax Act: Delhi High Court
The Delhi High Court has reiterated that deposit of 20% of the disputed tax demand is not mandatory for grant of stay, and that the Assessing Officer (AO) must independently exercise discretion under Section 220(6) of the Income Tax Act, 1961.A division bench of Justices V. Kameswar Rao and Vinod Kumar relied on National Association of Software and Services Companies (NASSCOM) v....