Tax
Customs | Penetrating Oil Not Adulterated Diesel Unless Revenue Proves Adulteration; Higher Duty Demand Unsustainable: CESTAT Mumbai
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that merely because penetrating oil contains petroleum fractions exceeding 70%, it cannot be treated as adulterated diesel unless the revenue proves actual adulteration. Dr. Suvendu Kumar Pati (Judicial Member) and M.M. Parthiban (Technical Member) stated that ……In the penetrating oil,...
Transfer Pricing | Comparables With Non-Export Operations Can't Be Benchmarked Against Export-Only Assessee: Delhi High Court
The Delhi High Court has made it clear that companies engaged in activities beyond export services cannot be treated as functionally comparable to an assessee providing export-only services.A Division Bench of Justices V. Kameswar Rao and Vinod Kumar thus upheld exclusion of such entities for the purpose of transfer pricing analysis qua an assessee engaged in providing investment...
Tree Plantation & Maintenance In Non-Forest Areas By Charitable Trust Exempt From GST: Gujarat AAR
The Gujarat Authority for Advance Ruling (AAR) has granted exemption to tree plantation and maintenance of them by a Trust in non-forest arears like unutilized barren lands, roadsides, amidst lane dividers, on private lands and every other available patch in its reach. In a recent ruling Mr. Vishal Malani (Member- Central Tax) and Ms. Sushma Vora (Member- State Tax) has held that...
Gujarat High Court Grants Relief After Transfer Pricing Objections Were Mistakenly Filed Before Wrong Authority, Quashes Final Assessment
The Gujarat High Court recently granted relief to a company which had inadvertently filed its objections to a proposed transfer pricing adjustment for Assessment Year 2022-23 before the jurisdictional assessing officer instead of filing it before the faceless authority.The petitioner had sought quashing of final Assessment Order dated 02.05.2025 passed under Section 143(3) read with Section...
CBI Court Convicts Central Excise Inspector In Disproportionate Assets Case, Awards 5 Yrs Imprisonment & ₹63 Lakh Fine; Wife Jailed For Abetment
The Central Bureau of Investigation (CBI) Court in Ahmedabad on December 29, 2025, convicted and sentenced an Inspector, Central Excise and Service Tax, Bhavnagar, to five years' rigorous imprisonment along with a fine of ₹63 lakh in a disproportionate assets case. The court also sentenced his wife to one year's imprisonment with a fine of ₹50,000 for abetment of the...
Business Law Daily Round-Up: December 31, 2025
TAX Kerala High Court Grants Bail To Accused Caught In ₹5,000 Land Tax Bribery Trap By VigilanceCustoms | I-STAT Blood Gas Cartridges Are Accessories Of Analyser And Not Diagnostic Reagents; No Differential Duty Payable: CESTAT MumbaiNo Interest On Excise Duty Payable In Revenue-Neutral Situation Even Though Duty Demand Attained Finality: Calcutta High CourtCustoms | Barcode Scanners...
"Health Security Se National Security" Cess On Pan Masala, Tobacco Manufacturing Enforceable From Feb 01
The Ministry of Finance, Department of Revenue has notified February 01, 2026, as the date for enforcement of the Health Security Se National Security Cess Act, 2025 levying a Health Security se National Security Cess on machines used in manufacture of pan masala and similar items. The Health Security Se National Security Cess Act, 2025 (the Act) requires a manufacturer to...
Income Tax Act | Long Term Capital Gains Exemption Available Even If Residential House Was Demolished Before Sale: Madras High Court
The Madras High Court held that the Long-Term Capital Gains exemption under Section 54 of the Income Tax Act cannot be denied merely because the residential house was demolished before its sale. The bench stated that since the sale took place later and the assessee reinvested the capital gains in another house within the prescribed time, the exemption is allowable. Section 54 of...
MCA Extends Deadline For Filing Financial Statements, Annual Returns Under Companies Act Till January 31, 2026
The Ministry of Corporate Affairs, on 30th December, 2025, extended the deadline for filing Financial Statements and Annual Returns under the Companies Act, 2013, up to 31st January, 2026. Initially, the due date for filing financial statements and annual returns for F.Y. 2024-25 was till 31st December, 2025. The decision was taken after representations were received from...
GST Demand Stayed As Audit Report Issued By Unauthorised Officer: Orissa High Court Finds Prima Facie Jurisdictional Defect
The Orissa High Court has stayed further proceedings arising from a Goods and Services Tax (GST) demand-cum-show cause notice issued under Section 73 of the Central Goods and Services Tax Act, 2017, after finding a prima facie jurisdictional defect in the audit process that formed the basis of the demand. The interim order was passed in a writ petition which challenged an audit notice...
ITAT Delhi Approved Amalgamation And Consistent Expense Allocation Cannot Be Used To Deny Section 80-IC Deduction
The Delhi Bench of Income Tax Appellate Tribunal has upheld substantial tax relief granted to Mahle Filters Systems (India) Ltd. for Assessment Year 2010–11, rejecting the Revenue's challenge to the company's deduction claimed under Section 80-IC of the Income Tax Act. A Bench comprising Vice President Mahavir Singh and Accountant Member Krinwant Sahay, while deciding...
ITAT Mumbai Restores Trust's 12AB Registration Matter To CIT(E) For Fresh Consideration
The Income Tax Appellate Tribunal, Mumbai Bench, has set aside an order passed by the Commissioner of Income Tax (Exemptions) [CIT(E)] rejecting the application of Shri Hans Maharaj Trust for registration under Section 12AB of the Income Tax Act, 1961, and has remanded the matter back for fresh adjudication. A Bench comprising Accountant Member Vikram Singh Yadav and Judicial...