Tax
Auction Under SARFAESI Act Valid When Property Valued By Valuer Is Registered U/S 34AB Of Wealth-Tax Act: Madras High Court
The Madras High Court held that an auction under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) Act, 1957, is valid when the property is valued by a valuer and registered under Section 34AB of the Wealth-Tax Act. Section 34AB of the Wealth-Tax Act, 1957, provides the process for individuals to become...
Supreme Court Dismisses Rs 244 Crore Service Tax Plea Against Bharti Airtel Over Employee Scheme
The Supreme Court has recently dismissed a nearly Rs 244 crore service tax appeal filed by the Commissioner of Central Goods and Service Tax, Gurugram, against telecom giant Bharti Airtel Ltd. The dispute concerned the company's Airtel Employees Services Scheme (AESS), which offered free or discounted telecom services to its employees.The appeal challenged a January 27, 2025 order of the...
Advertisement, Promotional And Management Service Payments Excluded From Customs Valuation: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Advertisement and Promotional Expenses and Management Service Fees (APE and MSF) payments are independent transactions, and cannot be included in the transaction value of imported goods. The issue before the Tribunal was whether the advertisement and promotional expenses incurred by...
Customs | Importer Cannot Be Penalised For Misdeclaration Merely Because Other Importers Declared High Prices For Similar Goods: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that an importer cannot be penalised for misdeclaration merely because other importers declared high prices for similar goods under the Customs Valuation Rules. Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) opined that the mere fact that another importer...
Voluntary GST Cancellation Not Grounds To Freeze Company's Bank Account: Rajasthan High Court
The Rajasthan High Court has directed the Bank of Baroda to de-freeze the account of the petitioner-company, allowing it to use it freely till finally deciding the company's representation, observing that the bank could not freeze the account merely because the company's GST registration was voluntarily cancelled.The bench of Justice Nupur Bhati was hearing a petition filed by a company...
Customs | Drawback Cannot Be Denied On Grounds Of Alleged Forgery By Foreign Buyer Once Goods Are Exported: CESTAT
The New Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that drawback cannot be denied on the grounds of alleged forgery by a foreign buyer after goods are exported under the Customs & Central Excise Duties Drawback Rules 1995. The single bench consists of (Judicial Member) opined that any forgery, if revealed during a further...
Payment Of Tax Cannot Legalise Unlicensed Activity, GST Registration Doesn't Confer Right To Conduct Business: J&K&L High Court
The High Court of Jammu & Kashmir and Ladakh has held that obtaining registration under the Goods and Services Tax Act, 2017, does not amount to authorisation to conduct a trade or business, nor can payment of tax legitimise an otherwise unlicensed commercial activity.The High Court clarified that taxation statutes and regulatory licensing statutes operate in distinct spheres, and...
Customs Act | Electronic Evidence From Unsealed CPU Without Certificate U/S 139C Cannot Form Basis Of Assessment: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that electronic evidence from an unsealed CPU without any Section 139C certificate under the Customs Act cannot form the basis of assessment. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) opined that the computer/ CPU was not sealed at the time of panchnama and...
Tax Weekly Round-Up: October 27 - November 02, 2025
SUPREME COURTAutomobile Dealers Association Moves Supreme Court Over Compensation Cess Lapse After GST 2.0 Reforms, Claims Loss Of Rs.2500 CrCase Title: FEDERATION OF AUTOMOBILE DEALERS ASSOCIATION v. UNION OF INDIADiary No. 60671/2025The Federation of Automobile Dealers Association has moved the Supreme Court seeking relief related to compensation cess input tax credit worth Rs.2500...
Kerala High Court Quashes Income Tax Appellate Order Against AMMA, Directs Fresh Consideration
The Kerala High Court has set aside an order passed by the Commissioner of Income tax (Appeals), against the Association of Malayalam Movie Artists (AMMA), holding that the appellate authority failed to comply with the mandatory requirements under the Income Tax Act.Justice Ziyad Rahman A A, observed that the Commissioner of Income Tax (Appeals) erred by rejecting AMMA's appeal solely on...
Income Tax Act | Trust's Legitimate Tax Exemption Cannot Be Denied For Delay In Filing Form 10B: Madras High Court
The Madras High Court held that delay in filing Form 10B required under Section 44AB for the purpose of Section 12A(1)(b) of the Income Tax Act, 1961, is not a ground to deny legitimate exemption tax exemptions. Justice C. Saravanan observed that the assessee was registered as a “Trust” in the year 2017. Effectively, the assessee would have carried on operation as...
Income Tax Act | Supreme Court To Examine If S.12AA Registration Alone Entitles Trusts To 80G Benefits To Donors
The Supreme Court is set to examine whether the registration of a trust under Section 12AA of the Income Tax Act, 1961, which recognizes it as a charitable institution for income tax exemption purposes, is sufficient to entitle its donors to claim tax deduction benefits under Section 80G of the Act. A bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan has issued notice on a...