Income Tax Act | Revisional Power U/S 263 Cannot Be Invoked When AO Allows Deduction U/S 32AC After Proper Inquiry: Kerala High Court

The Kerala High Court stated that revisional power under Section 263 of the Income Tax Act cannot be invoked when Assessing Officer (AO) allowed deduction under Section 32AC after proper inquiry. Justices A. Muhamed Mustaque and Harisankar V. Menon opined that merely for the reason that AO extended the deduction claimed after carrying out investigations, the exercise of the power...

Customs | Confiscation, Penalty & Fine Can't Be Imposed On IGST Demand Arising From Breach Of Pre-Import Condition: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that confiscation, penalty & fine cannot be imposed on IGST (Integrated Goods and Services Tax) demand arising from breach of pre-import condition under Customs Act. Ajay Sharma (Judicial Member) and C J Mathew (Technical Member) opined that the IGST demand arose because of the breach of...

TNGST Act | Purchase Tax Cannot Be Levied on Buyer for Seller's Tax Default: Madras High Court

The Madras High Court on Monday held that purchase tax cannot be levied under Section 7A of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act) on the purchaser merely because the seller failed to pay tax. The bench, comprising Justices S M Subramaniam and Mohammed Shaffiq, clarified the scope of Section 7A in transactions where the vendor has defaulted on tax payments "Having found...

Differential Duty Paid For Provisional Release Not Pre-Deposit; Refund Interest Payable Only At 6% U/S 27A Customs Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the differential duty paid for provisional release is not a pre-deposit. Hence, refund interest payable only at 6% U/S 27A Customs Act, not 12% U/S 35FF Central Excise Act. Dr. Rachna Gupta (Judicial Member) opined that all those goods were ordered to be released as per the provisions...

Supreme Court Dismisses Customs' Appeal Seeking Rs 93 Lakh Duty On Lulu Malls' Imported Trampolines

The Supreme Court recently (October 31) dismissed an appeal filed by the Customs Department challenging the classification and valuation of imported amusement equipment, including trampolines, by Lulu International Shopping Malls Pvt Ltd.A bench of Justices Pankaj Mittal and Prasanna B Varale held that there was no error in the classification of the trampolines and other equipment under...

Customs | AIFTA Exemption Cannot Be Denied Without Verifying Certificate Of Origin: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the AIFTA (ASEAN-India Free Trade Agreement) exemption cannot be denied without verifying the certificate of origin. Ajay Sharma (Judicial Member) and C J Mathew (Technical Member) noted that there is no allegation, let alone ascertainment, that the 'certificate of origin' corresponding...

Approval From Higher Authority Mandatory For Issuing Notice U/S 148 Income Tax Act After Expiry Of 3-Year Limitation: Madras High Court

The Madras High Court has held that under the new regime, approval from a higher authority, such as the Principal Chief Commissioner of Income Tax or the Principal Director General, is mandatory to issue a notice under Section 148 of the Income Tax Act after the expiry of a three-year limitation period. Justice C. Saravanan stated that …….three years from the end of the...

Tax Monthly Digest: October 2025

SUPREME COURTSupreme Court Issues Notice To IndiGo On Plea Of Customs Dept & GST Council Against Ruling On IGST Exemption For Imported PartsCase : Principal Commissioner of Customs Acc (Import) and others v. Interglobe Aviation LtdCase no.: Diary No. 49140-2025The Supreme Court on Monday sought a response from IndiGo's parent company, InterGlobe Aviation, on a petition filed by the...

Customs | FOB Value Determined Between Parties Protected By Privity Of Contract; Cannot Be Modified By Stranger: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the FOB (Free On Board) value determined between the parties is protected by privity of contract, and it cannot be modified by a stranger to the contract. Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) opined that FOB value is the product of...

Income Tax | Verification By Dept Is Mandatory Before Treating Charitable Donations As Involuntary: ITAT

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that an independent enquiry or verification by the department is mandatory before treating charitable donations as involuntary. George George K (Vice President) stated that the First Appellate Authority (FAA) treated the donations as not voluntary donation and sustained the addition made by the AO. The FAA has...

CENVAT Credit Rules | Variable 'P' Under Rule 6(3A) Refers Only To Common Credit, Not Total Credit, Prior To 01.04.2016: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that variable 'P' under Rule 6(3A) of CENVAT Credit Rules, 2004, refers only to common credit, not total credit, prior to 01.04.2016. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) were addressing the issue of whether, for the tax periods April 2012 to March 2014,...

Income Tax | Assessee Should Not Be Penalised For Delay In Filing Return Caused By CA's Belated Advice: Bombay High Court

The Bombay High Court has held that the assessee should not be penalised for the delay in filing the return caused by the chartered accountant's belated advice. The bench noted that the delay is not due to any negligence on the part of the assessee, but to inadequate advice by the Chartered Accountant, a fact admitted by him in his affidavit. Justices B.P. Colabawalla and Amit...