Tax
Income Tax Act | Failure To Raise Timely Objection To Jurisdiction U/S 143(2) Bars Assessee From Challenging Assessment: Chhattisgarh HC
The Chhattisgarh High Court held that failure to raise a timely objection to jurisdiction under Section 143(2) of the Income Tax Act bars the assessee from challenging the assessment. Justices Sanjay K. Agrawal and Radhakishan Agrawal stated that the assessee also did not raise any objection regarding jurisdiction upon completion of his assessment. As such, the plea with regard to...
Revenue Sharing Arrangements Not Taxable As Service U/S 65(90a) Of Finance Act: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that revenue-sharing arrangements are not taxable as a service under Section 65(90a) of the Finance Act. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) stated that the agreement was purely related to the transaction of business whereby the assessee was...
Bombay High Court Directs Dept To Pay ₹71.31 Lakh Interest On Refund Of Illegal IGST Collected Under RCM On Ocean Freight
The Bombay High Court has directed the department to pay Rs. 71.31. Lakh interest on refund of illegal IGST (Integrated Goods and Services Tax) collected under RCM (Reverse Charge Mechanism) on ocean freight. Justices M.S. Sonak and Advait M. Sethna stated that admittedly, the Petitioner had paid the amount of IGST which the respondents utilized up to the date of grant of refund....
Limitation Under Rule 68B Of Income Tax Act Does Not Apply To RDDB Act Proceedings: Kerala High Court
The Kerala High Court held that the limitation under Rule 68B of the second schedule to the Income Tax Act does not apply to RDDB Act (Recovery of Debts Due to Banks and Financial Institutions Act, 1993) proceedings. Justice Mohammed Nias C.P. stated that Rule 68B of the Second Schedule to the Income Tax Act, 1961, has no mandatory application to recovery proceedings under the RDDB...
Statutory Interest Mandatorily Payable U/S 56 GST Act On Refunds Delayed Beyond 60 Days: Gujarat High Court
The Gujarat High Court held that statutory interest mandatorily payable under Section 56 GST Act on refunds delayed beyond 60 days. Justices Bhargav D. Karia and Pranav Trivedi stated that the provision of section 56 of the GST Act is a mandatory provision and the interest which is required to be paid under section 56 is compensatory in nature for delayed payment of refund...
Allahabad High Court Stays Rs.110 Crore GST Demand On Dabur's Hajmola Candy
The Allahabad High Court on October 10 stayed a ₹110 crore GST show cause notice issued to Dabur India Ltd. over the classification of its Hajmola Candy Tablets.A bench of Justice Saumitra Dayal Singh and Justice Indrajeet Shukla passed the interim order in a petition filed by Dabur challenging the DGGI notice issued earlier this year.The dispute revolves around how Hajmola Candy Tablets...
Income Tax Act | Non-Production Of Form 3CL Isn't Material Suppression; Not Grounds To Reopen Assessment U/S 147: Kerala High Court
The Kerala High Court held that the non-production of Form 3CL is not material suppression and is not a valid ground to reopen the assessment under Section 147 of the Income Tax Act. Under Section 35(2AB) of the Income Tax Act, 1961, any expenditure on scientific research is allowable as a deduction. A sum equal to one and one-half times the expenditure is allowed as such a...
Tax Weekly Round-Up: October 13 - October 19, 2025
SUPREME COURTITC Cannot Be Denied To Bona Fide Purchasers If Seller Defaults On Tax Payment : Supreme CourtCase Title: THE COMMISSIONER TRADE AND TAX DELHI vs M/S SHANTI KIRAN INDIA (P) LTDCase Number: CIVIL APPEAL NO(S).2042-2047/2015The Supreme Court recently held that the Input Tax Credit (ITC) on goods purchased from registered dealers cannot be denied to bona fide purchasers merely...
GST Not Payable On MGO Charges Collected By ONGC From GAIL For Shortfall In Gas Offtake: Tamil Nadu AAR
The Authority for Advance Ruling of Tamil Nadu recently held that Minimum Guaranteed Off-take (MGO) charges collected by ONGC from GAIL for short-lifting natural gas are not liable to Goods and Services Tax (GST).In a clarification key for the oil and gas sector, the authority ruled that these charges are in the nature of liquidated damages for breach of contract and do not constitute a...
Input Tax Credit Not Admissible On Electricity Supplied To Township Maintained By Bharat Aluminium: Chhattisgarh High Court
The Chhattisgarh High Court has stated that the ITC is not admissible on electricity supplied to a township maintained by Bharat Aluminium. The bench, consisting of Chief Justice Ramesh Sinha and Ravindra Kumar Agrawal stated that Input Tax Credit (ITC) is not admissible on the electricity supplied to the township maintained by Bharat Aluminium/appellant. This is because such...
Non-Resident Company Need Not Have Permanent Office In India To Be Taxed On Income Accruing Here : Supreme Court
The Supreme Court has clarified that under the Income Tax Act, a non-resident company can be taxed in India on income that accrues or arises from a business connection within the country, even if it does not maintain a permanent office or physical establishment here.A Bench of Justice Manoj Misra and Justice Joymalya Bagchi, in its judgment examined the scope of Sections 4, 5(2), and 9(1)(i)...
Assessment Order Not Void Solely Because It Was Passed in Deceased's Name: ITAT Chandigarh
The Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, recently held that an appellate order passed by the Commissioner of Income Tax (CIT), reassessing the income tax liability of an assessee, is not invalid merely because it was issued in the name of a deceased person. The Tribunal noted that since the appeal itself was filed under the deceased's name, the order cannot be quashed on...