DRI Has Jurisdiction To Issue Show Cause Notice In Drawback Cases: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that DRI (Directorate of Revenue Intelligence) have the jurisdiction to issue show cause notice in drawback cases. P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) were addressing the issue of whether DRI Officers have the jurisdiction to issue SCN under Section 75 of the...

Rajasthan High Court Quashes Challenge Against State Amendment Imposing New Motor Vehicle Tax On “Sleeper Bus”

The Rajasthan High Court rejected the challenge made to an amendment brought in by the Transport Department by which a new category of “sleeper bus” was added for levying motor vehicle tax, taking it out from the previous category without qualifying it for the exemptions available under other categories.The division bench of Justice Vinit Kumar Mathur and Justice Anuroop Singhi held that...

S.263 Income Tax Act | Commissioner Cannot Revise Assessment Merely Because Detailed Reasoning Was Not Given: Madras High Court

The Madras High Court stated that the Income Tax commissioner cannot revise an assessment merely because detailed reasoning was not given in the order. Section 263 of the Income Tax Act, 1961, empowers the Commissioner of Income Tax to revise any order passed under the Income-tax Act, 1961, “the Act” which is erroneous insofar as it is prejudicial to the interest of...

[GST] 'Ill-Advice From Unqualified Consultants Leading To Clients' Inability To Appear Before Authorities': Madras High Court

The Madras High Court has directed the department to issue a circular urging assessees to engage only qualified consultants for GST compliance. Justice Krishnan Ramasamy stated that, "This Court comes across similar instances in several cases, extending ill advice to the clients by the consultants, who are all not qualified persons. Such kind of ill-advice leads to the fact that...

No Violation Of Article 14 In Denying Property Tax Exemption To Unaided Schools: Kerala High Court

The Kerala High Court stated that there is no violation of Article 14 in denying property tax exemption to unaided schools. Justice Ziyad Rahman A.A. stated that the fact that the Government owned, managed and aided schools are established by the Government at their funds in order to provide education to all classes of persons by collecting nil or meagre fees, is a crucial factor...

Centre Publishes Income Tax Act 2025 In Official Gazette After Presidential Assent

The Ministry of Law and Justice today published the Income Tax Act, 2025, in the Official Gazette after it received the President's assent on Thursday. The Act consolidates and amends the existing income tax law, replacing the Income Tax Act, 1961. It willcome into effect from April 1, 2026.The Act was passed by the Parliament in the current monsoon session. Click here to read the...

Revenue Cannot Enforce Optional Exemption Notification Without Assessee's Consent: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that revenue cannot enforce optional exemption notification without assessee's consent. Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) opined that once an exemption is claimed, the assessee will not get CENVAT credit and may lose some other benefits. Therefore, it...

Mere Delay In Uploading Demand Order On GST Portal Doesn't Make Action Time Barred If Service Via Email Is Proved: Delhi High Court

The Delhi High Court recently observed that usually there is a gap between the passing of a demand order by the GST Department and uploading of Form DRC-07 (summary of order) on the official portal.A division bench of Justices Prathiba M. Singh and Shail Jain however refused to infer such a gap as rendering the demand order time-barred, in view of the fact that the demand was served upon...

[GST] Reverse Charge Mechanism Notifications Denying ITC To Service Providers Are Constitutionally Valid: Bombay High Court

The Bombay High Court held that RCM notifications denying ITC credit to service providers are constitutionally valid and does not violate Article 14 and 19(1)(g) of the Constitution. The bench opined that in case of RCM, the person receiving the services, i.e. the recipient pays the tax and can claim credit of the same. The provider of service is exempt from paying tax. Merely...

Income Tax Act | Rebate U/S 87A Available On Short-Term Capital Gains U/S 111A Under New Regime: ITAT

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has stated that rebate under section 87A available on short-term capital gains under section 111A under new regime. Suchitra R. Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) stated that on a plain reading of the statutory provisions, there exists no express bar either in section 87A or section 111A...

Income Tax | Sale Proceeds Of Vintage Cars Taxable Unless Assessee Proves That Car Was Used As Personal Asset: Bombay High Court

The Bombay High Court held that sale proceeds of vintage car taxable unless the assessee proves that the car was used as a personal asset. Chief Justice Alok Aradhe and Justice Sandeep V. Marne stated that the capability of a car for personal use would not ipso facto lead to automatic presumption that every car would be personal effects for being excluded from capital assets of...

Is Merchant Navy Officer's Salary Credited In Indian Bank Account Exempt From Income Tax? Supreme Court To Decide

The Supreme Court on Monday (Aug. 18) agreed to decide whether the income credited in an Indian bank account while working with a Foreign Entity would be exempted from the payment of Income Tax under the Income Tax Act, 1961.. The issue arose before the bench of Justices Pankaj Mithal and Prasanna B. Varale while hearing the appeal filed against the Punjab & Haryana High Court's...