Tax
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...
SSI Exemption Can't Be Denied Merely For Using Common/Assigned Brand Names: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that SSI (Small Scale Industry) Exemption can't be denied merely for using common/assigned brand names. The Tribunal opined that once a brand name is legally assigned or transferred, the SSI unit becomes the “owner” of the brand. Therefore, it is no longer the “brand name of...
Customs | Royalty For Technical Know-How Not 'Condition Of Sale' Even If Included In Value Of Imported Goods: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that royalty paid for technical know-how is not a 'condition of sale' merely because it is included in the value of imported goods. Justice Dilip Gupta (President) and Hemembika R. Priya (Technical Member) opined that both the Technical Agreements relate to transfer of technical...
CESTAT Quashes Excise Duty Demand Against Wipro Over Tamil Nadu Govt's Free Laptop Scheme
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in Chennai on Wednesday quashed the excise department's demand for additional duty from Wipro Ltd., ruling that the company's supply of laptops to the Tamil Nadu government for free distribution to students cannot be treated as a commercial sale and therefore cannot be taxed at retail price. A two-member bench comprising...
GST Levy On Group Health Insurance Policies Challenged; Kerala High Court Grants Interim Relief To Union Bank Pensioners
The Kerala High Court has granted interim relief to retired employees of the Union Bank by allowing them to renew their group health insurance policies without paying the 18% Goods and Services Tax (GST) on the premium.The Court passed the interim order in a writ petition filed by Vinod Mukundan and others, including the All India Union Bank Pensioners & Retirees Federation, challenging...
MP High Court Imposes ₹2 Lakh Cost On Tobacco Company For Stalling GST Proceedings
The Madhya Pradesh High Court has imposed ₹2 lakh costs on an Indore-based tobacco company for attempting to stall the proceedings initiated against it by the GST authorities.The company came came under the scanner of the Director General of GST Intelligence back in May 2020, following an investigation into large-scale tax evasion in the pan masala and tobacco industry in Indore.The...
Customs Act | Excel Sheet Recovered From Assessee's Email Can Be Relied Upon For Valuation Even Without S.138C Certificate: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that an Excel sheet recovered from the email account of the assessee can be relied upon to determine the value of imported goods, even without a certificate under Section 138C of the Customs Act, 1962. Section 138C of the Customs Act, 1962 would apply if the information is printed from...