Tax Weekly Round-Up: June 30 - July 06, 2025

HIGH COURTSBombay HCIncome Tax | Sales Tax Incentive Under Govt Scheme For Industrial Promotion Is Capital Receipt, Not Taxable: Bombay High CourtCase Title: Bajaj Auto Limited v. Dy. Commissioner of Income TaxCase Number: INCOME TAX APPEAL NO.505 OF 2003The Bombay High Court has stated that sales tax incentive under a government scheme for industrial promotion is a capital receipt,...

[Income Tax Act] Reassessment Beyond 4 Years Requires Specific Non-Disclosure By Assessee, Not Mere Allegations: Bombay High Court

The Bombay High Court stated that reassessment under Section 147 Income Tax Act beyond 4 years requires specific non-disclosure by assessee, not mere bald allegations. Section 147 of the Income Tax Act, 1961 provides for the reopening of assessment proceedings. This section gives discretion to the Assessing Officer (AO) to reopen the assessment proceedings when he/she has reason...

Assessing Authority Not Bound By Appellate Tribunal's Observations In De Novo Assessment: Madras High Court

The Madras High Court has stated that the assessing authority is not bound by the appellate tribunal's observations in a De Novo assessment. Justices Anita Sumanth and N. Senthilkumar opined that while concluding the assessment de novo, the assessing authority is not bound by the observations made by the first appellate authority. In this case, the Commercial Taxes Department...

Income Tax | Serving SCN On Old Email After Updation Is Invalid, Despite Earlier Acknowledgement: Kerala High Court

The Kerala High Court stated that reply to one SCN on old email cannot justify non-service of subsequent notice on updated email. Justice Ziyad Rahman A.A. stated that “one of the notices issued under Section 142(1) of the Income Tax Act was indeed served to the assessee in the old email ID, which was after updating the email ID. The assessee also submitted a response to the...

AD-I Banks Can Grant Extension For Export Drawback Claims; RBI's Direct Approval Not Mandatory: Kerala High Court

The Kerala High Court stated that AD-I banks authorized by RBI can grant extension for export drawback claims, RBI's direct approval not mandatory. Justice Ziyad Rahman A.A. stated that the Master Circular published in this regard indicates that it is not necessary that extension should come from the Reserve Bank of India itself as the AD-I bank are authorized to grant such...

Kerala High Court Quashes Proceedings U/S 148 Of Income Tax Act Initiated Against Cancelled PAN Number

The Kerala High Court quashed Income Tax proceedings under Section 148 against co-operative society initiated on cancelled PAN. Justice Ziyad Rahman A.A. observed that the transactions pertain to the relevant assessment year were carried out based on the PAN card that was then in existence, which was later cancelled. By the time the proceedings of assessment were initiated by issuing...

Cadbury's 'Perk' Products Are 'Wafer Biscuits', Not Chocolates, Qualifies For Concessional Duty: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that 'perk' products are 'wafer biscuits', not chocolates and are entitled to the benefit of the exemption notification. Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) were addressing the issue of whether Perk, ULTA Perk, Perk Poppers and Wafer Uncoated...

Occupancy Certificate Not Final For Plinth Area Determination: Kerala High Court Upholds Luxury Tax U/S 5A Of Kerala Building Tax Act

The Kerala High Court stated that occupancy certificate not final for plinth area determination under Section 6 of the Kerala Building Tax Act. Justice Ziyad Rahman A.A. was addressing the issue where challenge raised by the assessee was against the assessment of building tax and luxury tax, by mainly placing reliance upon Occupancy Certificate. Section 5A Of Kerala Building Tax...

Proceedings U/S 148A Of Income Tax Act Unsustainable If Escaped Income Is Below ₹50 Lakhs & Notice Is Issued After 3 Years: Kerala High Court

The Kerala High Court held that proceedings under Section 148A of Income Tax Act not sustainable if escaped income is below Rs. 50 lakhs and notice issued after 3-years. Justice Ziyad Rahman A.A. stated that “when the order of the assessing authority is found to be without jurisdiction and hit by the period of limitation, it is not necessary to relegate the party concerned to...

Tax Monthly Digest: June 2025

HIGH COURTSAllahabad HCAllahabad High Court Rejects Patanjali's Plea Against ₹273.5 Crore GST PenaltyCase Title: M/s Patanjali Ayurved limited v. Union of India and OthersCase no.: WRIT-TAX NO. 1603 OF 2024The Allahabad High Court has directed continuation of proceedings under Section 122 of the Central Goods and Services Tax Act, 2017 against M/s Patanjali Ayurved limited's 3 plants...

Interest On Delayed Refund Is Statutorily Mandated After 3 Months: CESTAT Applies 6% Interest U/S 11BB Of Central Excise Act

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that interest on delayed refund is statutorily mandated after 3 months under Section 11BB Of Central Excise Act. Section 11BB of the Central Excise Act, 1944 mandates that if a duty refund is not processed within three months from the receipt of an application, the applicant is entitled...

Income Tax | Sales Tax Incentive Under Govt Scheme For Industrial Promotion Is Capital Receipt, Not Taxable: Bombay High Court

The Bombay High Court has stated that sales tax incentive under a government scheme for industrial promotion is a capital receipt, not taxable.Chief Justice Alok Aradhe and Justice Sandeep V. Marne were addressing the issue of whether an incentive received in sales tax liability under a Scheme formulated by the State Government would be on the capital account, exempt from taxation, or on...