Tax Weekly Round-Up: August 25 - August 31, 2025

SUPREME COURTSupreme Court Directs DGFT & CBIC To Update Tech Systems To Ensure Genuine Exporters Don't Lose Benefits Over Clerical ErrorsCause Title: M/S SHAH NANJI NAGSI EXPORTS PVT. LTD. Versus UNION OF INDIA AND ORS.The Supreme Court observed that an exporter cannot be denied legitimate entitlements under the government's incentive schemes merely because of an inadvertent clerical error that was later corrected through statutory processes.Holding thus, a bench of Justices Aravind Kumar and NV Anjaria ruled in favour of an exporter who was denied a claim for benefits under the Merchandise Exports from India Scheme (MEIS) just because the column declaring “intent to claim MEIS” in the shipping bills was incorrectly marked “No” instead of “Yes due to oversight of the customs broker.Supreme Court Pulls Up Income Tax Dept For Launching Prosecution For Tax Evasion Without ITAT Confirmation, Imposes Rs 2 Lakh CostCause Title: VIJAY KRISHNASWAMI @ KRISHNASWAMI VIJAYAKUMAR VERSUS THE DEPUTY DIRECTOR OF INCOME TAX (INVESTIGATION)The Supreme Court on Thursday (Aug. 28) imposed Rs. 2 Lakhs cost on Income Tax Department for 'grossly abusing its position' to continue a prosecution against an assessee alleging willful tax evasion.The bench comprising Justices JK Maheshwari and Vijay Bishnoi set aside the Madras High Court's decision, which refused to quash the prosecution case initiated by the department. The Court criticized the department's action of launching the prosecution against the assessee in contrast to its own circulars, which allow launching the prosecution for tax evasion under Section 276C (1) of the Income Tax Act, 1961 (“IT Act”) only after the penalty for concealment is confirmed by the Income Tax Appellate Tribunal (ITAT).Vehicles Plying Only Within Enclosed Premises Of Factory/Plant Not Liable To Pay Motor Vehicle Tax : Supreme CourtCause Title: M/S. TARACHAND LOGISTIC SOLUTIONS LIMITED VERSUS STATE OF ANDHRA PRADESH & ORS.The Supreme Court on Friday (Aug. 29) ruled that the vehicles operating exclusively within the enclosed premises of a factory or plant are not liable to pay motor vehicle tax, as such areas do not constitute a "public place."“Motor vehicle tax is compensatory in nature. It has a direct nexus with the end use. The rationale for levy of motor vehicle tax is that a person who is using public infrastructure, such as, roads, highways etc. has to pay for such usage. Legislature has consciously used the expression 'public place' in Section 3 (“AP Motor Vehicle Taxation Act”). If a motor vehicle is not used in a 'public place' or not kept for use in a 'public place' then the person concerned is not deriving benefit from the public infrastructure; therefore, he should not be burdened with the motor vehicle tax for such period.”, the court said.HIGH COURTSAllahabad HCOfficer Appointed Under State GST Act Is Authorised To Discharge Duties As Proper Officer For IGST & CGST: Allahabad High CourtCase Title: Shree Maa Trading Company And 2 Others v. State Of U.P. And 3 OthersCase no.: WRIT TAX No. - 3171 of 2025The Allahabad High Court has held that an officer appointed under the State Goods & Service Tax Act will be Proper Officer under the Integrated Goods & Service Tax Act as well as the Central Goods & Service Tax Act.Perusing Section 4 of the IGST Act read with rule 20 of the CGST Act, Justice Piyush Agrawal held, “The provision provides that the Officer appointed under the State Goods & Service Tax is authorized to discharge their duties as Proper Officer for the purpose of IGST & CGST. Further, the notification will be required only if some exceptions and conditions are required to be carved out on the recommendation of the GST Council.”Bombay HCIncome Tax | Interest On Fixed Deposits, TDS Refund Linked To Business Qualifies For S. 80IA Deduction: Bombay High CourtCase Title: Gateway Terminals India Pvt. Ltd. v. Deputy Commissioner of Income-tax, RaigadCase Number: INCOME TAX APPEAL NO. 1139 OF 2021The Bombay High Court held that interest on fixed deposits, TDS refund linked to business qualifies for deduction under Section 80IA of the Income Tax Act. Section 80IA of the Income Tax Act, 1961 provides tax incentives for businesses operating in certain sectors such as infrastructure, power, and telecommunications.Justices B.P. Colabawalla and Firdosh P. Pooniwalla stated that the placement of fixed deposits was imperative for the purpose of carrying on the eligible business of the assessee. The placement of fixed deposits is not for parking surplus funds which are lying idle. This is also demonstrated by the fact that the assessee had used these fixed deposits for purchasing cranes for the eligible business. There is a direct nexus between the fixed deposits and the eligible business of the assessee.Delhi HCImport Of Counterfeit iPhones Dilutes Brand Equity, Affects Consumer Welfare: Delhi High Court In Customs Fraud CaseCase title: M/S ECG Easy Connect Logistics Pvt. Ltd v. Commissioner Of ...

Tax Weekly Round-Up: August 25 - August 31, 2025

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