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, 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 the revenue account, liable for taxation.Delhi HCPayments Made To AWS For Cloud Computing Services Not Taxable: Delhi High CourtCase Title:THE COMMISSIONER OF INCOME TAX vs AMAZON WEB SERVICESCase no.: ITA 150/2025The Delhi High Court has held that payments made to Amazon Web Services (AWS) for cloud computing services do not qualify as “royalty.” The bench, comprising Justice Vibhu Bakhru and Justice Tejas Karia, upheld the Income Tax Appellate Tribunal's (ITAT) decision which held that such payments are not taxable as royalties or fees for technical services (FTS). The Court referred to earlier judgments to emphasize the difference between transferring intellectual property rights and simply giving access to standardized digital services. It dismissed the appeal, highlighting the key distinction between access to digital resources and ownership or control over them.Appeal On Taxability Including Point Of Limitation Doesn't Lie Before HC U/S 35G Of Central Excise Act: Delhi High CourtCase title: Commissioner Of Service Tax Delhi v. Shyam Spectra Private LimitedCase no.: SERTA 5/2025The Delhi High Court has reiterated that an appeal from CESTAT under the Central Excise Act 1944 involving the issue of taxability will lie before the Supreme Court under Section 35L. A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta ruled that such an appeal, even on a limited point of limitation, will not lie before the High Court under Section 35G. It observed, “Even if the question of limitation has been raised, the Court has to go into the merits of the matter after a decision on the question of limitation is made. The maintainability of the appeal would have to be examined on the said benchmark…The obvious conclusion would be that if this Court holds that the SCN was within the limitation, the issue of taxability would have to be gone into.”Delhi HC Sets Aside Income Tax Action Against Rajat Sharma-Owned India TV's Parent Company Over Alleged Unaccounted Foreign RemittancesCase title: M/S Independent News Service Pvt. Ltd. v. The Assessing Officer, Circle 10(1) & Anr.Case no.: W.P.(C) 11601/2024The Delhi High Court on Wednesday set aside the reassessment action initiated against journalist Rajat Sharma's company, M/S Independent News Service Pvt. Ltd., which owns and runs the India TV channel, over alleged foreign remittances.The notice was issued following a survey conducted by the Income Tax Department at the J&K Bank back in 2019, revealing that the company had made foreign remittances amounting to ₹6,50,84,454/- during AY 2017-18, which did not tally with the amounts reflected in its bank statement.Delhi High Court Sets Aside ₹10 Crore Security Demanded By Customs For Provisional Release Of Seized Goods, Calls It 'Onerous'Case title: M/S Shreehari Ananta Overseas Pvt. Ltd. v. The Commissioner Of Customs Icd PatparganjCase no.: W.P.(C) 8788/2025Coming to the rescue of an importer, the Delhi High Court has set aside the security of ₹10 crore (approx) demanded by the Customs Department for provisional release of its perishable goods.Calling the condition 'onerous', a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta ordered provisional release of Petitioner's imported Roasted Areca Nuts on furnishing bond of Rs.4.10 crore along with a Bank Guarantee of Rs. 50 lakh.Delhi High Court Rejects Income Tax Department's Appeal Against Thomson Press Over Alleged Transaction Of Property Below Circle RateCase title: Pr. Commissioner Of Income Tax, Delhi-7 v. M/S Thomson Press (India) Ltd.Case no.: ITA 192/2025The Delhi High Court has dismissed an appeal preferred by the Income Tax Department against Thomson Press (India) over the sale of a property in Noida back in 2013, allegedly at a price much lower than the prevailing circle rate.A division bench of Justices Vibhu Bakhru and Tejas Karia noted that the registered agreement to sell and payment of stamp duty with respect to the property transaction were already completed by the date when the circle rate of the area in question was enhanced.Gujarat HCDTAA Prevails Over S.206AA Of Income Tax Act For TDS On Payments To Non-Residents Without PAN: Gujarat High CourtCase Title: Commissioner of Income Tax (International Taxation and transfer Pricing v. M/s Adani Wilmar Ltd.Case Number: R/TAX APPEAL NO. 514 of...

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

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

Kapil Dhyani

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