TMI Tax Updates - e-Newsletter
April 17, 2025
Case Laws in this Newsletter:
GST
Income Tax
Customs
Service Tax
Central Excise
TMI Short Notes
Bills:
Summary: Clause 134 of the Income Tax Bill, 2025 provides tax deductions for individuals paying rent for personal residence without receiving house rent allowance. The provision allows deduction of the lower of Rs. 60,000 annually or 25% of total income, with rent exceeding 10% of total income being eligible. The deduction is restricted for property owners and aims to provide equitable tax relief for housing expenses across different employment categories. The clause closely mirrors the existing Section 80GG, maintaining similar computational and eligibility principles.
Bills:
Summary: Concise Legal Summary:The text analyzes Clause 133 of the Income Tax Bill, 2025, which proposes a comprehensive transformation of tax deduction mechanisms for charitable donations. The new clause aims to modernize and consolidate existing tax incentives for philanthropic contributions, replacing Section 80G of the Income-tax Act, 1961. Key changes include streamlined eligibility criteria, digital reporting requirements, and clear deduction percentages for various charitable funds and institutions. The provision maintains the core objective of encouraging social welfare contributions while enhancing compliance and transparency in the charitable sector through stricter verification and reporting mechanisms.
Bills:
Summary: A legal analysis of tax incentives for electric vehicle purchases reveals legislative efforts to promote green transportation. The provisions offer tax deductions up to INR 1,50,000 for individuals obtaining loans from financial institutions to purchase electric vehicles. The policy aims to encourage sustainable transportation by providing financial incentives, supporting environmental goals, and reducing carbon emissions through targeted tax benefits for electric vehicle acquisition.
Bills:
Summary: A legal provision in the Income Tax Bill, 2025 introduces tax relief for home loan borrowers. Clause 131 allows deductions up to one hundred and fifty thousand rupees for individuals acquiring residential property through financial institution loans. The provision targets first-time homebuyers, with specific eligibility criteria including loan sanction dates, property value limits, and absence of prior home ownership. This measure aims to promote affordable housing and stimulate real estate sector economic activity.
Bills:
Summary: Legal Document Summary:A legislative provision in the Income Tax Bill, 2025 addresses tax deductions for residential home loans. The clause allows individuals to claim up to fifty thousand rupees deduction on interest for home loans meeting specific criteria. Applicable to loans sanctioned between specific dates, the provision targets first-time homebuyers purchasing affordable properties valued under fifty lakh rupees. The legislation aims to promote home ownership by providing financial incentives and supporting the real estate sector through targeted tax relief.
Bills:
Summary: Legal Analysis Summary:The document examines Clause 129 of the Income Tax Bill, 2025, which provides tax deductions for interest on educational loans. The provision allows individuals to claim deductions for loans taken for higher education of themselves or relatives. The deduction applies for eight years or until full interest repayment. Compared to previous Section 80E, the clause modernizes definitions of higher education and financial institutions, aiming to incentivize educational financing by reducing tax burden and making higher education more accessible.
Articles
By: Abhay Singh
Summary: A government contract dispute revealed nuanced interpretation of privity doctrine. A subcontractor sought payment through writ jurisdiction after contract cancellation. The Calcutta High Court recognized public law obligations can override strict contractual principles, allowing judicial intervention when government actions appear arbitrary or unfair. The court prioritized principles of natural justice, enabling a remedy for the aggrieved subcontractor despite lacking direct contractual relationship with the government.
By: Ishita Ramani
Summary: A One Person Company (OPC) must file annual returns with the Registrar of Companies, including financial statements, board resolutions, director's report, and specific forms like MGT-7A and AOC-4. Timely filing ensures compliance, avoids penalties, and maintains business credibility. Proper documentation and professional guidance are recommended to complete the process accurately.
By: DR.MARIAPPAN GOVINDARAJAN
Summary: A registered taxpayer filed a GST refund claim for export services, which was initially rejected by the Adjudicating Authority. The Appellate Authority overturned this decision, directing the refund. However, the Department refused to process the refund, intending to file an appeal. The High Court intervened, ruling that without a pending appeal or review, the Department cannot withhold the refund. The court directed the Department to process the refund with interest within two months, while preserving the Department's right to challenge the order later.
By: Dr. Sanjiv Agarwal
Summary: A brewery faced a Show Cause Notice (SCN) from tax authorities alleging GST evasion on production overhead charges and misclassification of byproducts. The brewery challenged the SCN through a writ petition in the Bombay High Court. The court refused to quash the notice, observing that the allegations of tax evasion and product misclassification require factual investigation. The petition was dismissed, directing the brewery to respond to the SCN, with the tax authorities to consider the reply during further proceedings.
By: YAGAY andSUN
Summary: The Global Organic Textile Standard (GOTS) is an internationally recognized certification for textile production that ensures organic fiber content, environmental sustainability, and fair labor practices. It requires at least 70% organic fiber, prohibits harmful chemicals, mandates responsible waste management, and promotes worker rights. The certification covers the entire supply chain, providing transparency and enabling companies to access global markets while meeting stringent environmental and social criteria.
By: YAGAY andSUN
Summary: The article examines environmental non-compliances in India's manufacturing sector, particularly Red Category industries. These industries, including chemicals, cement, and metallurgy, frequently violate air, water, and waste management regulations. Key issues include excessive emissions, untreated effluent discharge, hazardous waste mismanagement, and inadequate pollution control. Reasons for non-compliance range from cost-cutting to inefficient enforcement. Consequences include legal penalties, reputation damage, and community health risks. Addressing these challenges requires strengthened regulations, awareness programs, and incentives for sustainable practices.
By: YAGAY andSUN
Summary: Regional Value Content (RVC) is a critical mechanism in Free Trade Agreements (FTAs) that determines product eligibility for preferential tariff treatment by mandating a minimum percentage of value sourced within the agreement region. India has implemented RVC provisions in multiple trade agreements with ASEAN, Japan, South Korea, UAE, and others, typically setting thresholds between 30-50% to encourage regional economic integration and prevent trade deflection while promoting intra-regional supply chains.
By: YAGAY andSUN
Summary: Customs circular introduces reforms for export entry processes, focusing on streamlining export procedures and reducing business costs. Key changes include one-year time limit for export entry conversion, electronic processing of amendments, and expanded provisions for instrument-based schemes. The regulations allow conversion between export schemes with specific restrictions, require additional commissioner approval for critical shipping bill amendments, and aim to enhance overall export efficiency and compliance.
By: YAGAY andSUN
Summary: The article discusses the Contemporaneous Import Provisions in Indian Customs Law, focusing on principles for preventing undervaluation of imported goods. Key principles include using transaction value as the primary basis, comparing goods' values, making reasonable adjustments, relying on documentary evidence, and ensuring non-discriminatory application. The provisions aim to maintain customs valuation integrity, prevent fraudulent practices, and support fair trade by using technology and data analytics to assess import values accurately.
By: YAGAY andSUN
Summary: Contemporaneous Import Provisions in Indian Customs Law focus on preventing undervaluation of imported goods. The legal framework, primarily under the Customs Act of 1962 and Valuation Rules of 2007, enables customs authorities to compare transaction values of similar goods imported during the same period. By scrutinizing declared values against market prices, authorities can detect potential duty evasion, impose corrective measures, and apply penalties for intentional misrepresentation of import values.
By: YAGAY andSUN
Summary: The Customs Department invokes Contemporaneous Import Provisions to prevent undervaluation of imported goods in India. Under Section 14 of the Customs Act, 1962, authorities can investigate declared import values suspected of being artificially low. By comparing transaction values of similar contemporaneous imports, customs officers assess whether the declared value reflects actual market prices, potentially leading to duty reassessment, penalties, and requiring additional documentation from importers.
News
Summary: BMW Group India expands its Retail.NEXT concept in Delhi NCR with two new showrooms by Deutsche Motoren and Infinity Cars. The innovative retail approach focuses on customer experience through digital empowerment, modern architecture, and immersive design. The showrooms feature integrated sales and service areas, personalized welcome zones, consultation spaces, and advanced digital tools to transform luxury automotive retail interactions.
Summary: The Competition Commission of India approved the acquisition of shareholding in Akasa Air by PI Opportunities Fund, its executives, Claypond Capital Partners, and 360 ONE Private Equity Fund. The proposed combination involves investment through various schemes and affiliates. Akasa Air provides domestic and international air passenger and cargo transport services. The detailed commission order will be released subsequently.
Summary: The Competition Commission of India approved a complex healthcare investment combination involving multiple entities from TPG and GIC investment groups. The proposed transaction includes share subscriptions, rights acquisitions, and a transfer of shareholding in healthcare-related companies operating in India. The combination involves investment entities focused on healthcare services, with participants spanning hospital networks, specialty medical centers, and advisory services across multiple Indian states.
Summary: Pakistan's Prime Minister praised China as a crucial economic ally, highlighting Beijing's support in securing an IMF agreement and loan extension. He announced a program sending 1,000 agriculture graduates to China for training in modern farming techniques. The Prime Minister emphasized China's significant investments through the China-Pakistan Economic Corridor and described the bilateral relationship as essential for Pakistan's economic stability.
Summary: A real estate developer reported strong financial performance in fiscal year 2025, with customer collections increasing 9% to Rs 3,937 crores and pre-sales reaching Rs 5,006 crores. The company invested Rs 1,300 crores in land acquisition, securing approximately 8 million square feet with potential gross development value of Rs 13,000 crores. The firm plans to launch over 13 million square feet of projects in the upcoming fiscal year, targeting sustained growth in a resilient property market.
Summary: A digital payment company partnered with a remittance firm to enhance cross-border financial transactions for Indian customers. The collaboration enables seamless international payments through a digital platform, addressing the growing market of overseas remittances. The partnership focuses on providing efficient, secure, and cost-effective solutions for students and professionals managing international financial needs.
Summary: A technology company announced leadership changes, appointing a new global CEO with extensive banking experience. The previous CEO transitions to an advisory role after leading the company through significant growth and acquisition. Simultaneously, a senior executive was promoted to Chief Commercial Officer to oversee global market strategies. The leadership transition aims to strengthen the company's global market position and continue its expansion in banking and payments technology.
Summary: The Indian rupee strengthened for the third consecutive session, gaining 12 paise to close at 85.68 against the US dollar. The currency's rise was driven by renewed foreign fund inflows, a weak American currency, positive domestic macroeconomic indicators, and lower crude prices. The dollar index traded lower, while domestic equity markets showed positive momentum with significant foreign institutional investor purchases.
Summary: The Indian rupee strengthened by 26 paise to 85.54 against the US dollar in early trade, driven by significant foreign capital inflow, a weak American currency, and lower crude oil prices. Positive macroeconomic indicators and foreign investor buying in domestic equities contributed to the currency's appreciation. The dollar index traded lower, and Brent crude prices declined, further supporting the rupee's performance.
Summary: Truckers in Karnataka launched an indefinite strike after failed negotiations with the state's Chief Minister. The Federation of Karnataka State Lorry Owners and Agents Association cited rising diesel prices, toll plaza harassment, and operational restrictions as key grievances. Despite government appeals and a meeting, the truckers remained resolute in their protest. The strike potentially threatens economic activities and commodity prices, with trucks halted across major cities in the state.
Summary: A Bangladeshi national was arrested by the Enforcement Directorate in Kolkata for illegally preparing Indian passports and Aadhaar cards for immigrants. The individual was found to be generating proceeds through fraudulent document creation, maintaining multiple bank accounts, and conducting unauthorized currency exchanges. Authorities seized incriminating documents, digital devices, and cash during the investigation, leading to a 13-day custody order under money laundering laws.
Summary: Congress workers protested outside the Enforcement Directorate office in Shimla against a chargesheet filed in a money laundering case involving senior party leaders. The party accused the government of misusing investigative agencies to suppress opposition voices. Party leaders condemned the legal action, claiming it is a politically motivated attempt to divert attention from key national issues. They asserted their unity and willingness to resist what they perceive as governmental pressure.
Summary: A businessman was questioned by the Enforcement Directorate for five hours regarding a 2008 Haryana land deal linked to money laundering allegations. The investigation involves a property transaction where land purchased for 7.5 crore rupees was later sold for 58 crore rupees. The individual claimed the probe was politically motivated and maintained his cooperation with investigating agencies. He was summoned again the following day for further questioning under the Prevention of Money Laundering Act.
Summary: Congress party in Manipur protested outside the Enforcement Directorate office against a chargesheet filed in the National Herald case. Party leaders condemned the action as political vendetta, alleging misuse of central agencies to intimidate opposition. They claimed the chargesheet against party leaders is arbitrary and challenges democratic principles, raising slogans against the government's actions.
Summary: A political leader criticized an opposition party for alleged corruption and appeasement politics, focusing on land disputes, a legal case involving a newspaper, and amendments to a religious property act. The critique centered on land claims, a money laundering investigation, and political maneuvering, highlighting tensions between competing political parties over constitutional and legal interpretations.
Summary: A political party alleges government harassment in a legal case involving financial accusations. The party claims the chargesheet against its leaders is an attempt to divert attention from economic issues and represents political vendetta. They argue the case is fabricated, denying any wrongdoing and asserting they will continue to raise public concerns despite legal challenges.
Summary: Political tensions escalated as the Delhi BJP criticized the Congress party's protest against an Enforcement Directorate chargesheet in the National Herald case. The BJP accused the Congress of attempting to politicize legal proceedings, claiming the case originated from a petition filed during the Congress-led government's tenure. The chargesheet alleges money laundering involving senior party leaders, with the BJP asserting the investigation is a result of a 13-year legal process, not political vendetta.
Summary: Political opposition party workers demonstrated outside law enforcement agency office, protesting allegations of politically motivated legal action against party leadership. Protesters claimed central agencies were being misused to target opposition members. Police prevented demonstrators from entering the office and took preventive custody of activists. Similar protests occurred in multiple locations.
Summary: A senior political leader criticized an opposition party following a legal chargesheet in a financial case, alleging corruption and misuse of funds. The Enforcement Directorate filed charges against party leaders for allegedly laundering substantial funds. The politician also commented on recent communal violence in a state, suggesting systemic governmental failures and political instability.
Summary: Enforcement Directorate conducted multi-state raids targeting an online travel booking portal co-founder in connection with the Mahadev online betting app money laundering investigation. The searches covered 55 locations across several cities, focusing on potential proceeds of crime linked to illegal betting operations. The agency suspects financial connections between the travel portal's leadership and the betting app's network, with previous investigations revealing alleged involvement of high-ranking politicians and bureaucrats.
Summary: A political party staged a protest against a law enforcement agency's chargesheet in a long-standing financial case involving senior party leaders. The party characterized the legal action as politically motivated, claiming it is an attempt to target their leadership. Protesters gathered outside party headquarters, denouncing government actions and expressing solidarity with the accused leaders. The case involves alleged financial irregularities in a newspaper-related property transaction, which the party maintains lacks substantive evidence.
Summary: Enforcement Directorate arrested a former managing director of Karnataka Bhovi Development Corporation in a money laundering case. The agency alleges systematic fund diversion through fraudulent bank accounts, involving multiple officials. Investigations claim approximately 97 crore rupees were misappropriated by creating fake entities and transferring funds to personal connections. This is the second arrest in the ongoing probe targeting alleged financial irregularities within the state government department.
Summary: A political leader criticized the government's actions against an opposition party, citing economic challenges and legal proceedings. He accused the ruling party of targeting the opposition through a legal chargesheet in a high-profile case. The leader highlighted concerns about unemployment, trade deficits, and economic performance, asserting that the government is attempting to divert attention from its failures through legal actions.
Summary: A prominent political family member claimed targeted investigation by enforcement agencies, alleging political persecution. He was questioned about a 2008 land transaction and suggested the probe was motivated by his familial connections. He indicated intentions to enter politics, asserting he has been working with people since 1999 and will continue fighting against what he perceives as false accusations by government agencies.
Summary: Congress workers protested at the Enforcement Directorate office in Ranchi against a chargesheet filed in the National Herald case involving senior party leaders. The demonstration, led by local party officials, condemned the legal action as a politically motivated attempt to target the party leadership. The chargesheet names multiple party members and was filed in connection with a money laundering investigation.
Summary: A businessman was questioned by the Enforcement Directorate for two consecutive days regarding a 2008 land deal in Haryana. The investigation involves a property transaction where a company purchased land for 7.5 crore rupees and sold it four years later for 58 crore rupees. The land deal was previously scrutinized by a government official who cancelled the mutation, leading to allegations of potential irregularities. The probe is being conducted under the Prevention of Money Laundering Act.
Summary: Political party responds to legal charges in high-profile case involving a newspaper company. The party claims the enforcement action is baseless, arguing the case involves a non-profit organization with no financial misconduct. They assert the legal proceedings represent political harassment, emphasizing the historical significance of the newspaper and denying allegations of financial impropriety. The party maintains its commitment to challenging what it describes as government intimidation tactics.
Summary: A senior state official condemned a legal charge filed against opposition party leaders, describing it as politically motivated retribution by national government officials. The official alleged the investigative agency was misusing its authority to target political opponents, characterizing the action as an attempt to suppress democratic dissent. He pledged party resistance and called for broader public support against what he termed authoritarian tactics.
Summary: Enforcement Directorate conducted raids in Hyderabad targeting Surana Group and Sai Surya Developers over alleged money laundering in real estate fraud. The investigation involves non-delivery of a project called 'Green Meadows' where multiple investors, including a software engineer, collectively invested over three crore rupees. The probe is being conducted under the Prevention of Money Laundering Act, focusing on potential financial irregularities in the real estate venture.
Summary: Congress workers protested at party headquarters against government actions in a long-standing legal case involving alleged money laundering. The Enforcement Directorate filed a chargesheet against senior party leaders, targeting their alleged improper property acquisition. Party representatives condemned the move as political vendetta, claiming the investigation aims to intimidate opposition leadership. The case involves property transfers and financial transactions related to a media organization, with legal proceedings ongoing.
Summary: A businessman was questioned by the Enforcement Directorate for two consecutive days regarding a 2008 land deal in Haryana. The investigation involves a property transaction where land purchased for 7.5 crore rupees was later sold for 58 crore rupees. The case centers on potential money laundering allegations, with the subject claiming political motivation. An administrative officer had previously cancelled the land mutation, triggering controversy and subsequent legal scrutiny.
Summary: A political party accused another party's leaders of corruption in a legal case involving money laundering allegations. The investigative agency filed a chargesheet against prominent political figures, claiming misuse of a company to acquire assets. The accused party described the action as politically motivated, while the accusing party maintained the investigation is legitimate and initiated during the accused party's previous governance.
Summary: A political party accused a prominent family of corruption following a business associate's questioning by an enforcement agency regarding a land deal. The ruling party spokesperson alleged land grabbing and financial impropriety, claiming the family represents systemic corruption. The investigated individual denied wrongdoing, characterizing the probe as political retaliation. The agency's actions were framed as demonstrating legal accountability and commitment to investigating potential financial misconduct.
Summary: Political leaders from a regional party condemned a legal chargesheet filed by an investigative agency against prominent opposition party members. They characterized the action as politically motivated, alleging misuse of government institutions to target opposition figures. Party representatives claimed the move represents vendetta politics and an attempt to malign senior leaders, asserting they will continue to resist such actions through legal and political channels.
Summary: Political figures from an opposition party were charged by an enforcement agency in a money laundering case involving a media company. A senior political leader criticized the legal action as politically motivated, questioning the basis of the allegations and claiming the chargesheet represents a vendetta against opposition leaders. The enforcement agency filed charges related to alleged financial irregularities in property transactions, with the case originating from a private complaint filed nearly a decade ago.
Summary: Political opposition party announces nationwide protests following legal action against party leadership. The ruling government seized assets of a historical newspaper and filed money laundering charges against senior party members. Party leadership condemned the action as politically motivated, describing it as an attempt to intimidate and silence democratic opposition. Protests will be organized at government offices nationwide, with party members participating to express resistance against what they claim is an abuse of state power.
Summary: The Enforcement Directorate filed a chargesheet against political leaders in the National Herald case, alleging money laundering of nearly 988 crore rupees. The opposition party characterized the action as political vendetta, while the ruling party claimed it as accountability for corruption. Simultaneously, the agency recorded a statement from a prominent political family member in a related land deal investigation.
Summary: The Enforcement Directorate filed a chargesheet against prominent political leaders in a money laundering case involving a newspaper company. The investigation alleges a criminal conspiracy to acquire properties worth approximately Rs 2,000 crore by transferring shares to a private company for a nominal amount. The political party claims the action is politically motivated, while authorities assert the legal proceedings have been upheld by higher courts. The case involves potential financial irregularities in a media organization's asset transfer.
Summary: The World Trade Organisation warns global trade may decrease by 0.2% in 2025 due to tariff policies, with potential further decline to 1.5% if stringent tariffs are implemented. North American exports and imports are expected to fall significantly. Trade uncertainty could negatively impact economic growth, particularly affecting vulnerable economies, according to WTO leadership.
Summary: California's governor announced a lawsuit challenging presidential tariff authority, arguing the imposition of broad tariffs on multiple countries is unlawful. The legal action will contend that such tariffs require congressional approval and cause significant economic damage. Filed in federal court, the lawsuit seeks to immediately block tariffs that allegedly inflate costs and threaten state economic interests, particularly impacting manufacturing and agricultural exports.
Summary: Finland's president discussed strengthening bilateral relations with India's prime minister, emphasizing closer India-EU ties and expediting a mutually beneficial free trade agreement. They reviewed collaboration in digital technologies, sustainability, mobility, quantum computing, 5G-6G networks, artificial intelligence, and cybersecurity, while exchanging perspectives on regional and global issues.
Summary: India's retail inflation dropped to a six-year low of 4.6% in fiscal year 2024-25, with March 2025 seeing a year-on-year inflation rate of 3.34%. The decline reflects effective monetary policies and government interventions, including strategic food stock management, import duty simplification, and targeted subsidies. Food inflation specifically fell to 2.69%, driven by lower prices in vegetables, eggs, pulses, and other key categories. This marks a significant improvement from previous years of high inflation, demonstrating successful economic stabilization efforts.
Summary: A national leader analyzed the escalating geopolitical tensions between two major powers, highlighting their competitive dynamics. The leader noted both countries are attempting to draw other nations into their respective spheres of influence, creating a complex global landscape. The international order is shifting, with economic instruments like tariffs becoming tools of strategic competition. The emerging scenario suggests a fragmented global system centered around two competing economic ecosystems, creating significant uncertainty for international businesses and governments.
Summary: China appointed a new international trade representative amid escalating tensions with the United States over tariffs. The US threatened potential 245% import levies on Chinese goods, while China emphasized the need for equal dialogue. The appointment signals potential negotiation efforts, occurring alongside China's first quarter GDP growth of 5.4%. Both sides expressed divergent perspectives on resolving the trade dispute, with China maintaining it does not want a trade war but is prepared to defend its interests.
Summary: Political and legal developments highlight tensions between opposition party and government agencies. Enforcement Directorate questioned key political figures in separate investigations involving land deals and financial irregularities. Supreme Court discussed diverse legal matters including language, religious trusts, and judicial appointments. National Commission for Women initiated probe into reported communal violence. Political leaders exchanged sharp criticisms regarding ongoing legal proceedings and institutional actions.
Summary: Global stock markets experienced declines as technology shares were impacted by new US restrictions on advanced AI computer chip exports. Chip manufacturers like Nvidia and AMD saw significant stock drops. Trade tensions escalated with potential tariff increases between the US and China. Asian markets, including Hong Kong and Tokyo, also fell, reflecting concerns about economic growth and international trade uncertainties. Investors remained cautious about potential economic implications of ongoing trade disputes.
Summary: India's total exports are estimated to grow by 5.50% to US$ 820.93 Billion in fiscal year 2024-25, compared to US$ 778.13 Billion in the previous year. Merchandise exports slightly increased by 0.08% to US$ 437.42 Billion. Key export growth sectors include coffee (40.37%), electronic goods (32.47%), tobacco (36.53%), and rice (19.73%). Services exports are projected to grow by 12.45%, with top destination growth observed in USA, Australia, and Kenya. The trade deficit widened to US$ 94.26 Billion, up from US$ 78.39 Billion in the previous fiscal year.
Summary: Indian stock markets rallied for the third consecutive day, with Sensex climbing 309.40 points to reach 77,044.29 and Nifty rising 108.65 points to 23,437.20. The positive sentiment was driven by blue-chip banking stocks and foreign fund inflows, supported by lower retail inflation and expectations of potential future rate cuts. Foreign institutional investors purchased equities worth Rs 6,065.78 crore, offsetting previous selling trends.
Summary: Gold prices surged to a record high of Rs 98,100 per 10 grams due to escalating trade tensions between the US and China. The global rush for safe-haven assets drove gold prices up, with spot gold reaching USD 3,318 per ounce. Silver also climbed to Rs 99,400 per kg. Market analysts attribute the increase to potential interest rate cuts and ongoing geopolitical uncertainties.
Summary: A trade war escalates between the United States and China, with the White House announcing potential tariffs up to 245% on Chinese imports. China retaliated by raising tariffs to 125% and suspending exports of critical minerals and rare earth metals. The dispute involves trade negotiations, aerospace contracts, and strategic economic pressures between the two nations.
Summary: China appointed a new international trade representative amid escalating tensions with the United States over tariff disputes. The Commerce Ministry selected a former World Trade Organisation ambassador to potentially restart negotiations. The US has increased tariffs on Chinese imports to 245 percent, with the White House stating that negotiations are paused. Both sides express willingness to resolve the trade conflict, but disagree on approach, with China calling for equality and the US demanding a deal.
Summary: A political leader criticized the government's response to global economic challenges, particularly US tariffs. She urged prioritizing poor citizens' welfare and maintaining national self-respect during economic uncertainty. The leader accused the ruling party of focusing on specific regions and groups instead of comprehensive development, calling for a more inclusive approach that benefits marginalized communities across the country.
Summary: Asian stock markets experienced significant declines following US restrictions on advanced AI computer chips. Technology stocks, particularly semiconductor companies like Nvidia and AMD, saw sharp drops. Trade tensions escalated with potential tariff increases between the US and China. Global market indices in Hong Kong, Tokyo, and European exchanges showed negative trends, reflecting concerns about economic growth and international trade uncertainties.
Summary: The United States remained India's largest trading partner in fiscal year 2024-25, with bilateral trade reaching USD 131.84 billion. India's trade deficit with China widened to USD 99.2 billion, with exports contracting and imports rising. The US-India trade surplus increased to USD 41.18 billion, with key exports including drug formulations, telecom instruments, and precious stones. Both countries aim to expand bilateral trade to USD 500 billion by 2030.
Summary: A senior trade negotiator was newly appointed in China amid ongoing trade tensions with the United States. The government replaced the previous negotiator who was involved in the 2020 trade deal. Currently, China faces significant export taxes to the US, with 145% tariffs imposed, while other countries received a temporary 90-day duty exemption.
Summary: US stock markets experienced a relatively calm day amid ongoing trade tensions. Major indices like S&P 500 and Dow Jones showed modest gains. Banking stocks performed well, with financial institutions reporting strong quarterly profits. Global markets across Europe and Asia also saw slight increases. The underlying economic uncertainty persists due to ongoing trade disputes between major economies, with potential implications for global economic stability.
Summary: Italian Deputy Prime Minister's visit to India marked a significant milestone in bilateral relations. The trip focused on strengthening strategic partnership through agreements in trade, technology, and innovation. Key outcomes included scientific cooperation protocols, business forum interactions, and discussions on economic collaboration. The visit emphasized joint initiatives in space, research, and entrepreneurship, with plans to deepen economic ties and explore potential collaborations across multiple sectors.
Summary: A Supreme Court bench issued directives regarding the implementation of the Finance Act 2017 cash transaction limit of Rs 2 lakh. The court emphasized enforcing the law to curb black money and promote digital transactions. It mandated that courts and sub-registrars must inform income tax authorities about cash transactions exceeding Rs 2 lakh, enabling appropriate legal actions and potential penalties. The bench highlighted the importance of compliance and digital economy transformation.
Summary: Political leader from opposition party accused the ruling party of attempting to destabilize state government through investigative agencies. He urged party members to remain united and resist potential power capture. The leader criticized central government's actions against party leadership, highlighting constitutional principles and alleging political vendetta. He also raised concerns about regional development and healthcare infrastructure in his home district, emphasizing the need for government attention to backward regions.
Summary: Nagaland Congress members conducted protests at party offices in Kohima and Dimapur against the Enforcement Directorate's chargesheet targeting party leaders. Party officials accused the government of misusing legal mechanisms to target opposition, claiming the action undermines democratic principles. Protesters characterized the demonstration as a movement to protect constitutional rights and support marginalized populations.
Summary: A financial services company launched a redesigned website focused on customer experience and digital innovation. The new platform offers seamless access to loan products, financial tools, and personalized services across web and mobile platforms. Enhanced features include intuitive navigation, dedicated utility sections, advanced security measures, and dynamic user interfaces tailored to different customer segments. The website aims to improve operational efficiency and provide comprehensive financial solutions.
Summary: Police prevented a Congress protest march in Jammu regarding an Enforcement Directorate chargesheet against party leaders in the National Herald case. Hundreds of party activists attempted to march to the ED office but were stopped by police barricades. The party criticized the action as undemocratic, calling the chargesheet a conspiracy and alleging political vendetta by the ruling party against the opposition.
Summary: Enforcement Directorate filed a charge sheet against senior Congress leaders in the National Herald case, alleging money laundering of Rs 988 crore. Congress leaders in Madhya Pradesh condemned the action as a political conspiracy, claiming it is an attempt to suppress opposition voices. The ruling party defended the legal action, pointing out the case originated during Congress's own governance. Congress leaders argued the allegations are baseless and part of a vendetta strategy by the government.
Summary: A political leader criticized the Enforcement Directorate, calling for its disbandment and suggesting alternative agencies can investigate economic offenses. He commented on ongoing legal proceedings against opposition party leaders, discussed governance challenges, and alleged political provocations. The leader also expressed intentions to expand his party's organizational presence in a different state through meetings with other political representatives.
Summary: Congress workers in Bihar protested outside the Enforcement Directorate office against a chargesheet filed in the National Herald money laundering case. Party leaders claimed the case was politically motivated, targeting opposition members. The demonstration was part of a nationwide protest, with party members criticizing government agencies and alleging selective action against opposition leaders. Security personnel were deployed, and protesters were eventually dispersed from the site.
Summary: Enforcement Directorate filed a chargesheet alleging a criminal conspiracy by political party leaders to transfer company assets worth Rs 2,000 crore through share manipulation. The agency claims two party leaders were "beneficial owners" who converted a loan into equity shares and transferred them to a private company for a minimal amount. The chargesheet seeks punishment under money laundering laws and identifies proceeds of crime at Rs 988 crore with current asset value around Rs 5,000 crore.
Summary: A federal probe agency filed a chargesheet alleging a criminal conspiracy by political party leaders to transfer properties worth Rs 2,000 crore through share manipulation. The investigation claims party leaders converted a loan into equity shares and transferred them to a private company for a minimal amount, effectively acquiring beneficial ownership of assets valued at Rs 5,000 crore. The chargesheet seeks punishment under money laundering laws and names several party associates as accused.
Summary: A government advisory announces that starting June 1st, 2025, the Invoice Reporting Portal will treat invoice numbers as case-insensitive. All invoice numbers will be automatically converted to uppercase during IRN generation to ensure consistency and prevent duplication, aligning with existing GSTR-1 practices.
Summary: A Chinese military spokesperson criticized the United States for increasing its defense budget to one trillion dollars, arguing that such excessive military spending would cause global harm. China, the second-largest defense spender, recently increased its own budget by 7.2% to $249 billion. The spokesperson accused the US of maintaining a "might makes right" approach and exploiting global resources for weapon manufacturing.
Summary: GeM, India's public procurement e-marketplace, achieved significant milestones in fiscal year 2024-25 by facilitating insurance coverage for over 1.3 crore individuals through health, life, and personal accident policies. Introduced in January 2022, the platform enables government organizations to procure insurance services directly from IRDAI-approved providers, ensuring transparency, efficiency, and cost-effectiveness. The platform offers diverse insurance categories and has successfully streamlined procurement processes without intermediaries.
Summary: The Competition Commission of India approved a proposed transaction involving a healthcare merger. Aster DM Healthcare will acquire a stake in Quality Care India Limited and subsequently merge with it, creating a combined healthcare entity. The transaction involves multiple stakeholders, including investment firms. The merged company will operate hospitals, clinics, pharmacies, and medical centers across multiple Indian states, expanding its healthcare service network.
Summary: The Competition Commission of India approved Alat Technologies' acquisition of shares in TKE Group and formation of a joint venture. The transaction involves Alat Technologies acquiring approximately 15% shareholding in Vertical Topco and establishing a joint venture focused on manufacturing and servicing transportation units primarily in Saudi Arabia and potentially other MENA region countries. Alat Technologies is a subsidiary of Saudi Arabia's Public Investment Fund, specializing in various technological sectors.
Summary: The Rajasthan government is prioritizing public welfare in its budget, with the Chief Minister emphasizing timely and transparent implementation of budget announcements. He stressed the importance of development works, directing departments to coordinate efforts, ensure infrastructure projects proceed efficiently, and focus on key areas like drinking water, irrigation, energy production, and healthcare services across the state.
Notifications
Customs
1.
25/2025 - dated
15-4-2025
-
Cus (NT)
Seeks to amend Notification No. 61/94-Customs (N.T.) dated the 21st November, 1994 - Customs airports — Appointment for specified purposes
Summary: The notification amends a previous customs notification by adding Dholera in Gujarat as an authorized location for unloading imported goods and loading export goods. The amendment is issued by the Central Board of Indirect Taxes and Customs under the Customs Act, 1962, expanding the existing list of customs airports or locations with specified operational purposes.
2.
24/2025 - dated
15-4-2025
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Cus (NT)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver
Summary: The notification amends customs tariff values for various goods including edible oils, brass scrap, areca nuts, gold, and silver. It establishes new tariff values for crude palm oil, palmolein, soya bean oil, brass scrap, gold, silver, and areca nuts. The changes will take effect from 16 April 2025, as issued by the Central Board of Indirect Taxes and Customs under the Ministry of Finance's Department of Revenue.
DGFT
3.
04/2025-26 - dated
15-4-2025
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FTP
Amendment in Import Policy Condition No. 07 (i) of Chapter - 27 of Schedule-I (Import Policy) of ITC (HS), 2022
Summary: A government notification amends Import Policy Condition No. 07 (i) for Chapter-27 in the Import Policy. The Coal Import Monitoring System (CIMS) now requires importers to submit advance information online and obtain an Automatic Registration Number with registration fees determined by Appendix 2K, replacing the previous fixed fee structure of Rs. 1 per thousand with minimum and maximum limits.
GST - States
4.
EXN-B(1)-3/2018 - dated
28-3-2025
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Himachal Pradesh SGST
Appoint Additional Commissioner of State Taxes and Excise
Summary: A government notification from Himachal Pradesh appoints an Additional Commissioner of State Taxes and Excise as Additional Commissioner (Appeals) under the Goods and Services Tax Act. The appointment is made in pursuance of a previous notification, exercising powers conferred by section 3 of the state GST Act, to carry out purposes of section 107 of the Act.
5.
09/2025-State Tax - dated
28-3-2025
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Himachal Pradesh SGST
Seeks to bring in force provisions of various rules of Himachal Pradesh Goods and Services Tax (Amendment) Rules, 2024
Summary: A notification from the Himachal Pradesh State Taxes and Excise Department establishes implementation dates for specific amendments to the Goods and Services Tax Rules. The document specifies effective dates for Rules 2, 24, 27, 32, 8, 37, and clause (ii) of Rule 38, with implementation dates ranging from February 11, 2025 to April 1, 2025, under the powers granted by section 164 of the Himachal Pradesh Goods and Services Tax Act, 2017.
6.
08/2025-State Tax - dated
28-3-2025
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Himachal Pradesh SGST
State Tax Notification for waiver of the late fee
Summary: The state government of Himachal Pradesh waives late fees for GST returns under section 128 of the GST Act for financial years 2017-18 to 2022-23. Registered persons who failed to submit FORM GSTR-9C with their annual return can now submit the reconciliation statement by March 31, 2025, without incurring additional late fees. No refunds will be provided for late fees already paid.
7.
07/2025-State Tax - dated
28-3-2025
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Himachal Pradesh SGST
Himachal Pradesh Goods and Services Tax (Amendment) Rules, 2025
Summary: The Himachal Pradesh Goods and Services Tax (Amendment) Rules, 2025 introduces a new provision for granting temporary identification numbers to persons not liable for registration but required to make payments under the Act. The amendment modifies existing rules related to registration, composition taxpayer intimation, and updates the FORM GST REG-12 to include provisions for temporary registration and identification numbers.
8.
EXN-F(10)-20/2016-Vol-I - dated
27-3-2025
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Himachal Pradesh SGST
Corrigendum-Notification No. 55/2017-State Tax, dated the 15th November, 2017
Summary: A corrigendum to a previous state tax notification modifies the language in clauses (1) and (2) of sub-rule (v) of rule 2, replacing the original text referencing multiple tax acts with specific references to the Himachal Pradesh Goods and Services Tax Act and the Central Goods and Services Tax Act, effectively clarifying the statutory interpretation of the original notification.
9.
02/2025-STATE TAX (RULES) - dated
3-4-2025
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Manipur SGST
Manipur Goods and Services Tax (Second Amendment) Rules, 2025
Summary: The Manipur Goods and Services Tax (Second Amendment) Rules, 2025 modifies existing GST rules, specifically addressing refund and appeal procedures. The amendment clarifies that no refund is available for taxes already paid for periods before the amendment's commencement. It also provides a mechanism for taxpayers to partially withdraw appeals related to tax demands covering multiple periods, allowing selective appeal withdrawal while maintaining proceedings for other periods.
Circulars / Instructions / Orders
DGFT
1.
02/2025-26 - dated
15-4-2025
Amendment in Appendix 2K (Scale of User Charges and Process for Deposit/ Refund of Application Fee/Penalty, etc) of FTP 2023
Summary: The legal document details an amendment to Appendix 2K of the Foreign Trade Policy 2023, introducing registration fees for various Import Monitoring Systems. It outlines a comprehensive scale of application fees for different trade-related services, specifies payment methods through online channels, provides conditions for fee exemptions and refunds, and establishes procedures for fee management and adjustment in foreign trade transactions.
Highlights / Catch Notes
GST
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Landmark Ruling: Retrospective Tax Amendments Struck Down as Unconstitutional, Protecting Taxpayers from Arbitrary Legislative Overreach
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High Court Validates CENVAT Credit Utilization, Affirms Unified Tax Credit Ledger Approach for Electronic Input Tax Reconciliation
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Geometry Compass Box Ruled as Mixed Supply, GST Rate Set at 18% Based on Highest-Taxed Component Under Section 2(74)
Income Tax
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Legal Win: Interest in Land Acquisition Deemed Capital Gains, Exempt from Tax Under Section 10(37) for Agricultural Lands
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Transfer Pricing Dispute: Tribunal Modifies Comparable Companies List and Clarifies Investment-Related Tax Assessments
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Income Tax Fees from Membership and Share Transfers Ruled as Capital Receipts, Not Revenue Income
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Grandfathered Capital Gains Exemption Upheld: No Adjustment of Losses Against Tax-Exempt Long-Term Transactions Under India-Mauritius DTAA
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Taxpayer Prevails: Stock Valuation Challenge Dismissed, Section 69C and 115BBE Interpretation Favors Business Records
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Revisional Proceedings Under Section 263 Invalidated Due to Lack of Substantial Error and Revenue Prejudice
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Taxpayer Wins on Transfer Pricing Method and SEZ Service Deductions, Tribunal Orders Fresh Assessment and Deduction Restoration
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Multinational Firms Win Transfer Pricing Battle: TNMM Method Validated, Interconnected Transactions Recognized as Single Economic Unit
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Taxpayer Wins Major Victory: ITAT Strikes Down Income Additions, Validates Loan and Transfer Documentation Under Section 68
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Unsecured Loans and Share Capital Challenged: Insufficient Evidence Leads to Tax Liability Confirmation Under Section 68
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Tax Regime Shift Validated: Timely Form 10IE Filing Secures Beneficial Tax Treatment Under Section 115BAC
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Land Distance Valuation Upheld: Proper Inquiry and Documentary Evidence Prevail Against Arbitrary Reassessment Under Section 263
Customs
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Container Scanning Protocol Enhances Trade Security with Automated Risk Assessment and Mandatory Examination Procedures
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Gold Jewellery Seizure Invalidated: Procedural Flaws Breach Natural Justice, Order Quashed for Lack of Due Process
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Procedural Delay Rejected: Appeal Dismissed After Exhausting Permitted Adjournment Opportunities Under Rule 20
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L-Glutamine with Berries Classification Challenged: Expert Evidence Required Beyond Wikipedia for Accurate Tariff Determination
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Scrap Vehicle Disposal Deemed Lawful: CESTAT Quashes Customs Duty Demand After Finding No Violation of Exemption Order
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ATM Monitors Classified as Integral Machine Parts Under CTH 8473, Not General Display Screens, Tribunal Confirms Technical Specificity
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Clear Float Glass Classification Resolved: Tribunal Confirms CTH 7005 1090 and FTA Benefits for Importer
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Imported Projectors with Digital Connectivity Classified Under 8528 6100, Maintaining Consistent Technical Interpretation of Classification Rules
Service Tax
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Vehicle Service Station Tax Dispute Resolved: Warranty Charges Exempt, Insurance Commissions Taxable, CENVAT Credit Denied
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Export Unit Wins Tax Credit Appeal: Documentation Validates Input Service Refund Under Rule 5 of Cenvat Credit Rules
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Employers Can Recover Premature Contract Termination Costs Without Tax Liability Under Section Specific Penalty Provisions
Central Excise
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Tobacco Packing Machine Duty Calculation Resolved: 4th Proviso Rule 9 Applied, No Additional Levy Required for Ceased Production
Case Laws:
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GST
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2025 (4) TMI 872 The SC examined amendments to GST Acts redefining "supply" for clubs and associations. The court found the amendments unconstitutional, ruling that transactions between clubs and members cannot be considered taxable supplies. The retrospective application from July 1, 2017, was deemed illegal, violating principles of fairness and rule of law. The principle of mutuality was upheld, protecting clubs from unexpected tax liabilities.
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2025 (4) TMI 871 Court reviewed GST registration cancellation after proprietor's death. SC recognized procedural flaws in cancellation process and sympathized with legal heir's circumstances. Directed petitioner to file revocation application within one week and ordered respondents to consider it within two weeks, ensuring fair hearing and opportunity to rectify compliance issues.
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2025 (4) TMI 870 The HC ruled in favor of the petitioner regarding an input tax credit (ITC) procedural error. The court found that the mistaken ITC availment under IGST instead of CGST/SGST did not warrant tax, penalty, or interest. Relying on a CBIC circular and prior precedent, the HC determined the electronic credit ledger could be used flexibly across tax heads without penalty, effectively setting aside the challenged orders.
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2025 (4) TMI 869 The SC resolved a dispute over the HSN code classification for a Geometry Compass Box. The court determined the box should be classified under HSN 90178010 as a mixed supply of mathematical instruments, attracting an 18% GST rate. The ruling clarified the distinction between composite and mixed supplies, applying the highest tax rate principle under the GST framework.
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Income Tax
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2025 (4) TMI 868 SC dismissed Revenue's SLP, noting similar petitions arising from the same HC order had already been rejected. The Court's order comprehensively disposed of the current petition and any pending related applications, effectively upholding the previous judicial determination without further substantive review.
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2025 (4) TMI 867 SC resolved three key tax law issues regarding compensation for land acquisition: (1) Interest on delayed compensation for agricultural land is classified as 'Capital Gains', not 'Income from other sources'; (2) Such interest qualifies for exemption under Section 10(37) of Income Tax Act; and (3) Tribunal incorrectly dismissed rectification application. The court ultimately ruled in favor of the assessee, providing clarity on tax treatment of compensation-related interest.
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2025 (4) TMI 866 The HC addressed a prolonged income tax appeal delay, directing the Commissioner of Income Tax (Appeals) to resolve the appeal within three months. Interpreting Section 250(6A) of the Income Tax Act, the Court emphasized legislative intent for timely appeal resolution and mandated expeditious adjudication to prevent systemic procedural delays.
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2025 (4) TMI 865 HC ruled that a tax reassessment notice dated 30.06.2022 was time-barred under amended Section 149 of Income Tax Act. The court found the notice invalid as it exceeded prescribed limitation periods established by Finance Act, 2021 and COVID-19 related legal extensions. Relying on SC precedents, the court quashed the proceedings initiated under the unauthorized notice, emphasizing strict adherence to statutory time limits.
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2025 (4) TMI 864 The SC/Tribunal addressed multiple tax-related issues involving transfer pricing, income tax adjustments, and penalty proceedings. The key outcome involved partial allowance of the appeal, directing re-computation of transfer pricing comparables and disallowance under Section 14A, while dismissing challenges to Section 143(1) adjustments and penalty proceedings. The decision emphasized functional comparability and segmental data analysis in transfer pricing assessments.
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2025 (4) TMI 863 PCIT invoked section 263 of Income Tax Act for two assessment years, challenging the Assessing Officer's inadequate inquiry. SC/Tribunal upheld PCIT's jurisdiction, finding assessment orders erroneous and prejudicial to Revenue. The case directed fresh assessments with detailed inquiries into land sale values, project costs, and profit discrepancies. Appeals for both years were partially allowed, emphasizing thorough verification during tax proceedings.
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2025 (4) TMI 862 In this tax case, a Cooperative Bank appealed the classification of Nominal Membership and Share Transfer fees. The Tribunal concluded these fees were capital receipts, not taxable revenue receipts. Relying on previous legal precedents, the Tribunal reversed lower authorities' findings, ruling the fees non-taxable when credited to the Reserve Fund, consistent with the bank's bylaws and statutory provisions.
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2025 (4) TMI 861 The SC/Tribunal comprehensively analyzed four key tax law issues, ultimately ruling in favor of the assessee. The court deleted unauthorized tax additions under Section 68 and Section 10(38), rejecting the revenue department's claims due to insufficient evidence. The tribunal emphasized the importance of documentary proof, cross-examination, and procedural fairness in tax assessments, thereby substantially reducing the tax liability.
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2025 (4) TMI 860 The SC/Tribunal addressed capital loss set-off under India-Mauritius DTAA, ruling that non-grandfathered losses cannot be set off against grandfathered exempt gains. The court held that exempt income under the treaty does not constitute taxable income for loss adjustment. The assessee was permitted to carry forward capital losses to subsequent years, with the previous year's decision's reasoning applied consistently.
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2025 (4) TMI 859 The SC/Tribunal addressed the validity of a tax assessment order under section 263 of the Income Tax Act. The court upheld the PCIT's order to set aside the original assessment due to insufficient inquiry into material claims regarding loan provisions and impairment loss. The appeal was dismissed, directing the Assessing Officer to reframe the assessment with proper verification, while rejecting procedural challenges to the revisionary proceedings.
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2025 (4) TMI 858 In this tax case, the Tribunal rejected the Revenue's challenges to two additions: share capital/premium and understated sales. The SC found the assessee provided sufficient documentary evidence proving the legitimacy of share transactions under Section 68 and demonstrated the Assessing Officer's flawed methodology in estimating sales. The Tribunal upheld the CIT(A)'s deletion of both additions, emphasizing that tax assessments must be based on actual evidence rather than assumptions or linear extrapolations.
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2025 (4) TMI 857 INCOME TAX TRIBUNAL DECISION: The SC ruled in favor of the assessee, deleting tax additions under Sections 68 and 69C of the Income Tax Act. The Tribunal found insufficient evidence from Revenue authorities to substantiate claims of price manipulation or unexplained commission. Documentary proof submitted by the assessee, including demat statements and bank records, was deemed credible. The tribunal emphasized the importance of concrete evidence in tax proceedings and set aside prior lower court orders.
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2025 (4) TMI 856 The ITAT ruled that Rule 128's filing requirement for Form No. 67 is directory, not mandatory. Despite belated submission, the tribunal allowed the Foreign Tax Credit (FTC) claim under Sections 90/91 of the Income Tax Act. The decision emphasizes that procedural requirements should not obstruct substantive rights, particularly when the claim's merit is uncontested. The Revenue's appeal was dismissed, upholding the CIT(A)'s original decision.
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2025 (4) TMI 855 The ITAT addressed three key tax law issues: (1) treatment of undisclosed income under Section 69C, (2) applicability of Section 115BBE's higher tax rate, and (3) PCIT's Section 263 revision order. The tribunal ruled in favor of the assessee, determining that the undisclosed income was business income, the amended tax provision was not retrospective, and the PCIT's revision order was unwarranted. The original assessment was upheld, rejecting the revenue department's contentions.
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2025 (4) TMI 854 Tax Tribunal ruled in taxpayer's favor on two key issues: (1) condoned delay in filing appeals due to genuine misunderstanding about procedural requirements, and (2) deleted income tax additions related to a gift from mother and disallowed expenses. The Tribunal found the AO's assessments lacked reasonable basis and evidence, setting aside lower authorities' orders and directing removal of contested tax additions.
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2025 (4) TMI 853 The SC/Tribunal ruled that interest received on enhanced compensation for land acquisition is exempt from income tax under the RFCTLARR Act, 2013. Overturning lower authorities' tax assessment, the Tribunal found the interest forms part of compensation and should not be taxed as "income from other sources" under the Income Tax Act. The decision aligned with previous judicial precedents protecting landowners' compensation rights.
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2025 (4) TMI 852 HC examined the validity of a tax revision order under section 263. The court found the Principal Commissioner of Income-tax (PCIT) lacked sufficient grounds to challenge the Assessing Officer's original assessment. The notice and subsequent order were deemed invalid as they did not demonstrate the assessment was erroneous or prejudicial to revenue. The court upheld the original deductions and allowed the assessee's appeal, invalidating the revision order.
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2025 (4) TMI 851 The tribunal remanded both Section 12A registration and Section 80G approval matters back to the CIT(E), directing a final opportunity for the assessee to provide requisite documentation. The decision emphasized procedural fairness, allowing the trust to rectify previous administrative oversights and substantiate its claims through comprehensive evidence submission, thereby preserving principles of natural justice in tax exemption proceedings.
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2025 (4) TMI 850 The SC remanded the case to CIT(E) for fresh evaluation of the Trust's section 80G registration application. The court found CIT(E)'s initial rejection insufficient, directing a comprehensive reassessment of the Trust's charitable activities, financial records, and submitted evidence. The appeal was allowed to ensure procedural fairness and thorough examination of the Trust's eligibility for tax deduction registration.
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2025 (4) TMI 849 The SC/Tribunal upheld tax authorities' reassessment of the taxpayer's income. The court validated reopening proceedings under Section 147, finding sufficient evidence beyond a retracted statement. The tribunal sustained additions under Sections 68 and 69, determining the taxpayer failed to demonstrate creditworthiness and genuineness of transactions with specified entities. The Revenue's appeal was allowed, and the assessee's cross-objection was dismissed.
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Customs
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2025 (4) TMI 837 HC ruled that Customs' detention of personal gold jewellery was unlawful due to procedural deficiencies. The court found no Show Cause Notice was issued and no personal hearing granted, rendering the confiscation order invalid. Consequently, the court ordered the release of the jewellery within four weeks, emphasizing procedural fairness in customs proceedings.
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2025 (4) TMI 836 HC examined jurisdictional dispute between DRI and DGFT regarding Service Exports from India Scrips (SEIS). Court allowed investigation to continue but restrained DRI from taking coercive actions against petitioner. Balanced investigative rights with protection against potential procedural misconduct, ensuring fair process without definitively resolving jurisdictional question.
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2025 (4) TMI 835 The SC's CESTAT Tribunal dismissed an appeal for non-prosecution due to repeated adjournments beyond the statutory limit of three times. Applying Section 35C(1A) of the Central Excise Act, 1944, the Tribunal found no sufficient cause for the appellant's absence and excessive adjournment requests. The decision emphasizes judicial efficiency and discourages mechanical granting of adjournments that delay justice.
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2025 (4) TMI 834 The SC remanded the case concerning floating crane charges for imported coal. The Tribunal split on whether such charges should be included in assessable value post-2007 legal amendments. The majority direction mandates comprehensive factual verification of transportation costs, customs procedures, and assessment finalization before determining duty implications. The case highlights the nuanced interpretation of customs valuation rules and transportation cost inclusions.
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2025 (4) TMI 833 The SC/Tribunal determined that LED luminaries with BIS registration numbers printed on packaging, rather than embossed on goods, were compliant with registration requirements. The court ruled against confiscation under Section 111(d) of the Customs Act, 1962, finding the labeling met amended guidelines. Penalties and redemption fines were set aside, with the goods authorized for home consumption.
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2025 (4) TMI 832 Tribunal addressed a customs classification dispute involving L-Glutamine with berries. The key issue was the product's tariff classification, with the Department proposing CTH 2106 9099 and the appellant arguing for CTH 2922 4990. The Tribunal criticized reliance on Wikipedia for legal determinations, remanded the case for reconsideration, and directed the Commissioner (Appeals) to reassess classification based on comprehensive evidence within three months.
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2025 (4) TMI 831 The SC ruled in favor of the appellant, finding no violation of exemption order conditions when disposing of non-motorable vehicles as scrap. The court set aside the customs duty demand and penalties, determining the show cause notice was time-barred. The judgment emphasized that disposing of vehicles in non-serviceable condition does not constitute a sale requiring prior permission.
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2025 (4) TMI 830 The SC/Tribunal resolved a customs tariff classification dispute regarding ATM monitors, ruling they should be classified under CTH 8473 as ATM machine parts rather than under CTH 8528 as general monitors. The decision emphasized classifying components based on their specific machine integration and functional purpose, allowing the appellant's appeal and rejecting the revenue's alternative classification argument.
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2025 (4) TMI 829 The SC/Tribunal resolved a customs classification dispute for Clear Float Glass, determining it should be classified under CTH 7005 1090 based on the presence of a tin layer meeting the "absorbent, reflecting or non-reflecting layer" definition. The ruling rejected Revenue's alternative classification, allowing the appellant benefits under Notification No. 46/2011-Cus and affirming the statutory interpretation of Chapter Note 2(c).
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2025 (4) TMI 828 The Tribunal addressed misclassification of imported goods under the Customs Act, 1962. Based on Supreme Court precedent, it determined that the appellants' classification was a bona fide mistake without fraudulent intent. Consequently, the Tribunal set aside penalties under Sections 114A and 114AA, emphasizing that honest errors in classification should not attract punitive measures when made in good faith.
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2025 (4) TMI 827 The SC/Tribunal resolved a customs classification dispute for projectors, determining they should be classified under CTH 8528 6100 as data projectors principally used with ADP machines. Despite additional input ports, the court upheld the appellant's classification, granting customs exemption benefits. The ruling emphasized that supplementary features do not override a product's primary functional purpose.
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Service Tax
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2025 (4) TMI 826 The SC/Tribunal dismissed an appeal by a company under liquidation, applying IBC Section 31 and CESTAT Rule 22. After the completion of liquidation proceedings, the court held that claims not included in the resolution plan are extinguished. With no continuation application filed by the successor-in-interest, the appeal was deemed infructuous and abated.
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2025 (4) TMI 825 The SC/Tribunal determined that Annual Technical Support (ATS) services are fully subject to service tax, rejecting claims of partial VAT applicability. The court found no evidence of goods sale, disallowed abatement claims, and limited tax demand to the standard limitation period. The appellant was required to pay service tax on 100% of the invoice value for ATS services.
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2025 (4) TMI 824 The SC/Tribunal examined a Service Tax demand against a sub-contractor for dam construction. The court found the demand invalid, ruling that financial records alone cannot substantiate tax liability. The tribunal determined the appellant's activities were exempt under electricity transmission notifications, the main contractor had already paid applicable taxes, and the extended limitation period was inappropriate. Consequently, the appeal was allowed, setting aside the original tax demand.
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2025 (4) TMI 823 The SC/Tribunal ruled that salary and reimbursement amounts are not includable in taxable service value under Section 67 of the Finance Act, 1994. The court found no evidence of suppression and rejected the extended period demand as time-barred. The appellant's practice of excluding salary from taxable value was consistent with legal precedents, and only administrative charges for manpower services should be taxed.
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2025 (4) TMI 822 CESTAT ruled in favor of the builder/developer, finding no Service Tax liability for residential complex construction services from June 2005 to January 2007. The Tribunal determined that government circulars and precedents exempted such services from taxation prior to 01.07.2010. The court set aside the original order, concluding that the appellant's contracts were not taxable during the specified period.
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2025 (4) TMI 821 Tribunal addressed multiple service tax issues for an authorized service station. Key findings include: warranty reimbursements were non-taxable, accident repair services and commissions from financial institutions were taxable, cenvat credit was denied, and rental income was subject to retrospective taxation. The Tribunal confirmed demands for the normal period, set aside penalties, and applied existing legal precedents in its ruling.
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2025 (4) TMI 820 The Tribunal allowed the appellant's refund claim under Rule 5 of Cenvat Credit Rules, 2004. It held that a direct nexus between input and output services is not required for a 100% Export Oriented Unit. The Tribunal rejected procedural objections regarding the CA certificate and found the appellant complied with statutory provisions, thereby approving the refund claim.
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2025 (4) TMI 819 The SC/Tribunal ruled in favor of the company, finding that it correctly availed service tax exemption for commissions paid to foreign agents by strictly adhering to notification conditions. The court interpreted the exemption notifications narrowly, rejecting broader arguments about CENVAT credit on related services. The decision emphasized precise compliance with specific exemption requirements.
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2025 (4) TMI 818 Tribunal analyzed whether bond amounts from employees and forfeited student fees constitute taxable services under the Finance Act, 1994. The tribunal concluded these recoveries are penalties, not services, and therefore not subject to service tax. The court found the amounts were contractual penalties for premature departure, not consideration for any declared service, thus allowing the appellant's appeals.
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2025 (4) TMI 817 The SC/Tribunal ruled in favor of the appellant, finding that service tax paid to individual truck owners without consignment notes does not qualify under 'goods transport agency' services. The court interpreted relevant provisions of the Finance Act, 1994, and allowed the refund of service tax paid, rejecting the Revenue's arguments about taxation under the reverse charge mechanism.
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2025 (4) TMI 816 The Tribunal addressed the service tax classification for a composite contract involving goods and services. Based on Supreme Court precedent, it ruled that service tax under 'Erection, Commissioning or Installation Services' was unsustainable. The Tribunal allowed the appeal, determining that such contracts are chargeable only under 'Works Contract Service' from 01.06.2007, thereby providing relief to the appellant.
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Central Excise
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2025 (4) TMI 815 Tribunal ruled that denying cross-examination of witnesses in tax proceedings violates principles of natural justice under Section 9D of Central Excise Act. The court set aside the original order and remanded the case, directing the adjudicating authority to allow cross-examination of material witnesses and ensure fair procedural compliance.
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2025 (4) TMI 814 CESTAT Tribunal addressed duty calculation for tobacco packing machines. The court ruled in favor of the appellant, determining duty should be calculated under Rule 9's 4th Proviso on a pro-rata basis. The tribunal granted abatement for non-production period and rejected enhanced duty rate application, finding the rate change inapplicable due to prior production cessation. Appeals were allowed with excess duty refund directed.
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2025 (4) TMI 813 In this case, the Tribunal ruled that Jai Balaji Industries Limited could avail CENVAT Credit using railway receipts, despite a new requirement for a Service Tax Certificate for Transportation of Goods by Rail. The Tribunal held that procedural requirements cannot invalidate credit when all necessary details are present. The company was allowed to claim credit of Rs.15,86,077/- based on railway receipts, with no interest payable on previously allowed credit.
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2025 (4) TMI 812 CESTAT allowed an export-oriented unit's appeal for CENVAT credit refunds on High Speed Diesel and security services. The tribunal confirmed the appellant's entitlement to claim credits under Notification No. 22/2003, rejecting revenue's arguments and citing previous precedents. The decision upheld the appellant's right to refunds without initiating separate proceedings, setting aside earlier orders and granting full relief.
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2025 (4) TMI 811 SC affirmed Cenvat credit validity for duty-paid M.S. plates processed by a manufacturing unit. The Tribunal ruled that once duty is paid and input status is established, credit cannot be denied to the receiving unit. The decision emphasized that procedural modifications do not invalidate tax credit, upholding the appellant's entitlement to Cenvat credit under the Central Excise Tariff Act, 1985.
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