TMI Tax Updates - e-Newsletter
April 25, 2025
Case Laws in this Newsletter:
GST
Income Tax
Customs
Corporate Laws
Insolvency & Bankruptcy
Service Tax
Central Excise
CST, VAT & Sales Tax
Indian Laws
TMI Short Notes
Bills:
Summary: Concise Legal Summary:The document analyzes Clause 168 of the Income Tax Bill, 2025, which addresses advance pricing agreements (APAs) for international transactions. The clause largely mirrors existing legislation, providing a mechanism for pre-determining arm's length pricing between associated enterprises. Key provisions include establishing a five-year agreement period, binding effect on both taxpayers and tax authorities, and safeguards against fraudulent applications. The provision aims to enhance tax certainty, reduce litigation, and align with international transfer pricing best practices. Minor terminological updates reflect legislative modernization while maintaining the core regulatory framework for cross-border transaction pricing.
Bills:
Summary: Legal Analysis Summary:The text analyzes Clause 167 of the Income Tax Bill, 2025, which empowers the tax authority to establish safe harbour rules for determining arm's length pricing and deemed income in cross-border transactions. The provision aims to reduce litigation, simplify compliance, and provide tax certainty. Compared to the existing Section 92CB, the new clause potentially expands the scope of safe harbour rules, offering mandatory acceptance of taxpayer-declared prices under specified conditions. The legislative approach seeks to enhance predictability in international taxation while maintaining flexibility for future regulatory adaptations.
Bills:
Summary: Legal Document Summary:The text analyzes Clause 166 of the Income Tax Bill, 2025, which addresses transfer pricing regulations for international and domestic transactions. The provision empowers tax authorities to scrutinize transactions between associated enterprises, ensuring arm's length pricing. Key innovations include a mechanism for multi-year application of arm's length price determinations, enhanced investigative powers for transfer pricing officers, and procedural safeguards. The clause modernizes existing transfer pricing frameworks by providing greater certainty, reducing litigation, and aligning with international tax standards. The provision aims to prevent tax avoidance while balancing administrative efficiency and taxpayer compliance requirements.
Bills:
Summary: The text analyzes Clause 165 of the Income Tax Bill, 2025, which governs arm's length pricing for transactions between associated enterprises. The provision updates existing transfer pricing regulations by establishing six methods for price determination, empowering tax authorities to review and adjust pricing, and introducing procedural safeguards. The clause aims to prevent tax avoidance, align with international standards, and provide clarity in cross-border and domestic transactions while maintaining flexibility for future regulatory adaptations.
Bills:
Summary: Legal Analysis Summary:The document examines Clause 164 of the Income Tax Bill, 2025, which defines "specified domestic transactions" for tax avoidance prevention. The provision covers high-value domestic transactions between related parties exceeding Rs. 20 crore, expanding transfer pricing regulations to domestic contexts. Key objectives include preventing profit manipulation and tax base erosion within domestic entities. The clause references multiple sections and provides flexibility for tax authorities to prescribe additional transaction types, maintaining a comprehensive approach to domestic tax compliance and anti-avoidance measures.
Bills:
Summary: Legal analysis of proposed tax legislation reveals a comprehensive redefinition of international transactions. The new clause expands the scope of cross-border dealings between associated enterprises, particularly those involving non-residents. Key modifications include broader coverage of tangible and intangible property transactions, capital financing, services, business restructuring, and cost-sharing arrangements. The provision aims to prevent tax avoidance by implementing more robust transfer pricing regulations, aligning with global standards and addressing emerging business models. The changes enhance documentation requirements and administrative oversight of international commercial interactions.
Articles
By: DR.MARIAPPAN GOVINDARAJAN
Summary: The article discusses the filing of Income Tax Return ITR-B under Section 158BC(1)(a) of the Income Tax Act, 1961. It details the block assessment procedure for searches initiated under section 132 or requisitions under section 132A after 01.09.2024. The return must be filed within 60 days, electronically with digital signature for specific entities. ITR-B contains multiple parts covering income details, undisclosed income computation, tax payable, and tax payment information. Specific rules govern the filing process, including provisional figure submissions and assessment year considerations.
By: RAHUL MODI
Summary: Concise Summary:The handbook provides comprehensive guidance on Input Service Distributor (ISD) mechanisms under GST. Effective April 1, 2025, businesses with multiple GST registrations must mandatorily register as an ISD to centrally receive and distribute input service tax credits. The mechanism allows organizations to proportionately distribute input tax credits among different branch units based on their turnover, with specific compliance requirements including monthly GSTR-6 filing and adherence to distribution rules outlined in GST regulations.
By: YAGAY andSUN
Summary: Climate change represents an urgent global crisis characterized by rising temperatures, extreme weather events, and ecosystem disruption. The article emphasizes immediate action to limit global warming, highlighting key strategies including transitioning to clean energy, protecting ecosystems, decarbonizing transportation, reforming industrial practices, and implementing comprehensive global policy reforms. Collective efforts from governments, businesses, and individuals are crucial to averting potential environmental catastrophe and preserving planetary sustainability.
By: YAGAY andSUN
Summary: Software import through digital channels in India involves electronic transmission of software without physical media. It is considered a service rather than a physical product, subject to specific legal and regulatory frameworks. Taxation occurs through Goods and Services Tax (GST), typically at 18%, while customs duty is generally not applicable. The import is governed by intellectual property laws, foreign exchange regulations, and requires proper documentation like license agreements and payment records. Compliance with legal requirements is essential for digital software procurement.
By: YAGAY andSUN
Summary: India is the world's largest mango producer and exporter, with a robust export industry spanning over 60 countries. The sector focuses on high-quality varieties like Alphonso and Kesar, utilizing advanced traceability systems and stringent quality control measures. Government initiatives, export incentives, and comprehensive documentation support the industry's growth, addressing challenges like pest management and international compliance.
By: YAGAY andSUN
Summary: Legal analysis of import regulations for research and development goods in India reveals complex tax and customs frameworks. The Department of Scientific and Industrial Research provides certification for duty exemptions on non-commercial R&D imports. Importers must meet specific eligibility criteria, including exclusive use for research purposes. Customs and GST laws offer potential exemptions or reduced rates for qualifying scientific equipment and materials, with varying duty rates based on goods classification and institutional recognition.
By: YAGAY andSUN
Summary: Exporting glass and glassware from India involves navigating complex legal and regulatory requirements. Exporters must register with export promotion councils, obtain necessary certifications from the Bureau of Indian Standards, comply with HSN code classifications, and follow customs procedures. The process includes securing an Import Export Code, meeting quality standards, and potentially accessing government export incentives through schemes like RODTEP and Duty Drawback.
By: YAGAY andSUN
Summary: Concise Summary:The article provides a comprehensive guide to exporting banana leaves from India, detailing global market demand, legal requirements, and export strategies. It covers essential aspects including obtaining necessary licenses, sourcing quality leaves, processing, documentation, shipping logistics, and marketing approaches. The guide emphasizes the growing international interest in banana leaves for culinary, cultural, and eco-friendly packaging purposes, highlighting potential export opportunities across various global markets.
By: YAGAY andSUN
Summary: India is a significant global garlic producer, exporting to numerous countries including Bangladesh, Middle Eastern nations, United States, and European Union. Regulated by multiple government agencies, garlic exports contribute to foreign exchange earnings. The primary producing states are Rajasthan, Uttar Pradesh, and Madhya Pradesh. Despite competition from China, India maintains a competitive position through quality produce, government incentives, and strategic market positioning.
By: YAGAY andSUN
Summary: India is a leading global shrimp exporter, with significant production concentrated in coastal states. Exporting over $8 billion of marine products annually, the country supplies shrimp to more than 100 countries, with the United States being the largest importer. Government policies, export incentives, and sustainable aquaculture practices support the sector's growth, though challenges like disease outbreaks and market dependencies persist. The industry aims to enhance productivity, diversify markets, and maintain international quality standards.
News
Summary: A major smart home technology expo will take place in Mumbai from May 8-10, 2025, featuring over 400 Indian and international brands. The event will showcase advanced home automation technologies, including voice-controlled devices, security systems, and energy-efficient solutions. The Indian smart home market is projected to grow at 16.9% CAGR until 2028, driven by urbanization, increasing disposable incomes, and rising consumer awareness about home automation technologies.
Summary: Credit scores are crucial for loan eligibility, ranging from 300 to 900. Lenders use these scores to assess borrowers' creditworthiness. Four RBI-authorized credit bureaus in India provide these scores. A good score (740-799) indicates responsible credit use and increases loan approval chances. Consumers can improve their scores by maintaining low credit utilization, making timely payments, and avoiding frequent loan applications. Digital platforms now offer free credit score tracking and personalized improvement suggestions.
Summary: A global business services company announced its fiscal 2025 fourth quarter and full year financial results. The company reported revenue of $336.3 million for the quarter, with a profit of $50.8 million. For the full fiscal year, revenue was $1,314.9 million and profit reached $170.1 million. The company provided fiscal 2026 guidance, expecting revenue growth between 7-11% and anticipating adjusted earnings per share of $4.43 to $4.70. The organization completed a transition to US GAAP reporting and acquired a new technology firm during the period.
Summary: A comprehensive guide outlines seven key principles for effective B2B website design focused on driving business results. The principles emphasize clarity, intuitive navigation, trust-building elements, stage-specific content, mobile responsiveness, clear call-to-actions, and professional design. The approach prioritizes user experience, helping businesses create websites that communicate value, build credibility, and convert potential clients across different engagement stages.
Summary: The Indian rupee depreciated 22 paise to 85.67 against the US dollar in early trade, influenced by negative domestic equities and geopolitical tensions following a terror attack. The decline was driven by heightened regional uncertainties, a strengthening US dollar index, and India's diplomatic response to cross-border tensions. Market sentiment remains cautious, with potential support and resistance levels identified for currency movement.
Summary: The Institute of Chartered Accountants of India (ICAI) will review financial statements of two companies experiencing regulatory challenges for the 2023-24 fiscal year. The Financial Reporting Review Board will assess compliance with accounting standards and auditing requirements. The review follows regulatory concerns about potential fund diversions and governance lapses, with potential referral to disciplinary bodies if serious accounting irregularities are discovered.
Summary: The Reserve Bank of India's Monetary Policy Committee reduced short-term lending rates by 25 basis points to 6 percent, shifting to an accommodative stance. Committee members emphasized supporting growth amid global uncertainties, noting inflation is near the 4 percent target. The decision aims to nurture domestic demand, bolster private consumption, and provide policy support to economic recovery while maintaining vigilance on potential risks.
Summary: The Indian rupee depreciated 26 paise to settle at 85.45 against the US dollar due to surge in crude oil prices and importer demand. The currency's movement was influenced by political statements regarding the Federal Reserve and potential trade policy changes. Positive domestic markets, foreign fund inflows, and a weak US dollar index provided some support to the rupee's valuation.
Summary: Political party postpones constitutional rally in Himachal Pradesh following a terrorist attack in Pahalgam, Kashmir that killed 26 people. The state-level event was canceled as a mark of respect for victims and amid heightened security concerns. The rally was originally planned to counter recent political challenges faced by the party's leadership.
Summary: Enforcement Directorate conducted searches in Delhi-NCR against a coaching institute in a money laundering investigation. The raids targeted multiple premises following police complaints by parents who claimed financial losses after the institute abruptly shut its centers. Searches were conducted under the Prevention of Money Laundering Act, involving locations in Delhi, Noida, and Gurugram.
Summary: The Enforcement Directorate attached fresh assets worth Rs 1,500 crore in a money-laundering investigation against a business group. The agency provisionally seized 1,023 acres of land across seven states, allegedly purchased through fraudulent transactions. The case involves over 500 police complaints and accusations of running an unauthorized investment scheme that misused depositor funds by promising high returns.
Summary: India and Pakistan have suspended bilateral trade following a terror attack in Pahalgam that killed 26 people. India closed the Attari land-transit post, expelled Pakistani military attaches, and suspended the Indus Water Treaty. Pakistan retaliated by halting all trade, which was already minimal at 0.06% of India's total trade. The bilateral commerce, primarily involving organic chemicals, pharmaceuticals, and auto components, will now completely stop, potentially impacting Pakistan's economy.
Summary: The International Monetary Fund's managing director warned about escalating trade tensions threatening global economic growth. The organization highlighted increased recession risks for the world's largest economy, with uncertainty stemming from aggressive trade policies causing companies to delay investments. The IMF emphasized that trade conflicts would disproportionately impact poorer countries, urging swift resolution to mitigate potential economic damage.
Summary: Stock markets broke a seven-day winning streak, closing lower due to profit-taking and weak corporate earnings. The benchmark indices Sensex and Nifty declined following disappointing quarterly results from major companies. Blue-chip stocks like a leading bank and telecom company experienced selling pressure. FMCG companies reported lower profits amid food inflation and reduced urban consumption. Market sentiment was influenced by global economic uncertainties and potential trade disputes.
Summary: The Indian Machine Tool Manufacturers' Association is organizing DMTX 2025 and FACTEQ 2025, two concurrent manufacturing technology expos in New Delhi from 8-11 May 2025. Around 250 exhibitors will showcase cutting-edge machinery, tools, and industrial solutions across 15,000 square meters, expecting approximately 15,000 visitors from North Indian manufacturing sectors. The event aims to provide networking opportunities and technological insights for micro, small, and medium enterprises.
Summary: Gold prices rose to Rs 99,400 per 10 grams amid renewed US-China trade tensions. The increase follows fresh buying by stockists and a weak dollar. US officials signaled potential ongoing trade standoff, reviving demand for safe-haven bullion. Market experts noted geopolitical uncertainty and delayed diplomatic progress contributing to gold's price movement, with global spot gold rising 1.43% to USD 3,335.50 per ounce.
Summary: The Indian rupee strengthened by 16 paise to 85.29 against the US dollar due to a weak greenback and declining crude oil prices. Forex traders noted positive sentiment from lower US Treasury yields and anticipated currency movements. Geopolitical tensions following a terror attack and diplomatic actions with a neighboring country influenced market sentiment. Foreign institutional investors showed net buying in equities, supporting overall market dynamics.
Summary: Stock markets declined after a seven-day rally, with benchmark indices Sensex and Nifty ending lower due to profit-taking and weak corporate earnings. Major companies in FMCG and banking sectors experienced drops, particularly after disappointing quarterly results. Global market sentiment was mixed, with profit-booking and uncertainties in international trade affecting investor confidence. Foreign institutional investors continued to show buying interest, purchasing equities worth significant amounts.
Summary: Global trade is projected to decline by 0.2% this year due to tariff policies, with potential further reduction to 1.5% if stringent tariffs are implemented. North American exports and imports are expected to fall significantly. The trade tensions create economic uncertainty, potentially impacting vulnerable economies. The World Trade Organisation warns that trade policy unpredictability could substantially weaken global economic activity and trade flows.
Summary: A national leader addressed the steel industry, emphasizing the need to build a resilient and strong industrial sector. The focus was on increasing steel production capacity to 300 million tonnes by 2030, reducing import dependence, and exploring unused mines and alternative technologies. The strategy includes strengthening global partnerships, adopting innovative processes, and targeting zero imports with potential for net exports by 2047.
Summary: US Treasury Secretary suggests India is likely to be the first country to sign a bilateral trade deal with the United States, avoiding potential reciprocal tariffs. The current 26 percent tariff on Indian exports is paused, with ongoing discussions focused on reducing trade barriers. The official highlighted India's favorable trade conditions, including fewer tariffs and minimal government subsidies, making a potential agreement more feasible. The negotiations aim to address trade imbalances and expand market access between the two nations.
Summary: India suspended the Indus Waters Treaty following a terrorist attack, targeting Pakistan's water resources. The suspension could significantly impact Pakistan's agriculture, power generation, and urban water supply. Potential economic consequences include crop losses, energy shortages, and GDP reduction. The chief minister described this as a strategic measure to address cross-border terrorism, emphasizing water security as a national security tool.
Summary: The Monetary Policy Committee (MPC) of the Reserve Bank of India held its 54th meeting and unanimously voted to reduce the policy repo rate by 25 basis points to 6.00 percent. The decision was based on a benign inflation outlook, with CPI inflation at 3.6 percent in February 2025, and a need to support moderate economic growth amid global trade uncertainties. The MPC also changed its stance from neutral to accommodative, signaling potential future rate cuts while remaining cautious about global economic challenges.
Summary: A senior government official criticized the IMF and World Bank for mission drift, focusing on climate and social issues, while simultaneously affirming continued US engagement. The official suggested potential collaboration with China, proposing economic rebalancing where the US boosts manufacturing and China increases domestic consumption. Despite tensions, the administration sees opportunity for strategic negotiations and institutional reform.
Summary: A senior US political leader made provocative comments about Canada's economic dependence days before a national election, suggesting the country would "cease to exist" without US trade support. The leader reiterated threats about potential increased auto tariffs and economic coercion, while the Canadian leader countered by emphasizing internal trade opportunities and national economic resilience. These remarks have intensified cross-border tensions and potentially influenced domestic political dynamics.
Summary: A dozen states filed a lawsuit against the administration in the US Court of International Trade, challenging the tariff policy as unlawful and economically disruptive. The states argue that only Congress has the power to impose tariffs and that the policy exceeds presidential authority under the International Emergency Economic Powers Act. They seek to declare the tariffs illegal and prevent their enforcement, claiming the policy creates economic chaos and undermines constitutional principles.
Summary: Boeing's CEO stated the company's recovery will not be significantly impacted by the trade war with China. Despite Beijing halting aircraft deliveries, Boeing plans to redirect unbuilt planes to alternative customers. The company reported first-quarter financial results, with an adjusted loss but better than analyst expectations. Boeing remains optimistic about remarketing its aircraft and managing the trade tensions.
Summary: A recent tax notification expands tax collection at source (TCS) to luxury goods valued over ten lakh rupees. The updated regulation covers items like wrist watches, art pieces, collectibles, vehicles, accessories, sportswear, and home entertainment systems. TCS will apply to individual sales exceeding the specified value threshold, effective from 22.04.2025, as per the government's official gazette notification.
Summary: The South African government withdrew a proposed 0.5 percent value-added tax increase after pushback from coalition partners and opposition parties. The finance minister canceled the plan following extensive consultations, acknowledging potential revenue shortfalls. The Democratic Alliance, a key coalition partner, opposed the increase, arguing it would disproportionately impact poor citizens. With high unemployment and widespread welfare dependency, the tax proposal was seen as potentially harmful to vulnerable populations.
Summary: A senior government official condemned a terrorist attack in Pahalgam, Kashmir, asserting it was designed to disrupt peace and economic progress following constitutional changes. The official emphasized that despite terrorist attempts, the region is experiencing improved tourism and development. Opposition parties also staged a rally, expressing solidarity with victims and calling for comprehensive anti-terrorism measures.
Notifications
Customs
1.
28/2025 - dated
23-4-2025
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Cus (NT)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver
Summary: The notification amends previous customs tariff values for various goods including edible oils, brass scrap, areca nuts, gold, and silver. The tariff values remain unchanged for most items across palm oil, soybean oil, brass scrap, gold, silver, and areca nuts. The amendment is effective from 24 April 2025, issued by the Central Board of Indirect Taxes and Customs under the Customs Act, 1962.
2.
27/2025 - dated
22-4-2025
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Cus (NT)
Amendment in Notification No. 64/1994-Customs (N.T.) dated the 21st November, 1994 - Coastal ports for carrying of trade in coastal goods with all ports in India
Summary: A government notification amends a previous customs document by adding a new coastal port location (Rohini Yard Jetty) in Maharashtra's Raigad district. The amendment is issued by the Central Board of Indirect Taxes and Customs under the Customs Act, 1962, expanding the list of authorized coastal ports for trade purposes.
GST - States
3.
25/2024-STATE TAX - dated
22-4-2025
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Delhi SGST
Amendment in Notification No. 50/2018-State Tax, dated 05-09-2019
Summary: A state tax notification amends previous regulations by inserting a new clause regarding registered persons receiving metal scrap supplies under specific customs tariff chapters. The amendment modifies provisions related to goods and services tax, expanding the scope of transactions between registered persons. The changes will take effect from October 10, 2024, as specified by the local government authority.
4.
09/2024-State Tax (Rate) - dated
22-4-2025
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Delhi SGST
Amendment in Notification No. 13/2017- State Tax (Rate), dated 30th June, 2017
Summary: A state tax notification amends previous regulations by inserting a new entry regarding rental services of immovable property. The amendment applies to services provided by unregistered and registered persons. The changes will take effect from October 10, 2024, as issued by the local government authority under the state goods and services tax legislation.
Income Tax
5.
38/2025 - dated
23-4-2025
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IT
The Central Government notifies that no deduction shall be allowed for any expenditure incurred in settling proceedings initiated in connection with any contravention or default.
Summary: The Central Government prohibits tax deductions for expenditures related to settling proceedings involving contraventions or defaults under specific financial and regulatory laws, including Securities and Exchange Board of India Act, Securities Contracts Act, Depositories Act, and Competition Act. The notification takes effect upon publication in the Official Gazette, preventing businesses from claiming such settlement expenses as tax-deductible.
SEBI
6.
F. No. SEBI/LAD-NRO/GN/2025/241 - dated
22-4-2025
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SEBI
Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2025
Summary: The Securities and Exchange Board of India (SEBI) has issued an amendment to the Real Estate Investment Trusts (REIT) Regulations, 2025. The amendment introduces several key changes, including expanded definitions of common infrastructure, modifications to investment conditions, enhanced trustee responsibilities, and new disclosure requirements for Small and Medium REITs (SM REITs). The regulations aim to improve governance, transparency, and investor protection in the REIT ecosystem.
Circulars / Instructions / Orders
FEMA
1.
04/2025-26 - dated
24-4-2025
Amendments to Directions - Compounding of Contraventions under FEMA, 1999
Summary: The Reserve Bank of India issued a circular amending compounding directions under the Foreign Exchange Management Act (FEMA), 1999. The amendment introduces a new provision capping the maximum compounding amount at INR 200,000 for contraventions under row 5 of the computation matrix, subject to the compounding authority's discretion based on the nature and circumstances of the case. The circular applies to Authorized Dealer Category-I banks and authorized banks, providing guidelines for handling FEMA contraventions.
2.
04/2025-26 - dated
22-4-2025
Master Directions - Compounding of Contraventions under FEMA, 1999 (Updated as on April 24, 2025)
Summary: The circular provides master directions for compounding contraventions under the Foreign Exchange Management Act (FEMA), 1999. It outlines the process for applicants to seek compounding of foreign exchange-related violations, including eligibility criteria, application procedures, and calculation of compounding amounts. The guidelines specify different compounding approaches for various types of contraventions, with a structured matrix for determining penalties based on the nature and duration of the violation. Compounding is not allowed for serious contraventions or repeated offenses within three years.
DGFT
3.
03/2025-26 - dated
24-4-2025
Fixation of one new Standard Input Output Norms (SIONs) at SION A-3685 under 'Chemical and Allied Product' (Product Code 'A').
Summary: A government circular from the Directorate General of Foreign Trade establishes a new Standard Input Output Norm (SION) for Doxycycline 100 mg Dispersible Tablets. The notice specifies import and export quantities for the pharmaceutical product under the Chemical and Allied Product group, utilizing powers from the Foreign Trade Policy-2023. The document details precise input-output ratios for regulatory compliance in trade documentation.
4.
Trade Notice No. 03/2025-2026 - dated
23-4-2025
Inputs on Amendments for Export of SCOMET Items for 'Testing and Evaluation' purposes
Summary: Government trade notice proposes amendments to export regulations for specialized controlled items (SCOMET) for testing and evaluation purposes. The draft modifications outline conditions for temporary export, including no commercial transactions, technology transfer restrictions, and specific documentation requirements. Stakeholders are invited to provide feedback within 10 days via email. The proposed changes aim to streamline export procedures while maintaining regulatory oversight for sensitive technological items.
Highlights / Catch Notes
GST
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Electronic Service via Common Portal Legally Valid Under GST Act, Section 169(1)(d) Enables Direct Digital Notification Without Additional Requirements
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Supplier Status Challenge: GST E-Way Bill Penalty Reduced from Rs.7,36,490 to Rs.25,000 Under Section 2(105)
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IGST Refund Dispute Remanded: Tax Authority Must Provide Hearing and Reconsider Order Under Rule 96B
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Zero-Rated Services Refund Upheld: Registration Gaps Cannot Block Input Tax Credit Claim Under Sections 54(1) and 16(3)
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Criminal Proceedings Under CGST Act Require Prudent Evaluation of Evidence and Proportionality Before Arresting Taxpayers
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Leasehold Rights Transfer of Industrial Plot Not Taxable Under GST, Exempt from Levy per CGST Act Provisions
Income Tax
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Multinational Tech Firm Wins Major Tax Battle: Royalty Receipts and Service Charges Deemed Non-Taxable Under Section 9(1)(vi)
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Government Grants Tax Exemption to National Mission for Clean Ganga Under Section 10(46A) for 2024-25 Assessment Year
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Tax Collection Mandated on High-Value Luxury Goods Exceeding 10 Lakhs Under Section 206C Income-tax Act
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Luxury Goods Sales Now Subject to Enhanced Tax Collection Under Section 206C with Expanded Reporting Categories
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Centralized Income Tax Reporting System Launches Automated CAP-I and CAP-II Reports for Jurisdictional Assessment Officers
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Trust Validates Income Accumulation for Charitable Purposes Under Section 11(2), Ensuring Long-Term Community Development Strategy
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Corporate Taxation Challenge Rejected: Counsel's Concession Stands Firm Under Strict Procedural Scrutiny of Legal Representation
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Reasonable Salary to Related Party Does Not Invalidate Charitable Trust's Tax Exemption Under Section 13(1)(c)
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Sale of Rice Mill Deemed Complete on Agreement Date, Transfer Tax Triggered by Possession and Full Consideration Paid
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Tax Dispute: Partial Stay Denied as Petitioner Fails to Demonstrate Compelling Reasons for Full Tax Demand Suspension
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Taxpayer Wins: Genuine Business Expenses Upheld Despite Vendor's Non-GST Registration Under Section 37(1)
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Seized Third-Party Documents Trigger Section 153C: ITAT Invalidates Reassessment Notice Due to Procedural Noncompliance and Jurisdictional Overreach
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Transfer Pricing Triumph: Tribunal Strikes Down Arbitrary Adjustments, Validates Arm's Length Transactions Under Comprehensive Review
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Tax Dispute Resolved: Assessee Wins on Speculation Loss, Gift Taxation, and Trust Income Challenges Under Multiple Sections
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Software Development Services Pricing Dispute: ITAT Mandates Comprehensive Comparability Analysis and Recalibration of Transfer Pricing Assessment
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Trust's 12AB Registration Denied: Object Clause Inconsistencies Trigger Rejection Under Income Tax Act Provisions
Customs
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Safeguard Duty Imposed on Steel Flat Products to Protect Domestic Industry Under Section 8B of Foreign Trade Act
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Streamlining Export Logistics: New Direct Port Entry SOP Reduces Cargo Dwell Time and Enhances Operational Efficiency
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Customs Zone Reconfiguration: NTUT1 Master Site, INTUT6 Child Site Transition Planned for Operational Efficiency
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Bilateral Food Safety Pact: Nepal's NFFRL Authorized to Issue Import Certificates for Specific Food Products to India
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Pre-deposit Mandatory: No Waiver Allowed for Customs Act Appeals Under Section 129E After 2014 Amendment
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Toshiba Multi-Split AC Units Classified as Parts Under CTH 8415 9000, Affirming Technical Interpretation of Complex HVAC Components
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Tribunal Corrects Typographical Errors in Lithium Ion Battery Customs Exemption Case Under Notification No. 50/2017
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Provisional Customs Attachment Order Invalidated: Lack of Jurisdiction and Procedural Defects Render Bank Account Freeze Unlawful
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Officials Face Accountability as High Cost Penalty Highlights Complex Legal Proceedings and Institutional Responsibility Under Judicial Review
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Authorities Cannot Exploit Procedural Discretion: 10-Year Delay in Show Cause Notice Renders Adjudication Order Invalid
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Digital Still Image Video Cameras Qualify for Customs Duty Exemption Under Notification 25/2005 and Amendment 15/2012
DGFT
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Synthetic Knitted Fabric Import Restrictions: MIP Set at $3.5/kg for Specific HS Codes Until March 2026
FEMA
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RBI Enables Seamless Export Transactions for Indian Traders in UAE Warehouses Under FEMA Sections 10(4) and 11(1)
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RBI Revamps FEMA Compounding Guidelines, Introduces Independent Assessment and Enhanced Disclosure Requirements for Contravention Applications
Corporate Law
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Property Rights Challenge Fails: Plaintiff's Injunction Rejected Due to Insufficient Legal Standing Under Section 241
IBC
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Corporate Insolvency Resolution Plan Nullifies Prior Arbitral Award, Extinguishing Claims Outside Approved Restructuring Framework
Indian Laws
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Arbitration Proceedings: Party Joinder Based on Consent and Conduct, Not Strict Procedural Formalities Under Section 16
SEBI
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Overnight Mutual Fund Schemes Get New NAV Calculation Rules with Updated Cut-Off Times for Investor Transactions
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Market Surveillance Circular Strengthens Trading Transparency, Insider Disclosure Rules and Intermediary Compliance Mechanisms
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SEBI Mandates Automated Trading Window Closure for Designated Persons and Immediate Relatives Under New Regulatory Framework
Service Tax
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Cable Operator Wins Partial Relief in Service Tax Case, Limited to Normal Limitation Period with Credit Claims Scrutinized
Central Excise
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Manufacturer Wins Comprehensive Cenvat Credit Claim for Franchise-Related Services Under Rule 2004 Input Service Provisions
Case Laws:
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GST
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2025 (4) TMI 1308 The SC upheld the validity of service of notices/orders via the GST Common Portal under Section 169 of the GST Act. The Court ruled that uploading notices on the portal constitutes a complete and valid mode of service, without requiring additional service methods like registered post. Technical difficulties or lack of computer literacy do not invalidate electronic service. The Court provided directions for petitioners to deposit a portion of disputed taxes and file objections.
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2025 (4) TMI 1307 The HC ruled that a petitioner transporting goods for job work with a valid Delivery Challan cannot be subjected to a 200% penalty for not generating Part-B of the E-Way Bill. The court reduced the penalty from Rs.7,36,490/- to Rs.25,000/-, finding the original penalty disproportionate. The order was modified due to technical non-compliance and lack of hearing, emphasizing procedural fairness in GST rule enforcement.
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2025 (4) TMI 1306 Legal Case Summary:HC analyzed bail application for accused under CGST Act involving alleged fraudulent Input Tax Credit schemes. Despite serious economic offences involving multiple fake firms and substantial tax credit manipulation, the Court granted bail considering: (1) completed investigation, (2) trial not commenced, (3) co-accused already granted bail, and (4) over six months in custody. The Court balanced prosecutorial arguments against procedural fairness, ultimately releasing applicants on regular bail with standard conditional bonds, without prejudicing the ongoing trial's merits.
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2025 (4) TMI 1305 The SC examined a complex GST dispute involving jurisdictional and procedural challenges to tax demand orders. The court found multiple procedural irregularities, including lack of reasonable hearing opportunity and improper retrospective application of tax rules. Ultimately, the court set aside the demand orders and remanded the matter for fresh adjudication by the State Tax Authority, emphasizing principles of natural justice and proper administrative procedure.
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2025 (4) TMI 1283 The SC ruled that a registered person under the CGST Act is entitled to claim refund of input tax credit on zero-rated services exported outside India, even if the initial registration certificate does not explicitly mention services. The Court held that a single comprehensive registration covers both goods and services, and non-mention of specific services in the registration certificate cannot preclude refund claims. The writ petitions were allowed, directing authorities to process the refund claims subject to verification.
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2025 (4) TMI 1282 HC granted bail to petitioner in CGST Act arrest case, finding the arrest unlawful and disproportionate. The court determined that arrest lacked credible reasons, was made without prior adjudication, and was not supported by sufficient evidence of fraudulent ITC claims. Absence of toll plaza records and petitioner's cooperation during investigation were key factors in dismissing the arrest's validity. Bail was granted with standard conditions to ensure investigation cooperation.
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2025 (4) TMI 1281 BHC ruled that assignment of leasehold industrial land rights with constructed buildings for a lump-sum is not a "supply of service" under CGST Act. Following Gujarat HC precedent, the court held such transactions do not attract GST under Section 9. Interim relief was granted by staying adjudication orders, with the matter to be heard alongside connected writ petitions.
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Income Tax
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2025 (4) TMI 1304 Singapore-based company successfully challenged tax assessments regarding service charges from Indian group companies. The SC/Tribunal ruled that Infrastructure Data Centre charges, referral fees, management service fees, and member login fees do not constitute royalty or technical services under the Income Tax Act and India-Singapore DTAA. The key principle was absence of transferring technical knowledge or proprietary rights, resulting in deletion of tax additions and favoring the taxpayer's interpretation.
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2025 (4) TMI 1302 HC quashed income tax reassessment notice for AY 2014-15, finding no material failure to disclose facts. The court determined that re-opening proceedings based on verification of profit/loss accounts constituted an impermissible "change of opinion" under Section 147, as original assessment had already examined relevant deduction and disallowance issues. Notice was declared invalid and set aside.
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2025 (4) TMI 1301 HC set aside an income tax assessment order due to violation of natural justice principles. The court found that the tax authority failed to provide the taxpayer a requested video conferencing hearing as mandated by law. The matter was remanded for fresh assessment within three months, with a directive to issue a draft assessment order and grant the petitioner an opportunity to be heard. The error was deemed a bona fide mistake, requiring procedural correction.
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2025 (4) TMI 1300 HC allowed the petition challenging a re-assessment order due to violation of natural justice. The order was passed before considering the petitioner's response, which was submitted within the prescribed timeline. Despite an existing appeal, the HC exercised discretion to intervene, set aside the order, and directed the assessing officer to conduct a fresh re-assessment within three months, ensuring procedural fairness and granting a personal hearing.
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2025 (4) TMI 1299 Tribunal ruled in favor of the assessee, dismissing the Revenue's appeal regarding long-term capital gains from share transactions. The court found no concrete evidence linking the assessee to alleged price manipulation or accommodation entries. Documentary proof submitted by the assessee was deemed sufficient, and the Revenue failed to establish any direct involvement in bogus transactions. Additions under sections 68 and 69C were deleted, affirming the CIT(A)'s original decision.
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2025 (4) TMI 1298 Tax Tribunal addressed a dispute over section 54B deduction for agricultural land transfer. The SC/Tribunal found that land classification as capital asset does not automatically disqualify exemption claim. Critical requirement is agricultural use in two years preceding transfer. The case was remanded to Assessing Officer for de novo examination of documentary evidence, with directions to provide fair hearing and verify statutory conditions before rendering final decision.
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2025 (4) TMI 1297 The SC/ITAT addressed Section 68 additions in a tax dispute involving bullion trading. The tribunal rejected full additions under Section 68, finding the assessee's sales genuine and supported by documentary evidence. The court upheld the CIT(A)'s decision to restrict additions to 5%, emphasizing that unexplained credit provisions cannot apply when sales are properly documented and income already taxed. The Revenue's appeal was dismissed.
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2025 (4) TMI 1296 The SC/Tribunal resolved a tax exemption dispute concerning a charitable trust's income accumulation under section 11(2). The court upheld the trust's claim for income accumulation, finding that general purposes aligned with the trust's charitable objects are sufficient in Form No. 10. The Revenue's challenge was dismissed, affirming that specificity need not be overly narrow, and purposes within trust objects satisfy legal requirements for tax exemption.
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2025 (4) TMI 1280 SC dismissed the Special Leave Petition after reviewing the HC order, finding no grounds to interfere. The court's decision upheld the previous judicial determination, effectively maintaining the existing legal ruling without substantive modification.
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2025 (4) TMI 1279 SC dismissed the SLP after hearing petitioner's counsel, finding no grounds to interfere with the Income Tax Appellate Tribunal and HC's prior decisions. The Court condoned the delay but ultimately upheld the lower courts' rulings, effectively maintaining the existing judgment and disposing of related applications.
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2025 (4) TMI 1278 SC dismissed SLP, finding no merit in the petitioner's arguments. The court ruled that no substantial legal grounds existed warranting interference under Article 136 of the Constitution. Pending applications were also disposed of, effectively upholding the lower court's decision and maintaining the existing legal status quo.
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2025 (4) TMI 1277 SC dismissed SLP challenging HC decision based on legal concession by counsel. The case examined mercantile accounting principles and income accrual under Customs Act. Court rejected petitioner's attempt to retract counsel's earlier concession, emphasizing the importance of procedural integrity. The petition was dismissed, with the Court strongly criticizing delayed attempts to challenge previously agreed legal positions.
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2025 (4) TMI 1276 SC dismissed SLP due to unexplained delay of 142/149 days in filing. Court found no compelling reason to intervene with HC's previous orders. Petitions were rejected both on procedural grounds of delay and substantive merits, with all associated applications disposed of accordingly.
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2025 (4) TMI 1275 The SC dismissed the SLP under Art. 136, finding no merit for judicial intervention. The court upheld the lower court's decision without further substantive reasoning, effectively maintaining the existing judicial determination and rejecting the petitioner's request for review or modification.
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2025 (4) TMI 1274 The HC upheld the Tribunal's decision, limiting the infrastructure fee to 5% of actual advertising receipts as per the agreement. The Court rejected the assessee's claim to calculate fees on gross advertising bills, finding the Tribunal's interpretation reasonable and supported by evidence. The appeal under Section 260A was dismissed, affirming the principle of judging expenditure from a businessman's perspective.
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2025 (4) TMI 1273 HC dismissed Petition challenging Assessment Order, emphasizing exhaustion of alternate remedies. Court rejected Petitioner's arguments about statutory appeal process, noting extraordinary jurisdiction cannot be invoked to avoid pre-deposit requirements. Natural justice concerns were deemed insufficient to bypass standard appellate channels. Petition dismissed, leaving contentions open for Appellate Authority's adjudication.
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2025 (4) TMI 1272 The HC upheld the ITAT's decision, finding no violation of Section 13(1)(c) of the Income Tax Act. The court determined that reasonable salary paid to a related party for actual services rendered does not disqualify a trust from tax exemption under Sections 11/12. The revenue's appeal was dismissed, affirming the tribunal's original ruling that the remuneration was justified based on the individual's qualifications and contributions.
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2025 (4) TMI 1271 The SC examined the interpretation of Section 12AA regarding trust registration, focusing on charitable purposes. The Court upheld the ITAT's decision to grant registration, emphasizing that proposed activities can be considered charitable, and earning surplus does not negate charitable status. The Court rejected arguments about commercial associations and affirmed that registration does not automatically guarantee tax exemption, but requires genuine charitable objectives.
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2025 (4) TMI 1270 The HC resolved key tax law issues regarding property transfer timing. The court determined that a property transfer for tax purposes occurred on the agreement date (December 30, 2016), not the registered sale deed date, based on full consideration payment, possession transfer, and operational rights. The court applied Section 2(47) principles, rejecting the Tribunal's contrary interpretation and holding that the transaction should be assessed in AY 2017-18, not AY 2018-19.
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2025 (4) TMI 1269 HC upheld tax authorities' order requiring 20% deposit for stay of demand. Despite limited reasoning in original order, court found petitioner's financial statements demonstrated ability to pay. Rejected claims of financial hardship as vague and unsupported. Petition dismissed, maintaining requirement for partial tax deposit pending appeal resolution.
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Customs
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2025 (4) TMI 1303 The SC and HC consistently interpreted section 129E of the Customs Act, holding that pre-deposit of 7.5% or 10% is mandatory for filing an appeal post-2014 amendment. The Tribunal rejected appellant's arguments for waiver, emphasizing that financial constraints do not override statutory requirements. Consequently, the appeal was dismissed due to non-compliance with the mandatory pre-deposit provision.
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2025 (4) TMI 1295 The Tribunal addressed classification of Toshiba air conditioner units, determining that multi-split VRF system outdoor and indoor units imported together are classifiable as parts under CTH 8415 9000, not complete air conditioners. The Tribunal upheld the importer's classification, granted notification benefits, and implicitly rejected confiscation and penalty claims by following established judicial precedents and technical analysis of the imported goods.
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2025 (4) TMI 1294 Tribunal rectified multiple typographical errors in a customs appeal involving Lithium-ion battery classification. The SC/Tribunal corrected factual misstatements arising from overlapping appeals, affirmed the appellant's goods classification as batteries/power banks, confirmed exemption under Notification No. 50/2017-Cus., and rejected penalties under Sections 28(4) and 114 of the Customs Act. The order was amended to accurately reflect procedural and substantive facts without altering the core adjudicatory findings.
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2025 (4) TMI 1251 SC dismissed civil appeals after condoning delay, consistent with previous orders in similar cases. The court referenced its prior dismissals in related matters and disposed of all pending applications, maintaining procedural uniformity in handling these specific legal proceedings.
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2025 (4) TMI 1250 The HC ruled that provisional attachment of bank accounts under Section 110(5) of the Customs Act during investigation stage is invalid. The court found no jurisdiction to attach accounts before initiating adjudication proceedings, as "proceedings" requires a Show Cause Notice. The writ petition was maintainable due to absence of alternative remedy, and the attachment order was quashed, directing immediate defreezing of bank accounts.
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2025 (4) TMI 1249 The HC reviewed a case involving the Directorate of Revenue Intelligence's (DRI) procedural delays in document production and prosecution initiation. The court upheld a INR 50,000 cost against the Department while rejecting individual officer liability. The ruling emphasized institutional accountability, recognizing systemic complexities in jurisdictional and legislative developments. The court balanced judicial censure with fairness, setting aside personal financial penalties and endorsing internal accountability mechanisms.
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2025 (4) TMI 1248 The SC/Tribunal set aside the customs adjudication order due to inordinate delay exceeding the statutory time limit under Section 28 of the Customs Act. The department's repeated placement of the show cause notice in the call book was deemed impermissible. The court emphasized that the phrase "where it is possible to do so" does not permit indefinite delay without plausible justification. The adjudication order was quashed, allowing the appellant's appeal on procedural grounds.
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2025 (4) TMI 1247 The SC/Tribunal ruled that digital still image video cameras qualify for Basic Customs Duty exemption under Notification No. 25/2005-Cus. The court interpreted the exemption notification literally, finding no ambiguity, and determined that if any camera parameter falls below the specified threshold, the exemption applies. The earlier restrictive interpretation was overruled, and the appellants' claims were allowed within the normal one-year limitation period under section 28(1) of the Customs Act.
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Corporate Laws
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2025 (4) TMI 1293 The HC dismissed the plaintiff's civil suit challenging company shareholding and management. The court found the plaint non-maintainable under the Companies Act, 2013, due to lack of locus standi, misjoinder of causes of action, and absence of proper share transfer recording. The appropriate forum for such claims is the NCLT, and the suit was rightly rejected at the preliminary stage under procedural law.
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Insolvency & Bankruptcy
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2025 (4) TMI 1292 The SC/Tribunal upheld the initiation of Corporate Insolvency Resolution Process (CIRP) against Personal Guarantors under Section 95 of IBC, despite a prior Resolution Plan approval for the Corporate Debtor. The court ruled that the Financial Creditor retains the right to recover unrecovered debt from Personal Guarantors, and disputes about debt quantum cannot prevent Section 95 proceedings at the admission stage. The decision affirms the independence of Personal Guarantee enforcement from Corporate Debtor's Resolution Plan.
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2025 (4) TMI 1246 The SC examined the validity of an arbitral award in the context of an insolvency resolution plan. The Court held that claims not included in an approved resolution plan stand extinguished, rendering the Facilitation Council's subsequent arbitral award a nullity. The Court clarified that a nullity plea can be raised under Section 47 CPC without challenging the award under Section 34 of the Arbitration Act. Consequently, the Court set aside the execution proceedings and quashed the impugned order.
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Service Tax
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2025 (4) TMI 1291 The SC remanded the case concerning service tax liability for works contract services. The appellant challenged the tax assessment for 2004-2014, arguing improper classification, exemption eligibility, and procedural violations. The HC found merit in the appellant's contentions regarding lack of proper documentary evaluation and directed the original authority to re-examine the case, providing full opportunity to submit evidence and substantiate claims. The order set aside previous ex parte proceedings, ensuring principles of natural justice were followed during fresh adjudication.
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2025 (4) TMI 1290 The SC/Tribunal addressed interest entitlement on delayed refunds under the Central Excise Act. The key ruling held that interest becomes payable three months after refund application receipt, irrespective of litigation duration. The Department cannot deny interest based on the appellant's appeals. The Tribunal directed payment of refund and interest within thirty days, affirming the statutory mandate for timely refund with interest.
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2025 (4) TMI 1289 Cable operator service tax liability case before tax tribunal. SC partially allowed appeal, modifying service tax demand to Rs. 6,34,313/-. Key findings include: local cable operators independently liable for service tax, entitled to threshold exemption if conditions met, required to comply with registration and return filing. Tribunal remanded case for recomputation within normal limitation period, rejecting extended limitation and reducing penalties.
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Central Excise
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2025 (4) TMI 1288 SC affirmed the Tribunal's ruling on CENVAT credit admissibility, emphasizing a broad interpretation of input service nexus. The court found that services with an integral connection to business activities qualify for credit. On four additional tax-related issues, the SC did not remand the matter but granted the Revenue liberty to file a fresh application before the Tribunal for expeditious consideration within eight weeks.
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2025 (4) TMI 1287 The SC/Tribunal allowed the refund claim under Section 142(3) of the CGST Act for accumulated education and secondary education cess credits. The court held that the one-year limitation under Section 11B of the Central Excise Act does not apply to such claims. Additionally, since Explanation 3 to Section 140 was not notified, it cannot exclude these cesses from eligible duties and taxes. The revenue's objections were rejected, and the refund was directed to be paid with interest within two months.
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2025 (4) TMI 1286 Tribunal addressed refund claim for National Calamity Contingent Duty (NCCD) paid via CENVAT credit. Rejected claim due to: (1) limitation period expiry under Section 11B, (2) unjust enrichment as duty burden was passed to customers, and (3) invalidity of CENVAT credit utilization post-amendment. The SC upheld Revenue's position, dismissing appellant's appeal and confirming refund claim rejection.
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2025 (4) TMI 1285 The Tribunal addressed three key issues regarding input service credit for a manufacturer with franchisee outlets. The court ruled in favor of the appellant, allowing input credit on: (1) outward freight to franchisee showrooms, (2) sales commission paid to franchisees, and (3) service tax on rent for retail outlets. The decision clarified the interpretation of "place of removal" and input service definitions under Cenvat Credit Rules, providing significant guidance on credit eligibility for manufacturers using franchisee distribution models.
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CST, VAT & Sales Tax
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2025 (4) TMI 1284 The HC invalidated a tax revisional order on two primary grounds: (1) the order was passed beyond the four-year statutory limitation period, with the Supreme Court's COVID-19 limitation extension not applicable to statutory authorities, and (2) liquid carbon dioxide should be taxed at 5% under Entry-100(190) of the VAT Act Schedule-IV, not 14.5%. The court rejected the tax authority's attempt to classify the product as an unclassified good and ruled the revisional order non-est.
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Indian Laws
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2025 (4) TMI 1245 The SC analyzed key legal issues surrounding the Prevention of Corruption Act, focusing on prior approval requirements for investigating public servants. The Court held that Section 17A's approval is mandatory and not rendered redundant by a Magistrate's investigation direction. Sanction under Section 19 is necessary before substantive cognizance, and amendments to these provisions should apply prospectively. The Court referred complex procedural questions to a larger bench for definitive resolution.
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2025 (4) TMI 1244 The SC resolved key arbitration jurisdiction issues, holding that procedural formalities like Section 21 notice do not preclude party impleadment. The tribunal's jurisdiction stems from contractual consent, not procedural compliance. Non-signatories can be bound by arbitration agreements based on conduct and relationship. The Court allowed the appeal, directing respondents' impleadment and remanding the matter for arbitration proceedings.
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2025 (4) TMI 1243 Legal Case Summary:HC analyzed bail application under NDPS Act, addressing stringent bail conditions for drug trafficking cases. Despite commercial quantity seizure and prosecution evidence, Court granted bail with strict conditions, emphasizing constitutional right to liberty. The decision balanced statutory restrictions with Article 21 protections, recognizing prolonged pre-trial detention as potential injustice. Bail was approved with significant personal bond requirements and travel limitations, without prejudicing eventual trial outcome.
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