TMI Tax Updates - e-Newsletter
May 20, 2025
Case Laws in this Newsletter:
GST
Income Tax
Customs
Service Tax
Central Excise
CST, VAT & Sales Tax
Indian Laws
Articles
By: DEVKUMAR KOTHARI and CA UMA KOTHARI
Summary: A legal dispute arose regarding a tax assessment where the Centralized Processing Centre (CPC) issued a communication challenging a capital gains claim not originally made by the taxpayer. The Tribunal found that the CPC exceeded its jurisdiction by making adjustments beyond the scope of the original communication, violating principles of natural justice. The Tribunal set aside the assessment order, accepting the taxpayer's original income tax return computation.
By: DR.MARIAPPAN GOVINDARAJAN
Summary: A business entity obtained a loan for school buses, with guarantors. After loan default, a bank assigned rights to an asset reconstruction company. The company sought property possession under SARFAESI Act through the District Magistrate. The magistrate delegated powers to a police officer, who forcefully took possession without proper notice, violating legal procedures. The High Court ruled the possession illegal, finding no legal authority for delegation and breaching constitutional property rights, thereby allowing the writ petition and directing lawful repossession.
By: Dr. Sanjiv Agarwal
Summary: Recent developments in India's Goods and Services Tax (GST) system reveal significant administrative and procedural updates. The government anticipates economic growth between 6.2-6.4% for the fiscal year. Key developments include a new grievance redressal mechanism for GST registration, biometric Aadhaar verification, updates to refund filing processes, and ongoing legal considerations regarding tax implications for the gaming industry. The Central Board of Indirect Taxes and Charges (CBIC) and Goods and Services Tax Network (GSTN) have issued multiple instructions to streamline tax compliance and reduce administrative complexities.
By: YAGAY andSUN
Summary: A comprehensive analysis of solar energy's lifecycle challenges focuses on recycling and Extended Producer Responsibility (EPR) for solar panels and batteries. The article explores complex environmental issues surrounding end-of-life management, highlighting technological, economic, and regulatory barriers in processing solar technologies. Key challenges include high recycling costs, limited infrastructure, toxic material management, and the need for innovative design and global collaborative solutions to ensure sustainable solar energy implementation.
By: YAGAY andSUN
Summary: Legal-focused summary:A comprehensive analysis of environmental innovation strategies addressing climate change, focusing on technological and material solutions. The article examines bioplastics as an alternative to petroleum-based plastics, highlighting their potential for reducing carbon footprints and environmental impact. Key innovations include renewable energy technologies, carbon capture methods, sustainable agricultural practices, electric transportation, and circular economy approaches. The research emphasizes the critical role of policy support, technological investment, and consumer engagement in implementing sustainable solutions to mitigate global environmental challenges.
By: YAGAY andSUN
Summary: A comprehensive guide outlines strategies for developing a warrior mindset through disciplined personal development. The article provides ten key principles including embracing routine, building mental toughness, setting clear goals, developing physical and mental resilience, practicing courage, maintaining self-awareness, staying present, adapting to challenges, remaining committed to vision, and serving a higher purpose. The approach emphasizes consistent personal growth, overcoming obstacles, and maintaining focus on long-term objectives.
By: YAGAY andSUN
Summary: Climate change significantly threatens global coffee production by disrupting optimal growing conditions for coffee plants. Rising temperatures, inconsistent rainfall, and increased pest proliferation are causing substantial challenges in traditional coffee-growing regions. Producers in major coffee-producing countries are experiencing declining yields, shifting cultivation zones, and economic instability. Potential adaptive strategies include developing climate-resilient coffee varieties, improving agricultural practices, and implementing diversification techniques to ensure the sustainability of coffee production.
By: YAGAY andSUN
Summary: Concise Summary:The article examines the lifecycle challenges of solar panels and batteries, focusing on recycling and Extended Producer Responsibility (EPR). Despite solar energy's environmental benefits, end-of-life management poses significant challenges, including complex recycling processes, high costs, and potential environmental hazards. The text emphasizes the need for innovative design, improved recycling technologies, global EPR frameworks, and increased consumer awareness to ensure the sustainable management of solar energy technologies throughout their lifecycle.
By: YAGAY andSUN
Summary: A legal battle over traditional knowledge patents involving neem and turmeric revealed India's initial challenges in protecting indigenous intellectual property. Through strategic documentation and policy reforms, India successfully challenged biopiracy attempts, establishing the Traditional Knowledge Digital Library to systematically document and defend traditional medicinal practices against unauthorized international patent claims.
News
Summary: A criminal gang used forged Aadhaar cards and fake identities to infiltrate homes as domestic workers in Delhi, committing burglaries. The group manipulated identity documents, used stolen phones, and carefully planned their crimes. Police tracked and arrested four members through technical analysis and the mastermind's girlfriend, recovering stolen jewelry and gold. The investigation continues to identify potential additional accomplices.
Summary: The Uttar Pradesh government provided over Rs 1,344 crore in financial aid to 66,874 individuals during the 2024-25 financial year. The assistance included Rs 166 crore for cancer patients and Rs 33.12 crore for kidney patients, covering medical treatments and support. Additional aid was given for various purposes like fire accident victims, deceased dependents, daughter marriages, and educational expenses, with the chief minister personally reviewing and approving support requests.
Summary: Trade restrictions imposed by India on Bangladesh imports limit entry of readymade garments, processed food, cotton, plastic goods, and wooden furniture through specific land customs stations in northeastern states and select border crossings. Restrictions do not apply to fish, LPG, edible oil, and crushed stone imports. Goods can still transit through India to Nepal and Bhutan, with certain items permitted via Nhava Sheva and Kolkata seaports.
Summary: A senior opposition leader and a political party alleged widespread corruption in the Enforcement Directorate, claiming the agency extorts money, targets political rivals, and fails to investigate black money cases. They cited a recent corruption case involving an ED official and accused the agency of misusing its powers under the Prevention of Money Laundering Act. The allegations include taking bribes to settle cases and harassing political opponents.
Summary: A senior opposition leader alleged widespread corruption within the Enforcement Directorate, claiming officials misuse their power by sending notices and extracting money to settle cases. He accused the agency of primarily targeting political opponents rather than addressing money laundering. The allegations emerged after an ED official was booked in a corruption case involving a bribe attempt against a businessman.
Summary: A political leader alleges that the Enforcement Directorate arrested him to prevent his party's government formation in 2019. He claims the action was politically motivated, targeting key opposition members after the collapse of a coalition government. The arrest was part of a broader strategy to undermine the previous state government and its leadership, according to the politician's account in his recently published book.
Summary: Political leaders criticized the Prevention of Money Laundering Act (PMLA), alleging misuse by the current government against opposition parties. A senior politician warned about the law's dangerous provisions during the previous government, highlighting that it shifts the burden of proof to the accused. Multiple opposition leaders argued the act enables politically motivated investigations and arrests across various parties.
Summary: A political leader criticized the Prevention of Money Laundering Act (PMLA), claiming it is being misused against opposition parties. He suggested the law should be amended when the government changes. The comments were made during a book launch by a member of parliament who had previously been arrested in a money laundering investigation.
Summary: The Enforcement Directorate attached assets worth Rs 1.29 crore of a former high-ranking police official in a money laundering investigation. The case involves allegations of extortion while the individual was in a senior law enforcement role, with claims of receiving cash and jewelry from individuals in custody. The action was taken under the Prevention of Money Laundering Act.
Summary: European economic growth forecasts have been reduced due to potential US tariffs, with projections cut to 0.9% for this year and 1.4% for next year. Germany's economy is particularly vulnerable, expecting zero growth amid export challenges, higher energy costs, and competition from China. Trade officials express concern about economic uncertainty, though the job market remains resilient with predicted unemployment falling to 5.7%. Negotiations may potentially reduce proposed tariff rates from 20% to 10%.
Summary: A state chief minister plans to request a ban on apple imports from Turkey and America, arguing these imports negatively impact local apple growers in Himachal Pradesh. He intends to raise this issue directly with the prime minister during an upcoming meeting. The local apple industry is valued at Rs 4,500 crore and is experiencing challenges from international imports. The chief minister also announced plans to decentralize regulatory offices from the state capital.
Summary: A trade organization in Tripura welcomed government restrictions on imports from Bangladesh, citing national interests. The restrictions target specific goods like readymade garments and processed food items. Local traders anticipate significant impact on Bangladeshi exporters, particularly those supplying construction materials to northeastern states. The move follows similar trade curbs imposed by Bangladesh on Indian products, with Tripura having imported goods worth over Rs 700 crore in recent fiscal years.
Summary: Treasury Secretary downplayed Walmart's inflation warnings, describing price increase concerns as a "worst-case scenario" during media interviews. He suggested tariffs would have minimal impact, noting Walmart might absorb some additional costs. The administration maintains economic growth will offset potential deficit increases, despite independent skepticism about projected growth rates. Ongoing trade negotiations with multiple countries continue, with strategic uncertainty framed as a deliberate negotiating approach.
Summary: The central government imposed port restrictions on imports from Bangladesh, limiting certain goods like readymade garments and processed food items through land ports. The move aims to protect national interests and respond to similar curbs placed by Bangladesh on Indian products. While the restrictions will impact employment and transport revenue in border regions, officials emphasize that national strategic considerations take precedence over potential economic consequences.
Summary: India has restricted Bangladeshi exports through land ports in the Northeast, limiting entry of ready-made garments and consumer goods to only two sea ports. The decision aims to ensure reciprocal trade terms and respond to Bangladesh's previous trade barriers on Indian goods. Government sources indicate this measure will restore trade equality, provide market access for the Northeast region, and align with India's economic self-reliance policies.
Summary: India has imposed restrictions on Bangladeshi consumer goods entering through land transit points in Northeast, allowing entry only through specific sea ports. The move affects ready-made garments, plastics, wooden furniture, and other items. This decision appears to be a response to Bangladesh's denial of access to certain Indian exports and follows increasing trade tensions between the two countries, with implications for regional economic interactions and market access.
Summary: India's trade authority imposed port restrictions on importing specific goods like readymade garments and processed food items from Bangladesh. The Directorate General of Foreign Trade issued a notification implementing these curbs. The restrictions do not apply to Bangladeshi goods transiting through India en route to Nepal and Bhutan.
Summary: A 27-year-old individual was arrested for allegedly extorting money by impersonating an income tax officer. The suspect demanded Rs 1 crore from a senior political leader, claiming potential tax raids on a farmhouse. After multiple phone calls and a planned money exchange, law enforcement intercepted the suspect at the designated meeting location, seizing counterfeit currency notes and arresting him under criminal statutes.
Summary: A nationwide cyclothon titled "Sundays on Cycle" was organized by the Central Board of Indirect Taxes and Customs to commemorate eight years of GST. Over 50,000 cyclists participated across the country, with senior officials highlighting GST's transformational impact on taxation. A GST Help Desk was established, informational materials distributed, and digital resources made available to enhance public understanding of the tax system.
Notifications
DGFT
1.
09/2025-26 - dated
19-5-2025
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FTP
Harmonisation of Schedule-Il (Export Policy), ITC (HS) 2022 with amendments introduced vide Finance Act, 2025
Summary: A government notification amends Schedule-II of the Export Policy and ITC (HS) 2022 to align with the Finance Act, 2025. The amendment modifies ITC codes, section notes, and chapter-wise notes. The updated ITC (HS) will be available on the official website, effective immediately, under the Foreign Trade (Development & Regulation) Act 1992.
2.
08/2025-26 - dated
19-5-2025
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FTP
Amendment in Import Policy and Policy Conditions of specific ITC (HS) codes under Chapter 71 of Schedule -I(Import Policy) of ITC (HS) 2022 in sync with the Finance Act 2025
Summary: A government notification amends import policies for precious metals (silver, gold, platinum) under Chapter 71 of the Import Trade Control (ITC) Harmonized System (HS) 2022. The changes align with the Finance Act 2025, modifying import restrictions, creating new codes, and specifying import conditions through nominated agencies, banks, and international bullion exchanges. The amendments take immediate effect and regulate import procedures for unwrought and semi-manufactured precious metals.
3.
07/2025-26 - dated
17-5-2025
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FTP
Port restriction on import of certain goods from Bangladesh to India - Insertion of a new Para 19 under 'General Notes Regarding Import Policy' under ITC (HS), 2022 Schedule 1 (Import Policy)
Summary: A government notification restricts imports from Bangladesh to India, specifying port limitations for certain goods including ready-made garments, beverages, processed food, cotton, plastics, and wooden furniture. Imports are only permitted through designated seaports like Nhava Sheva and Kolkata, with specific land port restrictions. Exceptions exist for fish, LPG, edible oil, and crushed stone, as well as exports transiting to Nepal or Bhutan. The restrictions take immediate effect under the Foreign Trade Policy.
SEBI
4.
G.S.R. 318(E). - dated
19-5-2025
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SEBI
Securities Contracts (Regulation) Amendment Rules, 2025
Summary: A regulatory amendment to the Securities Contracts (Regulation) Rules, 2025 clarifies investment interpretations for financial market participants. The amendment modifies rule 8, specifying that member investments shall not be considered business activities unless they involve client funds, client securities, or create financial liabilities for brokers. The rules take effect upon official gazette publication, providing additional regulatory guidance for securities market transactions.
Circulars / Instructions / Orders
SEBI
1.
SEBI/HO/MRD/POD 3/P/CIR/2025/69 - dated
19-5-2025
Norms for Internal Audit Mechanism and composition of the Audit Committee of Market Infrastructure Institutions
Summary: The circular provides comprehensive guidelines for internal audit mechanisms and audit committee composition in Market Infrastructure Institutions (MIIs). It mandates annual internal audits by independent firms, with strict reporting requirements to the audit committee. The guidelines emphasize governance, transparency, and risk management by establishing clear protocols for audit processes, ensuring MIIs maintain high standards of operational efficiency and regulatory compliance.
FEMA
2.
II/21022/58(10)/12/2025/FCRA(MU) - dated
14-5-2025
Payment of compounding and fees from the FCRA bank account of the FCRA association whose validity has been expired
Summary: The Ministry of Home Affairs issued a circular allowing associations with expired FCRA registration to pay compounding penalties and fees through their FCRA bank account via the online portal. While payments are permitted, any other receipt or utilization of funds during the expired period will constitute a violation of FCRA regulations and may result in penal action.
Customs
3.
Instruction No. 11/2025 - dated
17-5-2025
Port restriction on import of certain goods from Bangladesh to India – Insertion of a new Para 19 under ‘General Notes Regarding Import Policy’ under ITC (HS), 2022 Schedule 1 (Import Policy)
Summary: The circular imposes port restrictions on importing specific goods from Bangladesh to India. Ready-made garments can only be imported through Nhava Sheva and Kolkata seaports. Fruit drinks, processed food, cotton, plastic goods, and wooden furniture face import limitations through certain land checkpoints. Exceptions include fish, LPG, edible oil, and crushed stone, as well as exports transiting to Nepal or Bhutan. The restrictions take immediate effect under the Foreign Trade Policy.
Highlights / Catch Notes
GST
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Petitioner Faces Serious Consequences for Submitting Fabricated Show Cause Notices Undermining Judicial Integrity
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GST Registration Cancellation Halted: Fabricated Show Cause Notice Exposes Critical Procedural Irregularities in Administrative Action
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Tax Reimbursement Clarified: Quarterly Calculation Method Approved for Manufacturing Units Under J&K GST Scheme
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Tax Dispute Resolution: Firm Wins Right to Challenge Liability and Seek 24-Month Installment Payment Plan Under Section 80
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Tax Notices Invalidated: Administrative Failure to Provide Meaningful Hearing Leads to Order Reversal Under Natural Justice Principles
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High Court Overturns Tax Assessment Order, Mandates Fresh Hearing and Fair Review of Procedural Compliance
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GST Show Cause Notice Challenge Dismissed, Petitioner Granted Extended Appeal Window Until July 10, 2025
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Judicial Intervention Secures 5% Tax Rate for PPSB Bed Sheets, Mandates Refund Processing Within 12 Weeks
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Anticipatory Bail Granted in GST Evasion Case: No Evidence of Intentional Investigation Obstruction, Bond Imposed
Income Tax
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Taxpayer Wins Relief: One-Day Delay Condoned for Income Tax Return Filing Under Section 119(2)(b)
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Managing Director's Review Petition Rejected: Rs. 5 Lakhs Recovery Order Upheld Due to Clear Administrative Lapses
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Multiple Property Ownership Does Not Invalidate Long-Term Capital Gains Tax Deduction Under Section 54F
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Multiplex Infrastructure Subsidy Classified as Capital Receipt, Providing Tax Advantage for Entertainment Sector Development
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Tax Officials Can Issue Section 143(2) Notices, Affirming Broad Discretionary Powers in Income Tax Assessment Process
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Property Transactions Deemed Business Income as Repeated Sales Indicate Systematic Profit-Making Commercial Activity Under Taxation Rules
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Tax Exemption Upheld: Charitable Eye Hospital Retains Nonprofit Status by Reinvesting 85% of Gross Receipts in Medical Relief (15)
Customs
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Customs Board Updates Tariff Values for Edible Oils, Metals, and Nuts Under Section 14(2) of Customs Act
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Govt Blocks Multiple Bangladesh Import Categories via Specific Ports, Limits Trade Channels for Select Goods
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Motor Controller and Tricycle Parts Valuation Upheld: Customs Classification Preserved Under CTH 8503 0090
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Customs Penalty Dispute Dismissed: Insufficient Evidence Fails to Prove Direct Involvement in Import Irregularities
DGFT
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Govt Updates Export Norms for Di-Octyl Phthalate, Adjusts Import Quantities for Key Plasticizer Components
SEZ
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Government Amends Kandla SEZ Authority Membership, Replacing Two Representatives with New Appointees Under Section 31
FEMA
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Export Credit Line: India Supports Mongolia's Crude Oil Refinery Project with $700M Financing Under FEMA Guidelines
State GST
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GST Registration Applicants Can Now Resolve Documentation Challenges Through Comprehensive Grievance Redressal Mechanism
Indian Laws
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Senior Advocates' Designation Overhauled: Transparent Selection Process Mandated with Democratic Voting and Merit-Based Criteria
SEBI
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SEBI Mandates Electronic Book Provider Platform for Debt Securities and NCRPS Over Rs. 20 Crore Issuance
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SEBI Mandates Simplified Non-Convertible Securities Trading with Enhanced Disclosure and Yield Calculation Protocols
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Regulatory Compliance Extended: SEBI Postpones ODI and FPI Provisions to November 2025 for Smoother Market Adaptation
Service Tax
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Educational Fees and Property Rental Exempted from Service Tax Under Specific Conditions Defined in Statutory Guidelines
Case Laws:
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GST
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2025 (5) TMI 1278 HC found the retrospective GST registration cancellation invalid due to procedural defects. Upon discovering a forged show cause notice, the Court recalled its previous order, issued non-bailable warrants for the petitioner's production, and directed counsel to explain the document's origin. The ruling emphasized the importance of reasoned notices and judicial integrity, restoring the case for fresh consideration.
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2025 (5) TMI 1277 HC reviewed petitions challenging prior orders, revealing fabricated Show Cause Notices (SCNs) across multiple cases. Referencing a previous order that took serious view of document fabrication, the Court directed consolidation of related matters before the Roster Bench to avoid conflicting judgments. Matters were ordered to be listed on 29.04.2025, pending Chief Justice's approval.
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2025 (5) TMI 1276 HC examined a GST registration cancellation case involving procedural irregularities and document fabrication. The Court recalled its previous order after discovering the Petitioner submitted an altered Show Cause Notice (SCN). The fabrication led to invalidating the earlier modification of cancellation date. The Court directed the Petitioner's proprietor to appear and explain the circumstances, emphasizing the importance of procedural fairness and document integrity in administrative proceedings.
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2025 (5) TMI 1275 The SC examined the retrospective cancellation of GST registration under Section 29(2) of CGST Act. The court invalidated the tax authority's order due to lack of prior notice, absence of reasoned justification, and failure to consider third-party consequences. The GST registration cancellation was modified to take effect from the Show Cause Notice date, emphasizing procedural fairness and the need for objective, non-mechanical exercise of statutory powers.
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2025 (5) TMI 1274 SC dismissed the Special Leave Petition after reviewing the HC order, finding no compelling reason to intervene. The bench comprising two justices upheld the original High Court decision, rejecting the petitioner's exemption application and disposing of all related pending applications.
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2025 (5) TMI 1273 HC dismissed writ petition challenging tender allocation. The court found respondent No.5's change from proprietorship to partnership firm was a technical modification, not creating a new entity. Despite recent PAN and GST registrations, the firm remained eligible for tender. No evidence of collusion was established. The tender granted to respondent No.5 was deemed valid and lawful, rejecting petitioner's claims of ineligibility.
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2025 (5) TMI 1272 Court resolved a dispute over budgetary support claim filing for manufacturing units. The SC upheld monthly calculation of tax reimbursement while maintaining quarterly claim submission. The court directed reconsideration of appellant's claims, emphasizing procedural compliance with statutory notifications and respecting judicial precedents from other high courts. The ruling balanced technical requirements with practical tax payment realities.
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2025 (5) TMI 1271 HC allowed petition challenging vehicle detention and tax penalty. Petitioner sought goods release and appeal resolution. Respondents undertook to decide appeal by specified date. Court disposed petition based on respondent's assurance, granting liberty to seek restoration if appeal remains unresolved, emphasizing procedural fairness and timely judicial action.
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2025 (5) TMI 1270 HC examined jurisdictional challenge regarding Principal Commissioner's authority under GST Act. Petitioner argued that the officer lacks territorial jurisdiction to issue attachment order under Section 83 against persons outside designated domain. Court recognized the core legal issue as concerning officer's competence and jurisdiction. Matter was adjourned for further consideration, with State counsel's appointment to be regularized.
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2025 (5) TMI 1269 The HC examined complex GST legal issues involving notification validity, time limit extensions, and Input Tax Credit (ITC) claims. The court largely deferred to the SC's pending decision on notification validity under Section 168A of the GST Act. Key outcomes include setting aside ex-parte orders denying ITC, mandating personal hearings for taxpayers, and preserving all legal rights pending the SC's final ruling in the Special Leave Petition.
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2025 (5) TMI 1268 Legal Case Summary:HC examined the validity of GST tax notification extensions and procedural fairness in tax adjudication. The court set aside an ex-parte order that denied personal hearing to a taxpayer, directing the tax authority to reconsider the case and provide an opportunity to be heard. The core legal issue regarding notification validity remains pending before SC, with the HC preserving all substantive rights and avoiding definitive conclusions. The ruling emphasizes natural justice principles in tax proceedings, mandating procedural fairness and comprehensive review of taxpayer submissions.
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2025 (5) TMI 1267 HC disposed of petitions challenging GST tax notifications and orders, primarily deferring to SC's pending decision on notification validity. The Court granted petitioners an opportunity to file appeals before 10th July 2025 without limitation barriers. Any appellate orders will be subject to SC's final ruling in SLP No. 4240/2025. The HC maintained judicial discipline by not conclusively determining the notifications' legal status while preserving petitioners' procedural remedies.
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2025 (5) TMI 1266 HC analyzed the validity of GST tax notifications under Section 168A, focusing on procedural compliance and GST Council recommendations. The court deferred final determination to SC, set aside ex-parte demand orders, and ensured petitioners' right to be heard. Key holdings include mandating GST Council's prior recommendation for deadline extensions and preserving appellate remedies pending SC's ultimate resolution in SLP No. 4240/2025.
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2025 (5) TMI 1265 The HC addressed the validity of tax notifications extending limitation periods under the GST Act. While refraining from definitively ruling on the notifications' legality, the court allowed the petitioner to file an appeal with pre-deposit by 10th July 2025, subject to the SC's forthcoming decision in the related SLP. The court emphasized judicial discipline by deferring to the SC's ultimate determination on the notifications' vires, preserving procedural fairness while maintaining the status quo.
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2025 (5) TMI 1264 HC invalidated the GST notification due to procedural irregularities. The court found the notification was issued without prior GST Council recommendation, violating statutory requirements. Procedural fairness was compromised by denying personal hearing to the petitioner. The case was remanded for reconsideration, with all rights reserved pending Supreme Court's final determination in the ongoing special leave petition.
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2025 (5) TMI 1263 HC found procedural violations in GST tax adjudication. The impugned order was set aside due to failure to consider the petitioner's reply and provide proper hearing. The court directed a fresh opportunity for the petitioner to submit documents and receive a personal hearing. The validity of the GST notifications remains pending before SC, with all subsequent orders subject to SC's final ruling. The core principle emphasized was adherence to natural justice in tax proceedings.
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2025 (5) TMI 1262 SC upheld tax authority's demand against petitioner firm for late fees and tax interest under CGST Act. Court rejected request for 48-month installment payment, limiting installments to statutory 24-month maximum. Directed petitioner to file fresh application complying with Section 80, allowing Commissioner discretionary review with procedural fairness while maintaining statutory compliance.
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2025 (5) TMI 1261 HC ruled that the impugned GST order dated 28th August 2024 was invalid due to procedural defects. The order violated natural justice principles by denying personal hearing and was non-speaking. The Court set aside the order, directing the tax authority to issue a fresh notice, provide hearing opportunity by 10th July 2025, and reconsider the petitioner's submissions. The validity of the challenged notifications remains pending Supreme Court decision.
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2025 (5) TMI 1260 HC dismissed petition challenging sales tax order, directing petitioner to file appeal under CGST Act within prescribed timeline. Court emphasized appellate authority should consider appeal on merits if filed with mandatory pre-deposit and not reject on limitation grounds. Order passed after providing opportunity of hearing to petitioner.
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2025 (5) TMI 1259 HC ruled on GST tax dispute, setting aside two adjudication orders due to procedural irregularities. The court found defects in notification issuance, lack of proper hearings, and fragmented order-passing. Matter was remanded for fresh adjudication, with directions to provide personal hearing and comprehensive order. Validity of notifications left open pending SC decision, with interim relief granted to ensure fair process and GST portal access.
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Income Tax
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2025 (5) TMI 1250 HC analyzed a case involving a one-day delay in income tax return filing under Section 119(2)(b). The court found genuine hardship due to technical difficulties in uploading the return, despite the tax portal being functional. HC ruled in favor of the taxpayer, directing the PCIT to condone the delay, emphasizing that statutory powers should be exercised to provide relief in cases of demonstrable hardship. The court set aside the original order rejecting the application for delay condonation.
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2025 (5) TMI 1249 HC ruled that JBVNL illegally deducted and retained Rs. 2,90,32,000/- from a firm's bills without depositing TDS or issuing certificates. The court ordered full refund with interest and imposed Rs. 5 lakhs cost on JBVNL, to be recovered from the Managing Director personally. The review petition challenging personal liability was dismissed, emphasizing accountability of public servants and narrow review jurisdiction.
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2025 (5) TMI 1248 HC ruled that tax assessment proceedings under Section 153C of Income Tax Act are time-barred. The AO must pass assessment orders within 12 months from the end of the financial year when documents are received. In this case, documents received on 22.06.2022 meant the deadline was 31.03.2024. Notice issued on 19.12.2023 without completing assessment renders proceedings invalid. The Court quashed the notice and any subsequent assessment orders beyond the statutory limitation period.
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2025 (5) TMI 1247 Case law summary:SC ruled on income tax deduction under Section 54F involving capital gains from share sale. The court held that direct tracing of sale proceeds is not mandatory for claiming exemption, and different floors of a single building constitute one residential house. The reassessment notice was invalidated as barred by limitation. The Assessee was entitled to full deduction, with the Revenue's arguments regarding fund routing and multiple property ownership being rejected.
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2025 (5) TMI 1246 HC ruled that Entertainment Tax Subsidy (ETS) received by multiplex operator constitutes a capital receipt, not taxable income. Applying the "purpose test" from Supreme Court precedents, the court determined the subsidy's primary objective was to encourage capital investment in multiplex infrastructure. The timing, source, and form of the subsidy were deemed irrelevant. Revenue's arguments were rejected, and the Assessee's treatment of the subsidy as a capital receipt was upheld.
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2025 (5) TMI 1245 The SC upheld the validity of income tax notices issued under Sections 143(2) and 142(1) by a prescribed income-tax authority authorized by CBDT. The Court rejected arguments challenging the jurisdiction, confirming that both Assessing Officers and prescribed authorities can issue such notices. The notices were found to be validly issued within legal parameters, and the petitioner's challenge was dismissed.
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2025 (5) TMI 1244 The SC/Tribunal addressed four key issues regarding property sale income taxation. The tribunal upheld the assessment order treating the entire property sale proceeds as business income, rejecting the assessee's claims of long-term capital gains and separate investment portfolios. The decision was based on the assessee's consistent prior treatment of similar transactions and lack of evidence supporting alternative income characterization. All grounds of appeal were dismissed, maintaining the original tax assessment.
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2025 (5) TMI 1243 The SC upheld a cooperative credit society's claim for deduction of interest income under section 80P(2)(a)(i) of the Income Tax Act. The court found that interest earned on mandatory fixed deposits, made pursuant to regulatory directions, constitutes business income. Applying the principle of consistency, the court rejected the revenue's argument and allowed the deduction, emphasizing the statutory context and integral connection to the society's credit business operations.
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2025 (5) TMI 1242 The Tribunal addressed three key issues: (1) condonation of delay in appeal filing due to medical condition, (2) validity of assessment reopening under section 148, and (3) justification of cash deposit addition under section 69A. The Tribunal condoned the delay, upheld the assessment reopening, and deleted the cash deposit addition, finding the assessee's explanations and medical evidence sufficiently compelling to support its conclusions.
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2025 (5) TMI 1241 The SC examined the limitation period for assessments under section 153C of the Income-tax Act. The court held that the six-year block period for non-searched persons' assessments begins from the assessment year relevant to the year of recording satisfaction, not the date of search. The assessment for AY 2012-13 was deemed barred by limitation, invalidating the assessment order. The court emphasized harmonious interpretation of statutory provisions while ensuring procedural fairness in search and seizure-related assessments.
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2025 (5) TMI 1240 ITAT Delhi dismissed the Assessee's appeal challenging the CIT(A)'s order for AY 2017-18. The Tribunal upheld the reduced addition of Rs. 34,44,374/- under section 69A of Income Tax Act, accepting the CIT(A)'s 8% profit rate on cash deposits. The Tribunal found no procedural irregularities and confirmed the lower appellate authority's reasoning regarding business transactions and profit estimation.
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2025 (5) TMI 1239 Tribunal analyzed the validity of tax reassessment proceedings under Income Tax Act sections 147 and 148. The key dispute centered on procedural compliance and the source of information for reopening assessment. While upholding the initial procedural steps, the Tribunal remanded the case to CIT(A) to definitively determine whether the reopening information originated from search material, which would impact the legal mechanism for assessment. The appeal was allowed for statistical purposes, directing a fresh examination of the source of information.
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2025 (5) TMI 1238 SC/Tribunal dismissed Revenue's appeals challenging job work expenses in tax assessments. The court found expenses paid by Orient Craft Ltd. to proprietary concerns were genuine, not bogus. Protective additions against assessees were deleted, consistent with coordinate bench findings. The ruling emphasized evidence-based assessment of expenses and judicial consistency across assessment years, rejecting Revenue's claims of fabricated financial transactions.
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2025 (5) TMI 1237 The ITAT addressed two key issues: condonation of delay in filing an appeal and allowability of weighted deduction under section 35(2AB). The Tribunal condoned the delay based on principles of substantial justice, finding sufficient cause in the assessee's circumstances. Regarding the weighted deduction, the Tribunal remitted the matter to the AO for fresh consideration, noting that judicial precedents support a broader interpretation of eligible expenditure beyond DSIR certification, with the aim of promoting research and development.
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2025 (5) TMI 1236 AT allowed the Assessee's appeal, deleting an addition of Rs. 56,20,900/- for unexplained cash deposits. The Tribunal found the Assessee's explanation credible regarding a failed land transaction, noting the Department failed to produce contradictory evidence. Minor timing discrepancies were insufficient to reject the Assessee's cash flow narrative. The seven-day appeal delay was also condoned.
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2025 (5) TMI 1235 The SC/Tribunal analyzed a tax dispute involving a charitable eye hospital. The court ruled that the institution's medical activities qualify as charitable under Section 2(15) of the Income Tax Act. The Tribunal deleted the Assessing Officer's addition of Rs. 6,01,88,516/- and upheld the exemption under Sections 11 and 12, finding that over 85% of income was applied to charitable purposes. The surplus percentage alone does not disqualify the institution's charitable status.
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2025 (5) TMI 1234 SC remanded case concerning trust's tax registration under sections 12AB and 80G of Income-tax Act. The court found procedural irregularities in CIT(E)'s rejection, specifically the failure to confront the trust with adverse enquiry findings. The trust was directed to substantiate transactions with evidence and comply with further notices. Both registration applications were restored for fresh adjudication with proper opportunity to be heard.
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2025 (5) TMI 1233 SC Tribunal partially allowed tax appeal. Condoned 335-day delay due to medical reasons. Accepted Rs. 9,00,000 cash gifts as genuine. Remitted Rs. 17,00,000 cash deposits to AO for detailed verification, directing proper hearing. Emphasized need for thorough evidence examination beyond mere affidavits, considering familial contexts while maintaining rigorous tax scrutiny standards.
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2025 (5) TMI 1232 The SC/Tribunal addressed multiple tax-related issues involving transfer pricing, penalty proceedings, and tax credits. Key outcomes include: (1) Upholding the assessee's internal Comparable Uncontrolled Price method for power transfer pricing, rejecting the TPO's downward adjustment; (2) Quashing penalty proceedings under Section 270A due to voluntary cess disallowance; (3) Cancelling interest under Section 234A for timely return filing; and (4) Directing AO to verify and allow tax credits after due process.
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2025 (5) TMI 1231 In this tax case, the HC addressed deduction eligibility under Section 80P(2)(d) for a Co-operative Housing Society's interest income from Co-operative Bank deposits. The court ruled in favor of the assessee, holding that interest income from Co-operative Banks registered under the State Act qualifies for deduction. The HC rejected the tax authority's disallowance, emphasizing that Section 80P(4) excludes only RBI-licensed commercial banks. The appeal was allowed, granting the deduction and prioritizing substantial justice over strict procedural norms.
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Customs
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2025 (5) TMI 1230 The HC resolved two key customs issues: (1) valuation of imported motor controllers and (2) their tariff classification. The court rejected the revenue's arbitrary enhancement of customs value based on NIDB data, finding no substantive evidence to deviate from the declared transaction value. Regarding classification, the HC upheld the classification of motor controllers under CTH 8503 0090, determining they are parts suitable for electric motors, not exclusively e-rickshaw components. The revenue's appeal was dismissed, affirming the importer's original declarations.
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2025 (5) TMI 1229 HC reviewed penalties under Customs Act Sections 112(a)(i), 112(b), and 114AA against an appellant. The court found no concrete evidence supporting allegations of improper goods importation or false declarations. Penalties were based on assumptions, uncorroborated statements, and unsubstantiated familial connections. Consequently, the HC set aside all imposed penalties, emphasizing the need for direct proof and procedural fairness in customs enforcement.
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Service Tax
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2025 (5) TMI 1228 The SC/Tribunal addressed five key issues regarding service tax for government construction services. The court ruled that a second show cause notice invoking extended limitation was unsustainable. Services provided to government authorities were deemed exempt from service tax. The appellant was found entitled to threshold exemption and cum-duty benefits. The appeal was allowed, with the matter remanded for re-assessment within normal limitation period, effectively quashing the extended limitation demand and recognizing the services as tax-exempt.
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2025 (5) TMI 1227 LEGAL SUMMARY:SC/Tribunal ruled on two key issues: (i) service tax applicability on university affiliation fees, and (ii) Small Scale Industry (SSI) exemption for property rental services. The Tribunal found affiliation fees exempt from service tax as educational services under negative list provisions. Additionally, the university qualified for SSI exemption since rental income was below Rs. 10 lakhs. The revenue's appeal was dismissed, affirming the lower order's interpretation of educational service exemptions.
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2025 (5) TMI 1226 The SC/Tribunal analyzed the pre-deposit calculation under Section 35F of the Central Excise Act. It held that the pre-deposit must be calculated on the short-paid amount (Rs. 8,29,53,025/-) rather than the gross demand (Rs. 13,66,31,566/-). The appellant must deposit the remaining Rs. 17,21,477/- to meet statutory requirements. The Tribunal rejected the appellant's interpretation and dismissed the application for order rectification.
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2025 (5) TMI 1225 The SC reviewed a service tax refund claim dispute. The appellant's refund was rejected by the Commissioner (Appeals) for allegedly not producing an invoice, despite the document being originally submitted. The SC found the rejection procedurally improper, as the ground was not in the original show cause notice. The court remanded the case back to the Commissioner (Appeals), directing a fresh review with an opportunity for the appellant to produce the invoice and allowing reconsideration of the refund claim within three months.
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Central Excise
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2025 (5) TMI 1224 The Tribunal upheld the demand for Central Excise and Customs duty against an Export Oriented Unit (EOU) for failing to achieve positive Net Foreign Exchange (NFE) earnings during 2010-2015. The SC rejected arguments about bond compliance and LOP extension, confirming duty recovery with interest and penalties. The ruling emphasized statutory obligations and period-specific liability, dismissing the appellant's appeal and maintaining the original duty demand.
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2025 (5) TMI 1223 The SC/Tribunal ruled that trading spare parts with minimal packaging and identification does not constitute "manufacture" under the Central Excise Act. The key findings were: (1) placing supplier stickers on packaging is not relabelling, (2) selling above MRP without altering original packaging does not trigger excise duty, and (3) warranty obligations and tender descriptions do not automatically establish manufacturing status. The Revenue's allegations were deemed speculative, lacking concrete evidence, and the case was decided in favor of the respondent.
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CST, VAT & Sales Tax
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2025 (5) TMI 1222 The SC examined BOT infrastructure project contracts under Madhya Pradesh tax laws, focusing on taxability of works contracts. The Court held that BOT contracts constitute works contracts subject to commercial and entry taxes, even with deferred payment through toll collection. The Court affirmed tax authorities' assessment methodology, rejecting arguments about absence of actual sale or business commencement. Contractual indemnity clauses were deemed insufficient to override statutory tax obligations. Writ petitions challenging tax assessments were ultimately dismissed.
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Indian Laws
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2025 (5) TMI 1279 SC analyzed Section 31(7)(b) of Arbitration & Conciliation Act, 1996, regarding post-award interest. The court held that post-award interest is mandatory at 18% per annum, with arbitrators having discretion only over the interest rate, not its entitlement. The executing court can grant statutory post-award interest even if the arbitral award is silent, ensuring prompt compliance with arbitral awards and compensating award holders for payment delays.
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2025 (5) TMI 1221 SC invalidated the existing Senior Advocate designation guidelines, abolishing the 100-point assessment and interview process. The Court directed High Courts to frame new Rules within four months, emphasizing that designation is a privilege conferred by the Full Court, not a right to be applied for. The judgment ensures a more transparent, fair, and inclusive process for designating Senior Advocates, prohibiting individual Judge recommendations and Bar members' direct involvement in decision-making.
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