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TMI Tax Updates - e-Newsletter
June 6, 2025
Case Laws in this Newsletter:
GST
Income Tax
Customs
Insolvency & Bankruptcy
PMLA
Service Tax
Central Excise
TMI Short Notes
Bills:
Summary: Legal document summary focusing on key tax return filing provisions in proposed legislation:A new legislative clause introduces comprehensive changes to income tax return filing in India. The proposed Clause 263 modernizes existing tax return regulations by expanding mandatory filing requirements, introducing clearer timelines for submissions, and establishing more detailed reporting obligations. Key innovations include a broader definition of taxpayers required to file, enhanced digital filing mechanisms, provisions for updated returns within 48 months, and more precise procedural guidelines for handling defective returns. The legislation aims to improve tax transparency, align with international reporting standards, and provide administrative flexibility for tax authorities.
Bills:
Summary: A concise summary of the legal document analyzing Clause 258 of the Income Tax Bill, 2025, regarding taxpayer information disclosure:The provision regulates the disclosure of taxpayer information by income tax authorities, enabling selective sharing with other agencies while protecting individual privacy. It allows information disclosure to authorities and private persons under strict public interest criteria, with the Central Government retaining power to restrict disclosure. The clause maintains the core principles of the previous legal framework, modernizing language and administrative processes while preserving confidentiality safeguards and inter-agency cooperation mechanisms.
Bills:
Summary: A legislative provision in the Income Tax Bill, 2025 designates tax proceedings as judicial proceedings, aligning with new criminal codes. The clause ensures procedural integrity by treating income tax authority proceedings as judicial in nature, enabling prosecution for perjury, contempt, and false evidence. It updates previous legal frameworks by referencing new statutes while maintaining core principles of tax administration procedural discipline.
Articles
By: Tushar Malik
Summary: Unbilled revenue represents income earned through goods or services delivery without an issued invoice, typically in long-term contracts or project-based work. Accounting standards require recognition as a current asset and revenue when earned, even without invoice. For tax purposes, it is generally taxable in the year earned under the mercantile accounting method. GST applicability depends on the "time of supply" provisions, which consider invoice date, payment receipt, or service completion within 30 days. Proper tracking ensures compliance with financial reporting standards and tax regulations.
By: Dr. Sanjiv Agarwal
Summary: The Central Government notified the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025, effective from 24.04.2025. These rules outline comprehensive procedures for filing appeals before the GST Appellate Tribunal, including online filing requirements, document submission guidelines, appeal formatting standards, translation protocols, and processes for cross-objections and responses. The rules provide detailed instructions for appellants and respondents regarding legal proceedings and documentation.
By: Ishita Ramani
Summary: Private limited companies in India must file annual returns through specific forms within prescribed timelines. Failing to do so results in significant consequences including substantial late fees, potential director disqualification, regulatory actions, loss of active company status, and reduced credibility with financial institutions. Timely compliance ensures legal safety, investor confidence, and uninterrupted business operations.
By: Pradeep Reddy
Summary: Funded startups face critical GST restructuring challenges during rapid growth. Most organizations struggle with complex tax compliance when expanding across states and adding new business units. Key risks include blocked credits, delayed refunds, and potential audit complications. Proactive strategies involve establishing clear standard operating procedures, early GSTIN registration, systematic documentation, and comprehensive GST team structuring to mitigate operational and financial risks during scaling phases.
By: YAGAY andSUN
Summary: India's electric vehicle (EV) sector faces critical strategic challenges due to heavy dependence on China for neodymium-iron-boron (NdFeB) magnets, essential in electric motors. With China controlling over 90% of rare-earth refining and magnet production, India's growing EV market risks supply chain vulnerabilities. The country lacks indigenous rare-earth mining, refining, and manufacturing capabilities, making its automotive electrification goals potentially unsustainable without diversifying supply chains and developing domestic production strategies.
By: YAGAY andSUN
Summary: Legal analysis reveals the complex jurisdictional framework governing Special Economic Zone (SEZ) units in India. The SEZ Act, 2005 primarily regulates internal SEZ operations, while the Customs Act, 1962 applies to specific scenarios like goods movement to Domestic Tariff Area. Customs authorities maintain enforcement powers for duty implications, investigations, and penalties. SEZ units receive tax exemptions for authorized operations but must comply with regulatory requirements when transferring goods to domestic markets.
By: YAGAY andSUN
Summary: A business facing GST registration cancellation can still claim refunds for excess tax paid, unutilized input tax credits, and pre-deposit amounts within two years of the relevant date. The process requires filing a final return, submitting a refund application with supporting documents, and ensuring compliance with GST regulations. Refunds will be directly credited to the bank account, not the electronic ledger, after careful verification by tax authorities.
By: YAGAY andSUN
Summary: Second-hand machinery can be imported under the MOOWR scheme in India, subject to specific compliance requirements. Importers must obtain proper documentation, including a Chartered Engineer's Certificate, meet valuation rules, and adhere to foreign trade policy restrictions. Environmental and safety regulations must be followed. Duties are payable upon home consumption, with exemptions possible for export-oriented manufacturing.
By: YAGAY andSUN
Summary: A critical analysis of rare earth elements reveals India's strategic vulnerability due to China's near-monopoly in global supply chains. The article examines the geopolitical implications of rare earth dependencies, highlighting risks to technological advancement and economic sovereignty. Strategic recommendations include diversifying supply sources, developing domestic processing capabilities, implementing supportive policies, and fostering international collaborations to mitigate economic and technological challenges.
By: YAGAY andSUN
Summary: Sustainable transportation involves adopting practices that reduce environmental impact, improve public health, and promote social equity in mobility. Key strategies include active transportation like walking and cycling, using public transit, carpooling, driving cleaner vehicles, supporting urban planning initiatives, leveraging smart mobility apps, and advocating for green transportation policies. The approach aims to lower emissions, reduce costs, enhance community well-being, and decrease traffic congestion through comprehensive individual and collective actions.
By: YAGAY andSUN
Summary: The article highlights ten everyday actions that harm the environment, including water waste, unnecessary driving, single-use plastics, fast fashion, food waste, improper electronic disposal, harsh chemical use, excessive meat consumption, energy inefficiency, and over-packaging. It provides practical, actionable alternatives for each issue, emphasizing that small individual changes can collectively make a significant positive environmental impact when adopted by many people.
News
Summary: A deputy registrar of the National Company Law Tribunal was arrested by CBI for allegedly demanding and accepting a Rs 3 lakh bribe from a businessman to favorably settle a hotel ownership dispute. The agency seeks custody to investigate potential involvement of other NCLT officials in the bribery case. The accused has sought bail, claiming no direct evidence exists against him. The case involves an ownership dispute pending since 2020.
Summary: Railway Ministry authorized the Centre for Railway Information System (CRIS) to authenticate passengers' Aadhaar ID voluntarily for ticket booking and verification. The initiative aims to enhance ticket booking processes, prioritize genuine users, and reduce malpractices. IRCTC will verify accounts, with Aadhaar-linked accounts receiving priority during Tatkal ticket sales. The authentication process remains voluntary and requires passenger consent.
Summary: The central bank governor will announce the bi-monthly monetary policy, with expectations of a potential interest rate cut to stimulate economic growth amid trade tensions. The Monetary Policy Committee is likely to reduce the benchmark lending rate by 25 basis points, with some experts suggesting a possible 50 basis point reduction. The rate cut aims to lower lending rates and reduce borrowing costs for retail and corporate sectors.
Summary: Two national leaders discussed ongoing trade tensions amid stalled negotiations over tariffs. The conversation occurred after previous challenges in reaching a mutually acceptable trade agreement, with significant economic competition underlying the diplomatic interactions. Discussions aimed to address bilateral trade complexities and potential resolution of existing economic disputes.
Summary: The European Central Bank reduced its benchmark interest rate by a quarter point to 2%, responding to potential economic challenges from trade tensions. The decision aims to support businesses and consumers by making borrowing more affordable, following a period of rate increases to combat inflation. The bank's move reflects a strategic shift towards stimulating economic growth amid uncertain global trade conditions.
Summary: India and Kyrgyz Republic signed a new Bilateral Investment Treaty (BIT) replacing their previous agreement from 2000. The treaty aims to promote and protect investments between both countries, emphasizing sustainable development, balanced investment treatment, and clear investment definitions. It includes provisions for national treatment, expropriation, and dispute resolution mechanisms while retaining policy flexibility for governmental actions. The agreement is expected to enhance bilateral economic relations and cross-border investments.
Summary: A recent tariff increase on steel and aluminum imports could significantly impact grocery prices, potentially undermining the administration's promise of lower food costs. Experts warn that the 50% levy will raise expenses across consumer products, from canned goods to packaging. Food manufacturers and economists predict widespread price increases across various sectors, with potential ripple effects on production and consumer spending. The tariffs may benefit some steel industry workers while potentially increasing costs for millions of American families.
Summary: Trade negotiators from the US and EU met in Paris to discuss tariff disputes, making incremental progress but no major breakthroughs. Tensions persist over trade deficits, car tariffs, and regulatory differences. Both sides expressed willingness to continue discussions, with potential countermeasures if negotiations fail. Significant challenges remain in resolving complex trade barriers and reaching a comprehensive agreement.
Notifications
Companies Law
1.
G.S.R. 357(E) - dated
30-5-2025
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Co. Law
Companies (Accounts) Second Amendment Rules, 2025
Summary: The Companies (Accounts) Second Amendment Rules, 2025 modify existing accounting regulations by introducing electronic forms for financial reporting, mandating additional disclosures on sexual harassment complaints, maternity benefit compliance, and requiring companies to file comprehensive digital extracts of board reports and auditor reports alongside financial statements, effective July 14, 2025.
Circulars / Instructions / Orders
SEBI
1.
SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2025/83 - dated
5-6-2025
Limited relaxation from compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Summary: SEBI issued a circular providing limited relaxation for entities with listed non-convertible debt securities from sending physical copies of financial statement documents. The relaxation applies from October 1, 2024 to September 30, 2025, allowing entities to not face penalties if they do not send hard copies to shareholders without registered email addresses, provided they disclose web-links to document details in advertisements.
2.
SEBI/HO/DDHS/DDHS-POD-1/P/CIR/2025/84 - dated
5-6-2025
Framework for Environment, Social and Governance (ESG) Debt Securities (other than green debt securities)
Summary: SEBI issued a comprehensive framework for Environment, Social and Governance (ESG) debt securities, establishing guidelines for social bonds, sustainability bonds, and sustainability-linked bonds. The circular defines different types of ESG debt securities, mandates specific disclosure requirements, and outlines responsibilities for issuers to prevent purpose-washing. The framework aims to promote transparency, standardize ESG debt issuance, and ensure alignment with recognized international standards, with implementation effective from June 05, 2025.
Highlights / Catch Notes
GST
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GST Liability Payment Approved in Instalments, Authorities Directed to Review Petitioner's Financial Constraints Within 3 Weeks
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Tax Notification 56/2023 Struck Down: Limitation Period Extension Invalidated, Demand Order Nullified Under Section 168A CGST Act
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Tax Credit Dispute: Appellate Path Opened with Nuanced Pre-Deposit Guidelines for Challenging Ineligible Input Tax Claims
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GST Show Cause Notice Upheld: Procedural Technicality Cannot Override Substantive Legal Communication Under Section 73
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Tax Credit Challenge Dismissed: Systematic Fraud Allegations Expose Fictitious Input Tax Credit Claims Under Scrutiny
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Legal Challenge Succeeds: Show Cause Notice Invalidated for Violating Natural Justice and Procedural Fairness Principles
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HC Quashes SCN 09/2023 Due to Notice Service Flaws, Grants Petitioner Fresh Opportunity to Respond
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Bank Account Attachment Order Lifted After Procedural Review of Tax Dispute Under CGST Act Section 107
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Goods Detention Case: Conditional Release Granted with 25% Deposit, Bank Guarantee, and Personal Bond for Remaining Demand
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GST Ruling Clarifies Silver Transactions: Barter as Supply, Job Work Exemptions, and HSN Code Guidelines
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ITC Claim Blocked: Advance Ruling Denied Due to Ongoing Investigation Under Section 98(2) First Proviso
Income Tax
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Govt Authorizes Information Sharing for Women and Child Development Welfare Scheme Under Section 138(1)
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Search Warrant Invalidated: Income Tax Officer Exceeded Statutory Powers by Issuing Notice After Unauthorized Search Operation
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High Court Strikes Down Tax Reassessment Notice Due to Lack of Substantial Evidence and Income Escaping Threshold.
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Tax Assessment Reopened: Procedural Validity Confirmed, Commission Calculation Remanded for Further Verification and Hearing
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Cooperative Housing Societies Can Claim Tax Deduction on Interest from Certain Cooperative Banks Under Section 80P(2)(d)
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Exemption Claim Under Section 10(38) Invalidated Due to Inadequate Verification and Insufficient Assessment Procedures
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Property Sale Valuation and Interest Expense Deduction Upheld: Fair Market Value Assessment Supports Taxpayer's Claims Under Sections 43CA and 36(1)(iii)
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ITAT Overturns Ex Parte Dismissal, Mandates Comprehensive Appeal Review Under Section 251 of Income Tax Act
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Tax Adjustment Challenged: Procedural Compliance Questioned in Section 143(1)(a) Assessment Without Prior Show Cause Notice
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Taxpayer's Surrendered Sum Classified as Business Income, Tribunal Validates Original Assessment Under Existing Tax Rules
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Taxpayer Wins Appeal: Penalty Overturned Due to Insufficient Grounds in Interest Rate Dispute Under Section 270A
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Taxpayer Wins Penalty Challenge: No Willful Default Proven in Summons Compliance Dispute
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Tax Dispute Resolved: No Evidence of Bogus Purchases, Tribunal Upholds Assessee's Accounts and Rejects Department's Claims
Customs
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Standardized Protocol for Handling Undelivered International Postal Articles with Immediate Return and Customs Verification Procedures
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Gold Smuggling Mastermind Found Guilty: Carriers' Inconsistent Statements Expose Elaborate Smuggling Network Under Customs Act Sections 112(a) and 112(b)
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Bail Granted in Narcotics Case: Illegal Custody Violations Expose Critical Procedural Flaws in NDPS Act Enforcement
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Customs Order Allows Re-Export of Goods from Free Trade Zone with Redemption Fine, Appeal Does Not Halt Process
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Exporters Win Major Legal Battle: Customs Penalties Overturned on Procedural and Evidentiary Grounds
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Customs Authorities Cannot Challenge Export Scrip Without DGFT License Cancellation Under Section 28AAA
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Exporters Win Challenge Against Customs Penalty Under Sections 114(iii) and 114AA Due to Procedural Evidentiary Flaws
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Customs Duty Appeal: Partial Relief with Reduced Penalty for Mistaken Rubber Tracks Import Claim Under Sections 112(ii), 114A, and 114AA
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Customs Valuation Dispute: Underreported Import Equipment Value Resolved with Reduced Penalty Under Sections 112(ii) and 114AA
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Gold Smuggling Case: Insufficient Evidence Leads to Appeal Dismissal Under Customs Act Sections 110 and 123
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Gold Bar Transport Case: Customs Seizure Invalidated Due to Insufficient Evidence Under Section 110
SEZ
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Semiconductor Zones Get Revamped: New SEZ Rules Expand Land, Export, and Investment Flexibilities for Tech Manufacturing
Corporate Law
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Electronic Filing Mandate: Auditors Must Submit ADT-4 Reports Digitally, Removing Redundant Procedural Clauses
IBC
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Corporate Insolvency Resolution: Creditors Must Receive Minimum Liquidation Value Under Section 53 of Insolvency Code
PMLA
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Corporate Debtor Property Rights Protected: PMLA Restrictions Lifted During Insolvency Resolution Process Under Section 32-A(2)
Service Tax
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Common Effluent Treatment Plant Wins Tax Exemption, Validates Service Classification Under Section 145 of Finance Act
Case Laws:
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GST
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2025 (6) TMI 353 SC granted petition by condoning delay, issued notice to respondent, and permitted dasti service. The procedural order addresses technical aspects of case progression without delving into substantive legal merits, indicating preliminary stage of judicial proceedings.
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2025 (6) TMI 352 HC granted leave to amend petition regarding eight frozen bank accounts. Under GST Act provisions, petitioner sought to quash order and defreeze accounts by depositing 10% of disputed tax. Court stayed impugned order, ordered defreezing of bank accounts, and listed matter for further hearing on specified date, considering potential financial hardship.
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2025 (6) TMI 351 The SC examined a GST liability case involving instalment payment under Section 80 of the Central Goods and Services Tax Act, 2017. The Court directed tax authorities to consider the petitioner's representation for instalment payment within three weeks, prohibited coercive recovery actions pending representation, and emphasized the Commissioner's discretionary power to allow tax payment in instalments subject to prescribed conditions and interest payment.
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2025 (6) TMI 350 The SC invalidated Notification No. 56/2023-Central Tax extending tax order time limits under the CGST Act. The Court held the notification ultra vires as it was issued without GST Council recommendation and lacked force majeure conditions. The judgment emphasized that delegated legislation must strictly adhere to statutory prerequisites, quashing the notification and related tax orders, thereby reinforcing principles of cooperative federalism in GST regulations.
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2025 (6) TMI 349 The HC addressed a GST dispute involving a business with sweetmeat shop and restaurant operations. The court partially upheld the tax demand, allowing ITC for sweetmeat supplies but disallowing ITC for restaurant services. The petitioner was permitted to file an appeal with limited pre-deposit, with the issue of demand duplication to be adjudicated by the Appellate Authority. The ruling balanced revenue interests with taxpayer rights under the CGST Act, 2017.
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2025 (6) TMI 348 HC found the Search-cum-Selection Committee's conduct of selective secondary personal interactions with only some shortlisted candidates to be procedurally irregular. The court determined that the Rules governing GST Appellate Tribunal appointments do not authorize multiple interaction rounds. The procedure was deemed prima facie unfair, violating principles of equal treatment. The court issued notice to respondents, maintaining process status quo and directing no final decision until further review.
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2025 (6) TMI 347 HC analyzed a GST Show Cause Notice dispute, focusing on procedural validity. Despite an erroneously titled document, the court determined the notice was substantively valid under Section 73 of CGST Act. The HC rejected the petitioner's challenge, finding the document constituted a proper notice, obligating the petitioner to respond. The ex-parte order was upheld, with liberty granted to file an appeal under Section 107, emphasizing substance over technical form.
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2025 (6) TMI 346 The HC dismissed the writ petition challenging tax demands related to fraudulent Input Tax Credit (ITC) claims. The court held that detailed factual scrutiny of ITC availment is beyond writ jurisdiction and directed the petitioner to pursue appellate remedies under CGST Act by making the required pre-deposit. The court emphasized that writ petitions are not maintainable in cases involving fraudulent ITC where statutory procedures have been followed and natural justice complied with.
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2025 (6) TMI 345 HC quashed GST tax recovery proceedings for procedural non-compliance. The court found that a Summary Show Cause Notice cannot replace a formal Show Cause Notice under Section 73(1) of AGST Act. The authorities failed to provide opportunity of hearing and issue proper authenticated notices by the Proper Officer. HC set aside the impugned orders and granted liberty to initiate fresh proceedings, excluding the invalid period from limitation calculations.
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2025 (6) TMI 344 HC partially allowed the petition challenging GST tax notifications. The court set aside the show cause notice due to procedural deficiencies in notice service, specifically uploading notices in a non-prominent portal tab. The court directed fresh adjudication with proper notice, while leaving the notification's legal validity to be determined by SC in pending proceedings. All parties' rights were preserved pending SC's final decision.
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2025 (6) TMI 343 HC set aside an ex-parte GST adjudication order due to procedural irregularities. The court found the petitioner was denied natural justice by not receiving proper notice and opportunity to be heard. The order directed fresh proceedings, granting the petitioner time to file replies and attend hearings. The validity of related GST notifications remains pending before SC, with all rights reserved for future adjudication.
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2025 (6) TMI 342 HC set aside an adjudication order disallowing Input Tax Credit (ITC) for delayed return filing. Court found the actual return submission date was within permissible timeframe. Remanded the case to the proper officer for fresh adjudication under Section 16(5) of CGST/WBGST Act, 2017, directing reconsideration of the original order.
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2025 (6) TMI 341 HC allowed partial relief in GST registration cancellation case. The court modified the retrospective cancellation date from 01.07.2017 to 04.09.2021. Directed GST portal update, permitted return filing within ten days, and mandated withdrawal of pending appeal within two weeks. Writ petition disposed of with specific procedural directives.
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2025 (6) TMI 340 HC analyzed the validity of a provisional bank account attachment under the CGST Act. The court upheld the attachment, finding that proceedings were properly initiated, the Commissioner formed a valid opinion based on tangible evidence of tax fraud, and procedural safeguards were followed. The provisional attachment was directed to be lifted after the final order under Section 74, with the petitioner retaining appellate remedies under Section 107.
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2025 (6) TMI 339 The SC examined a GST detention case involving goods and conveyance seizure under Section 129. The Court upheld the detention order's validity while directing conditional release upon depositing 25% of goods value (Rs.2,56,965), furnishing a 75% bank guarantee (Rs.7,70,895), and executing a personal bond. The ruling balanced revenue protection with business continuity, establishing that detention is a preventive measure subject to judicial discretion and equitable remedies.
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2025 (6) TMI 338 HC set aside GST assessment order due to absence of Document Identification Number (DIN). Following SC and HC precedents, the court found the order invalid. The respondent was granted liberty to conduct a fresh assessment with proper notice and DIN, with the limitation period appropriately adjusted. No costs were awarded.
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2025 (6) TMI 337 J&K HC allowed GST registration restoration petition, directing petitioner to approach Competent Authority within 7 days. Upon completing formalities, registration will be immediately restored. Petitioner must file returns and pay taxes, penalties, and interest within 7 days or risk registration suspension. Case disposed based on prior similar court judgments.
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2025 (6) TMI 336 HC granted petitioner permission to withdraw the petition seeking to file an appeal before the GST Tribunal. The court disposed of the petition as "not pressed" and provided liberty to the petitioner to file an appeal under the Gujarat GST Act, 2017 once the GST Tribunal is constituted.
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2025 (6) TMI 335 The HC allowed the appellant's petition for withdrawal of the case, granting liberty to apply under the GST Amnesty Scheme. The respondents did not contest the request, and the court dismissed the petition accordingly, enabling the appellant to pursue further relief under the specified scheme.
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2025 (6) TMI 334 The HC allowed a writ petition challenging GST registration cancellation. Relying on prior precedent, the court directed reconsideration of the petitioner's revocation application upon payment of all dues, emphasizing revenue interests. The order provides relief by permitting procedural rectification and tax compliance.
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Income Tax
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2025 (6) TMI 328 The SC invalidated search warrants under Income Tax Act Section 132, finding no legitimate "reason to believe" for search operations. The Court quashed the authorization, holding that post-search information cannot validate an illegal search. Petitioners were not liable for capital gains tax prior to retrospective amendment, and the search was deemed arbitrary. The Court emphasized strict judicial scrutiny of invasive search powers, protecting citizens' privacy rights against unwarranted tax investigations.
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2025 (6) TMI 327 SC analyzed the reopening of tax assessment for AY 2013-14, focusing on three key legal issues: limitation period, income threshold, and validity of notice. The Court held that the notice was time-barred under Section 149(1)(a), as the alleged escaped income of Rs. 42,97,299/- was below the Rs. 50 Lacs threshold. The AO's allegations of sham transactions were not substantiated by sufficient material. Consequently, the SC quashed the impugned notice and subsequent assessment order, emphasizing strict compliance with statutory limitation and threshold requirements.
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2025 (6) TMI 326 TRIBUNAL DECISION ON INCOME TAX APPEALThe SC/Tribunal allowed the assessee's appeal, rejecting the tax authority's addition of Long Term Capital Gain (LTCG) as unexplained cash credit under Section 68. The Tribunal found no evidence of transaction manipulation, noting compliance with procedural requirements like banking channel payments, STT payment, and shares held over one year. The court set aside the addition, upheld the Section 10(38) exemption, and quashed penalty proceedings due to lack of concealment evidence.
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2025 (6) TMI 325 The HC/Tribunal addressed multiple tax assessment issues involving reopening of assessment, rejection of books of accounts, and income estimation. The court validated the reopening under section 148, upheld rejection of books under section 145(3), and partially allowed income addition by remanding for verification. The appeals were partly allowed, directing the AO to provide hearing opportunities and verify VAT-reported turnover before finalizing the assessment.
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2025 (6) TMI 324 AT analyzed three key tax issues involving land rights and insurance policy proceeds. The tribunal held that Rs. 90,00,000/- received for land rights relinquishment was income from other sources, not capital gains, due to lack of registered ownership documents. The Rs. 4,97,543/- insurance policy surrender amount was accepted as explained income after documentary evidence was provided. The appeal was partly allowed, with additions under sections 56(2)(vii)(b) and 68 partially upheld or deleted.
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2025 (6) TMI 323 The Tribunal ruled that a Co-operative Housing Society is entitled to claim deduction under Section 80P(2)(d) of the Income Tax Act on interest income from co-operative bank fixed deposits. The key finding was that the co-operative banks in question were not licensed banking companies under the Banking Regulation Act. The Tribunal deleted the disallowance of Rs. 2,27,780/- and interpreted Section 80P liberally to support the co-operative movement's objectives.
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2025 (6) TMI 322 The HC examined the levy of late filing fees under section 234E of the Income Tax Act for delayed quarterly TDS returns. Despite filing returns beyond prescribed dates, the court found reasonable cause due to the director's ill-health. The HC set aside the late fee, ruling that timely TDS payment and filing before the final quarter's deadline mitigated potential revenue prejudice, thus exempting the company from penalties.
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2025 (6) TMI 321 The SC/ITAT upheld the addition of Rs. 14,84,52,240 as unexplained share capital under section 68 of the Income Tax Act. The appellant-company failed to provide evidence proving the source of share capital from 413 persons, despite multiple notices. Given the ongoing liquidation proceedings and absence of representation, the Tribunal disposed of the appeal ex-parte, affirming the Assessing Officer's original order.
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2025 (6) TMI 320 Tribunal ruled in favor of assessee's short-term capital gains from penny stock share transactions. Despite Revenue's attempts to treat sale consideration as unexplained income under section 68, the Tribunal found transactions genuine, as they were conducted through recognized stock exchanges, registered brokers, and banking channels. No evidence of manipulation was established, thus the impugned addition was deleted and the appeal allowed.
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2025 (6) TMI 319 Tribunal ruled on tax reassessment proceedings involving unexplained cash deposits under Section 68 of Income Tax Act. The appeal was allowed, with Rs. 88,91,412/- addition deleted. Key reasoning was that assessee filed under Section 44AD, did not maintain formal books of account, and bank passbooks do not qualify as accounting records. While deposits lacked complete documentary evidence, the Tribunal found the Section 68 invocation legally untenable due to procedural deficiencies.
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2025 (6) TMI 318 ITAT Cochin partially allowed an NRI assessee's appeal challenging income tax assessment. The Tribunal condoned the 280-day delayed appeal due to medical emergencies, reduced disallowed construction costs from Rs. 20 lakh to Rs. 10 lakh, and deleted Rs. 3,16,124 improvement cost addition. The decision emphasized serving justice by considering the assessee's non-resident status.
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2025 (6) TMI 317 The SC examined a tax reassessment case involving unexplained investment in immovable property. The Tribunal found no investment was made by the assessee, who was a joint property owner. Her husband had fully funded the property purchase and claimed tax exemption in his income return. The SC deleted the Rs. 70,46,028/- addition, ruling that co-ownership does not automatically imply unexplained investment when the source of funds is clearly established.
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2025 (6) TMI 316 HC upheld PCIT's revisionary order under section 263 of Income Tax Act, finding the original assessment order erroneous. The AO failed to conduct necessary inquiries regarding long-term capital gains exemption, suspicious transactions, and credible investigation reports. The Court directed a fresh assessment with proper verification, emphasizing the AO's duty to investigate thoroughly and not accept documents at face value.
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2025 (6) TMI 315 The IT Tribunal ruled in favor of the assessee, invalidating an order under section 154 of the Income Tax Act. The Tribunal found that the Assessing Officer improperly added Rs. 5,30,000 to the assessee's income without providing a hearing opportunity and without demonstrating a clear mistake. The order was set aside, with the Tribunal concluding that the mutual fund investment was actually made by the assessee's wife and not a rectifiable error warranting additional taxation.
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2025 (6) TMI 314 ITAT resolved two key tax issues for the assessee involving property sale and conversion charges:On Section 43CA valuation, the Tribunal held that stamp duty value on agreement date should apply when payments were made via banking channels. Total sale consideration, including interest income, was within 10% of DVO valuation, thus no addition was warranted. For conversion charges, the ITAT ruled that interest expenses after asset commissioning qualify as revenue expenditure under Section 36(1)(iii), rejecting revenue's capital expenditure argument. The assessee's appeals were allowed, and revenue's appeals were dismissed.
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2025 (6) TMI 313 SC invalidated search assessment proceedings due to mechanical approval under Section 153D of Income Tax Act. The Addl. CIT granted approval for 69 cases in a single day without demonstrating independent examination, rendering the approval invalid. Consequently, the Court quashed the assessment orders, emphasizing that statutory approval requires genuine application of mind, not a perfunctory administrative act.
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2025 (6) TMI 312 The SC examined the validity of LTCG additions under Section 69A for share transactions involving a penny stock company. The Court found the AO's reopening of assessments unjustified, as the allegations of price manipulation were based on suspicion without concrete evidence. The assessee's transactions were deemed genuine, supported by proper documentation like Demat statements and contract notes. The Tribunal set aside the additions, emphasizing the need for independent inquiry and conclusive proof before disallowing capital gains.
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2025 (6) TMI 311 The SC/Tribunal examined tax exemption claims and procedural correctness in an income tax assessment. The key ruling remanded the case to the Assessing Officer for detailed verification of allowance claims, finding that employer-generated data mismatches should not automatically result in disallowance. The Tribunal directed a fresh assessment, emphasizing procedural fairness and the need for comprehensive factual inquiry before making adverse tax determinations.
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2025 (6) TMI 310 ITAT Mumbai allowed Assessee's appeal against ex-parte order for A.Y. 2019-20, challenging TDS default under sections 194A and 194. Despite previous appeal dismissal, the Tribunal set aside the order and remanded the case to the Commissioner, providing a final opportunity for hearing and emphasizing substantial justice principles.
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2025 (6) TMI 309 The AT found the cancellation of provisional registration for the charitable trust invalid due to violation of natural justice principles. The Commissioner's ex-parte order cancelling registration under sections 12AB and 80G was quashed. The Tribunal directed restoration of the matter to the CIT(E) for fresh adjudication, providing the trust an opportunity to submit documents and be heard, without expressing an opinion on the merits of the case.
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Customs
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2025 (6) TMI 280 HC granted bail in NDPS case due to illegal detention. The applicant was intercepted on 21.05.2023 and held without judicial oversight until formal arrest on 26.05.2023. Court found violation of Articles 21 and 22, rendering detention illegal. Despite recovery of commercial quantity of narcotics, bail was granted with stringent conditions, emphasizing constitutional protections against unlawful custody.
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2025 (6) TMI 279 The SC directed the Specified Officer of the Free Trade Warehouse Zone to allow amendment of In-bond Bills of Entry for re-export, subject to depositing a redemption fine of Rs. 1.10 Crores as security. The court balanced procedural relief with preserving substantive rights, mandating Customs authorities issue a NOC within one week without prejudicing ongoing appeals and arbitration proceedings.
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2025 (6) TMI 278 The HC allowed the petition challenging a partial customs refund order. The court found multiple legal and procedural irregularities, including improper application of administrative instructions, non-compliance with judicial precedents, and denial of natural justice. The order was set aside, directing the respondent to recalculate the refund based on market value, provide opportunity for hearing, and issue a reasoned order considering all contentions.
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2025 (6) TMI 277 The HC examined a customs case involving seized gold and electronic items. The court found procedural irregularities in the original confiscation order, specifically the lack of a Show Cause Notice. Consequently, the court ordered release of gold items without storage charges, permitted redemption of iPhones upon payment of fees, and emphasized the importance of natural justice principles in customs proceedings.
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2025 (6) TMI 276 Tribunal addressed four key legal issues regarding customs duties, export benefits, and evidence admissibility. The appeal was allowed, finding the customs authority lacked jurisdiction to recover ineligible benefits without DGFT cancellation. The Tribunal invalidated penalties and confiscation due to inadmissible evidence, specifically the freight forwarder's statement not properly examined under statutory procedures. The exporter was not held responsible for goods diversion post-export, emphasizing procedural and evidentiary requirements in customs proceedings.
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2025 (6) TMI 275 The Tribunal addressed jurisdictional and evidentiary issues in a customs case involving export incentive schemes. It ruled that customs authorities cannot independently challenge export scrips without prior DGFT cancellation proceedings. The court invalidated the original order due to procedural defects, inadmissible third-party statements, and lack of evidence proving fraudulent intent. The appeals were allowed, setting aside penalties and confiscation orders against the exporter, emphasizing the need for proper administrative processes and substantive proof in customs enforcement.
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2025 (6) TMI 274 Tribunal addressed penalties under Customs Act sections 114(iii) and 114AA against two directors of an exporting company. The SC ruled that penalties could not be sustained due to: (i) quashed confiscation order nullifying section 114(iii) penalty, and (ii) inadmissible statements under section 108 recorded without procedural safeguards of section 138B. The appeals were allowed, setting aside penalty orders for lack of substantive and procedural compliance.
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2025 (6) TMI 273 The SC upheld the confiscation of 1848 grams of gold smuggled via aircraft. The court found the appellant liable for abetment of smuggling based on carrier statements, call records, and financial evidence. Despite carriers' retraction, the court determined sufficient corroborative proof existed. Penalties were imposed on the appellant and carriers under Sections 112(a) and 112(b) of the Customs Act, 1962. The appeal was dismissed, validating the original customs authorities' order.
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2025 (6) TMI 272 The HC examined a customs duty case involving imported rubber tracks claimed under a concessional notification. The court found the appellant's claim incorrect but bona fide, upheld the Section 114A penalty, set aside additional penalties under Sections 112(ii) and 114AA, and reduced the redemption fine from Rs.6 lakhs to Rs.5 lakhs. The penalty on the company's manager was also set aside due to lack of personal involvement evidence.
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2025 (6) TMI 271 Customs Tribunal adjudicated a case involving undervaluation of imported servers. The SC partially allowed the appeal, reducing penalties from Rs. 10,00,000 to Rs. 5,00,000 after finding the initial undervaluation was a bona fide inter-office error. The Tribunal set aside the penalty under Section 114AA while confirming the enhanced assessable value and maintaining a reduced penalty under Section 112(ii), emphasizing proportionality in customs law enforcement.
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2025 (6) TMI 270 SC analyzed a customs seizure case involving gold, focusing on five key legal issues. The court found the Department failed to establish reasonable belief for seizure under Section 110 of Customs Act. Insufficient evidence proved foreign origin or smuggling, and procedural violations occurred by denying cross-examination of witnesses. The court set aside confiscation and penalty orders, ruling the appellants discharged their burden of proof and the Department's case lacked substantive evidence.
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2025 (6) TMI 269 Case involved seizure of gold bars under Customs Act, 1962. HC found no reasonable belief of smuggling at time of seizure. Revenue failed to provide corroborative evidence. Respondents discharged burden of proof by producing valid tax invoice and stock records. Court rejected new evidence submitted in appeal and upheld lower appellate authority's order dismissing confiscation and penalties.
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Insolvency & Bankruptcy
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2025 (6) TMI 268 The SC/NCLAT upheld a Resolution Plan that allocated NIL payment to a related party unsecured creditor. The Tribunal confirmed the Committee of Creditors' commercial wisdom in differentiating creditor treatment, finding the allocation lawful under the Insolvency and Bankruptcy Code. The court emphasized that Section 53's waterfall mechanism does not rigidly bind resolution plan distributions, and the Adjudicating Authority's role is to ensure statutory compliance, not substitute commercial decisions.
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PMLA
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2025 (6) TMI 267 The Appellate Tribunal under PMLA addressed the interplay between PMLA and IBC, focusing on the attachment of mortgaged properties by ED. The tribunal held that ED's attachment is valid, but the resolution plan under IBC can proceed. If the plan fails, the secured creditor may seek auction through the PMLA Court, depositing excess proceeds with ED. The tribunal balanced the rights of secured creditors and PMLA enforcement while preserving the criminal proceedings.
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Service Tax
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2025 (6) TMI 266 Tribunal ruled in favor of appellant in a service tax dispute, holding that reimbursements received for transport, weighment, and freight charges are not taxable. The court applied Supreme Court precedent to invalidate Rule 5 of Service Tax Rules, determining that pure agent reimbursements cannot be included in taxable service value. Brokerage income was deemed non-taxable, while drawback commission remained partially taxable.
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2025 (6) TMI 265 CETP Service Tax Case Summary:SC/Tribunal ruled that a Common Effluent Treatment Plant (CETP) operated by an industrial entity is exempt from service tax. The court determined that effluent treatment does not constitute "processing of goods" and qualifies for retrospective exemption under Section 145 of Finance Act, 2012. The Tribunal set aside the service tax demand, finding the activity an environmental service rather than a taxable business auxiliary service, thus protecting the appellant from tax liability for the period 2009-2014.
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2025 (6) TMI 264 SC ruled that the Review Order was timely issued within three months from the date of order communication, not from the order's original passing date. The department's appeal was filed within prescribed limitation period. The lower authority's dismissal of the appeal solely on procedural grounds was incorrect. The SC remanded the matter back to the Commissioner (Appeals) to adjudicate the appeal on merits, ensuring procedural fairness and proper legal interpretation of statutory time limits.
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2025 (6) TMI 263 Tribunal addressed service tax refund eligibility for iron ore fines export. Resolved key issues regarding documentation requirements for input services. Allowed refund claims by adopting a broad correlation approach, emphasizing practical difficulties in bulk cargo exports. Chartered Accountant certification and transport documents deemed sufficient to establish service tax refund eligibility, overturning strict documentary compliance demands. Appeals allowed with consequential relief to appellants.
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Central Excise
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2025 (6) TMI 262 CESTAT Case Summary: Excise Duty on BagasseThe Tribunal ruled against the Revenue's demand for Excise Duty on Bagasse, affirming its exemption status. Relying on HC and SC precedents, the tribunal held that Bagasse, a by-product classified under CET entry 23032000 with nil duty, does not attract reversal of Cenvat credit under Rule 6(3). The impugned orders were set aside, and the appeals were allowed, rejecting the Revenue's contention of common input usage justifying duty demand.
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2025 (6) TMI 261 The HC allowed the appeal challenging excise duty demands against a manufacturer of pesticides and organic manure. The court found insufficient evidence for clandestine removal of goods, invalidated statements recorded under duress, and rejected the revenue's valuation methodology. The HC set aside the duty demand, Cenvat credit recovery, interest, and penalties, effectively restoring the Small Scale Industries exemption for the appellant.
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2025 (6) TMI 260 Tribunal ruled in favor of appellant, allowing refund of Rs. 50,00,000 with 12% interest from deposit date (03.06.2006) to refund date (02.01.2020). The HC found Commissioner (Appeals) exceeded jurisdiction by remanding matter on limitation grounds not raised in original appeal. Precedent rulings from Parle Agro and Riba Textile cases supported appellant's entitlement to interest and procedural correctness.
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2025 (6) TMI 259 The SC examined the liability of terminalling charges for LPG storage. The court held that the appellant's activities constituted service tax-liable services, not manufacturing. Central excise duty was not leviable on terminalling charges. The demand was barred by limitation, as no material facts were suppressed. Consequently, the SC set aside the duty demand and quashed the penalty, affirming that mere storage and handling of finished products does not attract central excise duty.
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