Income Tax Appeal Cannot Be Rejected Solely For Assessee's Non-Appearance Before CIT(A): Kerala High Court

The Kerala High Court has held that an Income Tax Appeal cannot be rejected solely for the assessee's non-appearance before the Commissioner of Income Tax (Appeals). Justice Ziyad Rahman A.A. stated that none of the provisions in Section 250 of the Income Tax Act permit the appellate authority to reject the appeal on the ground of non-appearance of the assessee/appellant, without going into the merits of the case. In this case, the assessee/petitioner had filed an appeal,...

Interest On Delayed Agricultural Income Tax Not Deductible U/S 37 Income Tax Act: Kerala High Court

The Kerala High Court has held that interest on delayed agricultural income tax is not deductible under Section 37 Income Tax Act. Section 37 of the Income Tax Act provides deductions on expenses which are directly related to a business's operations. Justices A. Muhamed Mustaque and Harisankar V. Menon examined whether the interest paid on account of the delayed payment of Agricultural Income Tax is eligible for deduction under Section 37 of the Income Tax Act, 1961. The ...

Income From Public Religious/Charitable Trusts Not Eligible For Exemption U/S 10(23BBA) Income Tax Act: Kerala High Court

The Kerala High Court has held that income derived from public religious/charitable trusts is not eligible for exemption under Section 10(23BBA) of the Income Tax Act. Section 10(23BBA) of the Income Tax Act, 1961, provides a complete exemption from income tax for the income of a body or authority that has been established, constituted, or appointed under any Central, State, or Provincial Act specifically for the administration of public religious or charitable trusts or endowments. ...

Classification Of Goods Is Factual Issue, Not For Writ Court To Decide: Kerala High Court Upholds Seizure & Provisional Release Conditions

The Kerala High Court has held that the classification of 'Nata de Coco' is a factual matter that must be decided by the adjudicating authority through statutory proceedings and not by the writ court. Justice Ziyad Rahman A.A. stated that since it is a statutory proceeding contemplated under Section 124 of the Act, which should be followed from the proceedings under Section 110 of the Act, the question as to be sustainability of the classification cannot be considered by this Court in...

Lower Conversion Factor Applicable For Timber Imports Before 11.5.2012: Kerala High Court Allows Refund Of Additional Customs Duty

The Kerala High Court has held that a lower conversion factor is applicable for timber imports made before 11.05.2012. Justice Ziyad Rahman A.A. examined the issue regarding the refund of additional customs duty paid for the import of timber from Myanmar and other foreign countries. The centre of controversy was the conversion factor to be applied for converting the Hoppus Ton, which is the traditional unit of volume applied in Myanmar for the measurement of logs, to the metric...

Kerala Building Tax Act | Increased Plinth Area Due To Additional Construction Justifies Building Tax Reassessment: High Court

The Kerala High Court held that once the plinth area of a building increases due to additional construction, a fresh building tax assessment must be carried out under the Kerala Building Tax Act. Justice Ziyad Rahman A.A., after examining the documents produced by the assessee, stated that the assessee had carried out additional constructions after the initial construction, which was subjected to assessment under the Kerala Building Tax Act. In this case, the assessee/petitioners...

No 'Perversity': Kerala High Court Upholds Arbitral Award Dissolving 'Zephyr' Coaching Institute

The Kerala High Court on 28th November, 2025 dismissed an appeal sought to challenge an arbitral award that dissolved a coaching partnership firm, ruling that courts can neither re-examine expert valuations nor can the parties introduce fresh evidence at the appellate stage under section 34 and 37 of the Arbitration and Conciliation Act, 1996. A Division Bench of Chief Justice Nitin Jamdar and Justice Syam Kumar V.M. held that “no case whatsoever under Section 34” was established to...

SVLDRS Benefits Cannot Be Denied If Payment Falls Within SC's COVID-19 Extended Limitation Period: Kerala High Court

The Kerala High Court held that payments made under Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) are valid if they fall within the extended limitation period granted by the Supreme Court during the COVID-19 pandemic. Justice Ziyad Rahman A.A. found that SVLDRS proceedings are quasi-judicial in nature, and hence covered under Supreme Court's suo moto extension orders. In this case, the assessee is aggrieved by the revenue recovery proceedings initiated against him...

Ayurvedic Treatment Centre Classified As 'Hospital', Not 'Hotel', Luxury Tax Cannot Be Imposed: Kerala High Court

The Kerala High Court has held that an Ayurvedic Treatment centre is to be classified as a 'hospital' and not 'hotel', and therefore, luxury tax cannot be imposed. Justices A. Muhamed Mustaque and Harisankar V. Menon stated that the Ayurvedic Treatment Centre admits patients undergoing prescribed Ayurvedic treatment for a minimum duration, without offering hotel amenities, it qualifies as a hospital and luxury tax is not liable under the Luxury Tax Act. In this case, the...

CGST | Dept Must First Proceed Against Supplier Before Issuing Show Cause To Recipient For ITC Mismatch: Kerala High Court

The Kerala High Court has held that the department cannot proceed against a recipient for ITC mismatch without first initiating proceedings against the supplier. Section 42(3) of the Central Goods and Services Tax (CGST) Act, 2017, deals with the communication of discrepancies in Input Tax Credit (ITC) claims between the recipient and the supplier. Justice Ziyad Rahman A.A. observed that no proceedings had been initiated against the suppliers before the issuance of notice under...

Revisional Power U/S 263 Income Tax Act Cannot Be Upheld By Tribunal On Grounds Not Taken By Commissioner: Kerala High Court

The Kerala High Court has held that a tribunal cannot travel beyond the grounds not cited by the commissioner while exercising jurisdiction under Section 263 Income Tax Act.Justices A. Muhamed Mustaque and Harisankar V. Menon stated that only one reason was highlighted by the Commissioner for exercising the power under Section 263 of the Act and the Tribunal having found the said reason as not a valid one, the Tribunal should have stopped there rather than making further observations as regards...

Kerala High Court Grants Interim Protection To 'Bokashi Bucket' Mark, Bars Sale Of Identical Compost Bins

The Kerala High Court has put a temporary restraint on a Kozhikode-based business from making or selling compost bins using the name “Bokashi Bucket,” after finding that the term is a registered trademark owned by Global Pharmaceuticals. A single bench of Justice S Manu passed the order on November 18, 2025, overturning a Additional District Court order refusing to grant protection to the company.Global Pharma told the court that “Bokashi Bucket” is both its registered trademark and part of a...