Tax
'Reimbursements' Fixed As Percentage Of Sales Are Contractual, Liable For TDS: Calcutta High Court
The Calcutta High Court has upheld the disallowance of expenses claimed by Deys Medical Private Limited (appellant) on account of alleged reimbursements paid to its group companies, holding that payments calculated as a percentage of sales constituted contractual consideration liable for tax deduction at source (TDS).The appeal arose from an order of the Income Tax Appellate Tribunal, Kolkata, which had partially affirmed the Assessing Officer's disallowance of over Rs. 3.35 crore under the...
Supreme Court Dismisses Customs Review Plea Against IndiGo, SpiceJet In IGST Exemption Case On Reimported Aircraft Parts
The Supreme Court has recently dismissed review petitions filed by the Customs Department against its earlier judgment affirming relief granted to InterGlobe Aviation Limited, which operates IndiGo, in a dispute concerning the levy of Integrated Goods and Services Tax (IGST) on re-import of aircraft and parts sent abroad for repairs.A bench of Justice B.V. Nagarathna and Justice K.V. Viswanathan condoned the delay but declined to interfere with its earlier decision. The court held: ...
Delhi High Court Treats 5.25% Withholding Certificate Issued To EY As Nil
The Delhi High Court has recently treated a 5.25% withholding tax certificate issued to Ernst & Young LLP (EY) under Section 195 of the Income Tax Act, 1961, as a NIL-rate certificate, holding that the tax officer acted contrary to an earlier binding order of the Court for the same assessment year.A Division Bench of Justices Dinesh Mehta and Vinod Kumar disposed of the writ petition filed by EY challenging the order of the Assistant Commissioner of Income Tax which had directed withholding...
Matching Solutions Not Taxable Under India–US DTAA: Delhi High Court Grants NIL TDS Relief To Refinitiv US
The Delhi High Court has recently set aside a 15% tax withholding certificate issued to Refinitiv US LLC, a financial market data company under Section 197 of the Income Tax Act, 1961.A Division Bench of Justices Dinesh Mehta and Vinod Kumar directed the tax authorities to issue a NIL TDS certificate in respect of income earned from its Matching Solutions services, holding that such income is not taxable in India under the India–US Double Taxation Avoidance Agreement (DTAA).The development comes...
Airline Operations Exempt Under India-UK DTAA: Delhi High Court Directs NIL TDS Certificate For British Airways
The Delhi High Court has set aside an order of the Income Tax Department issuing a 0.1% TDS certificate to British Airways under Section 197 of the Income Tax Act, 1961.A Division Bench of Justices Dinesh Mehta and Vinod Kumar directed the authorities to issue a NIL TDS certificate, holding that income from airline operations is exempt under the India–UK Double Taxation Avoidance Agreement (DTAA).The development comes in a petition moved by British Airways, a tax resident of the United Kingdom,...
Re-Export Option Lapses If Redemption Fine Paid After 120 Days: Gujarat High Court
The Gujarat High Court on 6 February, held that the 120-day timeline for payment of redemption fine under Section 125(3) of the Customs Act, 1962 is mandatory, and failure to pay within this period renders the re-export option void. A Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi dismissed the writ petition filed by Goodwill Industries, while directing the refund of Rs. 12 lakh redemption fine and retaining the Rs. 8 lakh penalty imposed by the Adjudicating Authority. The...
GST Registration Cannot Be Cancelled Based On Investigative Dictation Alone: Gauhati High Court
The Gauhati High Court on 17 February, held that cancellation of GST registration cannot be sustained when it is based on vague allegations and issued at the behest of the investigating wing, without independent application of mind by the proper officer. A Bench of Justice Arun Dev Choudhury allowed a writ petition was filed by Ankit Choudhary, sole proprietor of Ankit Enterprises, challenging a show cause notice, the subsequent order cancelling his GST registration, and the order rejecting...
Punjab & Haryana High Court Bars Higher Bank Guarantee Demand For Delay In Releasing Seized Jewellery
The Punjab and Haryana High Court on 18 February, directed the Income Tax Department to immediately release jewellery seized from the Sanjeet Singh and other petitioners, holding that the department cannot demand a higher bank guarantee due to an increase in gold prices when the delay in release was solely attributable to administrative lapses of the authorities. A Division Bench of Justice Deepak Sibal and Justice Lapita Banerji allowed a writ petition which sought the release of jewellery...
Change Of Opinion Not Enough To Reopen Assessment: Calcutta High Court
The Calcutta High Court on 20 February held that revisional powers under Section 263 of the Income Tax Act, 1961 cannot be invoked merely because the Principal Commissioner holds a different opinion on the nature of income. A Division Bench of Justice Rajarshi Bharadwaj and Justice Uday Kumar, dismissed an appeal filed by the Principal Commissioner of Income Tax, Kolkata, and upheld the order of the Income Tax Appellate Tribunal setting aside revisionary proceedings against Russel Credit...
CBIC's 2024 Policy Barring Govt Appeals Below ₹2 Crore Covers Pending Cases, Not Merely Future Filings: Supreme Court
Holding that the Centre's 2024 litigation policy applies even to pending appeals, the Supreme Court on February 5, 2026 dismissed appeals filed by the Commissioner of Commercial Tax against Vikaram Cement, ruling that the Rs. 25.47 lakh tax demand involved fell well below the Rs. 2 crore monetary limit fixed under the June 26, 2024 circular issued by the Central Board of Indirect Taxes and Customs. Rejecting the State's contention that the circular would not apply to appeals already filed under...
No Service Tax Payable On Overseas Film Shooting Expenses Under Reverse Charge: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has recently allowed the appeal filed by Shree Venkatesh Films Pvt. Ltd., holding that no service tax is payable under the reverse charge mechanism on expenses incurred in foreign currency for the shooting of films and allied activities carried outside India.The bench, consisting of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, observed that the department had raised the demand merely...
LiveLawBiz Indirect Tax Weekly Round-Up: February 16 - February 22, 2026
SUPREME COURTSupreme Court Issues Notice In Challenge To CESTAT Ruling That Customs Cannot Alter FOB Value Of GoodsCase Title : Commissioner of Customs (Appeals) vs Jayanthah Trading Company Case Number : CIVIL APPEAL Diary No(s). 2168/2026The Supreme Court recently issued notice on an appeal filed by the Commissioner of Customs (Appeals) against a ruling of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, which held that Customs officers cannot alter the Free on...