GTA Service Tax Cannot Be Demanded From Transporter If Recipient Paid Under RCM: CESTAT Kolkata

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal has held that service tax on Goods Transport Agency services was payable by recipient companies under the reverse charge mechanism where they paid the freight.The court held that demanding the same tax from the transporter again would amount to double taxation where the recipients had discharged the liability.“Thus, we find that as per notification No. 30/2012-ST, dated 20.06.2012, in respect of transportation of goods...

Contract Manufacture Of Alcoholic Liquor For Another Entity Attracts Service Tax: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal, New Delhi has held that manufacture of alcoholic liquor for human consumption undertaken by one entity on behalf of another is liable to service tax after alcoholic liquor was excluded from the negative-list entry with effect from June 1, 2015. Relying on the Delhi High Court's ruling in Carlsberg India Pvt. Ltd. v. Union of India, the tribunal held, "We find that section 66D of Finance Act, 1994 deals with the negative list of the...

Educational Institutions Must Prove Solely Charitable Use For Property Tax Exemption: Bombay High Court

The Bombay High Court on 29 September held that educational institutions cannot claim property tax exemption merely because they are run by a charitable trust or enjoy minority institution status, and must establish that their premises are used solely for charitable purposes to claim exemption for each financial year. A Division Bench of Justices Bharati Dangre and Manjusha Deshpande dismissed a petition filed by Jai Hind Sindhu Education Trust challenging property tax demands raised by the...

CESTAT Chennai Says Suzuki Hayabusa Imported Via Two Ports Form One Vehicle, Upholds ₹10.36 Lakh Duty

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 6 October held that importing a motorcycle in separate parts through different ports cannot defeat the customs duty and restrictions applicable to a complete vehicle when the evidence establishes that the consignments form a single motorcycle. A Bench comprising Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar partially allowed an appeal filed by R. Dewakar, proprietor of Sri Vinayaka...

Director Can't Challenge Income-Tax Search Against Company In Individual Capacity: Karnataka High Court

On 6 October, the Karnataka High Court held that a company director cannot challenge an income-tax search and seizure conducted against the company in his individual capacity when the search is not directed against him personally. Justice B M Shyam Prasad found force in the Revenue's contention that Obedulla A, a director of Attica Gold Private Limited, could not challenge the search against the company in his individual capacity. The Bench observed: “If any person could have a grievance with...

Calcutta High Court Rejects Revenue's Bid To Reopen Facts In ₹9.32 Crore Unlisted Share Sale Addition

The Calcutta High Court on 5 October dismissed the Revenue's appeal against deletion of a Rs. 9.32 crore addition relating to sale proceeds from unlisted equity shares of Superdeal Resources Private Limited, finding that the Tribunal's conclusions were based on the evidence on record. A Division Bench comprising Justices Rajarshi Bharadwaj and Sudip Deb held that the Revenue cannot seek a fresh examination of factual findings in an appeal under Section 260A of the Income Tax Act in the absence...

Kerala High Court Upholds Rejection Of South Indian Bank's ₹52 Cr. Additional Bad-Debt Claim To ITAT

The Kerala High Court on 28 September held that the Income Tax Appellate Tribunal (ITAT) cannot refuse to examine a bad-debt disallowance on merits merely because a separate additional claim was raised before the first appellate authority. A Division Bench comprising Justices Devan Ramachandran and Basant Balaji remanded South Indian Bank's Rs. 14.10 crore bad-debt disallowance to the ITAT for fresh consideration, while upholding the rejection of the Bank's separate Rs. 52 crore additional...

Customs Dispute Over Car, Cash Confiscation Go To CESTAT, Not Revision Authority: Madras High Court

The Madras High Court on 1 October held that a customs dispute concerning confiscation of a vehicle and Indian currency seized in connection with alleged gold smuggling has to be challenged before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and not through a revision application before the Central Government. Justice C. Saravanan granted S. Michael Kennadi liberty to approach the CESTAT against the First Appellate Authority's order, while declining to interfere with the...

Electricity Subsidy Linked To Power Charges Is Revenue Receipt: Supreme Court

The Supreme Court has held that the “purpose test” is the governing test for deciding whether a subsidy is a capital or revenue receipt, and that the purpose must be determined from the scheme as a whole rather than from one broad policy objective.“The “purpose test” cannot be applied by isolating one general object clause while disregarding the operative provisions of the scheme. The scheme must be read as a whole, and when so read, the general object of industrial development is implemented...

Calcutta High Court Upholds ITAT Order Deleting ₹11.35 Crore Addition For Alleged Cash Loans

On 5 October, the Calcutta High Court dismissed the Revenue's appeal against the Income Tax Appellate Tribunal's (ITAT) September 2025 order deleting a Rs. 11.35 crore addition made against businessman Suresh Kumar Banthia for Assessment Year 2020-21. A Division Bench comprising Justices Rajarshi Bharadwaj and Sudip Deb held that although the strict rules of evidence do not apply to income-tax proceedings, tax authorities and tribunals are guided by the general principles underlying the law of...

Revenue Cannot Reopen Assessment Over Additions Already Pending In Tax Appeals: Gujarat High Court

The Gujarat High Court on 16 September held that the Revenue cannot reopen an assessment under Section 147 of the Income Tax Act and pursue parallel proceedings where the same additions have already been examined by the CIT(A) on merits and remain subject matter of tax appeals before the High Court. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati quashed reassessment proceedings initiated against Venus Township (India) LLP, finding that the reassessment sought to...

Director Of Public Company Cannot Be Made Liable For Tax Dues Due To Substantial Shareholding: Gujarat High Court

The Gujarat High Court has held that a public limited company cannot be treated as a private company merely because one of its directors holds a substantial number of shares. Thus, a director cannot be held personally liable for the company's unpaid tax merely because the director holds substantial shares in the company.The case concerned Section 179 of the Income Tax Act. The provision allows the Income Tax Department, in certain circumstances, to recover a private company's unpaid tax from its...