LiveLawBiz Direct Tax Weekly Round-Up: February 16 - February 22, 2026

HIGH COURTSDelhi HCDelhi High Court Affirms ITAT View That Excise Duty Refund Under Kutch Incentive Scheme Is Capital ReceiptCase Title : Pr. Commissioner Of Income Tax, Central-3, Delhi v. Jindal Saw Ltd. Case Number : ITA 689/2025 CITATION : 2026 LLBiz HC (DEL) 155The Delhi High Court has upheld an order of the Income Tax Appellate Tribunal (ITAT) holding that excise duty refund received by Jindal SAW Ltd. under the Kutch district incentive scheme is a capital receipt and not taxable as...

ITAT Chennai Deletes Penalty for Under-Reporting Of Income After Finding 99% Tax Covered by TDS

The Chennai Bench of the Income Tax Appellate Tribunal has recently deleted a Rs. 2.57 lakh penalty imposed under Section 270A of the Income Tax Act (penalty for under-reporting of income) on an individual salaried taxpayer. The tribunal noted that TDS (tax deducted at source) on the assessee's salary had almost covered 99% of the total tax demand and held that, “When tax liability is covered by TDS, there is no manafide intention on the part of the assessee to conceal any particulars of...

Subway Franchise Raised Base Prices On GST Cut Day, GSTAT Upholds ₹13.32 Lakh Profiteering Against Pune Outlet

Holding that the franchisee increased base prices on the very date the GST rate on restaurant services was reduced from 18 per cent to 5 per cent, the GST Appellate Tribunal at Delhi has upheld findings that a Pune-based Subway outlet at Amanora Mall profiteered ₹13,32,322 by neutralising the tax benefit meant for consumers. “The Respondent's action of increasing the base price on the very same date on which the notification reducing rate of tax came into force indicates that Respondent has...

Gujarat High Court Quashes ₹98 Lakh GST SCN, Says Construction ITC Bar Not Applicable To Leasehold Rights Transfer

The Gujarat High Court has held that Section 17(5)(d) of the Central Goods and Services Tax Act, 2017, which blocks input tax credit on goods or services used for construction of immovable property on one's own account, did not apply in a case where the taxpayer had only transferred leasehold rights and had undertaken no construction activity. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi quashed a show cause notice issued under Section 74(1) of the Act and directed the...

Andhra Pradesh High Court Orders Formation Of Apex Committee To Recover Agricultural Land Conversion Tax Dues

The Andhra Pradesh High Court has recently directed the State's Chief Secretary to constitute an Apex Committee to identify defaulters and recover unpaid conversion tax dues under the Andhra Pradesh Agricultural Land (Conversion for Non-Agricultural Purposes) Act, 2006. A Division Bench of Chief Justice Dhiraj Singh Thakur and Justice Challa Gunaranjan ordered, “… we feel that steps have to be taken for ensuring recovery of the outstanding tax. We, therefore, direct the Chief Secretary of...

Supreme Court Issues Notice In Challenge To CESTAT Ruling That Customs Cannot Alter FOB Value Of Goods

The 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 Board (FOB) value agreed upon between a buyer and seller. A Bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe directed that the matter be heard along with a connected appeal. The tribunal had framed the issue succinctly:...

Waiver Under Maharashtra Settlement Of Arrears Of Tax Act Available Only On Disputed Tax: Bombay High Court

The Bombay High Court at Aurangabad has recently held that under the First Phase of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2019, one hundred percent of undisputed tax must be paid and no waiver is available on such amount, dismissing a writ petition filed by a sugar manufacturing co-operative. A Division Bench of Justice Vibha Kankanwadi and Justice Hiten S. Venegavkar held, “for undisputed tax, amount to be paid is 100% of the amount in column B i.e....

ITAT Mumbai Upholds Fresh Examination of Ambuja Cements' AY 2019–20 Assessment For Lack Of Inquiry

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed Ambuja Cements Limited's appeal against a revision order that had set aside its completed tax assessment for fresh verification, holding that the original assessment was passed “without due examination and verification.” The company had challenged the Principal Commissioner of Income Tax's order under Section 263 revising and setting aside its Assessment Year 2019–20 assessment on the ground that the Assessing Officer...

ITAT Delhi Quashes Tax Revision Against Senior Advocate Mukul Rohatgi For AY 2020–21

The Delhi Bench of the Income Tax Appellate Tribunal on Monday quashed a revision order passed against Senior Advocate Mukul Rohatgi for Assessment Year 2020–21, holding that the Income Tax Department lacked material to exercise its revision powers for an assessment of Rs.133.46 crore. Section 263 allows a senior tax officer to revise a completed assessment if it is found to be erroneous and prejudicial to the interests of the Revenue. In Rohatgi's case, the Tribunal held that these...

GST Authorities Cannot Enforce IGST Demand Against SREI Finance During Moratorium: Delhi High Court

The Delhi High Court on 12 February held that Goods and Services Tax (GST) authorities cannot pursue coercive recovery of tax dues against a corporate debtor during the moratorium under the Insolvency and Bankruptcy Code (IBC). A Bench of Justice Nitin Wasudeo Sambre and Justice Ajay Digpaul, set aside a demand of Rs. 67.5 lakh of Integrated Goods and Services Tax (IGST), including a penalty of 100% of the tax demand, raised on SREI Equipment Finance Limited (SEFL), observing that the GST...

CESTAT Kolkata Affirms CBEC Circular, Reiterates Sub-Contractor Independently Liable For Service Tax

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 6 February clarified that after the issuance of CBEC Master Circular No. 96/7/2007-ST dated 23 August 2007, a sub-contractor is independently liable to pay Service Tax on the services rendered by it, even where the main contractor has already discharged the Service Tax liability on the same project. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, was examining the legality of...

Only Commissioner Can Decide If Delay In Income Tax Refund Is Attributable to Taxpayer, Not AO: Delhi High Court

The Delhi High Court has recently held that the question whether delay in processing TDS refund is attributable to the assessee/taxpayer, for the purpose of denying interest under Section 244A(2) of the Income Tax Act, can be decided only by the Principal Commissioner/Commissioner and not by the Assessing Officer (AO).A Division Bench of Justices Dinesh Mehta and Vinod Kumar observed,“Looking at the language used in sub-section (2) of Section 244A of the Act of 1961, we are of the firm opinion...