AD-I Banks Can Grant Extension For Export Drawback Claims; RBI's Direct Approval Not Mandatory: Kerala High Court

The Kerala High Court stated that AD-I banks authorized by RBI can grant extension for export drawback claims, RBI's direct approval not mandatory. Justice Ziyad Rahman A.A. stated that the Master Circular published in this regard indicates that it is not necessary that extension should come from the Reserve Bank of India itself as the AD-I bank are authorized to grant such extension. In this case, the assessee/petitioner is engaged in the export of garments to various countries....

Kerala High Court Quashes Proceedings U/S 148 Of Income Tax Act Initiated Against Cancelled PAN Number

The Kerala High Court quashed Income Tax proceedings under Section 148 against co-operative society initiated on cancelled PAN. Justice Ziyad Rahman A.A. observed that the transactions pertain to the relevant assessment year were carried out based on the PAN card that was then in existence, which was later cancelled. By the time the proceedings of assessment were initiated by issuing a notice under Section 148, the assessee was issued with a new PAN card, wherein, the status of the...

Cadbury's 'Perk' Products Are 'Wafer Biscuits', Not Chocolates, Qualifies For Concessional Duty: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that 'perk' products are 'wafer biscuits', not chocolates and are entitled to the benefit of the exemption notification. Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) were addressing the issue of whether Perk, ULTA Perk, Perk Poppers and Wafer Uncoated Reject manufactured by the assessee are classifiable under Excise Tariff Item 1905 32 11 of the Central Excise...

Occupancy Certificate Not Final For Plinth Area Determination: Kerala High Court Upholds Luxury Tax U/S 5A Of Kerala Building Tax Act

The Kerala High Court stated that occupancy certificate not final for plinth area determination under Section 6 of the Kerala Building Tax Act. Justice Ziyad Rahman A.A. was addressing the issue where challenge raised by the assessee was against the assessment of building tax and luxury tax, by mainly placing reliance upon Occupancy Certificate. Section 5A Of Kerala Building Tax Act imposes luxury tax on residential buildings that exceed a certain plinth area threshold. Section ...

Proceedings U/S 148A Of Income Tax Act Unsustainable If Escaped Income Is Below ₹50 Lakhs & Notice Is Issued After 3 Years: Kerala High Court

The Kerala High Court held that proceedings under Section 148A of Income Tax Act not sustainable if escaped income is below Rs. 50 lakhs and notice issued after 3-years. Justice Ziyad Rahman A.A. stated that “when the order of the assessing authority is found to be without jurisdiction and hit by the period of limitation, it is not necessary to relegate the party concerned to undergo the rigor of the statutory proceedings”. Section 148A of the Income Tax Act, 1961 empowers...

Tax Monthly Digest: June 2025

HIGH COURTSAllahabad HCAllahabad High Court Rejects Patanjali's Plea Against ₹273.5 Crore GST PenaltyCase Title: M/s Patanjali Ayurved limited v. Union of India and OthersCase no.: WRIT-TAX NO. 1603 OF 2024The Allahabad High Court has directed continuation of proceedings under Section 122 of the Central Goods and Services Tax Act, 2017 against M/s Patanjali Ayurved limited's 3 plants even though proceedings under Section 74 of the Act have been dropped against them.The bench of Justice Shekhar...

Interest On Delayed Refund Is Statutorily Mandated After 3 Months: CESTAT Applies 6% Interest U/S 11BB Of Central Excise Act

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that interest on delayed refund is statutorily mandated after 3 months under Section 11BB Of Central Excise Act. Section 11BB of the Central Excise Act, 1944 mandates that if a duty refund is not processed within three months from the receipt of an application, the applicant is entitled to interest on the delayed amount. It empowers Central Government to fix rate between 5-30% through...

Income Tax | Sales Tax Incentive Under Govt Scheme For Industrial Promotion Is Capital Receipt, Not Taxable: Bombay High Court

The Bombay High Court has stated that sales tax incentive under a government scheme for industrial promotion is a capital receipt, not taxable.Chief Justice Alok Aradhe and Justice Sandeep V. Marne were addressing the issue of whether an incentive received in sales tax liability under a Scheme formulated by the State Government would be on the capital account, exempt from taxation, or on the revenue account, liable for taxation.“If the incentive is offered for the purpose of setting up of new...

Delhi High Court Rejects Income Tax Department's Appeal Against Thomson Press Over Alleged Transaction Of Property Below Circle Rate

The Delhi High Court has dismissed an appeal preferred by the Income Tax Department against Thomson Press (India) over the sale of a property in Noida back in 2013, allegedly at a price much lower than the prevailing circle rate.A division bench of Justices Vibhu Bakhru and Tejas Karia noted that the registered agreement to sell and payment of stamp duty with respect to the property transaction were already completed by the date when the circle rate of the area in question was enhanced.“In view...

Delhi High Court Sets Aside ₹10 Crore Security Demanded By Customs For Provisional Release Of Seized Goods, Calls It 'Onerous'

Coming to the rescue of an importer, the Delhi High Court has set aside the security of ₹10 crore (approx) demanded by the Customs Department for provisional release of its perishable goods.Calling the condition 'onerous', a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta ordered provisional release of Petitioner's imported Roasted Areca Nuts on furnishing bond of Rs.4.10 crore along with a Bank Guarantee of Rs. 50 lakh.The Department had claimed that the value of goods as...

Delhi HC Sets Aside Income Tax Action Against Rajat Sharma-Owned India TV's Parent Company Over Alleged Unaccounted Foreign Remittances

The Delhi High Court on Wednesday set aside the reassessment action initiated against journalist Rajat Sharma's company, M/S Independent News Service Pvt. Ltd., which owns and runs the India TV channel, over alleged foreign remittances.The notice was issued following a survey conducted by the Income Tax Department at the J&K Bank back in 2019, revealing that the company had made foreign remittances amounting to ₹6,50,84,454/- during AY 2017-18, which did not tally with the amounts reflected...

S. 245A Income Tax Act | Kerala High Court Allows Settlement Application Filed Beyond Cutoff Date, Citing SC's COVID Limitation Order

The Kerala High Court has allowed the settlement application under Section 245A of the Income Tax Act filed beyond cutoff date, while citing Supreme Court's COVID limitation order. Justices A.K. Jayasankaran Nambiar and P.M. Manoj referred to the order of Supreme Court in MA. Nos.665 of 2021 [In Re Cognizance For Extension Of Limitation] and stated that the assessee had filed the application for settlement on 17.03.2022, which is well within the time granted by the Supreme Court...