Income Tax Act | Delhi High Court Allows Set-Off Of Loss Of Eligible Unit Against Profits Of Other Non-Eligible Units

The Delhi High Court has held that the loss incurred by a unit eligible for deduction under Section 10B of the Income Tax Act can be set off against the profits of other units of the assessee.Section 10B provides for deductions in respect of profits derived by eligible 100% export-oriented undertakings from the export of articles, things or computer software.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta held that although profits of each eligible unit are required to be...

Central & State GST Proceedings Not On 'Same Subject Matter' Merely Because Both Concern ITC For Same FY: Delhi High Court

The Delhi High Court has recently held that Central and State GST proceedings cannot be treated as being on the 'same subject matter under Section 6(2)(b) of the Central Goods and Services Tax Act, 2017, merely because both proceedings concern Input Tax Credit for the same financial year.The Division Bench of Justices Anil Kshetarpal and Shail Jain said that determining whether proceedings initiated by Central and State GST authorities concern the same subject matter requires an examination of...

Delhi High Court Upholds Customs Broker Licence Revocation For Using Another Broker's Credentials

The Delhi High Court has upheld the revocation of a Customs Broker's licence after finding that it had consciously undertaken clearance-related activities using the credentials of another Customs Broker in relation to goods which were prohibited for import.The Division Bench of Justices Anil Kshetrapal and Shail Jain held that the consent or knowledge of the Customs Broker whose credentials were used could not authorise another broker to undertake Customs Broker functions using those...

LiveLawBiz Indirect Tax Weekly Round-Up: August 10 - August 16, 2026

SUPREME COURTOrder Authorising Arrest Under GST Law Must Be Communicated Before Arrest: Supreme CourtCase Title : UNION OF INDIA vs SUNIL BIYANI Case Number : DIARY NO. 34138/2026The Supreme Court on Wednesday ruled that an order authorising arrest under the GST law must be communicated to the person concerned before the authorities proceed with the arrest. “To ensure that anyone who is facing the apprehension of arrest is not left in a position of irreparable damage, we have said that Section...

Discharge Certificate Under Sabka Vishwas Scheme Bars Appeal On Settled Tax Dispute: CESTAT Hyderabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad has held that the Revenue cannot continue an appeal concerning a tax dispute after the assessee has settled it under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and received a discharge certificate covering the same matter and period.“Once the statutory authorities themselves accept the declaration and issue discharge certificate, the dispute reaches finality. Neither the assessee nor the Department can...

LiveLawBiz Direct Tax Weekly Round-Up: August 10 - August 16, 2026

HIGH COURTSAllahabad HCIncome Tax Act | 18-Month Period To Decide Settlement Application Cannot Restart On Transfer Between Interim Boards: Allahabad High CourtCase Title : B.L. Agro Industries Limited, Bareilly Thru. Mr. Amit Kumar Authorised Signatory v. Union of India Ministry of Finance Deptt. Revenue Govt. of India New Delhi Thru. Secy. and others Case Number : WRIT TAX No. - 77 of 2024 CITATION : 2026 LLBiz HC (ALL) 63The Allahabad High Court at Lucknow has recently held that the period...

Madras High Court Quashes Vital Wheat Gluten Seizure, Cites Earlier Ruling On DFIA Exemption

The Madras High Court has recently quashed a seizure memo issued against Bhansali Chematics Private Limited over its import of Vital Wheat Gluten. The court held that there was no legally sustainable material to form the requisite belief that the goods were liable to confiscation.A Single Bench of Justice Hemant Chandangoudar held that wheat gluten falls within the description of “wheat flour” for the purposes of the Duty Free Import Authorisation (DFIA) Scheme. The court relied on earlier...

Madras High Court Calls CESTAT Order 'Very Cavalier', Restores ₹90 Lakh Customs Penalty On Steamer Agent

The Madras High Court has recently restored a ₹90.15 lakh customs penalty imposed on MSC Agency India Pvt. Ltd. It found that the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) had dealt with the matter in a “very cavalier fashion”, despite the fact that the actual weight of goods unloaded from 150 containers was only 12.5% on average of the declared weight.“We find that the Tribunal failed to note that admittedly, 150 containers were shipped through the same shipping line and in...

Later Statutory 10% Pre-Deposit For Appeal Cannot Cure Earlier 50% Pre-Deposit Default: CESTAT Hyderabad

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Hyderabad, has held that a later statutory requirement of a 10% pre-deposit could not cure an earlier failure to comply with a 50% deposit condition imposed for pursuing an appeal.The amended Section 35F of the Central Excise Act, 1944, introduced a mandatory 10% pre-deposit from August 6, 2014. Since the appeal had already been dismissed on July 23, 2014 for failure to comply with the 50% condition, the later provision could not...

Income Tax Authorities Can Condon Delay Despite CBDT Time Limit: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that tax authorities cannot reject an application for condonation of delay merely because it was filed beyond the time limit prescribed by a CBDT circular. The court held that the authorities have discretion under the Income Tax Act to consider genuine hardship while deciding such applications.A Division Bench comprising Justice Ninala Jayasurya and Justice T.C.D. Sekhar observed that Section 119(2)(b) of the Income Tax Act allows tax authorities to accept...

CBDT Notifies Rules For Small Taxpayers To Disclose Undisclosed Foreign Assets, Income

The Central Board of Direct Taxes (CBDT) has notified rules allowing taxpayers to disclose certain foreign assets that were not reported in their income-tax returns, including assets acquired while they were non-residents but not disclosed after they became residents in India. The disclosure has to be made by December 31, 2026.The rules deal with two different kinds of cases. One is where the foreign income or asset itself was undisclosed. The other covers certain foreign assets that were not...

Service Tax | Madras High Court Says Refund Cannot Be Denied For Tax Paid Under Mistake Of Law

The Madras High Court has dismissed the Revenue's appeal against an order granting a refund of service tax paid on the supply of floating rigs, holding that the tax had been collected under an erroneous classification and could not be retained by the Government.A Division Bench comprising Dr. Justice G. Jayachandran and Justice N. Mala held that where service tax was paid due to a mistake of law, the Department could not deny a refund merely by relying on the limitation prescribed under...