Tax
Supplier's GST Default Cannot Automatically Trigger ITC Reversal: Punjab & Haryana High Court
On 1 October, the Punjab and Haryana High Court held that Input Tax Credit (ITC) cannot be mechanically reversed merely because a supplier failed to deposit GST with the Government or because the supplier's registration was subsequently cancelled, including retrospectively. A Division Bench of Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor upheld the validity of Section 16(2)(c) of the CGST Act, which makes actual payment of tax to the Government a condition for claiming ITC....
LiveLawBiz Indirect Tax Monthly Digest: September 2026
SUPREME COURTSupreme Court Stays Tripura HC Ruling Allowing ITC To Buyer Despite Supplier's Failure To Deposit GSTCase Title : Union of India v. M/s Sahil Enterprises & Anr. Case Number : D No. 33460/2026 CITATION : 2026 LLBiz SC 286Today, the Supreme Court issued notice in the Union of India's challenge to a Tripura High Court judgment which allowed a purchaser to claim Input Tax Credit (ITC) despite the supplier having failed to deposit the GST collected from the purchaser with the...
Delhi High Court Dismisses Insurance Broker's Plea Against Income Tax Reassessment, Cites Earlier Case
The Delhi High Court has dismissed a writ petition filed by Zoom Insurance Brokers challenging proceedings initiated under Sections 148A(3) and 148 of the Income Tax Act, 1961, observing that an identical challenge by the company for the preceding assessment year had already been rejected by a Coordinate Bench.The Division Bench of Justices Dinesh Mehta and Aditi Choudhary noted that the facts of the present case were identical to those considered in Petitioner's earlier case, except for the...
Sahara India Tax Appeals To Be Heard By Delhi ITAT Despite AO's Lucknow Jurisdiction: Delhi High Court
The Delhi High Court has allowed a batch of writ petitions filed by Sahara India group companies and directed that their pending income tax appeals be heard by the Delhi Bench of ITAT , even though the Assessing Officer (AO) having jurisdiction over the assessees was situated in Lucknow.The Division Bench of Justices Dinesh Mehta and Aditi Choudhary noted that more than 100 appeals concerning the assessee's group companies were already being heard by the Delhi Bench and that both the assessees...
Already Revoked Customs Broker Licence Cannot Be Revoked Again: Delhi High Court
The Delhi High Court has held that a Customs Broker licence which has already been revoked cannot be revoked again in separate proceedings, observing that such an action is beyond the statutory provisions and results in multiplicity of litigation.The Division Bench of Justices Avneesh Jhingan and Shail Jain was hearing the appeal of a proprietorship concern which was granted a Customs Broker license in November 2016.The Customs authorities had, by an order dated July 1, 2020, revoked the licence...
Micromax's ₹154 Crore Deposit In Ericsson Patent Case Was Not Royalty For Service Tax: Delhi High Court
The Delhi High Court has held that ₹154.79 crore deposited by Micromax Informatics Ltd. pursuant to interim orders passed in a patent dispute with Ericsson could not be treated as a payment towards royalty for the purpose of service tax.The Division Bench of Justices Avneesh Jhingan and Shail Jain was hearing an appeal filed by the CGST Department against a CESTAT order upholding the dropping of a service tax demand against Micromax.The dispute arose from litigation between Micromax and...
GST Refund Can Be Withheld During Anti-Evasion Probe Involving Fraud, Malfeasance: Delhi High Court
The Delhi High Court has held that the pendency of an Anti-Evasion investigation, coupled with the Commissioner's finding of suspected fraud or malfeasance, can justify withholding a GST refund under Section 54(11) of the Central Goods and Services Tax Act even when no appeal against the order granting the refund is pending.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while dismissing a petition filed by an electronics exporter, which had sought release of a...
Delhi High Court Upholds Customs Broker Licence Revocation Over Forged Graduation Degree
The Delhi High Court has upheld the revocation of a Customs Broker licence after finding that the graduation degree submitted by the broker was forged.The Division Bench of Justices Avneesh Jhingan and Shail Jain dismissed an appeal filed by R.K. Logistics challenging a CESTAT order which had upheld the revocation of its license, forfeiture of security and imposition of a ₹50,000 penalty.Appellant had applied for a Customs Broker licence in 2014 under the Customs Brokers Licensing Regulations,...
LiveLawBiz Direct Tax Monthly Digest: September 2026
SUPREME COURTSupreme Court Refuses To Interfere With Delhi HC Ruling On GoDaddy Domain Fees Under India-US DTAACase Title : ASSISTANT/DEPUTY COMMISSIONER OF INCOME TAX VS. GODADDY.COM Case Number : 45711/2026The Supreme Court on Monday refused to interfere with the Delhi High Court order holding that payments received by GoDaddy.com LLC from Indian customers towards domain-name registration services are not chargeable to income tax in India under the India-US Double Taxation Avoidance...
Indian-Registered Vehicle Returning From Overseas Trip Not A Fresh Import: Bombay High Court
An Indian-registered vehicle does not become a fresh foreign import merely because it is brought back to India in a shipping container after an overseas road trip, the Bombay High Court has ruled.A Division Bench of Justice M.S. Karnik and Justice Sandesh D. Patil held that a Mahindra Thar belonging to Russian national Denis Vanin had legally left India as a private conveyance for travel. Its subsequent placement in a maritime container for safe transit back to India did not transform it into...
Captive Power Transfers: ITAT Mumbai Allows Consumer-Side Electricity Rates As Internal CUPs For Transfer Pricing
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that electricity rates actually paid by an assessee's cement manufacturing units to state power distribution companies can be used as internal comparable uncontrolled prices for benchmarking electricity supplied by its captive power plants.The dispute turned on whether the 2013 amendment bringing specified domestic transactions within the arm's-length pricing framework required captive power plants to be benchmarked against...
AO Must Decide Reassessment Objections Before Scrutiny Can Begin: Bombay High Court
The Bombay High Court has ruled that an Assessing Officer cannot issue a notice under Section 143(2) of the Income Tax Act to scrutinise a return in reassessment proceedings before deciding the assessee's objections to reopening the assessment.A Division Bench of Justice B.P. Colabawalla and Justice Firdosh P. Pooniwalla held that issuing a Section 143(2) notice amounts to proceeding with the assessment. The Assessing Officer must therefore first dispose of the assessee's objections to reopening...