Tax
ITAT Delhi Approved Amalgamation And Consistent Expense Allocation Cannot Be Used To Deny Section 80-IC Deduction
The Delhi Bench of Income Tax Appellate Tribunal has upheld substantial tax relief granted to Mahle Filters Systems (India) Ltd. for Assessment Year 2010–11, rejecting the Revenue's challenge to the company's deduction claimed under Section 80-IC of the Income Tax Act. A Bench comprising Vice President Mahavir Singh and Accountant Member Krinwant Sahay, while deciding cross-appeals filed by the assessee and the Revenue, held that the tax department was not justified in treating the...
ITAT Mumbai Restores Trust's 12AB Registration Matter To CIT(E) For Fresh Consideration
The Income Tax Appellate Tribunal, Mumbai Bench, has set aside an order passed by the Commissioner of Income Tax (Exemptions) [CIT(E)] rejecting the application of Shri Hans Maharaj Trust for registration under Section 12AB of the Income Tax Act, 1961, and has remanded the matter back for fresh adjudication. A Bench comprising Accountant Member Vikram Singh Yadav and Judicial Member Anikesh Banerjee was dealing with an appeal filed by the trust against the order dated 26.12.2024,...
ITAT Has Power To Grant Stay Even Without Tax Demand; Tribunal Cannot Refuse Jurisdiction: J&K High Court
The Jammu & Kashmir and Ladakh High Court has held that the Income Tax Appellate Tribunal (ITAT) has the power to grant stay of an order appealed against even when there is no existing tax demand, and that refusal to consider a stay application on the ground of lack of jurisdiction is legally unsustainable. A Division Bench of Justice Sindhu Sharma and Justice Shahzad Azeem was hearing a writ petition filed by J&K Yateem Foundation, a registered charitable society whose ...
Customs Act | Gujarat High Court Upholds CARR Ruling Allowing Duty Free Import On Inshell Walnuts Treating It As 'Dietary Fibre'
The Gujarat High Court upheld ruling of Customs Authority for Advance Rulings granting exemption from payment of Basic Customs Duty for inshell-walnuts imported by an entity treating the goods as "dietary fibre". The respondent- assessee is a transferee of Duty-Free Import Authorisations issued against the export of Assorted Confectionary Products (SION E-1) and Biscuits (SION E-5).The respondent had filed an application under Section 28H(Application for advance ruling) Customs Act before...
Customs | Confiscated Cigarettes Not Fit For Home Consumption Cannot Be Auctioned; Security Deposit Refundable: CESTAT New Delhi
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that confiscated/seized cigarettes which do not comply with mandatory packaging, labelling and legal metrology requirements cannot be released for home consumption and therefore could not have been validly auctioned. Since the auction is vitiated, forfeiture of the security deposit is unsustainable. Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) stated that the auction...
Income Tax | Reopening Not Hit By Change Of Opinion If Earlier Proceedings Dropped Due To Lack Of Evidence: Calcutta High Court
The Calcutta High Court held that the mere reopening of an assessment under Section 148 of the Income Tax Act cannot be treated as a change of opinion if the earlier proceedings were dropped due to lack of evidence. Justice Raja Basu Chowdhury stated that on the basis of a change of opinion of the assessing officer, a notice under Section 148 of the said Act cannot be issued. For a case of change of opinion to be established an assessing officer must arrive at an opinion that there has...
Customs Officers Must Wear Body Cameras During Baggage Clearance, Passenger Interactions: CBIC
Central Board of Indirect Taxes & Customs (CBIC) has mandated Body Worn Cameras for Customs officers posted at International Airports, engaging closely with passengers at baggage clearance counters. To align with global practices, Customs had started to adopt the digital technologies for audio and video recording, to enhance transparency, accountability and professionalism concerning passenger facilitation and intervention. For speeding up passenger flow while maintaining security,...
Tamil Nadu Government Extends 100% Road Tax Exemption For Electric Vehicles Till 2027
The Tamil Nadu Government has extended 100% exemption on all Battery-Operated Vehicles both, Transport and Non-Transport (Electric Vehicles) from payment of Motor Vehicle Tax. Electric vehicle adoption in Tamil Nadu has already reached 7.8% in 2025, the Minister of Industries said. Aligning with the State's Electric Vehicle Policy, staring January 01, 2026 till December 31 2027, all Electric Vehicles shall be exempt from tax under the Tamil Nadu Motor Vehicles Taxation Act, 1974. ...
S.153C Income Tax Act | Gujarat High Court Quashes Assessment Proceedings Citing 2-Yr Delay & Lack Of Date In 'Satisfaction Note'
The Gujarat High Court quashed a Section 153C Income Tax Act proceedings against a company after noting that the assessing officer's satisfaction note did not bear any date and that the note, though recorded in 2022 was "supplied" to the company only in 2024 i.e., after a delay of two years without any explanation. For context, Section 153C empowers the tax authority to assess the income of any person whose documents or assets are found during a search or seizure operation on a different...
GST | Parallel Proceedings On Sanctioned Refund An 'Overstep': Orissa High Court Quashes Recovery Proceedings As Appeal Order Stands
The Orissa High Court in a matter concerning, Double Jeopardy on Refund of about Rs. 14 crores where recovery proceedings were initiated under Section 73 for Refund already sanctioned by the Appellate Authority, has quashed the Show Cause Notice for recovery. In a recent judgment, the Division Bench, comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman, observed that by initiating recovery the Joint Commissioner sought to revive a Review Order differing with the...
Customs | Barcode Scanners With Ancillary Mobile Features Not Classifiable As Smartphones; Exempted From Basic Duty: CESTAT New Delhi
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that handheld barcode scanners, whose principal function is scanning, do not become smartphones merely because they have ancillary mobile features. The bench further stated that these scanners are entitled to exemption from Basic Customs Duty. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) stated that in the documents on record in the form of brochures, invoices, packing...
No Interest On Excise Duty Payable In Revenue-Neutral Situation Even Though Duty Demand Attained Finality: Calcutta High Court
The Calcutta High Court held that statutory interest under Section 11AB of the Central Excise Act is not leviable where the entire transaction is revenue-neutral and the duty paid is available as Cenvat Credit to downstream units, causing no loss to the exchequer. Justices Rajarshi Bharadwaj and Uday Kumar stated that the Tribunal has recorded a clear finding that the situation is revenue-neutral, inasmuch as the duty paid by the assessee was available as Cenvat credit to its ...