Tax
Karnataka High Court Annual TAX Digest 2025
Direct TaxProceedings Initiated Against Income Tax Assessee After His Death Cannot Be Continued Against Legal Representative: Karnataka HCCase Title: The Income Tax Officer & ANR Preeti VCase No:WRIT APPEAL NO. 1407 OF 2024The Karnataka High Court has said proceedings initiated against an Income Tax Assessee by issuing notice after his demise cannot be continued against his/her legal representative.A division bench of Justice Krishna S Dixit and Justice G Basavaraja said, “Had the...
ITAT Mumbai Deletes ₹50 Lakh Section 68 Addition In Absence Of Incriminating Material Found During Search
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the appeal filed by M/s JS Infrastructure, deleting an addition of ₹50 lakh made under Section 68 of the Income Tax Act in proceedings initiated under Section 153C. A Bench comprising Judicial Member Kavitha Rajagopal and Accountant Member Omkareshwar Chidara held that no addition could be sustained in a completed assessment in the absence of any incriminating material found during the course of search. The...
Re-Look Into Composition, Usage, Product Patent, Similarity Of Sun Pharma's Muscle Relaxants For DTA Sales Entitlement: CESTAT Ahmedabad
The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT), in a matter involving similarity of Muscle Relaxant sold domestically vis-à-vis exported by a Pharma major and benefit concessional duty thereof, has remanded back to the Adjudicating Authority for fresh consideration. Sun Pharmaceuticals Industries Limited, cleared/sold multiple products in Domestic Tariff Area (DTA) at concessional rate of duty in terms of Notification No. 23/2003-CE dated March...
Entity Recognised As Charitable Under Income Tax Act With S.12A Registration Cannot Be Treated Otherwise Under FCRA: Madras High Court
The Madurai Bench of the Madras High Court has held that a trust already recognised as a charitable organisation under the Income Tax Act cannot be ignored as such while considering its application under the Foreign Contribution (Regulation) Act, 2010 (FCRA). A Single Judge Bench of Justice G.R. Swaminathan was dealing with a writ petition filed by Arsha Vidya Parampara Trust challenging the rejection of its FCRA registration by the Ministry of Home Affairs . The Bench stated that when ...
Tax Weekly Round-Up: December 22 - December 28, 2025
HIGH COURTSAllahabad HCAllahabad High Court Directs Criminal Contempt Against GST Official For Filing Misleading Personal AffidavitCase Title: Adboulevard Media Private Limited Versus Additional Commissioner, Grade-2(Appeal) First, State Tax, Meerut And AnotherOn Thursday, Allahabad High Court directed initiation of criminal contempt proceedings against Additional Commissioner, Grade-2(Appeal) First, State Tax, Meerut for filing a misleading personal affidavit before the Court despite being...
Punjab & Haryana High Court Bars 'Negative Blocking' Of ITC Beyond Available Credit Under Rule 86A CGST Rules
The High Court of Punjab and Haryana has held that tax authorities cannot block a taxpayer's Electronic Credit Ledger (ECL) beyond the Input Tax Credit (ITC) actually available at the time of action, and that creating a negative ITC balance under Rule 86A of the CGST Rules, 2017 is without jurisdiction. A Division Bench of Justice Lisa Gill and Justice Parmod Goyal was hearing a writ petition filed by M/s Garg Furnace Limited, which challenged the blocking of its ECL on 01.10.2025...
Bombay High Court Upholds 18% Interest Levy On Delayed VAT Payment, Says Interest Levied Automatically Once Payment Is Delayed
The Bombay High Court at Goa has dismissed a writ petition filed by United Spirits Ltd. challenging the levy of interest on delayed payment of VAT on sales of Extra Neutral Alcohol (ENA), Rectified Spirit (RS) and High Bouquet Spirit (HBS) for the financial year 2019–20. A Division Bench of Justices Bharati Dangre and Ashish S. Chavan held that interest under Section 25(4) of the Goa Value Added Tax Act, 2005 is compensatory in nature and becomes automatically payable once tax is not...
Income Tax Act | Delhi High Court Sets Aside Reassessment Against MakeMyTrip Over ₹50 Crore Receipt, Cites Vague S.148A Notices
The Delhi High Court has set aside reassessment proceedings initiated against MakeMyTrip India Pvt. Ltd., holding that the notices issued under Section 148A of the Income Tax Act, 1961 were unreasoned.A Division Bench of Justices V. Kameswar Rao and Vinod Kumar allowed the writ petition filed by the company, which had challenged the reassessment action relating to an alleged unexplained receipt of over ₹50 crore, purportedly arising from information obtained during a search conducted in the case...
APVAT | Value Added Tax Not Leviable On Offshore Sales Beyond Territorial Waters: Andhra Pradesh High Court
The Andhra Pradesh High Court held that Value Added Tax (VAT) under the Andhra Pradesh Value Added Tax Act (AP VAT) cannot be levied on sales beyond 12 nautical miles, as such transactions fall outside the State's territorial jurisdiction. Justices R. Raghunandan Rao and T.C.D. Sekhar stated that neither the State Legislature nor the Central Legislature would have the power to levy tax on the sale of goods made beyond the territorial waters of India. In the case at hand, the...
Delhi High Court Holds ICC Trademark Rights Under LG Sponsorship Agreement Attract Royalty TDS
The Delhi High Court has dismissed a writ petition filed by LG Electronics India Pvt. Ltd., upholding the Income Tax Department's decision to treat a portion of sponsorship payments made for ICC cricket events as taxable royalty. A Division Bench of Justice V. Kameswar Rao and Justice Vinod Kumar refused to interfere with an order passed under Section 264 of the Income Tax Act, which had held that one-third of the USD 11 million paid by LG to Global Cricket Corporation (GCC), Singapore, was...
GST | Calcutta High Court Quashes Excess ITC Demand Pertaining To Initial Years Of GST Rollout
The Calcutta High Court has quashed the order passed by Appellate Authority dismissing appeal against Section 73 demand, preliminary, “without appreciating the worth of the documents”. Justice Om Narayan Rai observed that there was 'total non-consideration of material on record' upon tracing through the paper book as well as relevant documents annexed to the writ petition which were also placed on record before the Appellate Authority (AA). For the period April 2018 to March 2019,...
SIM Cards, Recharge Coupons & Value-Added Services Not 'Goods' Under KVAT Act; Kerala High Court Quashes Tax Demand Against Airtel
The Kerala High Court granted relief to Bharti Airtel by holding that SIM cards, recharge coupons, fixed monthly charges and telecom value-added services cannot be treated as 'goods' under the Kerala Value Added Tax Act, 2003 (KVAT Act), on which any tax can be levied. Justices A.K. Jayasankaran Nambiar and Jobin Sebastian addressed a case filed by Bharti Airtel, the assessee, challenging the assessing order both on grounds of limitation and on merits, seeking to clarify that SIM...