Tax
IT Reassessment Notices Issued After Limitation Period Invalid Despite Ashish Agarwal Ruling: Karnataka High Court
The Karnataka High Court has recently held that reassessment proceedings initiated after the expiry of the statutorily surviving period of limitation under the Income Tax Act are invalid. This remains so even where the revenue seeks to sustain the reassessment notice on the basis of the Supreme Court's directions in Union of India v. Ashish Agarwal. In Ashish Agarwal, the Supreme Court protected reassessment notices issued under the old law during the transition to the new reassessment regime...
CESTAT Sets Aside Rejection Of Declared Import Value Over Inadmissible Statements, Emails
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi Bench recently held that customs authorities cannot reject the declared value of imported furniture by relying on investigation statements and email printouts unless mandatory legal safeguards are followed. The coram comprised President Justice Dilip Gupta and Technical Member Hemambika R. Priya. The tribunal said that statements recorded during an investigation do not automatically qualify as evidence and can be...
Budget 2026-27 Proposes Tax Holiday Till 2047 For Foreign Cloud Services Using Indian Data Centres
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27, proposed a long-term tax holiday for foreign companies providing cloud services from India using domestic data centre infrastructure. Announcing the measure in her Budget speech, the Finance Minister said, “Recognising the need to enable critical infrastructure and boost investment in data centers, I propose to provide tax holiday till 2047 to any foreign company that provides cloud services to customers globally by...
Supreme Court Refuses To Entertain Ola Parent ANI's Plea Against Delayed Service Tax Order
The Supreme Court of India has declined to interfere with a Bombay High Court order directing ANI Technologies Private Limited, the parent company of Ola Cabs, to pursue a statutory appeal against a service tax demand. A Bench of the Chief Justice of India Surya Kant and Justice Joymalya Bagchi held that no valid ground was made out to disturb the High Court's decision. The court agreed that the writ petition was rightly not entertained. The dispute relates to a service tax adjudication order...
Finance Bill, 2026 Proposes Enabling GST Appellate Tribunal To Hear Advance Ruling Appeals
The Finance Bill, 2026, proposes a change in the GST appellate framework that will allow the Goods and Services Tax Appellate Tribunal to hear a limited category of advance ruling appeals. GSTAT will continue to function as the appellate forum for regular GST disputes such as classification, valuation, and input tax credit. The proposed change does not alter this role. Under the GST law, advance rulings are issued by state-level Authorities for Advance Rulings. Appeals lie before the...
Finance Bill 2026 Proposes GST Relief For Intermediaries By Treating Services To Overseas Clients As Exports
The Finance Bill, 2026, proposes a key change in the GST treatment of certain cross-border services, especially those provided by Indian intermediaries to overseas clients. Under the current GST regime, the place of supply for cross-border services is governed by Section 13 of the Integrated Goods and Services Tax (IGST) Act, 2017. This section applies when either the supplier or the recipient of a service is located outside India. At present, Section 13(8)(b) of the IGST Act lays down a...
Budget 2026: No Prosecution For Non-Disclosure Of Foreign Assets Up To ₹20 Lakh Under Black Money Law
The Union Government has proposed easing prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in cases involving non-disclosure of foreign assets, other than immovable property, with an aggregate value of up to ₹20 lakh. Clause 144 of the Finance Bill, 2026, proposes amendments to the provisos of Sections 49 and 50 of the Black Money Act to provide further that the prosecution provisions “shall not apply in respect of an asset or...
Budget 2026-27: No TAN Needed For Resident Buyers To Deduct TDS On Property Purchases From NRIs
As per a proposal in the Union Budget 2026 tabled by Finance Minister Nirmala Sitharaman today, resident individuals and Hindu Undivided Families (HUFs) purchasing immovable property from a non-resident (NRI) will no longer be required to obtain a Tax Deduction and Collection Account Number (TAN) for the purpose of deducting tax at source. Instead, the tax deducted can be deposited using the Permanent Account Number (PAN) of the buyer.The proposal sought to amend Section 397(1)(c) of the Income...
BREAKING | Any Delay In Income Tax Audit Report May Attract ₹75,000 Late Fee, Proposes Finance Bill 2026
A single day's delay in furnishing a tax audit report may attract a fee of ₹75,000 under the proposed Income-tax Act, 2025, as per the scheme set out in the Finance Bill, 2026.The Finance Bill, 2026 was presented in Parliament by Finance Minister Nirmala Sitharaman on Sunday.Under the existing law, failure to comply with tax audit requirements attracted a penalty linked to turnover, capped at ₹1.5 lakh, and the penalty could be waived if the taxpayer showed a reasonable explanation for the...
Union Budget 2026: FM Proposes Rollout Of Customs Integrated System (CIS) In 2 Years
Presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman announced the rollout of a new Customs Integrated System to overhaul customs processes.“I propose that a Customs Integrated System will be rolled out in two years as a single, integrated and scalable platform for all customs processes,” Sitharaman said. The Finance Minister also announced expanded use of technology for cargo examination. “Utilisation of non-intrusive scanning with advanced imaging and AI technology for risk...
Budget Proposes 14% Minimum Alternate Tax Final Levy For Companies Opting New Regime From April 2026
The Union Budget 2026–27 on Sunday proposed changes to the Minimum Alternate Tax (MAT) regime applicable to companies, to take effect from April 1, 2026, alongside the implementation of the Income Tax Act, 2025.Presenting the budget, Finance Minister Nirmala Sitharaman said, “I propose to make Minimum Alternate Tax a final tax for companies opting for the new tax regime.”She further announced a reduction in the rate, stating, “The MAT rate is proposed to be reduced to 14 per cent.”The proposal...