Balance Depreciation Allowed In Subsequent Year For Assets Used Less Than 180 Days: Madras High Court

The Madras High Court on 2 March held that a taxpayer is entitled to claim the balance 50% of additional depreciation in the subsequent assessment year where new plant and machinery are put to use for less than 180 days in the year of acquisition. A Bench of Justice G. Jayachandran and Justice Shamim Ahmed allowed an appeal filed by Wheels India Limited against an order of the Income Tax Appellate Tribunal for the assessment year 2007–08, which had upheld the partial disallowance of the...

CESTAT New Delhi Grants Rs 2.93 Crore Refund To McCann Erickson, Says Refund Of Excess Service Tax Not Time-Barred

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that the Government cannot deny refund of excess service tax paid by mistake merely on the ground that the refund claim was filed after the limitation period, observing that amounts not legally payable as tax cannot be retained by the authorities. A coram of Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya said that where tax is paid without any legal liability, such payment does not...

ITAT Ahmedabad Deletes Tax Addition Based On Loose Sheets Found During Search, Cites Lack Of Evidence

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the deletion of tax additions made against a mouth freshener manufacturing company, finding that the additions were founded only on loose sheets that lacked basic particulars and were unsupported by any corroborative evidence to establish unaccounted transactions. The case arose from a search conducted on a third party, during which certain handwritten loose sheets were found in the possession of an employee of the...

ITAT Ahmedabad Sets Aside Ad-Hoc Expense Disallowance As AO Failed To Point Out Defects

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has recently set aside ad-hoc disallowances made against Raghani Tradelink, a commission agent engaged in facilitating sales of sarees, suits, and garments across India, holding that additions towards sub-brokerage and administrative expenses cannot be sustained when the Assessing Officer fails to point out specific discrepancies in the evidence produced by the assessee. The coram comprising Judicial Member Sanjay Garg and...

Once Goods Found Of Indian Origin, Customs Seizure Arbitrary And Malafide: Allahabad High Court

The Allahabad High Court at Lucknow has expressed surprise at the seizure and detention of areca nuts by the customs authority on the ground that they were of foreign origin despite one lab test indicating Indian origin and a government laboratory test failing to determine their origin. The bench of Justice Shekhar B. Saraf and Justice Manjive Shukla was dealing with a batch of writ petitions involving seizure of the goods by customs authorities and held: “In such a situation, when the goods...

Services With Direct Or Indirect Relation To Output Service Qualify As Input Services: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) recently held that services such as common area maintenance, vending machine operations, and travel agent services qualify as “input services” under Rule 2(l) of the CENVAT Credit Rules, 2004, in the case of a company providing taxable services including manpower supply, rent-a-cab, business auxiliary, and legal consultancy services. The tribunal held that such services have an indirect nexus with the...

Charitable Trust Cannot Be Denied Income-Tax Registration For Lack of Irrevocability Clause In Trust Deed: Bombay High Court

The Bombay High Court has held that the absence of an explicit irrevocability clause in a trust deed cannot be a ground to reject the application of a charitable trust for registration or renewal under Section 12AB of the Income Tax Act, 1961. Section 12AB governs the grant and renewal of registration to charitable and religious trusts for the purpose of claiming tax exemption, and the Court observed that the statute does not require such a clause and that a trust is ordinarily irrevocable...

CESTAT New Delhi Sets Aside Rs. 39.64 lakh Service Tax Demand On DLF-Owned Hilton Hotel, Holds Salaries Not Taxable

The New Delhi Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has allowed the appeal filed by DLF Builders and Developers Pvt. Ltd., owner of Hotel Hilton Garden Inn, Saket, and set aside a service tax demand of Rs. 39.64 lakh along with penalties, holding that salaries paid to the general manager and department heads of the hotel cannot be treated as consideration for taxable services.The dispute arose from an investigation linked to Hilton group entities,...

CESTAT Chennai Sets Aside ₹221 Crore Excise Demand Against MRF; Strapped Tyres Not Pre-Packaged Goods

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a demand of over Rs. 221 crore raised against MRF Limited, holding that tyres, tubes and flaps tied with plastic straps do not constitute “pre-packaged commodities” under the Legal Metrology Act, 2009, and therefore cannot be subjected to MRP-based valuation under Section 4A of the Central Excise Act, 1944.A bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri...

CBDT Notifies 2026 Income Tax Rules Introducing 'Tax Year' System, Streamlines Compliance Framework

Today, the Central Board of Direct Taxes (CBDT) notified the Income Tax Rules, 2026, which will come into force from 1 April 2026. The draft rules were published on 9 February 2026 for public consultation, inviting suggestions and feedback.The rules establish the procedural framework for implementing the Income Tax Act, 2025, which repeals the Income-tax Act, 1961. Also Read: CBDT Issues Draft Income Tax Rules And Forms For New Act With 34% Fewer Rules [Read Draft Rules Here]The repeal...

BCCI Subsidies To Cricket Associations Not Taxable As Service Consideration: Kolkata CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 12 March held that subsidies received by cricket associations from Board of Control for Cricket in India (BCCI) are not liable to service tax, as they are in the nature of grants-in-aid and not consideration for any taxable service. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan observed that there was no quid pro quo between the parties and that the amounts were provided...

VCES Immunity Bars Fresh Service Tax Demand After Discharge Certificate Is Issued: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 12 March held that once a taxpayer declares dues under the Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES) and obtains a discharge certificate, the Department cannot issue a fresh notice for the same period on the same issue. A Bench of Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. held that a declaration accepted under the scheme attains finality and grants immunity from...