ITAT Upholds Allowance Of Foreign Travel Expenses, Says No Income From Visited Countries Alone Cannot Justify Disallowance

The Mumbai Income Tax Appellate Tribunal (ITAT) has upheld the deletion of disallowance of foreign travel expenses made against a company engaged in global management and financial consultancy services.The court held that in the facts of the case, the expenditure could not be disallowed merely because no income was directly earned from certain countries visited during the relevant year where the taxpayer had produced material showing business purpose and nexus with its activities. The case...

Non-Charging Of Service Tax From Client Cannot Justify Non-Payment: CESTAT Ahmedabad

The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that non-payment of tax on the ground that the same was not charged by the taxpayer from its client cannot be a valid basis to claim bona fide belief, while also holding that commission agents, other than those dealing in agricultural produce, became liable to service tax from 9 July 2004. A coram of Judicial Member Somesh Arora observed, "The statutory provisions are clear and leave no scope for...

Section 311 CrPC Can Be Invoked To Seek Additional Documents In Black Money Act Case: Delhi High Court

The Delhi High Court has recently held that courts can invoke Section 311 of the CrPC, which allows summoning or recalling evidence, to permit additional documents to be placed on record if necessary for a just decision, even in prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.Justice Neena Bansal Krishna dismissed petitions filed by businessman Deepak Talwar challenging orders of the trial court and revisional court, which had allowed the...

Bombay High Court Orders Restoration Of GST Registration Of Bi-Chem India After Revenue Withdraws Suspension

The Bombay High Court has recently directed the Revenue to immediately restore the GST registration of Bi-Chem India Pvt. Ltd. after the department informed the court during the hearing that the suspension would be withdrawn and the registration made operational. A division bench of Justices G.S. Kulkarni and Aarti Sathe was dealing with a writ petition filed by the company questioning the suspension of its GST registration, along with a show cause notice dated February 18, 2026, a recovery...

ITAT Ahmedabad Grants Partial Relief To Arrow Clothing In Demonetisation Cash Deposit Addition Case

The Income Tax Appellate Tribunal (ITAT) at Ahmedabad partly allowed an appeal of Arrow Clothing Pvt. Ltd, holding that addition for unexplained cash deposits during demonetisation was justified, but the taxpayer was entitled to credit for opening cash balance and prior bank withdrawals. A coram of Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta held that anomalies were found only in the explanation relating to cash sales and not in the opening cash balance or bank withdrawals...

CESTAT Chennai Sets Aside Demand After VAT Paid On 70%, Holds Service Tax Can Apply Only On Remaining 30% Contract

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that in a works contract involving tyre retreading, where VAT had been discharged on 70% of the contract value under the prescribed method, service tax could be levied only on the remaining 30%, observing that the same portion cannot be subjected to both levies.A bench of Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar allowed the appeal filed by Madurai-based Super Transports (P)...

GST Show Cause Notice Cannot Proceed On Preconceived Conclusion Of Liability: Kerala High Court

The Kerala High Court recently set aside a Goods and Services Tax (GST) show cause notice issued to the Kerala State Self-Financing B.Pharm College Management Association after finding that the notice was worded in a manner suggesting a pre-conceived conclusion on the petitioner's liability. The court held that a show cause notice can contain only a proposal based on the material on record and that a final conclusion can be reached only after considering the assessee's objections and documents....

GSTAT Rajkot Bench Starts Functioning

The GST Appellate Tribunal's Rajkot bench has begun functioning, with authorities issuing a trade notice on March 18 to inform businesses and tax professionals that the long-awaited forum is now operational in Gujarat. The tribunal is working from its office at the RK Iconic building on 150 Feet Ring Road in Rajkot. Officials said appeals can be filed through the GSTAT online portal, which was rolled out last year, and a toll-free helpline has also been provided to help users facing difficulty...

Amendment Allowing Customs Duty Exemption For Machinery Installed In Premises Applies Retrospectively: Gujarat High Court

The Gujarat High Court has held that an amendment to a customs exemption notification under the Export Promotion Capital Goods (EPCG) scheme, which allowed installation of imported machinery in the importer's “factory or premises," will apply retrospectively, and exemption cannot be denied merely because the machinery was installed outside the factory. Allowing an importer's appeal, a Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi observed that the benefit earlier denied due...

Bombay High Court Declines To Answer Reference On Taxability Of Hire-Purchase Premium In Tata Motors Case

The court declined to answer the reference after Tata Motors and the Revenue stated they were not interested in pursuing the questions of law.

Supreme Court Dismisses Centre's SLP Against Gujarat HC Order Granting IGST Refund Despite GST Return Error

The Supreme Court has recently dismissed a Special Leave Petition filed by the Union of India challenging a Gujarat High Court judgment that directed the grant of an IGST refund to an exporter despite errors in GST returns. A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe, while hearing the matter, refused to interfere with the High Court's decision but kept open the question regarding the applicability of the proviso to Rule 96 of the CGST Rules for consideration in an...

Delhi High Court Declines To Quash Customs SCN, Says Limitation Plea To Be Examined By Adjudicating Authority

The Delhi High Court has recently declined to exercise its writ jurisdiction to quash a show cause notice issued under the Customs Act, 1962, holding that the petitioner's plea regarding limitation must be decided by the adjudicating authority.A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed,“Once the petitioner has submitted his explanation on the issue of limitation based on the judgments referred above, it can be expected of the respondents to deal with the...