Tax
Income Tax Act | GST Would Not Form Part Of Gross Receipts Under Section 44BB: ITAT Mumbai
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Goods and Services Tax (GST) collected by a non-resident assessee cannot be included in gross receipts for computing presumptive income under Section 44BB of the Income Tax Act, 1961. A Bench comprising Vikram Singh Yadav (Accountant Member) and Sandeep Singh Karhail (Judicial Member) allowed the appeal filed by the assessee, Oceaneering International GmbH for Assessment Year 2023–24 and directed the Assessing...
Service Tax Cannot Be Levied On Membership & Participation Fees Paid To Foreign Associations Before 01.07.2012: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that service tax cannot be levied on membership and participation fees paid to foreign associations such as International Packaging Group (IPG) or International Packaging Forum Network (IPFN) for the period prior to 01.07.2012. P. Dinesha (Judicial Member) and Vasa Seshagiri (Technical Member) stated that the demand for the period prior to 1.7.2012 on IPG/IFPN is unsustainable as there was no...
Customs | Import Duty Must Be Determined At Time Of Import, Not On Later Sale Price: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that customs duty is required to be assessed on the transaction value declared at the time of import, as reflected in the supplier's invoice. Any subsequent sale or higher remittance made after the import cannot be relied upon to reject the declared value. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) examined whether the addition under the guise of short-payment of duty,...
Customs | Face Recognition Access Control Systems Qualify As Automatic Data Processing Machines; NIL Duty Benefit Allowed: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Face Recognition Access Control Systems perform data processing functions, such as data storage, read-write memory operations and automated processing, and therefore qualify as an Automatic Data Processing Machine under CTH 8471. The bench clarified that these systems are eligible for NIL customs duty exemption. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) noted that...
Bank Not 'Assessee In Default' For Not Deducting TDS On Interest After Accepting Form 15H From Senior Citizens: Kerala High Court
The Kerala High Court held that once a bank accepts valid Form 15H declarations from senior citizen depositors under Section 197A(1C) of the Income Tax Act, it cannot be treated as an “assessee in default” for non-deductions of TDS (deduct tax at source) on interest income. Justices A. Muhamed Mustaque and Harisankar V. Menon examined whether the bank (appellant) has to be treated as an assessee in default for failure to deduct TDS on interest income paid to senior citizens who have ...
CGST Act | Gujarat High Court Upholds Power To Confiscate Goods During Transit For Tax Evasion, Clarifies Scope Of S.129 & 130
The Gujarat High Court has upheld the power of GST authorities to confiscate goods and conveyances during transit where there is a clear intent to evade tax, and has clarified the scope and interplay of Sections 129 and 130 of the Central Goods and Services Tax (CGST) Act, 2017. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi, while deciding a large batch of writ petitions, held that Sections 129 (detention and seizure of goods in transit) and 130 (confiscation of...
GST | CBIC Circulars Cannot Shield Dubious Transactions; Must Operate Within Statutory Framework: Calcutta High Court
The Calcutta High Court held that CBIC (Central Board of Indirect Taxes & Customs) circulars are binding on departmental officers but cannot be used as a protective shield in cases where the genuineness of the transaction or invoices is in doubt. Justice Om Narayan Rai stated that it cannot be doubted that a circular issued by the Central Board of Indirect Taxes & Customs would be binding on all its officers but at the same time there can also not be any cavil to the...
Delhi High Court Quashes ₹45.36 Crore GST Demand Against NBCC After Finance Ministry Clarification
The Delhi High Court has recently quashed a Rs 45.36 crore GST demand raised against NBCC (India) Ltd, a state-owned construction and project management company under the Ministry of Housing and Urban Affairs, in connection with the redevelopment of East Kidwai Nagar, New Delhi.A division bench of Justice Prathiba M Singh and Justice Shail Jain set aside the demand after relying on a clarification issued by the Ministry of Finance, which stated that the Union Ministry itself was the principal...
LiveLawBiz: Business Law Daily Round-Up: December 14, 2025
TAX Third-Country Invoicing Inapplicable For Electronic/Non-Electronic Toy Parts From China For Preferential Customs Duty Benefit: Mumbai AARIncome Tax Act | Gross Receipts Cannot Be Taxed As Income Without Deducting Expenses: Bombay High CourtArbitrationS.11 Arbitration Plea Not Maintainable Without Valid S.21 Notice; Email Suggesting Arbitrator Appointment Insufficient: Kerala High CourtReview Petition Can't Be Entertained Against Order Refusing To Appoint Arbitrator: Kerala High...
Income Tax Act | Gross Receipts Cannot Be Taxed As Income Without Deducting Expenses: Bombay High Court
The Bombay High Court has stayed the entire income tax demand raised against a state-funded educational trust, holding that the tax authorities erred in bringing gross receipts to tax without accounting for expenditure. A Division Bench of Justice B.P. Colabawalla and Justice Amit S. Jamsandekar, while allowing a writ petition filed by the assessee, Godavari Shikshan Prasarak Mandal, Sindhi, set aside an order of the Commissioner of Income Tax (Exemption), Pune, which had directed the...
Third-Country Invoicing Inapplicable For Electronic/Non-Electronic Toy Parts From China For Preferential Customs Duty Benefit: Mumbai AAR
The Mumbai, Customs Authority for Advance Ruling (CAAR) has clarified that there's no concept of third-party invoicing or third-country invoicing or third-country trade under the Rules for Determination of Country-Of-Origin under the Asia Pacific Trade Agreement (APTA) for imports of electronic or non-electronic toy-parts from China when Swiss supplier invoices Jparks India. In a ruling dated December 11, 2025 Shri. Prabhat K. Rameshwaram rejected Applicant's reliance placed on Circular...
ITAT Mumbai Deletes Additions Based On HSBC Geneva 'Base Note' Against Anil Ambani
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed a batch of appeals filed by the Revenue against businessman Anil Dhirajlal Ambani, holding that additions made on the basis of alleged undisclosed foreign bank accounts with HSBC Bank, Geneva were unsustainable in law. A Bench comprising Anikesh Banerjee (Judicial Member) and Girish Agrawal (Accountant Member) upheld the order of the Commissioner of Income Tax (Appeals), which had deleted both substantive and ...