Income Tax Act | Loan Repayment Within Two-Day Of Receipt Alone Doesn't Prove Bogus Transaction: Delhi High Court

The Delhi High Court has recently held that mere repayment of a loan within a short span of time, even within two days, does not by itself establish that the transaction was a sham or a bogus accommodation entry for the purposes of Section 68 of the Income Tax Act, 1961.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“Simply because the loan has been paid within two days, it cannot be said with certitude that the loan was not a genuine loan and was only a paper entry....

Bombay High Court Directs Mumbai Stamps Collector To Expedite Decision On Developer's Representation

The Bombay High Court has directed the Additional Collector of Stamps, Mumbai, to expeditiously decide a representation filed in 2022 by a Mumbai-based developer seeking reconsideration of the Ready Reckoner rates applicable to its residential project. A Division Bench of Justice M. S. Karnik and Justice S. M. Modak granted the Additional Collector twelve weeks from the date of communication of the order to hear the developer and decide the representation on merits. The Court also directed the...

S.148 Income Tax Act | Assessing Officer Not Required To Share Entire Record At Reassessment Notice Stage: Delhi High Court

The Delhi High Court has held that an Assessing Officer is not required to supply the entire material on record to an assessee at the stage of issuing a notice under Section 148A of the Income Tax Act ,1961 (re-assessment stage) observing that such a requirement would unnecessarily protract reassessment proceedings and enable assessees to manufacture defences.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“If it is held that every material has to be supplied to the assessee...

Wrong Attachment In Reassessment Email Does Not Invalidate Income Tax Notice: Delhi High Court

The Delhi High Court has held that an inadvertent attachment of another assessee's notice along with a reassessment email doesn't invalidate proceedings under Section 148 of the Income Tax Act, 1961, so long as the substance of the communication clearly indicates that the statutory notice was intended for the concerned assessee.A division bench of Justices Dinesh Mehta and Vinod Kumar thus dismissed the writ petition filed by an assessee challenging the continuation of reassessment proceedings...

S. 197 Income Tax Act| Delhi High Court Flags Date Mismatch Between Orders And Certificates Issued For Lower TDS, Asks CBDT To Address

The Delhi High Court has flagged an administrative issue in the processing of applications under Section 197 of the Income Tax Act, noting that a mismatch between the dates on orders and certificates issued for lower or nil tax deduction can create a misleading impression of delay. The court noted that while the certificate may be issued later, the order deciding the application often bears the date of filing of the application. A division bench of Justices Dinesh Mehta and Vinod Kumar...

GST Appeal Limitation Starts From Date Of Rejection Of Rectification Order: Gujarat High Court

Recently, the Gujarat High Court clarified that when a rectification application is filed, the limitation period for filing an appeal under Section 107 of the CGST Act runs from the date of disposal of the rectification application, not the original order. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi noted the delay in adjudication where a rectification application against an original order dated 12 August 2024 was filed on 5 November 2024, to be decided within...

CESTAT Allows Nil Basic Customs Duty On Sterling Silver Jewellery Imported From Thailand

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) recently allowed a jeweller to claim nil basic customs duty on sterling silver jewellery imported from Thailand, ruling that customs authorities were wrong to deny the benefit just because the importer did not provide some information. Nil basic customs duty refers to zero customs duty payable on certain imports under applicable trade agreements. A Bench comprising Judicial Member Dr. Rachna Gupta was...

Bulk Imported Nutraceutical Ingredients Cannot Be Classified As "Edible Preparations": CESTAT Delhi

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that nutraceutical ingredients imported in bulk cannot be classified as “edible preparations” and therefore do not attract a higher customs duty. The Bench, comprising President Justice Dilip Gupta and Technical Member Hemambika R. Priya, set aside a customs duty demand of Rs. 7 crore raised against Sundyota Numandis Probioceutical Private Limited on allegations of misclassification of imported...

Electricity Supplied To State Board Not Eligible For CENVAT Credit: CESTAT Chandigarh

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that a manufacturer is not entitled to CENVAT credit on fuel used to generate electricity that is wholly supplied to the State Electricity Board (SEB), even if an equivalent quantity of power is later received back through a synchronisation arrangement. A Bench of Judicial Member S.S. Garg and Technical Member P. Anjani Kumar observed that since the electricity generated using the inputs was...

2017 CBIC Circular On Proper Officers' Powers Under CGST Act Is Valid: Delhi High Court

The Delhi High Court upheld a 2017 Circular issued by the Central Board of Indirect Taxes and Customs (CBIC) assigning functions to officers under the CGST Act, holding that it is legally valid when issued pursuant to a proposal by the Commissioner in the Board and approved by the Board under Section 168(2) of the CGST Act, 2017. In a judgement dated 2 February 2026, a Bench of Justice Nitin Wasudeo Sambre and Justice Ajay Digpaul dismissed a challenge to the validity of Circular No. 3/3/2017,...

Subsidised Sales Don't Bar ITC, Milling By-Products Not Taxable Under AP VAT: Andhra Pradesh High Court

The Andhra Pradesh High Court on 2 February held that input tax credit (ITC) cannot be disallowed merely because essential commodities are sold at subsidised prices fixed by the State Government. It further held that by-products such as broken rice, bran and husk retained by millers during the milling of paddy do not constitute a taxable disposal or transfer attracting levy under the Andhra Pradesh Value Added Tax Act, 2005. A Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar was...

Supreme Court Issues Notice On Challenge To Delhi HC View That Customs Need Not Communicate Adjudication Time Extension

The Supreme Court recently (February 6) issued notice in a challenge to a Delhi High Court ruling that held that customs authorities were not required to communicate an extension granted for completing adjudication proceedings and directed that the matter be heard along with a pending appeal. A bench comprising Justices P.S. Narasimha and Alok Aradhe issued notice in the special leave petition filed by Pranij Heights India Pvt. Ltd. and directed that it be listed along with the pending SLP in...