Tax
'Seems Tax Department Has Not Trusted Even Its Lawyers' : Supreme Court Flags Procedural Delays In IT Dept's Petition Filings
The Supreme Court recently criticised the Income Tax Department for filing its Special Leave Petition after a delay of 524 days, observing that the Department, despite having an entire team of legal experts, failed to act on its own lawyers' advice and instead allowed time to be wasted in unnecessary and prolonged litigation. A bench comprising Justices Pankaj Mithal and Prasanna B. Varale expressed strong dissatisfaction with the Department's explanation for the massive delay, noting that "no...
Income Tax Act | Reassessment Against Entity Converted Into LLP Is Void: Bombay High Court Sets Aside S.148 Notice Issued To Defunct Company
The Bombay High Court has set aside a reassessment notice issued under Section 148 of the Income Tax Act, 1961 against a company that had ceased to exist due to conversion into a Limited Liability Partnership (LLP), holding that reopening of assessment against a non-existent entity is “illegal and bad-in-law”. A Division Bench of Justice B.P. Colabawalla and Justice Amit S. Jamsandekar was hearing a writ petition filed by Erangal Comtrade and Consultancy LLP (successor of Erangal...
Edible Crude Palm Kernel Oil Qualifies For Duty Exemption, End-Use Condition Inapplicable: Gujarat High Court
The Gujarat High Court in a writ petition has quashed a show cause notice creating duty demand of about Rs. 464 crores on import of Crude Palm Kernel Oil (Edible Grade). The Division Bench, comprising Justice Bhargav D. Karia and Justice Pranav Trivedi ruled on whether Oil even if of edible grade but required refining before human consumption qualified for customs duty exemption under Notification No. 12/2022-Customs r/w Notification No. 21/2002-Customs (Exemption Notification). The...
Commission Earned By Indenting Agent To Foreign Group Entities Is 'Export Of Services': CESTAT Mumbai Sets Aside ₹2.77 Crore Service Tax Demand
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Mumbai has stated that the commission earned for acting as Indenting agent to its foreign group companies qualifies as 'Export of Services', and therefore is not liable to service tax under the Finance Act, 1994. A Division Bench comprising Member (Judicial) S.K. Mohanty and Member (Technical) M.M. Parthiban set aside the ₹2.77 crore service tax demand (along with interest and penalty) confirmed by the Principal...
MP High Court Dismisses Builder's Plea Seeking Refund Of Differential GST On Account Of Upward Rate Revision
The Madhya Pradesh High Court has dismissed writ petition by a builder seeking reimbursement or refund of differential 6% GST on account of increase in rate (from 12% to 18%) on government works contract w.e.f. July 18, 2022. Pursuant to the recommendation of the 47th GST Council Meeting which approved suggestions of the Group of Ministers on Rate Rationalization, increased GST rate (from 12% to 18%) on works contract was notified vide Notification No. 03/2022 Central Tax (rate) dated...
CBIC Notifies Officer-Wise Monetary Limits For Tax Determination & Penalty Proceedings Under GST Regime
The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 254/11/2025-GST dated 27 October 2025, clarifying the assignment of “proper officers” for issuing show cause notices (SCNs) and passing orders under Sections 74A, 75(2) and 122 of the Central Goods and Services Tax Act, 2017. The Board noted that until now, no specific officers had been designated for; tax determination under Section 74A,re-assessment under Section 75(2) where charges of fraud are not...
Customs Cannot Take Independent View Against CESTAT Classification; Wheat Gluten Eligible For DFIA Exemption: Madras High Court
The Madras High Court has held that once CESTAT has classified wheat gluten as eligible for DFIA (Duty-Free Import Authorisation) exemption, Customs authorities are bound by those findings and cannot independently deny the exemption benefits. Justice N. Anand Venkatesh stated that the impugned orders have been passed only on the ground that Wheat Gluten is not covered under the DFIA Licence and, therefore, the assessee is not eligible to claim exemption. If the CESTAT has already...
NFAC Doesn't Take Away Jurisdictional Assessing Officer's Power To Initiate Reassessment U/S 148 Income Tax Act: Delhi High Court
The Delhi High Court has held that the Jurisdictional Assessing Officer (JAO) and Faceless Assessing Officer (FAO) have jurisdiction to issue reassessment notices under Section 148 of the Income Tax Act, 1961.The position has been in dispute since introduction of the E-Assessment of Income Escaping Assessment Scheme, 2022, which led to the setting up of the National Faceless Assessment Centre with Faceless Assessing Officers.Petitioner-assessee argued that now, FAO alone has jurisdiction to...
Income Tax Reassessment Notice Generated On Last Day Of Limitation But Uploaded Next Day Due To Portal Glitch Is Time-Barred: Delhi HC
The Delhi High Court recently found time-barred, an income tax reassessment notice generated by the Department on the last day of the limitation window but, issued to the assessee only a day after.The limitation period in the case at hand expired on June 30, 2025 (inclusive).The Income Tax Department claimed that the notice was generated on June 30, 2025 at 21:14:46 and signed on June 30, 2025 at 21:16:15 however, due to a technical glitch, it was shared on the assessee's e-filing portal only...
S.74(5) | GST Proceedings Can Be Closed On Payment Of 15% Pre-SCN Penalty Where Tax Already Deposited Prior To SCN: Delhi High Court
The Delhi High Court recently allowed Delhi Sales Corporation to deposit pre-SCN penalty contemplated under Section 74(5) of the Goods and Services Tax Act, despite issuance of show cause notice under Section 74(8).This, after a division bench of Justices Prathiba M. Singh and Shail Jain noted that the Petitioner-Corporation had already deposited tax and interest in terms of Section 74(5).For context, section 74 pertains to Determination of tax not paid or short paid. It contemplates issuance of...
Income Tax Act | ITAT Delhi Grants Relief In S.10(10D) Dispute; AO Directed To Reassess ULIP Maturity Proceeds Treated as Unexplained Investment
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has remitted back the addition of capital gains deduction to the Assessing Officer (AO) for fresh adjudication in absence of a remand report despite repeated reminders.The Bench, comprising Mr. Mahavir Singh (Vice President) on the claim of assessee that income was an exempt income for being a sum received under life insurance policy noted AO's failure to furnish remand report. “It is noted that Ld. CIT(A) has admitted the additional...
Reconsidering Cap On Value Of Gold Jewellery Permitted At Airports: CBIC To Delhi High Court
The Central Board of Indirect Taxes and Customs has informed the Delhi High Court that it is considering increasing the cap on the value of gold that can be carried by a person travelling to India by air.Currently, the Baggage Rules 2016 permit any jewellery of 20 grams with a value cap of Rs. 50,000/- in case of a man and 40 grams with a value cap of Rs. 1,00,000/- in case of a woman to be cleared free of duty.A division bench led by Justice Prathiba M. Singh had earlier highlighted that this...