Tax
Customs Authorities Lack Jurisdiction To Issue Directions Under GST Law: Madras High Court
The Madras High Court recently held that Customs authorities have no jurisdiction to issue directions under the Goods and Services Tax (GST) law. The Court struck down a February 2021 public notice issued by the Chennai Customs that sought to regulate the GST treatment on auctioned cargo.A single bench of Justice N Anand Venkatesh ruled that such powers lie exclusively with authorities designated under the GST Act."It is not known as to where the 1st respondent gets the power and jurisdiction to...
S.36(1)(vii) Income Tax Act | Closing Individual Debtor Accounts Not Mandatory For Bad Debt Deduction: Kerala High Court
The Kerala High Court stated that closing individual debtor accounts is not mandatory for bad debt deduction under Section 36(1)(vii) of the Income Tax Act, 1961. Section 36(1)(vii) of the Income Tax Act, 1961, deals with the deduction of bad debts. It allows the taxpayer to claim a deduction for bad debts that have been written off in the books of accounts during the previous financial year. Justices A. Muhamed Mustaque and Harisankar V. Menon, after referring to the case of...
Customs Housing Agent Can Be Made Liable For Wrongdoings Of Employees, Must Exercise Due Diligence: Delhi High Court
The Delhi High Court has made it clear that a Customs Housing Agent is responsible for the actions of its employees and it must exercise due diligence in supervising their activities.A division bench of Justices Prathiba M. Singh and Shail Jain further held that a CHA may be held accountable for the wrongdoings of its employee but, the punishment in that regard has to be proportionate.The observations come in an appeal preferred by a CHA against revocation of its license over misdeclaration in...
Customs Brokers Licensing Regulations | 'Offence Report Need Not Be Penal'; 90-Day Period Begins Only Upon Receipt Of Report: Madras High Court
The Madras High Court stated that the offence report under Regulation 17(1) Customs Brokers Licensing Regulations, 2018, need not necessarily have a penal connotation. Also, it stated that the 90-day limitation period begins only upon receipt of the offence report.The bench stated that, "the offence report must be received by the office of the licensing authority, and the limitation period will start running only from the date of its receipt. Even if the licensing authority can be attributed...
Tax Weekly Round-Up: October 20 - October 26, 2025
SUPREME COURTSupreme Court To Examine If Transfer Of Leasehold Rights Attracts GSTCase no. – Special Leave Petition (Civil) Diary No. 52380/2025Case Title – Union Of India & Anr. v. M/S Life Sciences Chemicals & Anr.The Supreme Court is set to examine whether the assignment of leasehold rights constitutes a “transfer of land” or amounts to a “supply of service” under the Goods and Services Tax (GST) regime.A bench of Justice Pankaj Mithal and Justice Prasanna B. Varale was dealing with...
Unregistered Firm Can Sue To Enforce Statutory Or Common Law Rights; S.69(2) Partnership Act No Bar: Delhi High Court
The Delhi High Court has held that Section 69(2) of the Partnership Act, 1932 is not an embargo to suits filed by unregistered firms, if any statutory or common law right is being sought to be enforced.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“Section 69 of the Indian Partnership Act, 1932 has an embargo on an un-registered firm from filing a suit or any proceeding for enforcement of a right. However, the exceptions to the said provision are carved out in Haldiram...
GST | Assessee Entitled To Copy Of Seized Electronic Data Unless Prejudicial To Investigation: Delhi High Court
The Delhi High Court has made it clear that an assessee is entitled to copies of the data stored on its electronic devices which are seized by the GST Department, unless the same is prejudicial to the probe.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“A perusal of Section 67(5) of the CGST Act clearly shows that copies of the seized data cannot be denied to the Petitioner. However, such copies can be made in the presence of an Authorised Officer, unless it is recorded...
Delhi High Court Directs Customs To Ensure Strict Implementation Of Minimum Import Price On Soda Ash
The Delhi High Court has directed the Customs authorities to ensure strict implementation of the Minimum Import Price (MIP) imposed by DGFT on Soda Ash, warning of stringent action in case of any violations.A division bench of Justices Prathiba M. Singh and Shail Jain gave “clear directions to all the Customs Authorities…to ensure that the Notification No. 46 of 2024-25 along with Notification No.23 of 2025-26 shall be implemented strictly in letter and spirit. If any Commissionerate of Customs,...
S.107 GST Act | Taxpayer Can't Ignore Order Merely Because Copy Was Illegible: Delhi High Court
The Delhi High Court has made it clear that a taxpayer cannot ignore an order passed against it and uploaded on the GST portal, merely because copy of the order was allegedly illegible.A division bench of Justices Prathiba M. Singh and Shail Jain thus refused to condone the taxpayer's delay in filing appeal against a GST demand order merely on the ground that the order supplied to it was illegible. It observed,“The contention of the Petitioner is that the Order-in-Original dated 04th February,...
'Don't Blindly Trust AI'; Bombay High Court Quashes Income Tax Assessment Passed On Unverified AI-Generated Case Laws
The Bombay High Court has quashed an income tax assessment after noting that the Assessing Officer had relied upon non-existent, AI-generated case laws while passing the assessment order. The Court stated that in the era of Artificial Intelligence, the tax authorities cannot blindly rely on such AI-generated results. AI-generated case laws must be cross-verified before using them in quasi-judicial functions. Justices B.P. Colabawalla and Amit S. Jamsandekar stated that in this era...
Unsigned GST Demand Order Valid If Accompanied By DRC-07 Bearing Officer's Details: Delhi High Court
The Delhi High Court has held that an unsigned GST demand order is valid, if the same is accompanied by DRC-07 which contains the details of the official who passed the order.DRC 07 is a summary of the demand order issued by the proper officer, to be uploaded on GST Portal, specifying the amount of tax, interest or penalty payable.A division bench of Justices Prathiba M. Singh and Shail Jain were dealing with a petition moved by Future Consumer Limited, challenging the demand order on the ground...
Delhi High Court Dismisses Income Tax Dept's Appeals Against Remfry & Sagar Law Firm Over Goodwill License Fees
The Delhi High Court has upheld an order of the ITAT allowing IPR law firm Remfry & Sagar to treat the license fees paid by it to acquire its founder's goodwill, as a business expense deductible under Section 37 of the Income Tax Act.A division bench of Justices V. Kameswar Rao and Vinod Kumar thus dismissed the appeals preferred by the Income Tax Department against the firm.The Court heavily relied on Pr. Commissioner Of Income Tax -21 v. M/S.Remfry & Sagar (2025) where a coordinate...