Tax
Limitation For ITAT Rectification Runs From Date Of Receipt Of Order, Not Date Of It's Passing: Bombay High Court
The Bombay High Court has held that the limitation period for filing a rectification application under Section 254(2) of the Income Tax Act begins when the assessee receives the ITAT order, and not merely from the date on which the order is passed. The Court ruled that the Income Tax Appellate Tribunal (ITAT) had completely misdirected itself in rejecting a rectification plea by Accost Media LLP as time-barred. A Division Bench of Justice B.P. Colabawalla and Justice Amit S. Jamsandekar...
Services To Marriott Hotel In Hong Kong Are 'Export Of Services': CESTAT Mumbai Sets Aside Service Tax Demand
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has held that services rendered by Marriott Hotels India Pvt. Ltd. to its overseas group entity Marriott Hong Kong qualify as export of services, and therefore cannot be subjected to service tax under the Finance Act, 1994. A Division Bench of Member (Judicial) S.K. Mohanty and Member (Technical) M.M. Parthiban allowed three connected appeals filed by Marriott India, and set aside the entire service tax demand, ...
LiveLawBiz: Business Law Daily Round-Up: December 05, 2025
TAX Income Tax Appeal Cannot Be Rejected Solely For Assessee's Non-Appearance Before CIT(A): Kerala High Court Interest On Delayed Agricultural Income Tax Not Deductible U/S 37 Income TaxAct: Kerala High Court Income From Public Religious/Charitable Trusts Not Eligible For ExemptionU/S 10(23BBA) Income Tax Act: Kerala High Court Non-MonetaryBenefits From Manufacturer “Promotional” In Nature, Taxable UnderGST: Tamil Nadu AAR DelayBy Authority In Sanctioning Refund Claim Is 'Sufficient...
Income Tax Appeal Cannot Be Rejected Solely For Assessee's Non-Appearance Before CIT(A): Kerala High Court
The Kerala High Court has held that an Income Tax Appeal cannot be rejected solely for the assessee's non-appearance before the Commissioner of Income Tax (Appeals). Justice Ziyad Rahman A.A. stated that none of the provisions in Section 250 of the Income Tax Act permit the appellate authority to reject the appeal on the ground of non-appearance of the assessee/appellant, without going into the merits of the case. In this case, the assessee/petitioner had filed an appeal,...
Interest On Delayed Agricultural Income Tax Not Deductible U/S 37 Income Tax Act: Kerala High Court
The Kerala High Court has held that interest on delayed agricultural income tax is not deductible under Section 37 Income Tax Act. Section 37 of the Income Tax Act provides deductions on expenses which are directly related to a business's operations. Justices A. Muhamed Mustaque and Harisankar V. Menon examined whether the interest paid on account of the delayed payment of Agricultural Income Tax is eligible for deduction under Section 37 of the Income Tax Act, 1961. The ...
Income From Public Religious/Charitable Trusts Not Eligible For Exemption U/S 10(23BBA) Income Tax Act: Kerala High Court
The Kerala High Court has held that income derived from public religious/charitable trusts is not eligible for exemption under Section 10(23BBA) of the Income Tax Act. Section 10(23BBA) of the Income Tax Act, 1961, provides a complete exemption from income tax for the income of a body or authority that has been established, constituted, or appointed under any Central, State, or Provincial Act specifically for the administration of public religious or charitable trusts or endowments. ...
Non-Monetary Benefits From Manufacturer “Promotional” In Nature, Taxable Under GST: Tamil Nadu AAR
The Tamil Nadu Bench of Authority for Advance Ruling (AAR), comprising C. Thiyagarajan (CGST Member) and B. Suseel Kumar (SGST Member), has held that non-monetary benefits such as gifts, perquisites, and tour packages received by a dealer from a manufacturer amount to consideration for “support services” and are exigible to Goods and Services Tax (GST). A wholesale and retail paint dealer, approached the AAR seeking clarity on the GST implications of non-monetary benefits provided by...
Delay By Authority In Sanctioning Refund Claim Is 'Sufficient Cause' For Excluding Limitation: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that delay by the refund authority in sanctioning a refund claim is 'sufficient cause' for excluding limitation under Section 14 of the Limitation Act. Section 14 of the Limitation Act, 1963, allows for the exclusion of time spent in good faith in a previous civil proceeding from the calculation of the limitation period for a subsequent suit or application. Vasa Seshagiri Rao (Technical...
Classification Of Goods Is Factual Issue, Not For Writ Court To Decide: Kerala High Court Upholds Seizure & Provisional Release Conditions
The Kerala High Court has held that the classification of 'Nata de Coco' is a factual matter that must be decided by the adjudicating authority through statutory proceedings and not by the writ court. Justice Ziyad Rahman A.A. stated that since it is a statutory proceeding contemplated under Section 124 of the Act, which should be followed from the proceedings under Section 110 of the Act, the question as to be sustainability of the classification cannot be considered by this Court in...
No Input-Tax Credit On IGST Paid Through Pre-Consultation Letter Or TR-6 Challan: Gujarat AAR
The Gujarat Authority for Advance Ruling (AAR) has disallowed Input Tax Credit (ITC) worth Rs. 27,14,559 paid towards differential IGST demand for mold-cleaning machine import from China through pre‑consultation letter/TR‑6 challan. In a ruling dated November 24, 2025 Gujarat AAR comprising Shri. Vishal Malani (Memmer- Central Tax) and Smt. Sushma Vora (Member- State Tax) ruled on twin aspects relating to eligibility to avail ITC on the basis of pre-consultation letter and limitation in...
Nescafé Premix Is 'Instant Coffee', Attracts Lower Sales Tax Rate: Bombay High Court
The Bombay High Court in a matter concerning classification of Nescafé Premix and if it was exigible to sales tax at the rate of 8% or 16%, has held that a premix resulting in 'Coffee and Instant drinks' would be classifiable as such, attracting lower rate of tax. (8% not 16%). In a judgment dated November 27, 2025 the Bench comprising Justice M.S. Sonak and Justice Advait M. Sethna re-iterated the cardinal principle of taxation in the context of the Bombay Sales Tax Act, 1959 that...
Income Tax Act | Documents Seized From Actor Yash's Residence Make Him 'Searched Person': Karnataka High Court Quashes Order U/S 153C
The Karnataka High Court has held that the search conducted at Actor Yash's residence makes him a 'searched person' under the Income Tax Act, as documents were seized from him, during the search and a panchanama was drawn. Hence, the order under Section 153C of the Act, which applies to persons other than the one originally searched, is without jurisdiction. Section 153C of the Income Tax Act, 1961 allows the Income Tax Department to assess or reassess the income of a person other than...