CESTAT Delhi Quashes ₹3 Lakh Penalty On Customs Broker, Finds No Evidence Of Knowledge Of Export Overvaluation

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has set aside a ₹3 lakh penalty imposed on a customs broker in a case relating to the alleged overvaluation of export goods by Sharp Enterprises. The tribunal held that there was nothing on record to show that he was involved in, or had knowledge of, the alleged overvaluation. A bench of Technical Member P.V. Subba Rao observed: “There is also nothing on record to show that the appellant had...

ITAT Ahmedabad Deletes ₹20 Crore+ 14A Disallowance Against Axis Bank, Bars Mechanical Use of Rule 8D

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 20 May held that disallowance under Section 14A of the Income Tax Act cannot be made by mechanically invoking Rule 8D unless the Assessing Officer first records dissatisfaction with the taxpayer's own computation of expenditure relatable to exempt income. Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta allowed the appeal filed by Axis Bank Limited and directed deletion of the disallowance made under Section...

ITAT Bangalore Allows 80P Deduction On Interest Income Earned From Co-Operative Bank Deposits

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) on 20 May held that a co-operative credit society is entitled to deduction under Section 80P of the Income Tax Act on interest income earned from deposits placed with co-operative banks, as the income remains attributable to its business of providing credit facilities to members. A single-member Bench comprising Vice-President Shri Prashant Maharishi also held that transactions with nominal members do not disentitle the society...

Trust Eligible For 80G Approval For Religious Activities If Expenditure Stays Within 5% Cap: ITAT Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 May held that authorities cannot deny approval under Section 80G of the Income Tax Act to a trust or institution merely because it undertakes religious activities, so long as its expenditure on such activities does not exceed five per cent of its total income in the relevant year. Judicial Member Raj Kumar Chauhan and Accountant Member Brajesh Kumar Singh allowed the appeal filed by Shri 108 Gupti Sagar Dham Jain Trust and...

Supreme Court Seeks Attorney General's Intervention Over Long-Vacant Administrative Posts In ITAT

The Supreme Court on May 26 expressed concern over longstanding vacancies in the administrative establishment of the Income Tax Appellate Tribunal (ITAT) and sought the intervention of the Attorney General for India to ensure that the posts are filled expeditiously.The petition filed by Parveen Kumar Bansal, sought directions for immediate initiation and completion of the recruitment process for vacant posts including Deputy Registrar and Assistant Registrar, besides convening long-pending...

Tax Department Cannot Force Net Asset Value Method When Taxpayer Uses Discounted Cash Flow: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 May dismissed the Revenue's appeal against First Class Infrabuild Pvt. Ltd. and held that the Tax Department cannot force a taxpayer to adopt the Net Asset Value (NAV) method when the law permits valuation under the Discounted Cash Flow (DCF) method for determining fair market value under Section 56(2)(viib) of the Income Tax Act. Judicial Member Satbeer Singh Godara and Accountant Member M. Balaganesh upheld the order of the...

Gujarat AAR Rules 'Black Mineral Water' Classifiable As Mineral Water, Taxable At 5% GST

The Gujarat Authority for Advance Ruling (AAR) on 8 May 2026 held that “Black Mineral Water” marketed under the brand “ALVA” by Oxyhydra Beverages Pvt. Ltd. qualifies as mineral water under HSN 22011010 and attracts GST at 5%. A Bench comprising SGST Member Sushma Varma and CGST Member Vishal Malani held: “The applicant's product contains added minerals only and contains no flavouring or sweeteners & therefore the product squarely fits within the scope of HSN 22011010.” Oxyhydra Beverages...

ITAT Mumbai Quashes Bang Overseas Reassessment, Holds PCIT Sanction Invalid Under Section 151(ii)

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 25 May quashed reassessment proceedings initiated against Bang Overseas Limited, holding that the sanction for issuing notice under Section 148 of the Income Tax Act, 1961 violated Section 151(ii) of the Act. Vice President Saktijit Dey and Accountant Member Prabhash Shankar clarified that where authorities issue a notice after the expiry of three years from the end of the relevant assessment year, they must obtain approval from...

ITAT Delhi Grants Relief To Welkin Industries, Holds Form 10-IC Delay Cannot Deny 115BAA Benefit

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 May held that a procedural delay in filing Form 10-IC cannot deny a taxpayer the benefit of the concessional 22% corporate tax regime under Section 115BAA of the Income Tax Act, 1961. Accountant Member S. Rifaur Rahman and Judicial Member Sudhir Kumar allowed the appeal filed by Welkin Industries Private Limited against the order of the Commissioner of Income Tax (Appeals), Lucknow, for Assessment Year 2022-23, and directed the...

Digital Evidence Alone Insufficient For Section 69A Addition, Tangible Assets Must Be Found: ITAT Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal on 26 May held that authorities cannot sustain additions under Section 69A of the Income Tax Act in the absence of recovery of unexplained money, bullion, jewellery or other valuable articles from the taxpayer, and cannot invoke the provision merely on the basis of digital material indicating alleged transactions. Judicial Member Sudhir Kumar and Accountant Member Manish Agarwal partly allowed the appeal filed by Sham Sunder Dhingra for...

Gujarat AAR Allows ITC On Inputs, Services Used To Set Up CCV Tower For Insulated Cable Manufacturing

The Gujarat Authority for Advance Ruling (AAR) has ruled that Apar Industries Ltd. can avail Input Tax Credit (ITC) on goods and input services used for setting up a Continuous Catenary Vulcanization (CCV) tower at its manufacturing facility. The tower is used in the manufacture of insulated electrical cables. A bench comprising CGST Member Vishal M. Ladani and SGST Member Subham Roy passed the ruling in an application filed by Apar Industries Ltd. “On going through the layout of the CCV tower...

CESTAT Chennai Sets Aside Confiscation Of Sanitary Napkin Imports Over Alleged Violations Of BIS Norms

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has set aside a customs order confiscating sanitary napkin imports worth over ₹2.12 crore. It found that the adjudicating authority failed to properly examine the importer's claim that it qualified as an MSME, along with other contentions on the applicability of BIS compliance norms. A bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao held that the Commissioner's order could not be sustained. ...