ITAT Mumbai Sets Aside CIT(A) Enhancement Of Taxable Income On Issue Not Examined By AO

The Income Tax Appellate Tribunal (ITAT) at Mumbai has held that the Commissioner of Income Tax (Appeals) cannot enhance an assessment by introducing a fresh issue that was never examined by the Assessing Officer, setting aside an addition made through adjustment of work in progress in the case of Skyline Greathills, a real estate company. A Bench of Vice President Saktijit Dey and Accountant Member Arun Khodpia observed, “Section 251(1) of the Act restricts the CIT(A) to assume...

Jio Infocomm USA's Receipts For Voice Termination Services Not Taxable As Royalty Or FTS In India: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that Rs. 23.20 crore received by Reliance Jio Infocomm USA Inc. for providing voice termination services to Reliance Jio Infocomm Ltd. cannot be treated as royalty or fees for technical services (FTS) under Indian tax law or the India–US tax treaty. It said the income is in the nature of business profits and therefore not taxable in India. The decision was delivered by Judicial Member Beena Pillai and Accountant Member...

CESTAT Mumbai Sets Aside ₹1.19 Crore Customs Duty Demand Against Sonova Over Hearing Aid Charging Cases

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently set aside a customs duty demand of about Rs 1.19 crore against Sonova Hearing India Pvt. Ltd. The order also wipes out the interest liability, an equal penalty, and a redemption fine of Rs 1 crore that had been imposed in the classification dispute over imported charging cases used with hearing aids. A bench of Judicial Member Dr. Suvendu Kumar Pati, and Technical Member M.M. Parthiban held that the product described...

GOQii Fitness Bands Not Pedometers But Data Communication Devices: CESTAT Mumbai Partly Allows Revenue Appeal

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai has ruled that GOQii activity trackers and fitness bands are not just simple pedometers, but devices with a range of features including the ability to communicate data. The tribunal partly allowed the Revenue's appeal against GOQii Technologies Pvt. LtdThe order was passed by a bench of Judicial Member Dr. Suvendu Kumar Pati and Technical Member M.M. Parthiban while deciding a dispute over how these imported devices should...

CESTAT Delhi Rejects AAI's ₹30.31 Lakh Excess Service Tax Refund Claim Over Delay

The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at New Delhi has dismissed an appeal filed by Airports Authority of India (AAI). The challenge was to an order that had upheld rejection of its refund claim of ₹30.31 lakh, which AAI said was excess service tax paid on lease rent charged to Bharat Petroleum Corporation Limited (BPCL). A coram of Judical Member Dr. Rachna Gupta, who heard the matter, held that merely claiming payment under mistake does not by...

CESTAT Grants Relief To Bharat Hotels, Sets Aside Service Tax On Forfeited Booking Advances

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently set aside a service tax demand against Bharat Hotels Limited on amounts retained upon cancellation of hotel room bookings.A coram of Judicial Member Binu Tamta and Technical Member P.V. Subba Rao allowed the appeal and held that advance amounts forfeited as “room retention charges” cannot be taxed under Section 66E(e) of the Finance Act, 1994. The tribunal recorded that Bharat Hotels had discharged service...

Allahabad High Court Upholds Ghaziabad Property Tax Revision Based On Minimum Monthly Rent Rate

The Allahabad High Court has upheld the Ghaziabad Municipal Corporation's revision of property tax based on minimum monthly rent rates (MMRR) under the U.P. Municipal Corporations Act, 1959.In a PIL challenging the revision of property tax and its enhancement based on MMRR, the bench of Chief Justice Arun Bhansali and Justice Kshitij Shailendra held: “we neither find any error in determination of 'MMRR' based upon categorization/classification of the properties nor any illegality in the...

ARN Cannot Be Equated With Valid GST Registration Certificate: Delhi High Court

The Delhi High Court has recently upheld Oil and Natural Gas Corporation's (ONGC) decision to reject a bid for failure to submit a valid Goods and Services Tax registration certificate at the time of bidding, holding that an Application Reference Number (ARN) cannot substitute a GST certificate in tender processes. A Division Bench of Justices V. Kameswar Rao and Manmeet Pritam Singh Arora, while dismissing a writ petition filed by Anantaa-MRKR-Arinfra (JV) Pvt. Ltd., said: “An ARN is only an...

Supreme Court Dismisses Income Tax Appeal Against Nokia Over Gross Delay Of 286 Days

The Supreme Court on Thursday dismissed the Income Tax Department's appeal against Nokia Corporation over a 286-day delay, leaving undisturbed the Delhi High Court's ruling that offshore supply of telecom equipment is not taxable, software payments are not royalty, and no permanent establishment existed in India.A Bench of Justices B.V. Nagarathna and Ujjal Bhuyan found no sufficient and satisfactory reason by the department to condone 286 days 'gross' delay and observed the following:“There is...

Can Delay Beyond Prescribed Time Limit In Service Tax Appeals Be Condoned Under Limitation Act? Supreme Court To Examine

The Supreme Court has agreed to examine whether delay in filing a service tax appeal beyond the 2-month deadline and the additional 1-month extension allowed under the law can be excused under Section 5 of the Limitation Act. Section 5 of the Limitation Act allows courts to accept delayed filings if sufficient cause for the delay is shown. A Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan issued notice on April 13, 2026 while hearing a petition filed by assessee Morthala Sidda...

Summary Processing Cannot Decide Debatable ESI, EPF Claims: Chhattisgarh High Court

The Chhattisgarh High Court on 16 April held that the Income Tax Department cannot invoke summary processing powers under Section 143(1)(a) of the Income Tax Act, 1961 to disallow claims involving debatable legal issues, including employee contributions towards ESI and EPF, as such adjustments fall outside the limited scope of prima facie scrutiny.A Division Bench of Justices Sanjay K. Agrawal and Sachin Singh Rajput allowed the appeal filed by Maa Harsiddhi Infra Developers Pvt Ltd...

Delhi High Court Grants Importers Interest On Customs Duty Refunds After Delay In Re-Assessment By Department

The Delhi High Court has recently held that importers are entitled to interest on refunds of excess customs duty in cases where prolonged delay in reassessment is attributable to the Department. A Division Bench of Justice Prathiba M. Singh and Justice Shail Jain observed, "For the delay in Department's passing of the re-assessment orders, the Petitioners cannot be blamed or expected to unduly suffer. Accordingly, the Court is of the view that in the said four writ petitions, the interest...