Non-Resident Company Need Not Have Permanent Office In India To Be Taxed On Income Accruing Here : Supreme Court

The Supreme Court has clarified that under the Income Tax Act, a non-resident company can be taxed in India on income that accrues or arises from a business connection within the country, even if it does not maintain a permanent office or physical establishment here.A Bench of Justice Manoj Misra and Justice Joymalya Bagchi, in its judgment examined the scope of Sections 4, 5(2), and 9(1)(i) of the Income Tax Act, 1961, and held that the statute does not make it mandatory for a non-resident...

Assessment Order Not Void Solely Because It Was Passed in Deceased's Name: ITAT Chandigarh

The Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, recently held that an appellate order passed by the Commissioner of Income Tax (CIT), reassessing the income tax liability of an assessee, is not invalid merely because it was issued in the name of a deceased person. The Tribunal noted that since the appeal itself was filed under the deceased's name, the order cannot be quashed on that ground alone.Judicial Member Laliet Kumar and Accountant Member Manoj Kumar Aggarwal observed, “since...

Mens Rea Not Prerequisite For Imposing Penalty U/S 117 Of Customs Act: Karnataka High Court

The Karnataka High Court held that mens rea is not a prerequisite for imposing a penalty under Section 117 of the Customs Act. Section 117 of the Customs Act, 1962, addresses penalties for contraventions not specifically mentioned elsewhere in the Act. Justices S.G. Pandit and K.V. Aravind stated that a plain reading of Section 117 of the Act makes it clear that whenever any person contravenes any provision of the Act or fails to comply therewith, a penalty is attracted. Reading a...

Show Cause Notice Cannot Be Issued Solely On Basis Of Voluntary Disclosure Under SVLDRS Scheme: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that a show cause notice cannot be issued solely based on voluntary disclosure by the assessee under the SVLDRS Scheme [Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019]. The bench, consisting of P.A. Augustian (Judicial Member) and R. Bhagya Devi (Technical Member), agreed with the Commissioner that even though documents were placed before the authorities concerned, the original...

Information Regarding GST Returns Of Company Cannot Be Disclosed Under RTI Act: Bombay High Court

The Bombay High Court on Tuesday (October 14) held that a company's Goods and Services Tax (GST) returns filing cannot be disclosed under the Right To Information (RTI) Act. Sitting at Aurangabad bench, single-judge Justice Arun Pednekar noted that section 158(1) of the GST Act prohibits disclosure of information of GST returns to third parties and that section 8(1)(j) of the RTI Act too exempts certain information from being made public unless the information officer is satisfied that the...

ITC Cannot Be Denied To Bona Fide Purchasers If Seller Defaults On Tax Payment : Supreme Court

The Supreme Court recently held that the Input Tax Credit (ITC) on goods purchased from registered dealers cannot be denied to bona fide purchasers merely because the seller failed to deposit the Value Added Tax (VAT) with the government.A bench of Justice Manoj Misra and Justice Nongmeikapam Kotiswar Singh observed that there was no infirmity in the order of Delhi High Court granting credit to the respondent, a bonafide purchaser. “We do not find a good reason to interfere with the order...

SARFAESI Charge Created Before GST Charge Takes Precedence Over It: Karnataka High Court

'If a claim is made under the IBC Act and there is no claim under the SARFAESI Act, RDB Act, or GST Act, the claim under the IBC Act can be implemented without issue. Similarly, if a claim is made under the GST Act and there are no claims under the SARFAESI Act, RDB Act, or IBC Act, the claim under the GST Act can be executed without difficulty'

Income Tax Act | Deputy Commissioner Cannot Act Beyond DRP Directions; Assessment After S.144C(13) Time Limit Invalid: Bombay High Court

The Bombay High Court stated that the Deputy Commissioner cannot act beyond the dispute resolution panel (DRP) directions; assessment completed beyond Section 144C(13) of the Income Tax Act, 1961, the time limit is invalid. Section 144C(13) of the Income Tax Act, 1961 mandates the completion of the assessment within one month from the end of the month in which DRP directions are received. Justices B.P. Colabawalla and Amit S. Jamsandekar stated that the Deputy Commissioner cannot...

Property Tax Is First Charge On Property; Auction Purchaser Liable To Pay It Before Sale: Calcutta High Court

The Calcutta High Court has held that property tax is a first charge on property and the auction purchaser is liable to pay property tax prior to sale. The bench stated that where a statutory first charge is created on the property, such as in respect of property tax under Section 232 of the Kolkata Municipal Corporation Act, 1980, the municipal authority is entitled to enforce such charge independently in accordance with the statutory mechanism provided therein. In such a situation,...

IRCTC's Food Plaza Licenses Not 'Renting Of Immovable Property': CESTAT Quashes ₹2.88 Crore Service Tax Demand

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, recently held that the arrangement between Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) and private vendors for operating Food Plazas at railway premises does not amount to 'renting of immovable property' and, thus, does not attract service tax under that category.A two-member coram comprising Judicial Member Binu Tamta and Technical Member P V Subba Rao held that the agreements were not lease...

Tax Weekly Round-Up: October 06 - October 12, 2025

SUPREME COURTSupreme Court Issues Notice To IndiGo On Plea Of Customs Dept & GST Council Against Ruling On IGST Exemption For Imported PartsCase : Principal Commissioner of Customs Acc (Import) and others v. Interglobe Aviation LtdCase no.: Diary No. 49140-2025The Supreme Court on Monday sought a response from IndiGo's parent company, InterGlobe Aviation, on a petition filed by the Customs Department challenging a Delhi High Court ruling that exempted the airline from paying Integrated Goods...

Income Tax | Manual Filing Of Appeal By NRI Valid For DTVSV Scheme Benefits: Gujarat High Court

The Gujarat High Court held that the manual filing of an appeal by an NRI is valid for DTVSV (Direct Tax Vivad Se Vishwas Scheme, 2024) Scheme Benefits. Justices Bhargav D. Karia and Pranav Trivedi were addressing the case where the petitioner/assessee has challenged the communication issued by the respondent authorities, whereby the declaration made by the assessee under the Direct Tax Vivad Se Vishwas Scheme, 2024 ('DTVSV Scheme, 2024'), is rejected on the ground that the appeal...