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ITAT : Mumbai ITAT Restores Assessment for Individual Taxpayer, Citing "Digital Divide" and Principles of Substantial Justice

ITAT : Mumbai ITAT Upholds Strict Application of Limitation Law; Denies Condonation of 315-Day Delay in Appeal Due to Lack of 'Sufficient Cause'

ITAT : Mumbai ITAT Upholds Section 54F Exemption Where Substantial Payments and Possession of Residential Property Occurred Within Statutory Period, Overruling AO’s Objection on Timing and Multiple Ow…

ITAT : Mere Continuation of Outstanding Trade Liabilities Without Actual Remission or Write-Back Does Not Attract Section 41(1) Taxation

ITAT : Delhi ITAT Rules Booking.Com B.V.'s Commission Income Not Taxable in India: No Fixed Place or Agency PE Established, SEP Provisions Inapplicable for Relevant Year

HC : Punjab & Haryana High Court Affirms: Mere Surplus Generation Not Sufficient Ground for Cancellation of Section 12AA Registration

ITAT : Delhi ITAT Nullifies Reassessment Notices Issued in Name of Amalgamating Company, Affirms Invalidity under Section 148 due to Non-Existence Post-Amalgamation

ITAT : Panaji ITAT Upholds Rs. 395.50 Cr Unexplained Cash Credit Addition Based on Incriminating Evidence and Destroyed Books: Mere Retraction of Director’s Statement Not Enough

ITAT : Delhi ITAT Invalidates Assessment—Notice by ITO Lacks Jurisdiction When Declared Income Exceeds ₹20 Lakhs, ACIT/DCIT Jurisdiction Upheld

ITAT : Hyderabad ITAT Invalidates Delayed Section 153C Notice Issued Post Ten Months from Searched Person’s Assessment Completion

ITAT : ITAT Bangalore Quashes Arbitrary Profit Estimation on Fixed License Fee Receipts Under Identical Excise Arrangements

ITAT : Delhi ITAT Strikes Down Parallel Reassessment Order: AO’s Dual Proceedings Against Lalit Kumar Modi Held Ultra Vires

ITAT : Raipur ITAT Nullifies Search Assessment for Lack of Genuine Section 153D Approval: Mechanical Rubber-Stamping by ACIT Fails Judicial Scrutiny

ITAT : Delhi ITAT Rules Absence of PE/DAPE for Danish Software Firm; Software License Profits Not Taxable in India

ITAT : Retrospective Cancellation of Trust’s Section 12A Registration Quashed by Lucknow ITAT; Assessee’s Genuineness Upheld after Assessment Order Set Aside

ITAT : ITAT Chennai Clarifies: Section 11 Exemption Not Denied for Property Registered in Trustee’s Name When No Personal Benefit Proven

ITAT : ITAT Chennai Clarifies: Section 11 Exemption Not Denied for Property Registered in Trustee’s Name When No Personal Benefit Proven

HC : Madras High Court Allows Extension for TDS Compounding Payment Amidst Genuine Financial Hardship; Revenue’s Technical Rejection Overruled

HC : Karnataka High Court Bars Double Taxation of Capital Gains from JDA: Deletes Addition in Year of GPA Execution Where Gains Already Taxed in Subsequent Year

HC : Punjab & Haryana High Court Affirms Sales Tax Subsidy for Backward Area Industrial Units as Capital Receipt, Not Taxable as Revenue Income

ITAT : Hyderabad ITAT Sets Aside Time-Barred Assessment Order Under Section 153C: Strict Adherence to Statutory Limitation Period Affirmed

ITAT : Mumbai ITAT Directs Fresh Evaluation of Disallowances under Sections 40(a)(i) and 40(a)(ia) After Scrutiny of TDS Compliance Where Payees Not Identified at Year-End

ITAT : Delhi ITAT Nullifies Assessment Order: AO’s Use of Search-Based Evidence in Set-Aside Proceedings Held Ultra Vires; Mandate for Separate Proceedings under Section 158BD Affirmed

ITAT : Delhi ITAT Rules in Favour of Employees Welfare Society: Allows Set-Off of Retirement Benefits Against Taxable Interest Income

ITAT : Delhi ITAT Sets Aside PCIT’s Section 263 Revision—AO’s Detailed 14A Disallowance Inquiry Upheld; No Error or Prejudice to Revenue Found

ITAT : Mumbai ITAT Upholds AO’s 148 Jurisdiction Where No Original Return Filed in Property Purchase Case

ITAT : ITAT Bangalore Allows Set-Off of Past Charitable Deficits Against Current Year Income for AY 2017-18, Citing Prospective Nature of Finance Act, 2021 Amendment

ITAT : Mumbai ITAT Recognizes Full Indexed Cost and Section 54 Deduction on Redeveloped Property: Assessee’s Capital Gains Tax Relief Upheld

ITAT : Delhi ITAT Rules Section 13(1)(c) Inapplicable on Overseas Grant Remittance, Limits Disallowance to Unutilized Funds in Case of Society’s Sub-Grant to University of Texas

ITAT : Lucknow ITAT Quashes Rectification under Section 154: Conflicting Legal Views on Refund Interest Preclude 'Mistake Apparent from Record'

HC : Gauhati High Court Relaxes Strict ITC Conditions: Buyer’s Right to Input Tax Credit Not to Be Denied for Supplier’s Non-Compliance Without Opportunity of Proof

AAR : West Bengal AAR Distinguishes GST Rates on Restaurant Food and Hookah Supplies: Separate Tax Treatments for Tobacco and Non-Tobacco Hookah Confirmed

HC : Calcutta High Court Rules Executive Circular Cannot Retrospectively Deny Refund of Unutilised ITC on Edible Oils; Adani Wilmar Secures Relief

AAR : Gujarat AAR Declares GST Exemption for Semen Sorting Services as Animal Husbandry Support, Cites Specific SAC Classification Over Residuary

AAR : GST Liability Triggered on Receipt of Mobilisation Advance for Works Contract: Gujarat AAR Rules in Infrastructure Project Case

AAR : Gujarat AAR Clarifies: Paddle Wheel Aerators for Aquaculture Attract 18% GST under HSN 8479, Not Agricultural Machinery

AAR : West Bengal AAR: Security Services to FCI Not GST-Exempt as ‘Pure Services’ to Government Entity

AAR : Waste Transport Services to Howrah Municipal Corporation Ruled as GST-Exempt ‘Pure Services’: West Bengal AAR Decision Clarifies Exemption Scope under Sr. No. 3 of Notification No. 12/2017-CT (R…

HC : Andhra Pradesh High Court Quashes GST Refund Recovery Orders Post-Omission of Rule 96(10); Directs Reversal of Rs. 11.2 Crore Demand Against Exporter

HC : Bombay High Court Orders Immediate Unfreezing of Wipro’s Bank Account; Recovery Under Section 79 Set Aside Due to Credit Note Reconciliation Dispute

HC : Madras High Court Clarifies ISD ITC Distribution: Distribution Triggered Only Upon Fulfillment of Section 16(2) Conditions, Not Just Invoice Date

HC : Bombay High Court Quashes Rs. 54 Crore GST Demand: Adjudication Order Held Void for Mechanical Disposition and Breach of Natural Justice

HC : Madhya Pradesh High Court Affirms Broad Appellate Powers Under GST: Dismisses Writ Challenging Cancellation of Registration on Fake Invoice Allegations

HC : Allahabad High Court Quashes Remand Order for Non-Service of Written Grounds of Arrest Under GST Act; Clarifies "Reasons to Believe" Need Not Be Furnished to Arrestee

HC : Telangana High Court Orders Acceptance of Manual GST Revocation Application After Cancellation for Extended Non-Filing of Returns

HC : Telangana High Court Refuses Writ Jurisdiction in GST Penalty Dispute, Directs Assessee to GSTAT Following Tribunal Constitution

HC : Delhi High Court Quashes Ex-Parte GST Orders Due to Inadequate Notice Communication via Portal for FY 2017–18 and 2019–20

HC : Bombay High Court Directs Government Ministries to Decide on Extension and Refunds of Pre-GST Entertainment Tax Incentives for Imagicaaworld Theme Parks

AAR : Telangana AAAR Partially Overturns AAR: GST Not Applicable on District Mineral Foundation Contributions; NMET Payments Remain Taxable

AAR : Gujarat AAAR Remands Rice Husk Board Classification Case to AAR for Fresh Decision After Submission of Key Documents

HC : Allahabad High Court Rules Joint Commissioner (Appeals) Has No Power to Remand Refund Appeals under CGST Act; Orders Fresh Decision in Anand & Anand ITC Refund Case

AAR : Gujarat AAR Dismisses Advance Ruling on ‘Rice Husk Board’ Classification Citing Lack of Evidence, Overlap with Previous Case, and Non-Compliance with BIS Standards

HC : Gujarat High Court Upholds Bank Account Freeze of Fintech Platform for Lapses in Due Diligence over Online Gaming Transactions

HC : GSTAT Delhi Terminates Anti-Profiteering Case Against Shree Suktam Enterprise Over Inability to Trace Supplier, Orders Further Probe for Potential Bogus Billing

HC : GSTAT Delhi Declines Retrospective Interest under Rule 133(3)(c) on Profiteering by Dange Enterprise, Orders Deposit of Rs. 4.5 Lakh in Consumer Welfare Fund

AAR : Tamil Nadu AAR Rules GST Not Applicable on Rent for Godown Used Exclusively for Storage of Paddy, Citing Agricultural Produce Exemption

AAR : Gujarat AAR Rules 18% GST Payable on Supply of Waste Processing Machinery to Municipality—No Exemption as “Pure Services”

HC : Calcutta High Court Orders Immediate Unblocking of Electronic Credit Ledger After Expiry of Statutory Period, Restrains Revenue from Coercive Action on Jurisdictional Grounds

HC : Calcutta High Court Nullifies Arunachal Police’s Bank Account Freeze for Lack of Magistrate’s Sanction: Section 106/107 BNSS Invoked

AAR : West Bengal AAR Rules GST Payable on Price Variation Awards in Hydro Power Plant Arbitration, Excludes Liquidated Damages from Tax Net

Income tax - Sections 9(1)(vi) - No Royalty on Live Telecast Rights for Cricket Matches: Delhi High Court Rules in Favor of Sri Lanka Cricket - Based on the facts and the legal framework analyzed above, it is clear that payments made exclusively for the live telecast of cricket matches, where no enduring rights are granted to the licensee, do not constitute royalty under Section 9(1)(vi) of the Income Tax Act. Taxpayers and assessees engaging in similar transactions should ensure that their agreements specify the scope of rights clearly, limiting them to live telecast where royalty implications are to be avoided.

Income Tax - Sections 143(3), 144C(13) - ITAT Delhi Holds Reimbursement of Intranet Charges to German Supplier Taxable as FTS—PE Irrelevant Under India-Germany DTAA - In light of consistent judicial findings and clear legal provisions, the ITAT has reaffirmed that receipts from technical and supervisory services—even when received as reimbursement—are taxable as FTS under both domestic law and the India-Germany DTAA. The existence of a PE in India is irrelevant for taxing such receipts when they fall within the FTS definition. Assessees engaged in cross-border technical services should carefully evaluate the nature of receipts, as nomenclature or reimbursement claims will not alter taxability if the underlying services are technical in character.

Income Tax – Sections 144C(13), 147 - Delhi ITAT Rules No Permanent Establishment for Foreign Online Booking Company Earning Commission from Indian Hotels: 'Disposal Test' Not Met - On the facts and in law, the Delhi ITAT concluded that the earning of commission by a foreign online accommodation platform from Indian sources, without any physical presence, place of business, personnel, or agent at its disposal in India, does not satisfy the “disposal test” or any other condition necessary to establish a Permanent Establishment under Article 5 of the India-Netherlands DTAA. Consequently, the entire addition made by the AO was deleted. The Tribunal’s decision provides a clear, actionable precedent: digital business models without tangible presence in India cannot be taxed as having a PE, even with significant Indian-sourced income.

Income tax – Sections 9(1)(vi) - ITAT Mumbai Rules Non-Exclusive Broadcasting Rights for Cinematographic Films Not Taxable as Royalty under Income Tax Act or India-Mauritius DTAA - The ITAT Mumbai decisively held that payments received by a non-resident for granting non-exclusive broadcasting rights for cinematographic films are not taxable as royalty in India. This is because such consideration is specifically excluded from the definition of royalty under Explanation 2(v) to Section 9(1)(vi) of the Income Tax Act (as applicable at the relevant time), and does not fall within the purview of royalty under Article 12(3) of the India-Mauritius DTAA, in the absence of any transfer of copyright or related rights. Assessees in similar situations should ensure that their agreements limit rights to non-exclusive broadcasting, without any transfer of copyright or rights to modify or exploit the work, to remain outside the ambit of royalty taxation in India.

Income Tax - Sections 143(3), 144C(13), 144(B) - ITAT Bangalore Directs Reconsideration of Warranty Provisions: Disallowance of Rs. 4.51 Crore Set Aside in Heavy Vehicle Dealer’s Case - The ITAT has underscored the need for correct computation of warranty provision deductions, clarifying that such provisions, when based on scientific estimation and properly substantiated, are allowable under Section 37(1) as laid down in Rotork Controls India (P) Ltd. v. CIT. The AO is directed to recompute the deduction on the basis of actual provision created during the year and not simply the closing balance or amount utilized, ensuring proper tax treatment in line with judicial principles.

Income Tax - Sections 90, 90A, 139(1), 128(9) - ITAT Mumbai Rules Denial of Foreign Tax Credit on Technical Grounds Unjust, Orders Fresh Hearing - The ITAT Mumbai decision underscores that the denial of Foreign Tax Credit solely due to the delayed filing of Form 67 is not legally tenable. The procedural requirement under Rule 128(9) should not override the substantive right to claim FTC if the taxpayer is otherwise eligible. The Tribunal’s order to remand the matter for fresh factual verification reaffirms the need for a fair hearing and adherence to the principles of natural justice. Taxpayers should ensure that all procedural requirements are met, but genuine claims should not be rejected merely on technical grounds.

Income Tax - Section 90 - ITAT Bangalore Rules Clerical Error in Form 67 Not a Bar to Foreign Tax Credit for Salary Earned Abroad - The ITAT Bangalore’s decision establishes that a mere clerical and unintentional error in Form 67 does not justify denial of otherwise valid Foreign Tax Credit. The Tribunal ruled that procedural or technical lapses must not override substantive rights where the underlying foreign tax payment and its Indian tax offer are undisputed and supported by evidence. Actionable takeaway: assessees should ensure accurate filing of Form 67, but in cases of genuine error, relief may be sought at appellate forums, with evidence of foreign tax payment and Indian tax offer.

ITAT Mumbai Reaffirms Tax Exemption Under Article 8 of India-USA DTAA for Profits from Code-Sharing Arrangements in International Air Traffic - Based on the ITAT’s ruling, it is clear that profits derived from the transportation of passengers by an airline under code-sharing arrangements—where the airline issues tickets under its code and the service is part of its international operations—qualify as profits from the operation of aircraft under Article 8 of the India-USA DTAA. Accordingly, such profits are taxable only in the United States and not in India. Taxpayers operating in similar circumstances should ensure that their code-sharing arrangements and ticketing practices are properly documented to fall within the ambit of Article 8 and secure exemption from Indian taxation.

Appellate Tribunal Confirms FEMA Violation in Use of Overseas Subsidiaries for Round-Tripping; Special Director’s Independent Analysis Upheld - Based on a comprehensive review of the facts, statutory provisions, and regulatory framework, the Tribunal dismissed the appeals and affirmed the penalty imposed by the Special Director. The Tribunal held that the use of the two overseas subsidiaries constituted impermissible round-tripping rather than genuine overseas business activity, thereby violating Section 6(3)(a) of FEMA, 1999, and Regulations 6(2)(ii) and 7 of the 2004 Regulations. Furthermore, the Tribunal concluded that the adjudicating authority had exercised independent judgment, and thus the penalty order was not procedurally infirm.

Tribunal Affirms Continuing Liability of Struck-off Companies and Legal Representatives under FEMA; Reduces Penalties on Grounds of Proportionality - In partial allowance of the appeals, the Tribunal unequivocally affirmed that liabilities of companies struck off under the Companies Act, 2013, remain enforceable, including penalties under FEMA, unless specifically set aside by judicial order. It further held that proceedings and penalties against legal representatives under Section 43 of FEMA are maintainable, but such liability is limited to the estate inherited from the deceased. The Tribunal clarified that for penalties under Section 13(1) of FEMA, no proof of mens rea is required. Applying the proportionality principle, the Tribunal reduced the penalties imposed on the individual appellants and ordered adjustment of pre-deposits. Penalties at the company level remain in force, subject to any appellate or higher judicial intervention.

Tribunal Affirms Abetment in Foreign Exchange Violations: Directors’ Role Proven Despite Retractions, Penalty Reduced to Rs. 10 Lakhs - On the basis of detailed testimonial, documentary, and circumstantial evidence, the Tribunal concluded that the appellant had indeed abetted the contravention of Sections 8(3) and 8(4) of FERA, read with Section 64(2). The legal presumption of culpable mental state under Section 59 stood unrebutted. While the appellant’s arguments regarding the retracted statements were considered, the corroborative evidence was decisive. The penalty was reduced to Rs. 10 lakhs, with the amount already deposited to be set off. Assessees in similar circumstances should ensure that any retraction of statements is promptly supported by credible evidence and that all documentary trails are transparent and justifiable to avoid adverse inferences.

Income Tax - Section 92CA(3) - Delhi High Court Strikes Down TPO Order for Withholding Agreements—Violation of Natural Justice in Transfer Pricing Assessment - The Delhi High Court’s decision clarifies that any quasi-judicial authority, including the TPO, is under a legal obligation to supply copies of all documents it relies upon to the assessee during transfer pricing proceedings. The failure to do so vitiates the entire exercise and constitutes a breach of natural justice, warranting the setting aside of the resultant order. Assessees facing similar refusals should assert their right to disclosure, and authorities must ensure procedural fairness by complying with these requirements.

Income Tax - Section 197 - Delhi High Court Clarifies Deductibility of Full Expenses Against Attributed PE Revenue for UK-based CRS Provider; Directs Proportionate TDS Adjustment Amidst Pending Non-India POS Dispute - The Delhi High Court has reaffirmed that, for non-residents with a PE in India, the entire eligible expenses incurred for generating attributed revenue must be deducted before computing taxable income, as per Supreme Court precedent. Attribution of revenue to the PE does not serve as a ceiling for deductible expenses. Where a dispute remains pending on the taxability of a particular revenue stream (such as non-India POS transactions), courts may grant partial or proportionate relief in withholding tax rates to balance interests of both the taxpayer and the revenue authorities. Tax authorities are required to follow judicial precedent strictly and cannot invent new computational methods contrary to binding Supreme Court rulings.

Income tax – Sections 144C - Gujarat High Court Upholds Assessee’s Statutory Right: DRP Must Adjudicate Objections Despite Procedural Filing Error - The Gujarat High Court’s decision establishes that an assessee’s statutory right to have objections adjudicated by the DRP under Section 144C cannot be nullified by a genuine procedural error in filing, provided the objections are filed within the prescribed limitation period. Tax authorities, upon receiving documents wrongly addressed due to a bona fide mistake, must guide the assessee appropriately if the limitation period is still running. The order of the DRP dismissing the objections for lack of jurisdiction was set aside, and the matter was remanded for fresh adjudication, ensuring substantive justice prevails over technical lapses.

Income tax – Sections 144C - Punjab & Haryana High Court Voids Final Assessment Passed Before DRP Decision: Upholds Assessee’s Right under Section 144C - In light of the above, the High Court’s decision mandates that, for eligible assessees who have filed objections under Section 144C(2)(b), the Assessing Officer is prohibited from finalizing the assessment and issuing any consequential notices until the DRP has rendered its decision. Any action to the contrary is without jurisdiction and will be set aside, with the matter being remanded to the DRP for proper disposal. Assessees in similar situations should ensure prompt filing of objections and insist that the statutory process under Section 144C is scrupulously followed before any demand or penalty is confirmed.

Income tax –– Sections 197 - Delhi High Court Mandates Strict Adherence to Law and Treaty in Section 197 Withholding Applications; Revenue’s SLP Intent Not Sufficient to Deny Relief - The Delhi High Court’s decision makes it clear that revenue authorities must base Section 197 determinations strictly on applicable law, judicial precedents, and treaty obligations. The mere contemplation or intent to challenge a binding precedent by way of SLP—where neither a petition nor a stay exists—cannot justify denial of relief to an assessee. Authorities must ensure that decisions are supported by legally sustainable reasoning and not revenue targets.

Income tax – Sections 44BB, 197 - Delhi High Court Sets Aside Higher TDS Order for Offshore Seismic Services; Faults Revenue for Ignoring Prior Judgment on Section 44BB vs. 44DA - The Delhi High Court has reaffirmed that, in the absence of a reasoned basis or material change in facts, the Revenue cannot arbitrarily depart from its own earlier determination under Section 44BB for the same assessee and contract. The AO’s order was set aside for failure to provide reasons, for ignoring binding judicial precedent, and for not distinguishing between the mutually exclusive concepts of Royalty and FTS. The matter is remanded for de novo consideration consistent with the Court’s earlier judgment and proper legal analysis.

Income Tax - Sections 14A, 92B - ITAT Kolkata Mandates Cost-Based Valuation for Section 14A Disallowance, Rejects 1% Norm for Corporate Guarantee Fee - The Tribunal’s decision reaffirms that, for the purpose of computing income under the Income Tax Act, the principles laid down in ICDS-I take precedence over Ind-AS, particularly regarding the valuation of investments for Section 14A disallowance. Assessees following Ind-AS for financial reporting must revert to cost-based figures when determining tax disallowances under Rule 8D. Additionally, the Tribunal’s nuanced approach to determining the arm’s length price for corporate guarantee fees signals a shift from a one-size-fits-all flat rate to a more fact-specific, evidence-based methodology.

Income-tax - Sections 143(3), 144C(13), 144B - ITAT Hyderabad Quashes Assessment Order Passed Beyond Statutory Limitation in Transfer Pricing Matter - In this case, the Hyderabad ITAT has categorically held that a final assessment order passed after the expiration of the time limit prescribed under Section 153(1) and extended under Section 153(4) is barred by limitation and must be quashed. The ruling emphasizes that adherence to statutory timelines is mandatory, and any order passed beyond such limitation is void ab initio. Tax authorities must meticulously monitor and comply with the limitation periods, especially in matters involving transfer pricing references.

Appellate Tribunal Upholds FEMA Violations on Unauthorized Remittances and Foreign Currency Confiscation: Penalties Reduced but Contraventions Confirmed - The Tribunal has conclusively determined that both Section 3(d) and Section 7(1)(a) of FEMA were contravened by the Appellants based on a robust evidentiary review applying the civil standard of proof. The confiscation of seized foreign currency was found justified due to the failure to provide satisfactory evidence regarding the period of possession. Penalties were moderated but remain significant, reflecting the Tribunal’s balanced approach between enforcement and proportionality. Importantly, the Tribunal’s order confirms that the absence of proceedings under the Customs Act does not affect the validity of FEMA adjudication.

Sections 241, 242 of the Companies Act, 2013 - NCLT Amaravati Rules Company Petition Not Maintainable Where Winding Up Sought as Core Relief—Subsequent Withdrawal Cannot Cure Defect - On the basis of the above decision, a company petition under Sections 241 and 242 of the Companies Act, 2013, is not maintainable when the principal or substantive relief sought is the winding up of the company, rather than seeking relief from oppression and mismanagement. Any subsequent decision by petitioners to withdraw the winding-up relief does not cure the inherent jurisdictional defect. The maintainability is judged at the time of filing, and if the petition is fundamentally flawed in its original framing, it is liable to be dismissed on that ground alone.

Supreme Court Allows Temporary Shift of Himachal Pradesh RERA Office and Appellate Jurisdiction Amid Ongoing Writ, Ensures Convenience for Affected Parties - The Supreme Court’s order provides a balanced remedy by staying the operation of the impugned order during the pendency of the writ petition, permitting the provisional relocation of the RERA office, and shifting appellate jurisdiction to Dharamshala for the convenience of litigants. Parties should note that these directions are interim in nature and subject to the final determination by the High Court.

Calcutta High Court Upholds Regional Director’s Approval for Corporate Debtor’s Registered Office Shift Despite Pending Interest Appeal - The Calcutta High Court conclusively held that the Regional Director’s decision to permit the shifting of the corporate debtor’s registered office from West Bengal to Maharashtra was consistent with the law, specifically the second proviso to Rule 30(9) of the Companies (Incorporation) Rules, 2014. The absence of a stay or any substantive challenge to the main resolution plan in the pending appeal meant there was no legal impediment to the shifting. The petition was accordingly dismissed, affirming the validity of the Regional Director’s order.

Bombay High Court Upholds Validity of 2019 JV Agreements During Company Liquidation: Discretion Under Section 536(2) of Companies Act, 1956 Affirmed - The High Court, exercising its discretionary powers under Section 536(2), validated the 2019 Agreements as bona fide and expedient transactions during the winding-up interregnum. The Court dismissed all objections concerning voidness under Section 536(2), insufficiency of stamping, unilateral revocation of power of attorney, and lack of departmental approval. The Interim Application seeking validation was allowed, and the Official Liquidator’s contrary report was rejected. No stay of the order was granted.

Section 131 of the Companies Act, 2013 - Ahmedabad NCLT Permits Voluntary Rectification of Clerical Errors in Board’s Reports and Financial Statements: No Prejudice to Stakeholders, Registrar Directed to Accept Revised Filings - In light of the above, the NCLT, Ahmedabad Bench, authorized the petitioner company to revise its Board’s Reports and notes on accounts for the indicated financial years, as the proposed corrections were limited to clerical and typographical errors, did not impact the underlying financial position or disclosures, and were duly sanctioned by the Board without any objection from the Registrar of Companies. The company has been directed to file the revised documents in Form AOC-4, accompanied by payment under Section 450, specifically indicating the purpose of payment as revision of Board’s Report and accounts for the stated years.

Sections 2(55), 241, 242 of the Companies Act, 2013 - NCLT Mumbai Affirms: Only Synod-Elected Members of Post-Merger Church Body Can Seek Relief—Petitioners Lacked Standing - In summary, the Tribunal concluded that the petitioners, being neither subscribers to the company's memorandum nor elected via the CNI Synod as mandated by the amended Articles, failed the statutory test for membership under section 2(55) of the Companies Act, 2013. Accordingly, they lacked the necessary locus standi to maintain a petition under sections 241 and 242, leading to the dismissal of their claims at the threshold.

Section 131 of the Companies Act, 2013 - NCLT Permits Limited Voluntary Revision of Financial Statements for Reclassification of Income as Exceptional Item in Absence of Fraud - Based on the facts and circumstances presented, the NCLT, Ahmedabad Bench, held that the petitioner had made out a valid case for voluntary revision under Section 131 of the Companies Act, 2013. The Tribunal approved the revision of the financial statements for FY 2014-15 strictly to the extent of reclassifying and disclosing the ₹8.18 crore as an Exceptional Item, along with any necessary changes in the cash-flow statement. The decision reiterates that such revision is permissible where it is bona fide, limited in scope, does not affect the core financial metrics, and is intended to comply with the applicable Accounting Standards.

Delhi High Court Affirms EQCR’s Right to Contest NFRA Jurisdiction at Show-Cause Stage; Mandates Speaking Order Before Coercive Action - The Delhi High Court’s decision provides actionable clarity: where jurisdictional objections are raised at the show-cause notice stage in proceedings before NFRA, the proper course of action is for the noticee to submit a detailed reply outlining all contentions. NFRA is then mandated to address these objections by way of a speaking order, prior to initiating any further action, including coercive steps. This ensures due process and aligns with the latest Supreme Court guidance.

NCLAT Upholds Class Action Maintainability under Section 245 for Past, Ongoing, and Systematic Fraud; Reliefs Extend to Third Parties and Company Losses - On the basis of the prima facie record, the Appellate Tribunal has upheld that class action petitions under Section 245 of the Companies Act, 2013 are maintainable in respect of past, ongoing, and systematically concealed transactions. The reliefs under Section 245(1)(g) and (h) are broad enough to encompass claims against directors, third parties, and to provide remedies for losses suffered by the company and members. The NCLT’s application of Section 245(4) and the relevant NCLT Rules was found to be proper, and the admission of the petition was upheld. The appeal challenging maintainability was thus dismissed.

NCLAT Chennai Clarifies: Committee of Creditors Not a Juristic Person, Cannot Litigate in Own Name Except in Specific Circumstances - The NCLAT has conclusively held that the Committee of Creditors, unless unanimously acting in a multi-member composition or as a single-member entity, does not possess the juristic personality required to independently litigate in its own name. For multi-member CoCs, each member must be impleaded individually when the CoC is a respondent. Furthermore, the role of the Resolution Professional is statutory and distinct from that of the CoC, precluding the assumption that the RP automatically represents the CoC in all matters. This decision immediately impacts ongoing and future insolvency proceedings by clarifying how parties should be arrayed and represented in litigation involving the CoC.

NCLAT Allows Amendment of Cause Title for Non-Joinder of Necessary Party, Upholds Adjudication on Merits under Principles of Natural Justice - The NCLAT’s ruling establishes that in cases of non-joinder of necessary parties, the emphasis should be on enabling full adjudication on merits rather than dismissing proceedings on mere procedural lapses. The Tribunal has directed the appellant to carry out the necessary amendment within two weeks, thereby ensuring the lis is decided after hearing all affected parties. Parties should take prompt steps to rectify procedural defects and use the opportunity to amend pleadings where warranted, so as to avoid technical dismissals.

NCLAT Holds Interim Appeal Infructuous After NCLT’s Comprehensive Order Restructures Company and Orders Forensic Audit Under Sections 241-242 - In light of the comprehensive common order dated 18.07.2025 by the NCLT under Sections 241-242, the NCLAT concluded that the appeal against the earlier interim order had become infructuous. All grievances regarding the interpretation of the Share Purchase Agreement or management of disputed receivables must be addressed within the framework of the final common order or the forensic audit process. No further effective relief could be granted in the appellate forum regarding the interim order.

Bombay High Court Clarifies Stamp Duty: Single Charge on Composite NCLT Amalgamation Order; Section 5 of Stamp Act Not Attracted to Separate Transactions - The Bombay High Court decisively held that for composite schemes of amalgamation sanctioned under Sections 230–232 of the Companies Act, Section 5 of the Bombay Stamp Act, 1958, does not mandate separate stamp duties on each constituent transaction if they are integral parts of a single scheme. Further, stamp authorities in Maharashtra cannot impose duty on NCLT orders from other States unless those orders are received or executed in Maharashtra. Any attempt to split a composite amalgamation scheme for the purpose of levying multiple duties is contrary to both the statutory framework and established judicial precedent. Taxpayers should ensure that composite schemes are presented as integrated transactions before authorities to avoid unnecessary fragmentation for stamp duty.

Karnataka High Court Declares Pre-Winding Up Related Party Lease Deed Void Ab Initio: Lease to KIAMS Deemed Fraudulent Preference under Companies Act - The Karnataka High Court has unequivocally held that the lease deed executed in favour of a related party, KIAMS, less than two months before the winding-up petition, constituted a fraudulent preference under Section 531 of the Companies Act, 1956. Such a transaction is void ab initio and cannot be shielded by the limitation provisions applicable to Section 531A. The Official Liquidator’s application for possession and auction of the property was thus justified and must be allowed. Stakeholders and ex-management should note that any related party transactions executed shortly before a winding-up petition are likely to be set aside as void and unenforceable.

NCLAT Upholds Rectification of Register and Compensation for Wrongful Issuance of Duplicate Shares: Bank and RTA Liable for Procedural Lapses - The Appellate Tribunal affirmed the NCLT’s direction to rectify the register of members and restore the 5000 shares to the Respondent, holding the Appellant company and its RTA liable for procedural lapses and non-compliance with legal and regulatory requirements. In the event that rectification was not feasible, the Appellants were required to compensate the Respondent at the prevailing market value of the shares. The Tribunal further imposed a cost of Rs. 1,00,000/- for legal expenses, underscoring the need for companies and RTAs to exercise utmost diligence and transparency in matters relating to share transfers and issuance of duplicate certificates.

NCLAT Chennai Nullifies Ex Parte Tribunal Order Appointing Neutral Expert for Access to Personal Electronic Records: Mandates Fresh Hearing Observing Breach of Audi Alteram Partem - Based on the above decision, the order passed by the NCLT appointing a neutral expert and granting access to the Appellant’s personal electronic records was quashed due to violation of the audi alteram partem rule. The NCLAT allowed the company appeal and restored the right of the Respondent/Petitioner to seek similar relief through a properly instituted application, which must then be decided only after providing a fair hearing to the Appellant. Tribunals are thus reminded to refrain from granting substantive reliefs without following due process, ensuring the affected party is given notice and a fair chance to respond.

Delhi High Court Orders Name Change: "REFEX" Held Distinctive and Identical, Orders Passed Under Section 16 of Companies Act, 2013 - The Delhi High Court’s decision underscores the primacy of protecting the distinctive elements of corporate names under the Companies Act, 2013. The ruling makes it clear that the existence of multiple entities with a common, distinctive term like "REFEX" within a group strengthens the argument for exclusivity and protection under Section 16. The actionable takeaway is that companies must diligently protect their distinctive names and promptly challenge subsequent registrations that could potentially cause confusion, irrespective of the business carried out by the new entity.

NCLT Mumbai Orders Compulsory Buyout of Petitioners’ Shares Due to Persistent Oppression: Failure to Serve Meeting Notices and Rights Offer Letters Constitutes Continuing Mismanagement - The decision of the NCLT, Mumbai Bench, underscores that the failure of company management to serve statutory notices for meetings and rights issues to shareholders, particularly those whose shares have been transmitted upon death, constitutes continuing oppression under Section 241 of the Companies Act, 2013. Where such acts are established, and the value of the shares is prejudiced as a result, the Tribunal is empowered to direct a compulsory buyout of the minority shareholders by the majority at a fair value to be ascertained by an independent valuer. Companies must ensure strict compliance with statutory notice requirements to all shareholders, including legal heirs, to avoid similar adverse orders.

Supreme Court Upholds Liquidated Damages for Delay in Solar Power Commissioning: Division Bench’s Reduction of Compensation Set Aside - The Supreme Court restored the order of the Single Judge, holding that the liquidated damages awarded under Clause 4.6 of the PPA were valid and enforceable. The Division Bench’s recalculation and reduction of compensation was set aside as exceeding its jurisdiction. The Court’s actionable directive is that courts must respect the contractual terms agreed between the parties, particularly in the context of public utility projects, unless the awarded compensation is shown to be arbitrary, perverse, or inconsistent with those terms.

Calcutta High Court Quashes Charges Against Directors and Auditor: No Vicarious Liability Without Arraignment of Company Under Companies Act, 2013 - Based on the above analysis, the Calcutta High Court quashed the criminal proceedings against the directors and the statutory auditor. The Court held that (a) the complaint by the Deputy Registrar was maintainable; (b) there was no bar of limitation for the prosecution; (c) criminal liability under Section 448 requires mens rea, which was absent in the present complaint; (d) prosecution of directors or auditors alone is not permissible without the company being arraigned as an accused; and (e) continuation of such proceedings would constitute an abuse of process of law.

Bombay High Court Upholds Primacy of IBC: Winding Up Proceedings Transferred to NCLT Despite Secured Asset Sales and Workmen’s Objections - Based on the facts and legal principles discussed, the Bombay High Court has actionable held that mere realization of assets by secured creditors and partial steps by the Official Liquidator do not meet the threshold of “irreversible steps” or “corporate death” that would preclude the transfer of winding up proceedings to the NCLT. The Court’s ruling reinforces that objections based on differences in distribution, or concerns of secured creditors and workmen, cannot override the legislative primacy and statutory framework of the IBC. Parties must, therefore, prepare to advance their claims and interests within the CIRP before the NCLT.

Bombay High Court Cancels Fraudulent Incorporation: Striking Name Similarity and Misuse of Automated Name Approval System Lead to Company Deregistration and Remittance of Funds - The Bombay High Court’s decision underscores that the statutory prohibition against the registration of companies with names identical or too nearly resembling existing entities is absolute and not subject to circumvention via automated systems or technicalities. The Court’s order to cancel the registration of the fraudulently incorporated company, direct the remittance of funds to the liquidation account, and initiate further inquiry highlights the seriousness with which fraudulent incorporations and misuse of corporate processes are viewed. Companies, regulators, and banks must ensure rigorous scrutiny at every stage of the incorporation process, with special attention to name similarity and address duplication.

NCLAT Chennai Refuses Interim Injunction to Director Removed in EGM Absent Principal Petition Challenge; Dismisses Appeal Amid Allegations of Forum Shopping and Contradictory Pleadings - The NCLAT’s decision reiterates that interim reliefs, especially those concerning directorship and board composition, cannot be granted unless the relief sought is clearly anchored in the principal company petition. Attempts to secure such relief via subsequent applications or by introducing new grounds after the filing of the original petition are not maintainable. Parties must ensure that all relevant allegations and challenges are included in the main petition to avoid procedural setbacks and denial of interim relief.

NCLT Ahmedabad Rules Mere Removal of Directors via EOGM Does Not Constitute Oppression or Mismanagement Absent Ongoing Oppressive Conduct - On the basis of the Tribunal’s findings, it is clear that mere removal of directors through a properly convened EOGM, even if accompanied by procedural irregularities, does not meet the threshold for oppression or mismanagement under Sections 241 and 242 of the Companies Act, 2013, unless it is part of a sustained, continuing oppressive conduct. Petitioners seeking relief under these provisions must establish a consistent pattern of prejudicial or oppressive behavior, rather than isolated incidents or matters of internal governance.

Bombay High Court Rules Special Court Can Independently Determine Interest in SEBI Penalty Compounding, Limits Retrospective Application of Section 28A - The High Court’s ruling establishes that in compounding proceedings under section 24A of the SEBI Act, the Special Court has the authority to determine the interest payable independently of SEBI’s Recovery Certificate. The statutory framework for interest under section 28A read with section 220 of the Income-tax Act applies only from 18-07-2013 onwards. For earlier periods, the Interest Act, 1978 governs the rate, capped at 6% per annum. The Court’s decision ensures that compounding is not frustrated by mechanical reliance on SEBI’s calculations and that interest is calculated in accordance with the law as it stood for different periods.

SAT Clarifies: Penalty Under SEBI Act for Fraudulent Trade Practices Can Be Reduced Below Statutory Minimum After Considering Mitigating Factors - Based on the Tribunal’s findings, it is now clear that the adjudicating authority, while considering penalties under Section 15HA for fraudulent and unfair trade practices, is empowered to reduce the penalty below the statutory minimum, provided there are adequate mitigating circumstances as per Section 15J. Hence, assessees facing such proceedings must ensure that all relevant mitigating factors are brought on record during adjudication.

Section 241 of the Companies Act, 2013 - NCLT Chandigarh Upholds Validity of Share Transfer and Loan Transactions Amid Allegations of Oppression and Mismanagement in Alchemist Group Entity - Based on the comprehensive examination of facts and legal principles, the Tribunal concluded that the petition lacked the requisite substantiation and specificity necessary for relief under sections 241 and 242. The respondents’ adherence to pre-emption rights and the regularisation of the loan transaction were legally sound. The absence of any demonstrated prejudice or oppressive conduct resulted in the dismissal of the petition.

NCLAT Upholds Interim Orders Restraining Director Payments and Third-Party Asset Dealings Amid Section 167(1)(b) Disqualification Dispute - In conclusion, the NCLAT has reaffirmed the primacy of interim orders in safeguarding the status quo, especially where reliefs have been specifically sought in the underlying petition and where no urgent or substantiated need for modification is demonstrated by the appellant. The Tribunal’s insistence on procedural discipline and the proper channeling of requests for relief reinforces the importance of comprehensive pleadings and timely applications.

NCLT Ahmedabad Orders Transmission of Shares to Legal Heirs Without Probate or Share Certificates Where Company Fails to Comply with Section 56 of Companies Act - The NCLT Ahmedabad has allowed the appeal and ordered that the names of the legal heirs be entered in the Register of Members of KFPL in respect of shares held by the deceased ‘M.’ The Tribunal held that where the legal heirs have established their entitlement and submitted the required documents, the company cannot insist upon probate or original share certificates for the purpose of transmission. The order directs immediate rectification of the Register of Members without further procedural impediments.

SAT Mumbai Reduces SEBI Penalty on RTA for Procedural Lapses and Technical Non-Compliance, Considers Director’s Age and COVID-19 Hardships - The order establishes that regulatory penalties under Section 15HB of the SEBI Act, 1992, must be proportionate and take into account bona fide explanations and extraordinary hardships faced by regulated entities. In this instance, the SAT found that the non-compliance was not deliberate or egregious, and therefore, a reduced penalty of Rs. 2 lakhs was deemed appropriate. Entities facing similar circumstances must document and present bona fide reasons and mitigating factors with supporting evidence to seek relief in adjudication proceedings.

Delhi High Court Orders Remand of TMA Claim Condonation Case for Failure to Provide Reasoned Administrative Order - The Delhi High Court set aside the orders rejecting condonation of delay in filing TMA claims and remanded the case to the Review Committee for reconsideration. The Review Committee is mandated to issue a reasoned and speaking order that directly addresses the petitioner’s submissions, including the issue of parity with similarly situated cases, within a reasonable timeframe. This actionable direction ensures that administrative fairness and transparency are maintained.

Madras High Court Invalidates Customs Confiscation for Failure to Issue Proper Section 124 Show Cause Notice and Denial of Hearing - Based on the Madras High Court’s decision, it is evident that any confiscation or penalty under the Customs Act which is not preceded by the mandatory issuance of a show cause notice under Section 124 and a reasonable opportunity of hearing is liable to be set aside. Waivers of the right to such notice and hearing are only valid if they are voluntary, conscious, and informed, not merely procedural or based on standard forms. Authorities must ensure compliance with the statutory safeguards enshrined in Section 124 to avoid vitiation of proceedings.

Madras High Court Invalidates Confiscation Order for Non-Issuance of Mandatory Show Cause Notice: Remands Case for Fresh Adjudication on Seizure Validity and Fair Hearing - The Madras High Court’s decision underscores the inviolability of the statutory right to a show cause notice prior to confiscation under the Customs Act, 1962, and affirms the necessity for adherence to natural justice. The confiscation order, rendered without such notice, stands quashed. The Court’s directions for fresh proceedings, with explicit timelines for reply submission, personal hearings, and a final speaking order, provide a robust framework for future compliance by authorities and procedural protection to assessees. The status quo in respect of the seized goods is to be maintained until final adjudication, ensuring that the petitioner’s rights are preserved in the interim.

Madras High Court Upholds Voluntary Customs Duty Payment, Bars Refund Claim Based on Estoppel by Conduct and Prospective Amendment - In light of the above, the Madras High Court dismissed the writ petition. The Court held that the payment of differential customs duty was voluntary and not made under protest, the relevant amendment and notification are prospective, no show cause notice was required due to the voluntary nature of payment and closure of investigation, and the petitioner failed to discharge the statutory burden to establish absence of unjust enrichment. Accordingly, the refund claim was rejected.

Kerala High Court Upholds Trial Against Customs Official: Discharge Denied Despite Approver Testimony and CCTV Evidence - Based on the scrutiny of the record and settled legal principles, the High Court dismissed the revision petition, upholding the Special Judge’s order to proceed to trial against accused No. 3. The court held that the existence of prima facie material—admissible statements, approver evidence, and CCTV footage—was sufficient to warrant a full trial. The issues of voluntariness, corroboration, and the probative value of confessional or approver statements are factual matters reserved for trial and cannot be conclusively decided at the discharge stage.

Supreme Court Upholds CESTAT’s Classification of Imported Goods, Finds No Legal or Factual Error - In light of the Supreme Court’s order, the decision of the CESTAT regarding the classification of the imported goods stands affirmed. The Supreme Court’s refusal to interfere underscores the principle that appellate courts will generally not disturb findings of fact or law by specialized tribunals unless there is a manifest error or miscarriage of justice. Litigants should ensure that any appeal to the higher judiciary is premised on substantial questions of law or demonstrable errors, as mere disagreement with the tribunal’s interpretation is insufficient.

Calcutta High Court Sets Aside Appellate Customs Order for Breach of Natural Justice: Failure of Proper Service Invalidates Proceedings - The Calcutta High Court, by setting aside the appellate order solely on the grounds of breach of natural justice due to improper service of notice, has reaffirmed that statutory presumptions of service are not absolute and must yield to evidence of non-service. The actionable takeaway is that authorities must diligently verify the effectiveness of service and, upon failure by one mode, must promptly adopt alternative statutory methods, including electronic communication, before proceeding ex parte.

CESTAT Chennai Quashes Re-examination of Refund Timeliness; Orders Original Authority to Act on Excess Duty Computation Error in Export Valuation - Based on the Tribunal’s findings, the actionable outcome is that the Original Authority is instructed to process the refund claim without revisiting the issue of limitation under Section 27, as it was never in dispute. The Authority must also rectify the computation of duty in accordance with the principles laid down in Circular No. 18/2008-Cus., treating the FOB price as a cum-duty value, and ensure that the excess duty paid is refunded expeditiously as per the directions of the First Appellate Authority.

CESTAT Ahmedabad Invalidates Customs Duty Demand on 100% EOU DTA Sales Valued Using DGFT’s MIP; Concessional Excise Notification Denied for Advance DTA Sales Without Compliance - The CESTAT Ahmedabad’s decision confirms that for 100% EOUs making DTA clearances, transaction value under Section 14 of the Customs Act, 1962, remains the governing principle, and cannot be displaced by the DGFT’s MIP in the absence of evidence justifying rejection of the declared value. Efforts to enhance value and raise differential duty on such a basis are liable to be set aside. Additionally, concessional duty benefits under Notification No. 23/2003-CE are strictly conditional, and failure to comply with prescribed procedures and disclosures results in denial of the benefit for advance DTA sales.

CESTAT Chennai Rules in Favour of Assessee: No Recovery or Penalty on Excess Reversal of CENVAT Credit in Inter-Unit Transfers Under Rule 3(5) of CENVAT Credit Rules, 2004 - The CESTAT Chennai has decisively held that neither recovery under Rule 14 read with Section 11A nor invocation of Section 11D is sustainable in the case of excess reversal of CENVAT credit during inter-unit transfers within the same legal entity, provided the reversal is equal to or greater than the credit availed. The denial of credit to recipient units where the supplier’s payment stands intact is also legally unsustainable. Penalties in such interpretational disputes, absent any evidence of fraud or suppression, must be set aside. The Tribunal’s order upholds the assessee’s position and dismisses the Departmental appeal.

CESTAT Chennai Upholds Duty on Electricity Supplied from EOU to DTA Unit Using Duty-Free Inputs: Strict Compliance with Notification 22/2003-CE Mandated - The CESTAT Chennai conclusively determined that electricity supplied by an EOU to a former EOU (now a DTA unit), when generated using duty-free inputs under Notification No. 22/2003-CE, attracts duty in accordance with the notification’s conditions. The Tribunal rejected the argument that such supply could be treated as internal job work or as part of an integrated corporate operation. The extended period of limitation and imposition of penalty under Section 11AC of the Central Excise Act, 1944, were both upheld in view of the appellant’s failure to disclose the change in status and continued supply without payment of duty. The appeal was dismissed, affirming the Department’s demand for duty, interest, and penalty.

CESTAT Allahabad Nullifies Confiscation of Cash and Goods in Pan Masala & Gutkha Case: Lack of Corroborative Evidence and Erroneous Application of Input-Output Formula Fatal to Revenue’s Case - In light of the detailed examination of evidence and settled legal principles, the Tribunal set aside all confiscations of currency and goods, as well as the duty demands and penalties imposed on the Appellants. The decision underscores the necessity for the Department to discharge its burden of proof through affirmative, corroborative evidence when alleging clandestine activity or seeking confiscation of cash. Reliance on theoretical formulas or unsubstantiated assumptions cannot substitute the requirement of concrete proof. The appeals were consequently allowed, and the impugned orders were quashed with consequential relief to follow as per law.

CESTAT Chennai: Key Principles on Voluntariness of Statements, Admissibility of Electronic Evidence, and Customs Valuation Affirmed in Import Misdeclaration Case - The CESTAT Chennai decisively set aside the impugned order, holding that a statement recorded in a language not known to the deponent cannot be assumed voluntary, electronic documents admitted through a retracted statement are inadmissible, and local resale invoices cannot be disregarded without proper examination. Re-determination of transaction value must be based on commercial realities and contemporaneity, with adequate particulars and opportunity for the importer to respond. In the absence of these safeguards, differential duty demands, confiscation, and penalties are not sustainable. Assessees are advised to ensure that statements are given in a language they understand and to insist on proper procedural compliance by authorities in customs valuation matters.

Modular Kitchens in CKD/SKD Form Classified as Furniture; Administrative Valuation Guidelines Cannot Override Customs Act, Transaction Value Rejection Set Aside - The Tribunal upheld the classification of modular kitchens imported in CKD/SKD form as furniture under Chapter 94, specifically Heading 9403, at the time of importation. The use of DGOV administrative valuation guidelines was found impermissible unless the transaction value is lawfully rejected under the Customs Valuation Rules. The rejection and enhancement of value in 11 Bills of Entry, based on a per kilogram comparison, was quashed for non-compliance with Rule 12 and Rule 4. Acceptance of declared values in the remaining Bills of Entry was found consistent with Rule 3(3)(a), as no evidence was produced to show that the relationship between the parties influenced the price. Accordingly, the departmental appeals were dismissed, and the impugned appellate orders were upheld.

CESTAT New Delhi Holds: Aircraft Imported Under Notification 21/2002-Cus for Non-Scheduled (Passenger) Services Can Also Be Used for Charter Services Without Loss of Exemption - The CESTAT New Delhi reaffirmed that the conditional exemption under Notification No. 21/2002-Customs (S. No. 347B) remains available so long as the aircraft is used for “non-scheduled” operations, whether “passenger” or “charter,” and the requisite regulatory approvals are in place. The use of an aircraft for “non-scheduled (charter) service” does not violate Condition 104 if it was originally imported for “non-scheduled (passenger) service.” Importers are thus entitled to exemption, and any adverse orders denying exemption or imposing penalties on this ground are liable to be set aside.

Delhi High Court Upholds Judicial Restraint: Absconding Proclaimed Offender Denied Pre-Execution Challenge to Preventive Detention Order under Article 226 - The Delhi High Court dismissed the writ petition challenging the preventive detention order at the pre-execution stage, exercising its discretion not to entertain the challenge by an absconding proposed detenue. However, it expressly preserved the petitioner’s right to contest the detention order and associated materials after surrender, thereby ensuring compliance with Article 22 safeguards.

CESTAT Kolkata Bars Retrospective Average Valuation and Unsubstantiated Allegations in Excise Demand; SSI Exemption and Penalties Restored - In summary, the CESTAT Kolkata set aside the excise duty demand, the denial of SSI exemption, and all associated interest and penalty liabilities, on the grounds that the Department’s retrospective valuation methodology was legally impermissible and that the burden of proof for dual pricing and clandestine removal was not met with adequate evidence. The Tribunal’s order reinforces the primacy of transaction value at the time of removal and the necessity for direct, contemporaneous evidence in cases of alleged undervaluation or clandestine clearances.

CESTAT Hyderabad Reaffirms Non-Liability of Excise Duty on By-products from Sunflower Oil Refining: Mere Saleability Not Sufficient for Classification under Heading 1522 - Based on the consistent judicial pronouncements—including affirmation by the Supreme Court—the Central Excise duty is not leviable on sunflower mud, soap stock, gums, wax, fatty acids, spent earth, and similar residues arising from the process of refining crude sunflower oil by M/s Priyanka Refineries Private Ltd., Unit II. The mere fact that these by-products are saleable does not render them excisable, as they do not emerge through a process of manufacture as defined under Section 2(f) of the Central Excise Act, 1944. The appeals are therefore allowed, and no excise duty is payable on such residues.

CESTAT Bangalore Dismisses Appeal Following Issuance of Discharge Certificate Under Sabka Vishwas Scheme, 2019 - Based on the issuance of the Discharge Certificate (Form-4) by the Designated Committee under the Sabka Vishwas (Legal Dispute Resolution) Scheme, 2019, the CESTAT, Bangalore, dismissed the pending appeal as deemed withdrawn in terms of Section 127(6) of the Finance (No. 2) Act, 2019. Taxpayers who have received the Discharge Certificate under the Scheme should ensure that all related appeals and proceedings are considered abated, and no further legal recourse remains available for the settled dispute.

CESTAT Clarifies Classification of University Answer Booklets and Bank Passbooks under Heading 4820; Paper Scrap Held Non-Dutiable and Matter Remanded for Reassessment - This decision firmly establishes that university answer booklets and bank passbooks, whose primary use is for further writing or record-keeping, must be classified under Chapter sub-heading 4820, even if they incorporate security features. Other printed articles, where the printing is substantive and not merely incidental, fall under Chapter 49 pursuant to CBEC Circular No. 1052/1/2017-CX. Additionally, paper scrap generated from printing and finishing operations is not dutiable. The case is remanded for re-quantification of demand and reconsideration of limitation and penal provisions, ensuring due process to the assessee.

CESTAT Bangalore Upholds Cenvat Credit on Transit Concrete Mixer and FB Tipper as Essential for RMC Manufacture; Penalty and Demand Set Aside - Based on the factual matrix and the legal precedents, the CESTAT Bangalore concluded that Cenvat credit on Transit Concrete Mixers and FB Tippers, utilized between March 2011 and April 2011 for the manufacture and supply of RMC, is admissible. The Tribunal quashed the demand, interest, and penalty imposed on the appellant, making it clear that such specialized vehicles, when inseparably linked to the manufacturing process and delivery of the final product, fall within the ambit of eligible capital goods or inputs under the Cenvat Credit Rules, 2004.

CESTAT Bangalore Recognizes Locomotives Used for Intra-Factory Transport of Molten Metal as Eligible for CENVAT Credit: Expands Scope of 'Capital Goods' and 'Inputs' under CENVAT Credit Rules, 2004 - In light of the above findings, it is actionable for manufacturers utilizing specialized equipment, such as locomotives for intra-factory transport of materials integral to the manufacturing process, to claim CENVAT credit under the definitions of 'capital goods' and 'inputs' as provided in the CENVAT Credit Rules, 2004. The eligibility is established by the functional role of the equipment in the manufacturing process rather than by tariff classification or nomenclature. Manufacturers should ensure proper documentation of the use and necessity of such equipment within the factory to substantiate their credit claims.

CESTAT Delhi Rules in Favour of Videocon: No Misclassification or Evasion in Smart Card Imports, Extended Limitation and Penalties Quashed - The Tribunal’s decision establishes that in cases where an importer has transparently classified goods and all details are readily available to customs authorities, a mere difference in opinion regarding classification cannot support allegations of willful suppression or misstatement. The extended limitation under section 28(4) requires clear evidence of such intent, which was absent in this case. Moreover, unless statements recorded under section 108 are admitted in accordance with section 138B, they cannot be relied upon as evidence. The finality of assessment post-clearance under section 47 is reaffirmed, except as modified by specific legal provisions.

CESTAT Delhi Rules Against Post-Export Change of Value in Shipping Bills for Drawback Recovery; Penalties and Confiscation Set Aside - The Tribunal’s decision underscores that the value of exported goods, once assessed and exported, cannot be altered in subsequent drawback recovery proceedings under Rule 16/16A unless one of the express statutory mechanisms is utilized. As such, demands for recovery of drawback based on reassessment of value post-export, without following the proper channels under the Customs Act, cannot be sustained. The BRCs serve as conclusive evidence of receipt of export proceeds unless withdrawn by the bank. Confiscation and penalties imposed post-export, absent statutory authority, are unsustainable.

CESTAT Bangalore Directs Reconsideration of Refund Claims: Amendment of Bills of Entry under Section 149 Must Precede Final Assessment - In summary, the Tribunal has made it clear that refund claims arising from self-assessment without exemption benefits cannot be rejected outright if the importer has sought amendment of Bills of Entry under Section 149 based on existing documentary evidence. The adjudicating authority is obligated to first adjudicate upon the amendment applications and only thereafter determine the merits of the refund claims and any related exemptions. This approach ensures procedural fairness and aligns with the Supreme Court's jurisprudence.

Supreme Court Upholds High Court Order: Customs to Compensate Petitioner at Current Market Value for Gold Jewellery Seized Without Due Process - The Supreme Court’s refusal to intervene upholds the High Court’s order, making it incumbent upon the Customs Department to compensate the petitioner at the current market rate for the seized gold jewellery. The decision emphasizes the non-negotiable requirement for customs authorities to follow due process and respect the principles of natural justice in all proceedings involving seizure and confiscation of property. Actionably, authorities must ensure strict compliance with statutory procedures before undertaking irreversible actions like destruction or disposal of seized goods.

Supreme Court Directs Selective Remand of Customs Appeals to High Courts and CESTAT in Light of Canon India Precedent, Orders De-Tagging of Linked Matters - The Supreme Court’s directive provides for an actionable framework for disposing of customs-related appeals and writ petitions post-Canon India. All parties involved must now prepare for fresh proceedings before the appropriate High Courts or CESTAT, as indicated, and align their arguments with the Supreme Court’s binding interpretation in Canon India. Category II matters will require comprehensive submissions on the additional issues identified, as these will be addressed independently of the Canon batch.

CESTAT Mumbai Quashes Customs Valuation and Penalty Based Solely on Chartered Engineer’s Certificate in Import of Mixed Tool Room Parts - The Tribunal set aside the impugned appellate order, including the reassessment, confiscation, redemption fine, and penalty. The Tribunal held that the Customs authorities’ approach—rejecting the transaction value and redetermining assessable value solely on the basis of the Chartered Engineer’s certificate—was not in compliance with Section 14 of the Customs Act and the sequential requirements of the CVR. The appeal was, accordingly, allowed. Importers in similar situations can seek redress where Customs authorities do not follow the proper sequence in valuation and act on insufficient grounds for rejection of transaction value.

Market Survey-Based Customs Valuation Quashed for Lack of Comparable Imports; Walking Stick with Torch Rightly Classified under CTI 6602 0000; Confiscation, Fines and Penalties Set Aside - On the facts and law, the Tribunal allowed the appeal, setting aside the impugned order’s findings on valuation, classification, and penal consequences. The market survey-based valuation under Rule 7 of the Customs Valuation Rules was quashed for non-compliance with the prescribed statutory scheme, and the correct classification of the walking stick with torch under CTI 6602 0000 was upheld. The orders confiscating the goods and imposing fines and penalties were also set aside, given the absence of any material misdeclaration or inability to comply with statutory requirements prior to clearance.

CESTAT Delhi Rules Extended Limitation Inapplicable on Customs Duty Demand Absent Wilful Suppression—Appellate Relief for Importer - On the facts and law applied, the Tribunal allowed the appeal, holding that the absence of wilful suppression or intent to evade duty precluded the invocation of the extended limitation under Section 28(4) of the Customs Act, 1962. The impugned order of the Principal Commissioner was set aside, and the proceedings as to classification, confiscation, and penalty were rendered academic for this case.

Amendments Income Tax Rule 1962, rule 114F, 114G, 114H.

Approval under Section 35(1)(ii) of the Income Tax Act, 1961 for Sri Ramachandra Institute of Higher Education and Research Trust, Chennai

Tax Exemption on Specified Income of "District Legal Service Authority’, Faridabad" U/s 10(46) of Income-tax Act, 1961

Approval under Section 35(1)(ii) of the Income Tax Act, 1961 for Scientific Research -Rajalakshmi University Trust, Chennai

Tax Exemption on Specified Income of "State Legal Service Authority Union Territory, Chandigarh" U/s 10(46) of Income-tax Act, 1961

Constitution of the Authority for Advance Ruling in the Union territories - Change in Name and designation of the Member of Union territory Daman - Seeks to amend Notification No. 14/2018 dated 8th October 2018.
Appointment of Nodal Officer for GST Intelligence Under Section 14A(3) of IGST Act, 2017
Health Security se National Security Cess (First Amendment) Rules, 2026
08-01-2026 No. CORRIGENDA
Corrigendum - Health Security Se National Security Cess Act, 2025
Health Security se National Security Cess Rules, 2026.
Companies Compliance Facilitation Scheme, 2026
Guidelines for Custodians
Regulatory Reporting by AIFs
Introduction of Voluntary Lock-in / Debit freeze facility to Mutual Fund folios
Revised Norms for appointment of an independent third-party reviewer/ certifier for green debt security
Return of export cargo from international waters due to closure of the Strait of Hormuz – Section 143AA of the Customs Act, 1962
Return of export cargo from international waters due to closure of the Strait of Hormuz – Section 143AA of the Customs Act, 1962
Launch of Support for Emerging Export Opportunities under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN.
Launch of Credit Assistance for E-Commerce Exporters under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN.
Extension in the Export Obligation period of specified Advance & EPCG Authorisations till 31.08.2026.
Permission for Customs Formalities of Seychellean Coast Guard Ship SCGS Zoroaster at GRSE Shipyards/Units, Kolkata
05-03-2026 Circular
Standard Operating Procedure (SOP) in connection with the forthcoming General Elections to the West Bengal Legislative Assembly, 2026
Stepping Up Preventive Vigilance to Prevent Flow of Cash, Liquor, Drugs and Smuggled Goods During Elections
Operationalisation of Inter-Ministerial Group (IMG) for Supply Chain Resilience.
HOLD Functionality in Exports for Stopping LEO

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Article - A New Era in GST Law: Key Takeaways from the Shilpa Medicare Ruling and the Road Ahead for GST Administration
Article - Major Policy Shift in GST for Exporters and Importers of Intermediary Services: Key Implications and Checklist
Article - Addressing Procedural Lapses in GST Returns: Rectification Beyond Limitation Where No Revenue Loss Occurs
Article - The State’s Right to Retain Amounts Collected Without Legal Authority
Article - Comprehensive Restructuring of Tobacco and Pan Masala Taxation in India Effective February 2026
Article - Critical Analysis of Penalties under Sections 42 & 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
Article - Comprehensive Analysis of the Interplay Between Section 122 and Sections 73 & 74 of the CGST Act, 2017
Article - Launch of the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026)
Article - Legal and Procedural Dimensions of Compromise, Arrangement, and Amalgamation under Companies Act, 2013
Article - Delayed Filing of Declaration for Commencement of Business: ROC Penalty on Company and Directors – A Detailed Analysis
Query - Can a HUF Provide Tax Return Filing and Accounting Services?
Article - Reassessment on Borrowed Satisfaction: Legal Nuances in Issuance of Notice under Indian Income Tax Law
Query - Discrepancy in Interest Income Reported Across AIS, Form 26AS, and Bank Certificate for ITR Filing
Page 1 of 10 (300 items)Prev[1]2345678910Next

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