20% Pre-Deposit Not Mandatory For Stay Of Demand, AO Must Exercise Discretion U/S 220(6) Income Tax Act: Delhi High Court

The Delhi High Court has reiterated that deposit of 20% of the disputed tax demand is not mandatory for grant of stay, and that the Assessing Officer (AO) must independently exercise discretion under Section 220(6) of the Income Tax Act, 1961.A division bench of Justices V. Kameswar Rao and Vinod Kumar relied on National Association of Software and Services Companies (NASSCOM) v....

Centre Extends Anti-Dumping Duty On PET Resin Imports From China Till June 2026

The Ministry of Finance, Department of Revenue has extended imposition of Anti-Dumping Duty on imports of “imports of “Polyethylene Terephthalate” (PET) resin having an intrinsic viscosity of 0.72 decilitres per gram or higher” from China PR till June 26, 2026. The Anti-Dumping Duty Notification applies to PET resin having an intrinsic viscosity of 0.72 decilitres per gram...

GST | Failure To Prove Dispatch Of Hearing Notice Doesn't Automatically Mean No Personal Hearing Was Given: Delhi High Court

The Delhi High Court has held that merely because the tax department is unable to place on record proof of dispatch of a personal hearing notice such as entries in a dispatch register, speed post receipts, or email records— it does not automatically follow that no opportunity of personal hearing was granted.A division bench of Justices Prathiba M. Singh and Shail Jain refused to entertain...

Section 56(2)(x) Not Attracted If Property Held As Stock-in-Trade: ITAT Mumbai Remands ₹18.48 Cr Addition

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has set aside an income tax addition of over ₹18.48 crore made under Section 56(2)(x) of the Income Tax Act, 1961, and remanded the matter back to the Assessing Officer to verify whether the disputed immovable property was held as stock-in-trade by the assessee. A Bench comprising Judicial Member Rahul Chaudhary and...

BNSS Procedures Mandatory For GST Arrests Despite Revenue Nature Of Investigation: Gauhati High Court

The Gauhati High Court held that even though GST investigations are revenue in nature, arrests made by GST officers must strictly comply with the mandatory procedural safeguards prescribed under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). Justice Pranjal Das opined that even with regard to arrest by revenue authorities under GST, the procedural compliance...

Income Tax Act | Centralisation Of Assessment U/S 127 Permissible Where Cases Are Inter-Linked: P&H High Court

The Punjab and Haryana High Court held that the transfer of assessment jurisdiction under Section 127 of the Income Tax Act is valid where cases are inter-linked, and centralisation is required for effective investigation and public interest. Section 127 of the Income Tax Act, 1961, grants the power to senior tax authorities to transfer a taxpayer's case from one Assessing Officer...

India-US DTAA | Outsourcing Customer Care Services To Indian Subsidiary Doesn't Create PE: Delhi High Court

The Delhi High Court has held that outsourcing customer care and back-office services to an Indian subsidiary does not, by itself, result in the creation of a Permanent Establishment (PE) in India under the India–US Double Taxation Avoidance Agreement (DTAA).A Division Bench of Justices V. Kameswar Rao and Vinod Kumar thus dismissed a batch of appeals filed by the Income Tax Department...

IGST Not Leviable On Clinical Observation Studies Provided To Foreign Recipients: Karnataka High Court

The Karnataka High Court held that IGST (Integrated Goods and Services Tax) is not leviable on clinic observation studies for foreign recipients, as such services qualify as export of services with the recipient located outside India. Justice S.R. Krishna Kumar stated that having regard to the specific observations made in the 37th GST Council Meeting, whereby it was resolved to...

Karnataka High Court Annual TAX Digest 2025

Direct TaxProceedings Initiated Against Income Tax Assessee After His Death Cannot Be Continued Against Legal Representative: Karnataka HCCase Title: The Income Tax Officer & ANR Preeti VCase No:WRIT APPEAL NO. 1407 OF 2024The Karnataka High Court has said proceedings initiated against an Income Tax Assessee by issuing notice after his demise cannot be continued against his/her...

ITAT Mumbai Deletes ₹50 Lakh Section 68 Addition In Absence Of Incriminating Material Found During Search

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the appeal filed by M/s JS Infrastructure, deleting an addition of ₹50 lakh made under Section 68 of the Income Tax Act in proceedings initiated under Section 153C. A Bench comprising Judicial Member Kavitha Rajagopal and Accountant Member Omkareshwar Chidara held that no addition could be sustained in a...

Re-Look Into Composition, Usage, Product Patent, Similarity Of Sun Pharma's Muscle Relaxants For DTA Sales Entitlement: CESTAT Ahmedabad

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT), in a matter involving similarity of Muscle Relaxant sold domestically vis-à-vis exported by a Pharma major and benefit concessional duty thereof, has remanded back to the Adjudicating Authority for fresh consideration. Sun Pharmaceuticals Industries Limited, cleared/sold multiple products...

Entity Recognised As Charitable Under Income Tax Act With S.12A Registration Cannot Be Treated Otherwise Under FCRA: Madras High Court

The Madurai Bench of the Madras High Court has held that a trust already recognised as a charitable organisation under the Income Tax Act cannot be ignored as such while considering its application under the Foreign Contribution (Regulation) Act, 2010 (FCRA). A Single Judge Bench of Justice G.R. Swaminathan was dealing with a writ petition filed by Arsha Vidya Parampara Trust...