Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Tax Updates - TMI e-Newsletters

Home e-Newsletters Index Year 2025 January Day 7 - Tuesday

TMI e-Newsletters FAQ
You need to Subscribe a package.

Newsletter: Where Service Meets Reader Approval.

TMI Tax Updates - e-Newsletter
January 7, 2025

Case Laws in this Newsletter:

GST Income Tax Customs Insolvency & Bankruptcy FEMA CST, VAT & Sales Tax Indian Laws



Articles

1. ANALYSIS OF NOTIFICATION NO.20/19-CT (R) DATED 30.09.2019 VIZ-A-VIZ RECOMMENDATIONS OF 55TH  GST COUNCIL MEETING IN RESPECT OF HOTEL  &  RESTAURANT SERVICES

   By: KASTURI SETHI

Summary: The GST Council's 55th meeting recommended amending the definition of "declared tariff" and "specified premises" to align with the actual value of hotel accommodations. The GST rate for restaurant services in hotels will depend on the previous financial year's accommodation value, with options for 18% with ITC or 5% without ITC. The amendments, effective from April 1, 2025, should be applied retrospectively to resolve disputes arising from differing interpretations of Notification No. 20/19-CT (R) dated September 30, 2019. The term "any" in the notification should be understood contextually, not implying all units are taxed uniformly.

2. FILING FIRST APPEAL UNDER INCOME TAX ACT, 1961

   By: DR.MARIAPPAN GOVINDARAJAN

Summary: Under the Income Tax Act, 1961, aggrieved taxpayers can file a first appeal against assessment orders. Appeals can be made to either the Joint Commissioner (Appeals) or the Commissioner (Appeals), depending on the case specifics. The appeal must be filed within 30 days of receiving the order, with provisions for delay condonation if justified. Fees vary based on the assessed income. Appeals must be precise and can be transferred between appellate authorities. The First Appellate Authority has the power to confirm, reduce, enhance, or annul assessments, and must provide a written decision, ideally within one year.

3. Importance of Trademark Search Before Registration

   By: Ishita Ramani

Summary: A trademark search is essential for businesses seeking to register a trademark, ensuring the proposed mark is unique and avoiding legal conflicts with existing trademarks. It prevents infringement lawsuits, saves time and money by avoiding rejected applications, and protects brand identity. By identifying potential conflicts early, businesses can modify their trademarks to ensure distinctiveness. Additionally, trademark searches provide insights into industry trends and competitors, enhancing market understanding. This process improves the likelihood of successful registration by ensuring the trademark is unique and unlikely to be confused with others, ultimately safeguarding the brand's legal standing and market presence.

4. Condonation of delay in filing Form 9A/10/10B/10BB for NPOs and 10IC and 10ID for Corporates for availing lower rate of tax

   By: Vivek Jalan

Summary: The Central Board of Direct Taxes (CBDT) issued Circular No. 16/2024 allowing non-profit organizations to apply for condonation of delay in filing Forms 9A, 10, 10B, and 10BB for tax exemptions under the Income Tax Act. This applies to Assessment Year 2018-19 onwards, with specific authorities handling delays based on duration. Applications must demonstrate reasonable cause and hardship, with a three-year limit from the relevant assessment year. Similarly, Circular No. 17/2024 allows corporates to apply for condonation of delay in filing Forms 10-IC and 10-ID for reduced tax rates, subject to conditions including timely income return filing and genuine hardship.

5. Orders issued under Section 73 of the CGST/SGST Acts must carry the digital or manual signature

   By: Bimal jain

Summary: The Kerala High Court ruled that orders under Section 73 of the CGST/SGST Acts must bear a digital or manual signature to be considered valid. This decision was based on precedents, including cases from the Telangana and Andhra Pradesh High Courts, which established that unsigned orders are legally invalid. The court quashed the unsigned orders in question and allowed authorities to issue new orders with proper signatures, ensuring they relate back to the original issuance date. The ruling emphasizes that an unsigned order is fundamentally flawed and cannot be rectified merely by uploading it.


News

1. Jharkhand CM launches 'Abua' portal, mobile app to seek suggestions from people for budget

Summary: Jharkhand's Chief Minister has introduced the 'Abua' portal and mobile app to gather public input for the 2025-26 state budget. This initiative aims to create a more inclusive budget by incorporating suggestions from citizens, experts, and stakeholders. The Chief Minister emphasized the importance of a balanced budget that supports rural development and economic growth. The government plans to analyze all submissions and integrate the most valuable suggestions into the budget. The platform will accept contributions until January 17, 2025, and will recognize three individuals with outstanding suggestions. Key officials attended the launch event.

2. Govt should lower GST on cement at 18 pc, frame policy to boost demand: JK Lakshmi

Summary: A senior official from JK Lakshmi Cement has urged the government to reduce the GST on cement from 28% to 18% to boost demand and support infrastructure growth. The company is investing Rs 500 crore in a new manufacturing plant in Bihar, expected to be operational within a year, and aims to increase its annual capacity from 18 million tonnes to 30 million tonnes by 2030. Despite recent low demand due to elections, the company anticipates a 7-8% annual growth rate in cement demand. JK Lakshmi Cement is part of the diversified JK Organisation, which is also exploring investments in other sectors.

3. Extension of the Proposal Due Date: Empanelment of Survey Institutions for the National Statistics Office, MoSPI

Summary: The National Statistics Office (NSO) of the Ministry of Statistics and Programme Implementation, India, has extended the deadline for submitting proposals for the empanelment of survey institutions to January 13, 2025. This initiative seeks private partners to enhance the NSO's capacity to conduct socio-economic surveys across India. The collaboration aims to leverage private expertise to broaden survey reach and improve data collection, aiding in effective policy development. Interested institutions must submit proposals in physical form to the designated address by the new deadline. Further details are available on the MoSPI and Central Public Procurement Portal websites.

4. Revolutionizing Digital Commerce: The ONDC Initiative

Summary: The Open Network for Digital Commerce (ONDC) is a government initiative in India aimed at democratizing digital commerce by fostering open networks for the exchange of goods and services. Launched in April 2022, ONDC seeks to empower small businesses and create a level playing field for sellers, buyers, and service providers, particularly benefiting micro, small, and medium enterprises (MSMEs). It uses open protocols to enable interoperability across platforms, reducing reliance on monopolistic e-commerce giants. ONDC collaborates with various government departments to enhance digital participation, offering training and support to MSMEs to integrate into the digital marketplace.

5. Prime Minister Shri Narendra Modi inaugurates the Grameen Bharat Mahotsav 2025

Summary: The Prime Minister inaugurated the Grameen Bharat Mahotsav 2025, emphasizing the government's commitment to empowering rural India by transforming villages into growth centers. The event highlighted initiatives like Swachh Bharat Mission, PM Awaas Yojana, and Jal Jeevan Mission, aimed at improving rural living standards. The government has increased agricultural loans, introduced Kisan Credit Cards for livestock farmers, and supported Farmer Producer Organizations. Efforts to enhance rural infrastructure, promote traditional skills, and empower women through programs like Lakhpati Didis were also discussed. The Mahotsav aims to foster rural entrepreneurship, cultural heritage, and economic stability, focusing on sustainable agriculture and women's empowerment.

6. Simultaneous polls needed, will eliminate economic losses caused by frequent elections: Goyal

Summary: Union Minister Piyush Goyal advocated for simultaneous elections to reduce economic losses from frequent voting and promote continuous development. He emphasized that the "One Nation One Election" reform has public support and is crucial for progress. During a BJP membership drive in Mumbai, Goyal welcomed diverse new members and highlighted the party's commitment to replacing temporary shelters with permanent homes for the poor. He also introduced a "triple-engine" vision, integrating efforts from central, state, and local governments to boost infrastructure, skilling, and job creation, aiming for an inclusive and developed India.

7. Agarwal community has made significant contributions to India's socio-economic transformation: Om Birla

Summary: Lok Sabha Speaker highlighted the Agarwal community's significant role in India's socio-economic transformation, emphasizing their efforts in integrating marginalized groups and promoting inclusive growth. Speaking at the 'Agr Alankaran Samaroh' organized by the All India Agarwal Sangthan, he commended the community for their contributions to social and economic development, including their involvement in India's freedom struggle and various philanthropic activities.

8. RBI Bhubaneswar branch holds financial literacy programme for visually challenged persons

Summary: RBI's Bhubaneswar branch organized a financial literacy program for visually challenged individuals, distributing Braille-translated booklets on International Braille Day. Held at The Odisha Association for the Blind, the event attracted 180 participants, including students and employees. The program covered financial planning, savings, investments, insurance, and special provisions for the visually impaired. Participants were warned about financial frauds and informed about RBI's grievance redressal mechanisms. The interactive session addressed various queries and suggestions, with attendees appreciating the initiative and requesting more such events in the future.


Notifications

DGFT

1. 49/2024-25 - dated 4-1-2025 - FTP

Amendment in Import Policy and Import Policy Condition of Synthetic Knitted Fabrics Covered under Chapter 60 of the ITC (HS), 2022

Summary: The Central Government has amended the import policy for synthetic knitted fabrics under Chapter 60 of the ITC (HS), 2022. The amendment extends the Minimum Import Price (MIP) condition on 13 specific ITC (HS) codes from January 1, 2025, to March 31, 2025. Imports of these fabrics are restricted unless the Cost, Insurance, and Freight (CIF) value is $3.5 per kilogram or above, in which case the import is free. The MIP condition does not apply to imports by Advance Authorisation holders, Export Oriented Units (EOUs), and units in Special Economic Zones (SEZ), provided the imports are not sold domestically.

SEBI

2. SEBI/LAD-NRO/GN/2025/223 - dated 2-1-2025 - SEBI

Notification under Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007

Summary: The Securities and Exchange Board of India (SEBI) has issued a notification under the Certification of Associated Persons in the Securities Markets Regulations, 2007, requiring individual investment advisers, principal officers of non-individual investment advisers, and partners in investment advisory firms to obtain specific certifications. These certifications include passing the NISM-Series-XA: Investment Adviser (Level 1) and NISM-Series-XB: Investment Adviser (Level 2) examinations. Additionally, to maintain compliance, they must pass the NISM-Series-X-C: Investment Adviser Certification (Renewal) Examination before their existing certification expires. This notification rescinds previous notifications and is effective upon publication in the Official Gazette.


Circulars / Instructions / Orders

SEBI

1. SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2025/1 - dated 6-1-2025

Measure for ease of doing business - Settlement of Account of Clients who have not traded in the last 30 days

Summary: The Securities and Exchange Board of India (SEBI) has revised the guidelines for settling accounts of clients who have not traded in the last 30 days. Previously, trading members were required to settle such accounts within three working days, causing procedural inefficiencies. Now, client funds will be settled on the monthly running account settlement cycle dates set by stock exchanges. If a client trades after 30 days but before the next settlement date, the account will be settled according to the client's preferred cycle. This change aims to enhance business efficiency and protect investor interests, effective immediately. Stock exchanges must update their rules accordingly.

DGFT

2. 39/2024-25 - dated 5-1-2025

Procedure for export of certified organic products

Summary: The Directorate General of Foreign Trade has established a new procedure for exporting certified organic products, replacing previous notices from 2014 and 2015. Organic products must be produced, processed, packed, and labeled according to the National Programme for Organic Production (NPOP) standards. Exports require a Transaction Certificate from a certification body accredited by the National Accreditation Body. The eighth edition of the NPOP will be effective 180 days from the notification date. This notice outlines the updated export procedures under the Foreign Trade Policy, 2023.

Customs

3. PUBLIC NOTICE No. 01/2025 - dated 2-1-2025

Roll out of Automated Out of Charge for AEO T2 and T3 Clients - Reg.

Summary: The Customs Department has announced the implementation of an Automated Out of Charge (Auto-OOC) system for Authorized Economic Operators (AEO) Tier 2 and Tier 3 clients, effective January 1, 2025. This initiative aims to streamline trade processes, enhance transparency, and adopt best practices by allowing eligible Bills of Entry to receive automatic clearance without requiring Cargo Control Release verification. Eligibility criteria include completed assessments and authentication via OTP, with exceptions for intelligence-based holds. This measure is expected to facilitate trade and reduce processing times. Any issues can be reported to the Chennai Customs Office via email.


Highlights / Catch Notes

    GST

  • Notifications extending tax limitation periods due to COVID-19 upheld, enabling pursuit of statutory appeals.

    Case-Laws - HC : The HC upheld the validity of notifications extending the limitation period u/s 73(10) of the GST Act through Section 168A, which allows the government to extend time limits due to force majeure like COVID-19. The words "in respect of actions" were interpreted broadly to cover previous incomplete actions during the pandemic. The HC held that the Council's recommendation enables an informed decision by the government in line with cooperative federalism. The petitions were disposed of, allowing the petitioners to pursue statutory appeals.

  • Telecom Service Provider Challenges Entry Tax on Right to Carry Telecom Operations as Unconstitutional.

    Case-Laws - HC : Petitioner challenged SCN as ultra vires Sections 66B and 65B(44) of Finance Act, 1994 and violative of Articles 14, 265 and 300A of Constitution. HC held SCN based on arbitral award in petitioner's favor against DMRC, which was partly set aside by Division Bench, no longer survived. Petition allowed.

  • Sanctioned Refund Amount with Interest Directed for Immediate Disbursement, Retention Prohibited.

    Case-Laws - HC : HC directed respondents to disburse remaining sanctioned refund amount along with applicable interest for delayed disbursement. Respondents cannot retain refunded amount per refund sanction order. Respondent directed to issue payment advice to petitioner forthwith. Petition disposed.

  • Validity of time limit for availing Input Tax Credit under GST upheld; Rule 61(5) amendment on GSTR-3B also valid.

    Case-Laws - HC : The HC disposed of the writ applications challenging the constitutional validity of section 16(4) of the Central Goods and Services Tax Act, 2017 imposing time limit for availing Input Tax Credit, and the amendment to Rule 61(5) related to GSTR-3B. The Court noted the recommendations of the 53rd GST Council Meeting addressing the petitioners' claims, giving due weightage to the Council's recommendations in accordance with law. The petitioners were granted liberty to pursue remaining matters before the appropriate forum.

  • Penalty for GST evasion upheld but appeal restored on technical grounds; petitioner to be heard on merits.

    Case-Laws - HC : Petitioner's appeal against penalty imposed for detention u/s 129 of Bihar GST Act, 2017 and finding of attempted tax evasion dismissed. HC set aside Annexure-9 on technical grounds; appeal restored before first Appellate Authority for consideration on merits after hearing petitioner. Petitioner paid entire penalty; despite Annexure-9/A not showing disputed amount, appeal to be entertained due to procedural irregularity.

  • Income Tax

  • Tax Authority Can't Make Presumptive Additions to Income Without Evidence of Actual Earnings.

    Case-Laws - AT : AO determined commission from alleged bogus purchases and sales, made addition. ITAT held AO should have either rejected books of account and determined actual profit, or retained returned income without making presumptive addition. AO cannot presume additional income without being actually earned by assessee. Gross taxable income cannot be less than returned income filed u/s 139(1). ITAT deleted AO's additions, decided in favour of assessee.

  • High Court Quashes Tax Assessments for Lack of Proper Transfer Procedure and Opportunity to be Heard.

    Case-Laws - HC : HC quashed best judgment assessments made by Income Tax Officer, Baddi without complying with Section 127 transfer of jurisdiction requirements of giving reasonable opportunity of hearing to assessee and recording reasons for transfer from Income Tax Officer, New Delhi. Assessments set aside, permitting fresh proceedings by following proper transfer procedure or continuing through jurisdictional Income Tax Officer.

  • Unexplained investments deleted, capital gains computed correctly, sundry creditors allowed.

    Case-Laws - AT : The ITAT held: Long term capital gain was to be computed allowing deduction for indexed cost of acquisition and exemption u/s 54B. Addition u/s 68 for unexplained investment in immovable property was deleted as assessee furnished sufficient evidence regarding source. Addition u/s 69 for unexplained investment was also deleted as source for purchase of property from sale proceeds was duly explained. Disallowance of sundry creditors was rejected as assessee proved genuineness and creditworthiness of lenders. Order was decided in favour of assessee.

  • Unexplained investment addition quashed due to lack of cross-examination opportunity on relied statements.

    Case-Laws - AT : Reassessment proceedings initiated u/s 147 were quashed by ITAT for violation of principles of natural justice due to lack of opportunity for cross-examination of statements relied upon for making unexplained investment addition u/s 69. ITAT held that assessee must be provided materials/statements used against them and given adequate opportunity to explain. Mere retraction statements obtained later cannot cure initial violation. AO failed to conduct further enquiries to unearth circumstantial evidence supporting impugned statements. Reassessment order passed in violation of natural justice, assessee's appeal allowed.

  • Tax penalty on short-term capital gains from share transactions set aside for reconsideration by appellate authority.

    Case-Laws - AT : Assessee earned long-term and short-term capital gains on share transactions. Tax demand of Rs. 1.45 crores was finally raised on recomputed short-term capital gains of Rs. 40.33 crores. CIT(A) deleted penalty levied u/s 271(1)(c) without considering arguments and precedents. ITAT set aside CIT(A)'s order and restored penalty issue for de novo adjudication by CIT(A).

  • Reasonable cause excused delay in tax audit report filing, no penalty imposed.

    Case-Laws - AT : Assessee's appeal allowed by ITAT against penalty u/s 271B for non-compliance with Section 44AB. Assessee demonstrated reasonable cause for failure to file return and tax audit report within due date. Assessee had honest belief of not being required to file return due to nil taxable income after deductions. Upon receiving notice u/s 142(1), assessee immediately appointed CA firm, conducted tax audit, and filed return. ITAT held assessee's conduct showed reasonable cause u/s 273B for initial non-compliance.

  • Employer's contribution to leave encashment fund not deductible as expense unless actually paid in the previous year.

    Case-Laws - HC : The amount of contribution made by the assessee towards the fund for payment of leave encashment to its employees does not qualify for deduction as expenses u/s 43B of the Act. The proviso to Section 43B relates only to the liability incurred by actual payment in the previous accounting year. As per Section 43B, deduction is allowed where the liability to pay such sum was incurred according to the accounting method employed, and the sum was actually paid by the employer in the previous year. The assessee cannot derive benefit from the Bharat Earth Movers case, as Section 43B(f) applies prospectively post its enactment. The HC rightly disallowed the deduction, as the liability incurred did not qualify u/s 43B(f).

  • Tax Rates Under India-USA DTAA Include Surcharge, Surtax & Education Cess, Rules ITAT Based on Treaty Provisions & Case Laws.

    Case-Laws - AT : The assessee, a US citizen residing permanently in India, claimed that the tax rates specified in the India-USA DTAA include surcharge, surtax, and education cess would be applicable only for income earned in India. The ITAT held that as per Article 2(1)(b)(i) & (ii) of the DTAA, surcharge and surtax are included in the maximum rates specified under Articles 10 and 11. Since cess is an additional surcharge, the prescribed tax rates under the DTAA shall be deemed to include cess as well. Relying on precedents, the ITAT directed the CPC to recompute the assessee's tax liability by including education cess in the DTAA rates.

  • Income from US fund reinvested not taxable under Black Money Act; penalties deleted for unintentional lapse in first year.

    Case-Laws - AT : The ITAT held that the Black Money Act, 2015 would be applicable from AY 2016-17 onwards. Hence, the AO lacked jurisdiction to assess income or levy penalty under the Act for AYs 2014-15 and 2015-16. Regarding AY 2016-17, the dividend income reinvested in the Non-Retirement Fund (NRF) did not constitute undisclosed foreign income/asset as the tax was withheld as per USA laws. The penalty u/s 41 was deleted consequentially. The penalty u/s 43 was also rightly deleted by the CIT(A) considering it was the first year of the Act's implementation, the assets were from known sources with taxes paid, and the lapse was unintentional. The revenue's appeals were dismissed.

  • Additions based solely on third-party statements inadmissible without cross-examination opportunity.

    Case-Laws - AT : The ITAT held that a statement/document received from a third party cannot be relied upon for making an addition u/s 69A, without giving the assessee an opportunity to contradict the same and cross-examine the person who gave the statement/document. The suo-moto disclosure made by the assessee before the Settlement Commission, without corroborative material/evidence, cannot be the basis for making an addition. In the present case, except for a letter filed before the DCIT/Settlement Commission, there was no other corroborative material/evidence for sustaining the addition. Moreover, no opportunity was given to the assessee to cross-examine the person who made the disclosure/issued the letter relied upon for the addition. Consequently, the addition was held unsustainable and deleted in favor of the assessee.

  • Notional Interest Cannot Be Added on Interest-Free Business Funds When Real Income Is Known.

    Case-Laws - AT : No notional interest was added on interest-free advances as assessee had ample interest-free funds for business purposes. Real income earned can be assessed, not presumptive income without evidence. No interest income could be established on short-term loans and advances from debtors' replies or assessee's accounts. ITAT decided in assessee's favor, disallowing the addition of notional interest.

  • Unexplained Cash During Search Part of Surrendered Income, But Penalty Deleted for Lack of Proper Notice.

    Case-Laws - AT : The ITAT dismissed the Revenue's quantum appeal. It upheld the CIT(A)'s finding that the unexplained cash found during search was part of the income surrendered by the assessee u/s 132(4), based on the statement recorded. Regarding the penalty u/s 271AAB(1)(a), the ITAT deleted it on technical grounds, as the penalty notice did not specify clear charges against the assessee for not fulfilling the conditions and not divulging the source of income, violating natural justice principles.

  • Mercantile system allows interest income recognition based on actual receipts for govt entity.

    Case-Laws - AT : CIT(A) deleted addition of interest income, accepting assessee's audited accounts following mercantile system. ITAT upheld CIT(A)'s order, allowing assessee to recognize interest income based on actual receipts as per AS-9 due to uncertainty from NCLAT proceedings involving borrowers RGPPL and KLNG undergoing OTS. Assessee being government entity, accounts approved by CAG audit. ITAT relied on MMTC Ltd. case, holding AS-9 appropriate for revenue recognition under uncertainty. AO failed to establish assessee received impugned interest during the year.

  • Customs

  • Intermediary Denied Relief from Container Charges by Customs; Can Recover Costs from Consignees.

    Case-Laws - HC : Petitioner, an intermediary procuring containers for lease, sought release of empty containers without charges like ground rent, storage, handling from Customs Authority. HC held Petitioner entitled to recover dues, higher charges from consignees for using containers as per law. Prayers under Article 226 cannot be granted. Petition dismissed.

  • Customs Tribunal Upholds Classification of MCPCBs as Standard PCBs, Not LED Lamp Parts.

    Case-Laws - AT : MCPCBs should be classified under CTH 8534 as standard PCBs, not under CTH 94054090 as parts of LED lamps. CESTAT dismissed Revenue's appeal, holding that MCPCBs cannot be classified differently from Tribunal's view on identical facts that they merit classification under Tariff Item 8534 0000. Department cannot rely on IGST Notification to determine classification under Customs Act.

  • Customs duty interpretative dispute on classification of 'composite' insulators cannot invoke extended period.

    Case-Laws - AT : Appellant filed bill of entry correctly declaring imported goods as Composite Long Rod Insulators on 9-2-2017. Issue involved interpretation of 'composite' and 'polymer' to determine applicability of concessional duty under Notification. No mis-declaration or intent to evade duty. Extended period for demand cannot be invoked for mere interpretative dispute. Show cause notice issued after three years barred by limitation. CESTAT allowed appeal, holding extended period requires clear evidence of suppression or intent to evade duty.

  • Telematics Control Units classifiable under CTH 8517 62 90; zero customs duty eligible if Japan origin certified.

    Case-Laws - AAR : The subject goods 'Telematics Control Unit (TCU)' are classifiable under CTH 8517 62 90. The Applicant is eligible to avail concessional rate of Basic Customs Duty @ 0% on import from Japan as per Sl. No. 666 of N/N. 69/2011-Customs, dated 29-7-2011, provided the goods originate in Japan as per Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic Partnership Agreement between India and Japan) Rules, 2011.

  • DGFT

  • Here is a tweet-style title for the given text, along with 5 relevant Govt permits 200,000 MT wheat export to Nepal through NCEL under Foreign Trade Act & Policy amid food security concerns.

    Notifications : The Central Government, exercising powers under the Foreign Trade (Development & Regulation) Act, 1992 and Foreign Trade Policy 2023, permitted export of 200,000 metric tons of wheat (HSN 1001) to Nepal through National Cooperative Exports Limited (NCEL).

  • SEZ

  • Govt de-notifies 3.167 hectares from Phoenix Tech Zone SEZ in Telangana, reducing total area to 2.614 hectares.

    Notifications : The Central Government de-notified an area of 3.167 hectares from the Special Economic Zone for Information Technology and Information Technology Enabled Services at Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District in the State of Telangana, established by M/s. Phoenix Tech Zone Private Limited, thereby reducing the total area of the SEZ to 2.614 hectares. The de-notification was approved by the State Government of Telangana, recommended by the Development Commissioner, Visakhapatnam SEZ, and fulfilled the requirements under the Special Economic Zones Act, 2005 and Rules.

  • FEMA

  • Bank must rectify export credit subvention reversal as per RBI circular: exports within 450 days eligible except delayed period.

    Case-Laws - HC : HC dismissed the grievance. Interpretation of RBI's Master Circular on export credit: Advances financing exports within 450 days constitute "export credit" eligible for subvention. Delay in submitting export documents after 450 days requires reversal of subvention for delayed period. If exports don't materialize within 450 days, domestic lending rate applies; subvention unavailable. First Lot exports within 450 days eligible for subvention except delayed period. Second Lot exports didn't materialize within 450 days, hence ineligible for subvention. HDFC Bank to rectify First Lot subvention reversal, provide statement of dues as per HC's interpretation. RBI/Ministry to reimburse HDFC Bank for corrected First Lot subvention.

  • IBC

  • Operational Creditor's Application Under IBC Not Barred by Limitation.

    Case-Laws - AT : The NCLAT rejected the preliminary objections raised by the Corporate Debtor that the application u/s 9 filed by the Operational Creditor was barred by limitation. It held that the last payment was made on 26.08.2019, which was within three years, and there was an acknowledgment by the Corporate Debtor in writing reflected in the reply to the demand notice. As both conditions u/s 19 of the Limitation Act were fulfilled, the Operational Creditor was entitled to the benefit of extension of limitation. Consequently, the Section 9 application was well within the limitation period. The NCLAT dismissed the appeal.

  • Guarantor's Debt Liability Upheld: Personal Insolvency Proceedings Admissible Under IBC.

    Case-Laws - AT : The NCLAT held that the application for initiating the IRP against the personal guarantor u/s 95 of IBC was admissible. The guarantor acknowledged the debt and did not deny liability or furnish evidence of repayment as required u/s 99(2). The bank served a demand notice, and the application was filed after expiry of 14 days as per procedure. The RP's independent verification and report confirming the default was critical. The appeal was dismissed.

  • Indian Laws

  • Limitation period for objections to arbitral award starts from award's accessibility, not formal notice.

    Case-Laws - SC : The SC held that the limitation period for filing objections to an arbitral award under Article 119(b) of the Limitation Act, 1963 commences from the date the parties become aware of the existence of the award, not necessarily from the formal notice of filing. The respondents were aware of the award's filing on 21.09.2022 when the District Court directed them to clear fees for furnishing the award. Hence, the limitation expired on 20.10.2022, rendering the appellant's application u/s 17 on 10.11.2022 valid. The parties must scrutinize the award upon becoming aware of its accessibility, and the formal notice date of 18.11.2022 held no significance. The appeal was allowed.

  • Arbitral Tribunal's discretion on cross-examination can't be lightly interfered by courts under Article 227.

    Case-Laws - SC : The SC held that the HC has incorrectly exercised its supervisory jurisdiction under Article 227 in granting the respondent/claimant one more opportunity to cross-examine the appellant/respondent's witness, despite the Arbitral Tribunal rejecting such a prayer. The Tribunal had given full opportunity to all parties, and the respondent/claimant had already cross-examined the witness for over 12 hours. The SC observed that interference under Articles 226/227 is permissible only if the order is completely perverse, and the HC's order lacked justification in interfering with the Tribunal's directions. Consequently, the appeal was allowed.

  • VAT

  • Goods seized during transit due to lack of proper documentation, HC upholds tax liability.

    Case-Laws - HC : HC dismissed civil revision u/s 86 of Rajasthan Sales Tax Act, 1994. Exercising jurisdiction u/s 22A, HC held that as per Explanation II, "goods in transport" means goods handed over to carrier but not delivered. Since none of 5 consignees confirmed purchase and one filed complaint against petitioner, goods were in transit at time of seizure, covered u/s 22A. Proper documentation essential to avoid penalties. Civil revision dismissed.


Case Laws:

  • GST

  • 2025 (1) TMI 300
  • 2025 (1) TMI 299
  • 2025 (1) TMI 298
  • 2025 (1) TMI 297
  • 2025 (1) TMI 296
  • 2025 (1) TMI 295
  • 2025 (1) TMI 294
  • 2025 (1) TMI 293
  • 2025 (1) TMI 292
  • 2025 (1) TMI 291
  • 2025 (1) TMI 290
  • Income Tax

  • 2025 (1) TMI 289
  • 2025 (1) TMI 288
  • 2025 (1) TMI 287
  • 2025 (1) TMI 286
  • 2025 (1) TMI 285
  • 2025 (1) TMI 284
  • 2025 (1) TMI 283
  • 2025 (1) TMI 282
  • 2025 (1) TMI 281
  • 2025 (1) TMI 280
  • 2025 (1) TMI 279
  • 2025 (1) TMI 278
  • 2025 (1) TMI 277
  • 2025 (1) TMI 276
  • 2025 (1) TMI 275
  • 2025 (1) TMI 274
  • 2025 (1) TMI 273
  • 2025 (1) TMI 272
  • 2025 (1) TMI 258
  • Customs

  • 2025 (1) TMI 271
  • 2025 (1) TMI 270
  • 2025 (1) TMI 269
  • 2025 (1) TMI 268
  • 2025 (1) TMI 267
  • Insolvency & Bankruptcy

  • 2025 (1) TMI 266
  • 2025 (1) TMI 265
  • 2025 (1) TMI 264
  • FEMA

  • 2025 (1) TMI 263
  • CST, VAT & Sales Tax

  • 2025 (1) TMI 262
  • 2025 (1) TMI 261
  • Indian Laws

  • 2025 (1) TMI 260
  • 2025 (1) TMI 259
 

Quick Updates:Latest Updates