Tax Alerts

Bombay High Court mandates a minimum 3-month gap between SCN and final GST order.

Key GST Developments – January 2026

ITAT: No TDS on transponder charges under India-UK DTAA as payment cannot be considered as Royalty.

ITAT: No separate ALP adjustment for royalty when it is covered under Transactional Net Margin Method benchmarking.

Interest on refund under Section 244A is payable even if refund arose from Vivad se Vishwas settlement: HC

Where group companies were subjected to search and additions were made under section 69A based solely on WhatsApp chats retrieved from directors/employees without any corroborative material and chats did not specify whether amounts were receipts or payments, such additions were unsustainable as unexplained money or on account of alleged unaccounted turnover: ITAT

GIFT City (IFSC)

When Public Health Meets GST Policy: Rethinking Tax on Air Purifiers.

GST on Inter-Company Cross-Border Services: Export Benefits Vs Receipt of Foreign Exchang.

Subsidiary’s independent services to US parent were zero-rated exports; refund of unutilised ITC was allowable: HC

ITAT Hyderabad : Essential Additional Evidence Cannot Be Rejected on Procedural Grounds.

ITAT Delhi: Cost-to-Cost IT Reimbursements Not Taxable as FIS under India–US DTAA”.

Supreme Court holds temporary lull does not mean cessation of business, allows set-off under section 71 of the Income Tax Act, 1961.

Mumbai ITAT holds that carry forward of unabsorbed depreciation cannot be denied on the ground of non-est return filed beyond due date under section 139(1) of the Income Tax Act, 1961.

Explanation of Amendments – Capital Gains Accounts (Second Amendment) Scheme, 2025.

HC directs AO to verify info. available on ‘Insight Portal’ before issuing notice u/s 148A(1).

Anti-Profiteering under GST Provisions

Rate-Cut Benefits must reduce price: Delhi High Courts on Anti-Profiteering.

Notification No. 18/2025-Central Tax date 31st October 2025

ITC reversal and penalty under sec. 74 unwarranted as purchases backed by invoices, e-way bills and banking payments: HC.

Reassessment proceeding is invalid if Assessing Officer is unsure of taxability year and search information pertains to different Financial Years

Software Licensing not taxable as Fee for technical Services (FTS) under India – US DTAA unless the technology was "made available" to users.

If the taxpayer has not commenced business and has no taxable income, then the provisions relating to Specified Domestic Transactions (SDTs) and concessional tax rates under Section 115BAB are not applicable: Delhi ITAT

No TP adjustment to be added to book profit u/s 115JB

ITAT quashed section 56(2)(x)(b) addition as agreement & part payment made in 2013 before section came into force

Delay in verification of Form 10BB condoned as caused by CA's inadvertent error; rejection order quashed: HC

Advisory issued on Changes in Invoice Management System (IMS)

CBDT Waives Interest on Section 87A Rebate Demands After Rectification

The Council has announced significant reforms under the “Next-Gen GST” initiative, including a simplified rate structure, revised GST rates across sectors, and major compliance and procedural change

Section 69 addition unsustainable where NRI purchase flat which is Funded via Housing loan and Overseas Sources – Delhi ITAT.

No prosecution under Black Money Act, 2015 for non-disclosure of assets (except immovable property) up to 20 Lakhs – CBDT Instruction

Most awaited question of whether time taken for Dispute Resolution Panel (DRP) process under section 144C is to be subsumed within or excluded from limitation period prescribed under section 153 for completing an assessment to be placed before Chief Justice of India for constituting an appropriate Bench to consider issues afresh: Supreme Court

Where assessee, a Dubai based company, entered into an agreement with Indian hotel to provide strategic planning and ‘know-how’ to ensure that hotel was developed and operated efficiently, since assessee exercised pervasive and enforceable control over hotel’s strategic, operational and financial dimensions, hotel premises satisfied criteria required to be classified as a “fixed place of business” or PE within meaning of article 5(1) of DTAA and, thus, income received by the Dubai based company was attributable to such PE and was taxable in India: Supreme Court

Relaxation of time limit for processing of returns of income filed electronically which were invalidated by CPC: CBDT

SLP dismissed against HC ruling that Sec 148 notice post-NCLT resolution plan approval for prior period was invalid

GST: Interstate Transfer of ITC Allowed Post-Amalgamation: Bombay High Court Landmark Ruling

CBDT Issues Relief for Inoperative PAN Cases

GST: Delhi High Court Sets Aside IGST Demand on Internal HO Expenses.

GST Portal Now Enabled to File Appeal Against Waiver Rejection Order (SPL-07).

Indian Subsidiary is not to be treated as a Dependent Agent Permanent Establishment (DAPE) if the transaction with it is at Arm’s Length Price – Bangalore ITAT.

Definition of 'eligible assessee' under sec. 144C indicates two categories of persons, not two conditions: Delhi ITAT

CBDT relaxes time limit for processing of valid ITRs filed pursuant to condonation of delay u/s 119(2)(b) of the Income Tax Act, 1961

The Launch of the E-way Bill 2.0 Portal from 1st July 2025.

Supreme Court Upholds Pre-Deposit via Electronic Credit Ledger: A Landmark decision in GST Litigation.

Retailer Discounts Not Taxable Services: Delhi HC

Due date of filing ITRs for AY 2025-26 extended from July 31, 2025 to September 15, 2025.

Tax Effect for Appeal Maintainability to be computed only on AO’s Additions: Delhi HC

Different Floors constitute one Residential House for Section 54F Exemption: Delhi HC

ITAT upholds use of Royalty savings method over TPO’s CUP method approach for determining ALP of Intangibles.

Assessee who was unaware of SCN issued and order passed after cancellation of registration to be permitted to file appeal: HC

ITC not Admissible on Expenditure Incurred for Buyback of the shares: AAR, GUJARAT

CBDT hereby notifies that expenses incurred to settle proceedings initiated under SEBI, SCRA, Depositories & Competition Act are not allowable.

Refund to be granted along with interest as physical verification confirmed that assessee was carrying on business from declared premises: HC

Deposits in foreign bank a/c inherited from parents not treated as undisclosed foreign income/assets: ITAT

Changes in GST Compliance & Rates for Hotel & Restaurant Services w.e.f 1st April 2025

CBDT Allows Waiver of Interest on Delayed TDS/TCS Due to Technical Glitches

Important Advisory: March 2025 Year-End Closing & Compliance Reminder

Mandatory ISD Compliance Under GST from April 1, 2025

GST Notice for dealing with Non-Genuine Taxable Persons (NGTP).

No Reassessment for Disallowed Lease Rent if Already Scrutinized: Gujarat HC.

Amendments made in the Transfer Pricing provisions by the Budget 2025.

CBDT Clarifies Appeal Timeline for Vivad Se Vishwas scheme 2024.

New Regulation on RCM Self Invoicing

Important Changes in GST from 16th January 2025

CBDT Sets Monetary Limits for Interest Waiver Under Section 220(2) of IT Act

ITAT Mumbai Deletes TP Adjustment on Management Fees; Focus on Bona-Fide Transactions

Return Deemed Accepted Post-Remand Expiry