Tax
Bona Fide Errors In GSTR-3B Can Be Corrected; Karnataka High Court Directs Department To Accept Revised Returns
The Karnataka High Court held that bona fide errors in GSTR-3B returns are rectifiable and cannot be a ground to initiate proceedings under Section 73 of the KGST /CGST (Central Goods and Services Tax) Act. Justice S.R. Krishna Kumar directed the department to accept the revised returns, noting that the Supreme Court has also directed the CBIC to re-examine the provisions/timelines...
Income Tax Act | Upkeep & Maintenance Expenses For Rubber Replantation Are Revenue Expenditure, Deductible U/S 37: Kerala High Court
The Kerala High Court held that expenditure incurred on the upkeep and maintenance of rubber trees, including expenses relating to replantation and replacement, is revenue in nature and therefore allowable as a deduction under Section 37 of the Income Tax Act, 1961. Section 37 of the Income Tax Act, 1961, provides that expenses incurred by businesses for raising loans are eligible...
Income Tax | ITAT Mumbai Allows Section 80P Deduction On Interest Earned From Co-operative Banks
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed a co-operative housing society to claim deduction under Section 80P(2)(d) of the Income Tax Act on interest income earned from deposits placed with co-operative banks. A Bench comprising Vikram Singh Yadav (Accountant Member) and Rahul Chaudhary (Judicial Member) allowed the appeal filed by the assessee,...
Delhi High Court Upholds GST Adjudication Despite SCN Being Signed By One Officer & Reflected On Portal Under Another Officer's Name
The Delhi High Court has upheld the adjudication process in a matter involving validity of a Show Cause Notice which was signed by an Officer, but portal reflected the same under the name of another Officer. A Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain relegated the Petitioner to avail remedy of appeal against order passed by the Joint Commissioner,...
Delhi High Court Directs To Re-Assess Bills Of Entry, Allows Infra Cess Exemption On E-Golf Carts Owing To Technical Glitch
The Delhi High Court in a matter where importer could not avail Infrastructure Cess exemption due to technical glitch, has directed the Customs Department to re-assess and refund the excess Infrastructure Cess of ₹55,876.29 paid by the Petitioner on imported electrically operated golf carts. A Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain, observed that...
Customs Act | Penalty U/S 112 Cannot be Imposed Solely On Co-Accused's Statement Without Corroborative Evidence: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that a mere allegation by a co-accused that the assessee handed over gold cannot serve as the sole basis for imposing a penalty under Section 112 of the Customs Act. The bench clarified that in the absence of any independent corroborative evidence supporting this claim, the statement of the co-accused...
Centre Projects ₹47,700 Crore Revenue Loss Amid GST Rate-Rationalisation
The Centre has estimated a Net Negative Revenue loss of ₹ 47,700 crore due to GST rate-rationalisation. However, it was clarified that shift from 28% to the 40% tax bracket were projected to account for an additional revenue of approximately ₹45,570 Crore. The Finance Ministry in response to whether a Group of Ministers were to be constituted by the GST Council to address the...
Customs Act | Gujarat High Court Reiterates Mandatory Cross-Examination Under Section 138B, Quashes Penalty Order
The Gujarat High Court has held that reliance on statements of witnesses without allowing the manufacturer opportunity to cross‑examine, while ignoring those statements that testified in favour of the manufacturer, violates principles of natural justice. In a judgment delivered on November 25, 2025 Justice A.S. Supehia and Justice Pranav Trivedi quashed the penalty order and...
Hotelier Liable To 18% GST Not 28% On Supply Of Carbonated Beverages, For Dine-In/Room Service : West Bengal AAR
The West Bengal Authority for Advance Ruling (AAR) has held that supply of restaurant services, including the supply of aerated beverages, would be taxable at the rate of 18% GST. In a ruling by Shri. Shafeeq S (Member- Central Tax) and Shri. Jaydip Kumar Chakrabarti (Member-State Tax) examined the two kinds of supply of Aerated Drinks viz. (i) With food (shown separately in bill and...
Income Tax | Foreign Companies' Head Office Expenses For Indian Business Subject To Deduction Limit Under S. 44C : Supreme Court
In a set-back to foreign companies doing business operations in India, the Supreme Court on Monday (December 15) held that all head office expenditure incurred by them outside India, whether common or exclusively for their Indian business operations, must be subjected to the statutory ceiling prescribed under Section 44C of the Income Tax Act, 1961, thereby ruling out any claim for...
GST | Allahabad High Court Grants Stay On Composite Show Cause Notice For Multiple Assessment Years
Recently, the Allahabad High Court has granted stay on composite show cause notice issued by the Directorate General of GST Intelligence where multiple assessment years have been clubbed in one show cause notice. Petitioner approached the High Court against a single show cause notice issued by the Additional Director, Directorate General of GST Intelligence, Ghaziabad for tax...
Service Tax | Tax Paid Under Wrong Service Category Cannot Be Demanded Again: CESTAT Mumbai
The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand raised against the assesse, holding that once service tax has already been paid under the Reverse Charge Mechanism, merely under a wrong service category, the department cannot demand the same tax again.A Bench comprising Dr. Suvendu Kumar Pati (Judicial Member)...