Tax
Income Tax | Govt Grant/Subsidy Under Rehabilitation Scheme Is Capital Receipt, Not Taxable As Revenue: Madras High Court
The Madras High Court held that the grant-in-aid/subsidy received by the assessee under a government rehabilitation scheme is a capital receipt and is not taxable as revenue. Chief Justice Manindra Mohan Shrivastava and G. Arul Murugan examined whether the grant-in-aid/subsidy received by the assessee from the Government under the rehabilitation scheme should be treated as a...
Supreme Court Direct & Indirect Tax: Annual Digest 2025
Judgments With CitationsDirect TaxMotor Accident Claims - Tax Returns Can Be Accepted To Determine Income Only If They Are Appropriately Produced : Supreme CourtCase name: New India Assurance Co. Ltd. V. Sonigra Juhi Uttamchand.Case no.: SLP (C) No. 30491 of 2018Citation : 2025 LiveLaw (SC) 18The Supreme Court, recently (on January 02), while deciding a motor accident compensation claim...
“Resources Completely Wasted Away”: Delhi High Court Fines Customs For Delaying Release Of Seized Goods Despite Order
The Delhi High Court has criticised the Customs Department for wasting public resources by withholding seized goods despite an adjudication order already having directed its unconditional release, eventually leading to avoidable litigation.A Division Bench of Justices Prathiba M. Singh and Shail Jain observed,“The present is a case which shows how the resources of the Customs Department...
Sunglasses Not Covered Under 'Spectacles' Entry; Taxable As Residuary Goods At 12.5% VAT: Punjab & Haryana High Court
The Punjab and Haryana High Court held that the sunglasses are classified as a residuary item, as they did not fall under any specified Schedule, and therefore are exigible to VAT (Value Added Tax) at the rate of 12.50%. Justices Lisa Gill and Meenakshi I. Mehta stated that sunglasses are indeed a distinct commodity, which is not covered under Entry 110 of Schedule B of PVAT Act...
Delhi High Court Upholds ₹9.73 Crore Duty On Import Of IPL Broadcast Equipment, Reduces Penalty For Misdeclaration
The Delhi High Court recently upheld the import duty imposed by the Customs, Central Excise & Service Tax Settlement Commission on a company authorised by BCCI to provide broadcast equipment and associated services for covering the Indian Premier League in 2012.A division bench of Justices Prathiba M. Singh and Shail Jain observed that under normal circumstances, this duty would have...
Karnataka High Court Pulls Up CBIC For Non-Compliance, Seeks Clarity On Applicability Of S. 9(5) CGST Act To Uber's 'Subscription' Model
The Karnataka High Court directed the CBIC to clarify whether passenger transportation services under Uber's subscription model attract GST under Section 9(5) of the CGST Act. Justice S.R. Krishna Kumar also directed the CBIC to place the matter before the GST Council, if required, and file a status report. Section 9(5) of the Central Goods and Services Tax (CGST) Act, 2017, is...
GST | Delhi High Court Grants Interim Relief To ICICI Bank Over Demand Of ₹216 Crores For Minimum Balance Non-Maintenance Charges
In yet another writ petition by ICICI Bank, the Delhi High Court has granted interim relief to ICICI Bank in a demand pertaining to charged levied by the Bank for not maintaining a Minimum Average Balance (MAB). As is the norm in the banking sector, while opening a bank account, the customer signs an Account Opening Form post which the banking relationship is activated. One of...
Security & Scavenging Services To Govt Hospitals Qualify As "Pure Services", Exempt From GST: West Bengal AAR
The West Bengal Authority for Advance Ruling (AAR) has held that security and scavenging services provided to government-run medical colleges and hospitals qualify as “pure services” and are exempt from Goods and Services Tax (GST) under Notification No. 12/2017. The Authority held that services essential to the functioning of public hospitals, when supplied without any element...
GSTAT Directs Builder To Return Over ₹20 Lakhs Benefit To Diya Greencity Homebuyers With Interest
The Goods and Services Appellate Tribunal (GSTAT), Anti Profiteering Division at Delhi has directed the Builder to return ₹20,21,440 out of the Amount not passed on, along with interest to the homebuyers of Diya Greencity Project. In a recent order, a Division Bench comprising, Shri. Mayank Kumar Jain (Judicial Member) and Shri. Anil Kumar Gupta (Technical Member) verified that...
CESTAT Mumbai Grants Major Relief To Capgemini; Holds IT/ITES Services Eligible For CENVAT Credit
The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal has partly allowed an appeal filed by Capgemini Technology Services India Ltd., holding that most of the input services used in provision of Information Technology/Information Technology Enabled Services output services qualify as input services under Rule 2(l) of the CENVAT Credit Rules, 2004. The...
Tax Weekly Round-Up: December 15 - December 21, 2025
SUPREME COURTIncome Tax | Foreign Companies' Head Office Expenses For Indian Business Subject To Deduction Limit Under S. 44C : Supreme CourtCause Title: DIRECTOR OF INCOME TAX (IT)-I, MUMBAI. VERSUS M/S. AMERICAN EXPRESS BANK LTD. (and connected case)In a set-back to foreign companies doing business operations in India, the Supreme Court on Monday (December 15) held that all head...
Performance Incentives Earned By Advertising Agency From Media Firms Not Taxable: Delhi High Court
The Delhi High Court has made it clear that the incentives received by an advertising agency from media firms for achieving benchmark targets is not susceptible to levy of service tax.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“An advertising agency primarily books slots on electronic media and books space in the print media on behalf of its clients. The...