Tribunals and Commissions judgments

ITAT Pune holds that reassessment notices under Section 148 of the Income Tax Act, 1961, relying solely on unverified Insight Portal data without independent verification, are invalid. The ruling reinforces CBDT Circular compliance, mandating AO scrutiny beyond automated alerts to protect taxpayers from arbitrary proceedings.

NCLAT rules that interest on inter-corporate deposits must be included in calculating the financial debt threshold under Section 5(8) of the Insolvency and Bankruptcy Code, 2016. This decision overturns NCLT's exclusion of interest based solely on TDS deductions, impacting creditors' eligibility for initiating CIRP.

ITAT Pune rules that failure to issue notice u/s 143(2) of the Income Tax Act after assessee files return in response to notice u/s 148 renders re-assessment order invalid, even if return is delayed.

ITAT Ahmedabad sets a precedent that penalties under Section 270A for misreporting income cannot be imposed without concrete proof of false particulars or deliberate suppression, even if a deduction is disallowed. This ruling reinforces natural justice principles, protecting taxpayers from arbitrary penalties based solely on disallowed claims.

CCI clarifies that vertical agreements under Section 3(4) of the Competition Act require proof of dominance to establish anti-competitive practices. Dealers cannot challenge unilateral termination unless market power is demonstrated, reinforcing the threshold for abuse of dominance claims under Section 4. The ruling impacts automotive dealerships and vertical business relationships across sectors.

CESTAT Bangalore rules that reimbursable expenses cannot be included in taxable value for service tax before 2015 amendment to Section 67 of Finance Act, 1994, relying on Supreme Court precedent.

CESTAT Bangalore rules that royalty payments for technical know-how under a Technical License Contract Agreement do not constitute Intellectual Property Rights (IPR) services under Section 65(55a) of the Finance Act, 1994, setting aside service tax demand.

ITAT Jaipur rules that failure to issue draft assessment order u/s 144C(1) for non-resident assessee renders assessment void ab initio. Key procedural compliance takeaways.

ITAT Jaipur rules that unexplained cash can be fully telescoped against unrecorded sales, deleting Rs.8.67L addition, and deletes Rs.15.52L addition for cash loans based on dumb documents.

CESTAT Bangalore rules that cenvat credit eligibility depends on classification under Customs Tariff at import, not functional use. Aluminium panels classified under CTH 7610 9090 ineligible for credit.

CESTAT Chennai rules that service tax demands on sub-leased properties and electricity charges are barred by limitation, clarifying legal interpretation standards under Section 73 FA 1994.

CESTAT Bangalore rules that real estate transactions on principal-to-principal basis are not taxable as 'Real Estate Agent Services' and works contract valuation must exclude goods value under Rule 2A(i) of Service Tax Rules.

CESTAT Kolkata rules that contract date prior to 01.03.2015 qualifies for Service Tax exemption under Notification No. 25/2012, setting aside Rs. 23 lakh demand.

CESTAT Chandigarh rules that Section 11D of the Central Excise Act, 1944 cannot be applied retrospectively, setting aside a Rs. 55,01,282 demand for the period prior to September 20, 1991. The ruling reinforces that excise duty demands under Section 11D are prospective only, impacting businesses facing retrospective tax claims.

ITAT Jaipur holds that rough estimates of jewellery purchases found on a mobile phone, without proof of actual transactions or physical possession, cannot justify additions under Section 69A of the Income Tax Act. The ruling reinforces strict evidentiary standards for unexplained investments, protecting assessees from double taxation based on loose notings.

NCLAT Chennai upholds liquidation under Section 33(1)(a) of the IBC, ruling that repeated failure to honor settlement proposals and non-cooperation with the Committee of Creditors (CoC) justifies bypassing resolution efforts. The judgment reinforces that liquidation is a last resort but becomes binding when promoters undermine the Corporate Insolvency Resolution Process (CIRP).

NGT Western Zone Bench validates Goa Coastal Zone Management Authority's permission for bund strengthening in CRZ-IA areas, subject to strict eco-friendly conditions like mangrove replantation and solar lighting. The ruling reinforces regulatory compliance while balancing infrastructure development with environmental conservation under the CRZ Notification.

CESTAT Ahmedabad sets aside penalties under Rule 26 of Central Excise Rules 2002, ruling that statements alone are insufficient for imposing penalties without corroborative evidence and explicit invocation of the penal clause. The decision underscores the need for strict adherence to procedural safeguards in excise penalty proceedings, impacting manufacturers and corporate officers facing similar allegations.

ITAT Delhi clarifies that cash salary payments below Rs. 10,000 per day per employee do not attract disallowance under Section 40A(3), deleting a Rs. 21.6 crore addition. The ruling benefits businesses employing temporary staff on cash salaries, provided payments remain within the prescribed limit.

ITAT Pune reaffirms that co-operative societies engaged in providing credit facilities exclusively to members are eligible for deduction under Section 80P(2)(a)(i) on interest income, distinguishing the Totgars precedent. The ruling reinforces binding judicial consistency for salary earners' credit societies, impacting tax liability calculations for similar entities.

NCLAT upholds liquidation of a corporate debtor after the resolution applicant failed to secure RBI approvals within the one-year deadline under Section 31(4) of the Insolvency and Bankruptcy Code. The ruling reinforces strict compliance with regulatory timelines, impacting insolvency practitioners and creditors in CIRP proceedings.

The National Green Tribunal has directed strict enforcement of the Solid Waste Management Rules 2026, holding District Collectors personally accountable for implementation. Non-compliance will attract penalties, and CSR funds must be utilized for waste-to-energy projects to curb environmental violations.

NCLAT holds that any renewal, novation, or variance of credit facilities without the personal guarantor's consent automatically discharges their liability under Section 133 of the Indian Contract Act. This ruling reinforces the protection of guarantors under the IBC and sets a precedent for creditors to secure explicit consent for modifications.

ITAT Delhi clarifies that Section 56(2)(viib) of the Income Tax Act operates on a receipt basis, not issuance basis. The tribunal upholds the Discounted Cash Flow (DCF) valuation method but limits tax additions to the excess premium over fair market value (FMV), providing relief to companies issuing shares post-2012-13.