Tribunals and Commissions judgments

The NCLAT upheld Section 7 admission, holding that continuing failure to deliver possession generates a fresh cause of action daily under Section 22 Limitation Act. Pendency of High Court winding-up proceedings does not bar NCLT from admitting a corporate debtor. Homebuyers' claims thus survive limitation through continuing default, and IBC initiation isn't stalled by parallel liquidation petitions.

The tribunal ruled that TDS credit under Section 205 is based on actual tax deduction, not merely Form 26AS reflection, and remanded the case for verification of the disputed Rs 43.72 lakh credit. This protects taxpayers from losing legitimate credits due to deductors' filing delays or errors.

The tribunal held that where the sole financial creditor is paid in full and the operational creditor accepts enhanced settlement, leaving only CIRP costs unresolved, withdrawal under Section 12A is permissible despite procedural non-compliance with Regulation 30A. The ruling prioritizes commercial resolution over technical defaults, allowing corporate debtors to exit insolvency once all substantive claims are satisfied.

The tribunal ruled that denying disability family pension based on a conclusory medical opinion of employability violates Rule 54(6); authorities must evaluate the claimant's actual functional capacity to earn a livelihood. This safeguards disabled dependents from arbitrary termination of pension benefits.

NCLAT quashed NCLT orders directing ED and CBI investigations under Section 213(b) without recording satisfaction of statutory prerequisites or hearing affected parties, holding that procedural safeguards are mandatory before ordering corporate investigations.

The NCLAT ruled that the Adjudicating Authority possesses residuary jurisdiction under Section 60(5)(c) of the IBC to issue consequential directions necessary for implementing a going concern sale during liquidation. The tribunal extended the 'clean slate' doctrine - typically applied in resolution plans - to liquidation proceedings, ensuring that a successful auction purchaser receives the corporate debtor's assets free from encumbrances. This decision clarifies the AA's powers to facilitate liquidation sales and protects buyers from legacy claims, impacting liquidators, successful bidders, and secured creditors.

CESTAT Bangalore ruled that the Self Employed Women's Association (SEWA), a member-based trade union, does not qualify as a 'manpower recruitment or supply agency' under the Finance Act, 1994, because the workers are members of the organisation rather than employees deployed through an intermediary service. The decision clarifies that the mutuality principle excludes such collective self-employment arrangements from service tax liability, impacting similar member-driven collectives and cooperatives.

The CCI found the Trustees’ Association of India and four debenture-trustee firms colluded to fix trusteeship fees for NCDs, breaching Section 3 of the Competition Act. It ordered a cease-and-desist and penalties, warning that fee-setting in the debt-securities market is subject to competition law. NCD issuers and investors are directly affected.

An unsigned or undated sanction under section 151 of the Income-Tax Act is invalid, making any subsequent section 148 notice jurisdictionless. The Delhi ITAT therefore quashed the assessment notice, safeguarding taxpayers from assessments based on defective approvals.

NCLAT ruled that under Section 61(2) IBC an appeal must be filed within 30 days and only a 15-day condonable period is allowed. Delays beyond 15 days, even with justified reasons, will be rejected, compelling appellants such as home-buyers to act promptly.

SAT affirmed SEBI's two-year market debarment and penalties on Omaxe Ltd., its promoters and former CFOs for round-tripping and misstating accounts. The decision underscores that debarment is a proportionate sanction for corporate fraud, binding listed firms and key managerial personnel.

The SAT ruled that the conditions in sub-clauses (i)-(iii) of SEBI’s Regulation 27(1) bind not only the promoter’s direct entities but also borrowers, subsidiaries and associates linked to the promoter. This interpretation broadens the scope of prohibited rating assignments for credit rating agencies, exposing them to liability for ratings tied to any promoter-related borrowing.

ITAT Ahmedabad ruled that the Section 87A rebate cannot be denied on short-term capital gains taxed at the special rate under Section 111A for AY 2025-26, overturning the Addl. CIT’s reliance on CBDT circular 13/2025. Taxpayers with STCG can now claim the full ₹25,000 rebate, extending relief beyond other income sources.

The ITAT ruled that an assessment order issued under section 143(3) in the name of a deceased taxpayer is merely irregular and can be corrected, not a nullity. Consequently, the tax liability remains enforceable and the legal heir may seek rectification without the order being void.

A SEZ unit’s claim for service tax refund was allowed despite filing beyond the six-month limit, because the SEZ Act’s substantive exemption prevails over procedural time bars. This clarifies that revenue authorities cannot reject refunds solely on limitation grounds for SEZ entities. The ruling benefits all SEZ manufacturers seeking tax refunds for pre-2011 periods.

The Kolkata ITAT ruled that the 10 % tolerance under Section 50C is retrospective, striking down the ₹9,94,312 addition for AY 2014-15 because the valuation gap was only 8.5 %. Taxpayers can therefore rely on the tolerance limit for past years, limiting exposure to Section 50C additions when the gap falls within the prescribed range.

By setting aside a ₹1,885 cr inflated claim and correcting the information memorandum, the NCLAT affirmed that a guarantor can claim subrogation rights under the IBC. The ruling tightens claim valuation standards and protects guarantors in corporate insolvency cases.

The CAT set aside a charge memorandum lacking Finance Minister’s approval, ruling that only the Disciplinary Authority may sanction charge sheets under Rule 14 CCS (CCA) Rules, 1965. The holding confines disciplinary power to the authority, shielding senior revenue officials from ministerial sanction misuse.

The Cuttack Bench of the Central Administrative Tribunal ruled that service rendered in the Karnataka-Goa charge from 27 Sept 2012 to 3 Aug 2014 must be credited towards seniority for promotion to Senior Tax Assistant and Income Tax Inspector. This overturns the 1990 CBDT guideline that excluded such service after a compassionate inter-charge transfer, benefiting non-gazetted income-tax officers seeking promotion after moving between charges.

CCI found no prima facie violation of the Competition Act in the complaint that the mandatory shift to FIPS-140-3 favoured a single token vendor, dismissing the alleged abuse of dominance claim. The ruling clears the way for MeitY's migration mandate, affecting the Controller of Certifying Authorities, Precision Biometric and other token manufacturers.

The ITAT ruled that a higher TDS rate under Section 206AA cannot be imposed automatically if the deductor’s delay in filing returns is caused by the deductees’ failure to link or activate PAN-Aadhaar, a circumstance beyond the deductor’s control. Such matters must be remitted to the Assessing Officer for fresh assessment, shielding compliant deductors from unwarranted penalties. The decision benefits taxpayers who face third-party PAN linking delays.

CESTAT ruled that a taxpayer may carry forward surplus service tax and set it off against liability in any later month or quarter, not just the immediate period prescribed by the revenue. This expands the relief available under Rule 6(4A) of the Service Tax Rules, giving businesses greater cash-flow flexibility. The decision applies to all service-tax payers with excess tax payments.

The ITAT held that the Transfer Pricing Officer’s ad-hoc valuation method violated Section 92C and set aside the Rs 357.35 crore adjustment. The ruling reinforces that only the prescribed five methods may be used, affecting taxpayers facing TP adjustments.

The ITAT ruled that the ex-gratia payment received by a former BSNL employee is a capital receipt exempt under Sec 10(10B) of the Income-Tax Act. It also treated a 1578-day filing delay as ‘sufficient cause’ under Sec 249(3), allowing the appeal to proceed. This benefits taxpayers receiving VRS and facing procedural delays.