An overview by Economic Laws Practice, Taxand India
Tax experts from our Indian member firm Economic Laws Practice have recently published the latest edition of their tax newsletter.
This edition highlights key direct and indirect tax developments arising from recent judicial decisions, helping businesses stay compliant while identifying opportunities to optimise their tax strategy. It provides practical insights into the evolving tax landscape in India.
Key highlights include:
Section 263 Revision: ITAT Bangalore upheld revision proceedings against a family discretionary trust due to inadequate enquiry into large asset receipts under Section 56(2)(x).
Goodwill & Buy-Back Taxation: ITAT Pune disallowed depreciation on artificially created goodwill following an intra-group amalgamation and upheld buy-back tax under Section 115QA.
Foreign Salary Taxability: ITAT Ahmedabad ruled that foreign salary credited to an NRE account is not taxable in India if first received outside the country.
GST Proceedings: The Bombay High Court held that Section 74 show cause notices cannot club multiple financial years into a single proceeding.
Input Tax Credit: The Tripura High Court ruled that bona fide purchasers cannot be denied ITC solely because the supplier failed to deposit tax.
GST Refunds & Penalties: Courts confirmed that refunds of double GST payments cannot be denied on limitation grounds and quashed personal penalties on company officials in the absence of vicarious liability.
