Tax
Income Tax Act | To Claim Deduction U/S 54F, Assessee Must Show Intention To Repay Borrowed Funds With Capital Gains: Kerala HC
The Kerala High Court stated that to claim the Section 54F deduction under the Income Tax Act, the assessee must satisfy the authorities that borrowed funds were used at their own risk with the intention to be repaid with capital gains. Section 54F of the Income Tax Act, 1961, allows a tax exemption on capital gains earned from selling a residential property, but only if certain...
Supreme Court Dismisses Airports Authority's Appeal Against Service Tax Levy For Cargo Handling
The Supreme Court on Tuesday dismissed an appeal filed by the Airports Authority of India (AAI) challenging the levy of service tax on services rendered in handling export cargo, ruling that such services fall within the ambit of “taxable services” under the Finance Act, 1994.A Bench of Justice Pankaj Mithal and Justice Prasanna B. Varale held that while “handling of export cargo”...
Scope Of Appeal Is Limited U/S 28KA Customs Act; Advance Ruling Binding Unless Arbitrary: Madras High Court
The Madras High Court has held that the scope of appeal is limited under Section 28KA of the Customs Act and an advance ruling is binding unless it is palpably arbitrary or irrational. Section 28KA of the Customs Act, 1962 provides that an appeal can be filed to the appellate authority against any ruling or order passed by the Authority within sixty days from the date of communication...
Tax Exemption Cannot Be Claimed For Inter-State Purchases Without Segregating Local Purchases: Madras High Court
The Madras High Court has held that if the assessee has purchased goods both within the State and from other States, then to claim exemption for inter-State purchases, the purchases made within the State must be segregated from those made from others. Justices S.M. Subramaniam stated that when the facts are established in clear terms that the goods were found mingled during...
No Export Duty On Transfer From Domestic Tariff Area To SEZ : Supreme Court Dismisses Union's Appeal Against Adani Power
Observing that the movement of goods from a Domestic Tariff Area (DTA) to a Special Economic Zone (SEZ) is a domestic supply and not an export outside India, the Supreme Court provided relief to Adani Power Ltd. and other entities from paying export duty under the Customs Act, 1962, for the movement of goods from DTA to SEZ. A bench of Justice BV Nagarathna and Justice R Mahadevan dismissed...
One Rolex Watch Can Be For Personal Use, Not 'Commercial Quantity': Delhi High Court To Customs
The Delhi High Court has made it clear that one Rolex watch seized by the Customs Department from an air passenger cannot be called 'commercial quantity'.It thus cautioned the Department's Adjudicating Authority against “error” on its part, in declaring the same as commercial.“Clearly, this Court is of the view that one Rolex watch cannot be held to be a commercial quantity and there is...
Tax Weekly Round-Up: September 15 - September 21, 2025
SUPREME COURTSupreme Court Allows Customs Duty Exemption To LG Electronics For Smart Watch Import From KoreaCause Title: M/S L.G. ELECTRONICS INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF CUSTOMSThe Supreme Court recently granted relief to LG Electronics India from paying customs duty on imported 'G Watch W7' smartwatches from South Korea, holding that a certificate of origin from a country...
CCTV Footage Of Assessee's Family Cannot Be Used By GST Dept, Violates Right To Privacy: Delhi High Court
The Delhi High Court has issued directions safeguarding the right to privacy in GST search proceedings, stating that any family-related CCTV footage which violates the privacy of family members cannot be used or disseminated in any manner. “Some of the concerns which are raised by the Petitioners such as right to privacy of the family being violated, etc., deserve to be...
Compensation Received From NHAI For Acquisition Of Land Not Taxable: Chhattisgarh High Court
The Chhattisgarh High Court held that the compensation received against the acquisition of land from the NHAI (National Highways Authority of India) is not exigible to tax under Section 96 of the RFCTLARR Act (Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013). Section 96 of the Right to Fair Compensation and Transparency in...
Customs Act | Provisional Release Of Seized Object Won't Extend Timelimit For Issuing Show Cause Notice In Pre-2018 Cases : Supreme Court
The Supreme Court recently upheld a Delhi High Court order directing release of an imported Maserati car seized by the Directorate of Revenue Intelligence (DRI), upholding the HC's view that failure to issue a show-cause notice within time prescribed under the Customs Act, 1962 entitles the person to release of the seized goods.A bench of Justice JB Pardiwala and Justice Sandeep Mehta...
Income Tax Act | Payment To Consulting Doctors Appointed On Probation Is Not Salary; TDS Deductible U/S 194J, Not U/S 192: Bombay High Court
The Bombay High Court has held that payments to consultant doctors are not salary. Hence, TDS is deductible under section 194J and not under section 192 of the Income Tax Act. Justices B.P. Colabawalla and Firdosh P. Pooniwalla stated that there does not exist an employer-employee relationship between the assessee and consultant doctors, and the payments made to them by the...