Foreign Entity Doing Business Through Temporary Premises In India Liable To Tax : Supreme Court Rejects Hyatt International's Appeal

The Supreme Court on Thursday (July 24) ruled that the existence of a Permanent Establishment (PE) is sufficient to attract tax liability for a foreign entity in India, even in the absence of exclusive possession of a fixed place of business. The Court clarified that temporary or shared use of premises, when combined with administrative or operational control, is adequate to establish a...

Karnataka High Court Directs GST Department To Establish Tracking System For Notices Sent To Taxpayers Via Email

The Karnataka High Court has directed the GST department to establish tracking system for notices sent to the taxpayers via email Justice Suraj Govindaraj stated that it is required for the department to establish a system to ascertain delivery of e-mail notices, when the said e-mail was opened and when the email was read. In this case, the assessee/petitioner has challenged...

IGST Not Leviable On Secondment Of Employee From Overseas Group Companies: Karnataka High Court

The Karnataka High Court held that IGST is not leviable on secondment arrangement with overseas entities. Justice Sachin Shankar Magadum was addressing the issue of whether a secondment constitutes a taxable supply of manpower services or a non-taxable employer-employee relationship exempt under Schedule III of the CGST Act. In this case, the during the period from July 2017 to...

GST Officers Issuing Summons/Arrest Memo Not Required To Be Cross-Examined By Assessee: Gujarat High Court

The Gujarat High Court held that GST officers issuing summons/arrest memo are not required to be cross-examined by assessee. Justices Bhargav D. Karia and Pranav Trivedi observed that the assessee wants to cross-examine the persons who belongs to the department who have either issued the summons or arrest memo. Such persons are not required to be cross-examined by...

Unauthenticated Documents From Foreign Govt Regarding Swiss Bank Account Of Assessee Can't Form Basis For Criminal Action: Delhi HC

The Delhi High Court has quashed the criminal proceedings initiated against an assessee under Section 276C, 276D and 277 of the Income Tax Act 1961 merely on the basis of some unauthorised documents alleging existence of an undisclosed Swiss Bank account in his name.In doing so, Justice Neena Bansal Krishna observed,“Merely on some unauthenticated information received from a third Country...

ITAT Rejects Congress Party's Appeal To Exempt ₹199.15 Crore From Income Tax, Cites Belated Filing Of Return

The Income Tax Appellate Tribunal dismissed an appeal by the Indian National Congress seeking income tax exemption for the income of ₹199.15 crore during the assessment year 2018-19.The Tribunal rejected the party's claim for exemption on the ground that there was a violation of the conditions in Section 13A of the Income Tax Act. The returns were filed late, the ITAT noted. Calling for...

Bombay High Court Directs GST Council To Develop Mechanism For Cross-State ITC Transfer In Mergers/Amalgamations

The Bombay High Court has directed the GST Council and GST Network to develop a mechanism for cross-state ITC transfer in Mergers/amalgamations. Justices Bharati Dangre and Nivedita P. Mehta permitted the IGST and CGST amount lying in the electronic credit ledger of the Transferor Company to be transferred to the Petitioner Company by physical mode for the time being, subject to...

Tax Weekly Round-Up: July 14 - July 20, 2025

SUPREME COURTStem Cell Banking Services Qualify As "Healthcare Services" In Service Tax Exemption Notification : Supreme CourtCase : M/S. STEMCYTE INDIA THERAPEUTICS PVT. LTD vs COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, AHMEDABAD - IIICase no.: CIVIL APPEAL NOS. 3816-3817 OF 2025The Supreme Court held that stem cell banking services, including enrolment, collection, processing, and...

Income Tax | Salary Received By Chinese Resident For Services In China Not Taxable In India, Even If Credited To Indian Bank Account: ITAT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has stated that salary received by Chinese resident for the services in China not taxable in India, even if credited to the Indian bank account. Manu Kumar Giri (Judicial Member) and S.R. Raghunatha (Accountant Member) observed that “the AO has disallowed the exemption claimed with respect to salary received in India...

S. 161 CGST Act | Adjudicating Authority Can Dismiss GST Rectification Application Without Personal Hearing: Madras High Court

The Madras High Court stated that the GST authority can dismiss the rectification application without a personal hearing. The issue before the bench was whether the third proviso to Section 161 of the TNGST Act, 2017, requires complying with the principles of natural justice even for dismissing a rectification petition. Section 161 of the Goods and Services Tax Act, 2017 talks...

Loose Sheets And Private Diaries Not Sufficient Evidence For Excise Duty Demand: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that loose sheets and private diaries is not sufficient evidence for excise duty demand. R. Muralidhar (Judicial Member) and Rajeev Tandon (Technical Member) stated that mere tallying of certain entries, does not make out these loose sheets to be complete evidence of the purchases and...

MP Entry Tax Act | Manufacturers Liable For Entry Tax As They “Cause Entry” Of Liquor Into Local Areas : Supreme Court

The Supreme Court upheld the MP High Court's decision to levy the 'entry tax' on the beer and Indian Made Foreign Liquor (“IMFL”) manufacturers for transporting goods into local areas for sale. The Court reasoned that the liquor manufacturers "cause entry" of goods into local areas, making them liable for tax under Section 2(3) of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par...