Latest Updates on Income-Tax, GST & Corporate-Law: January 26, 2025
Income-Tax
Update-1: The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT), in the case of Bosch Automotive Electronics, held that the failure to prove benefit alone cannot be accepted as a ground for transfer pricing disallowance of transfer pricing. The assessee has challenged the additions made by the Transfer Pricing Officer (TPO) and the Assessing Officer (AO), which were upheld by the Dispute Resolution Panel (DRP) for the assessment year 2020-21.
Update-2: The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) condoned a 355-day delay in appeal due to a serious dispute among partners and remanded the matter for fresh assessment with costs. The assessee, M/s. Akshaya Builders Developers Promoters is against the orders passed by the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment years 2017-18 and 2018-19. It was requested by the assessee that the delay of 355 days may be condoned due to reasonable cause as it was due to a serous dispute between the partners of the firm.
Update-3: The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) set aside the rejection of the 80G application under the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption) [CIT(E)] due to an incorrect assumption that the trust lacked valid 12A registration. The ITAT observed that the trust had valid 12A registration for the assessment years 2022-23 to 2026-27, as confirmed by an order dated 21.07.2023.
Goods & Services Tax (GST)
Update-1: The central government is keen to bring natural gas and aviation turbine fuel (ATF) under the Goods and Services Tax (GST) regime and is ready to address the possible revenue loss concerns of states, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said on Friday. “There are a large number of states which earlier had reservations like Gujarat, Maharashtra, Madhya Pradesh. But they are more or less seeing the benefits of it,” Puri told reporters. The minister said the states have been opposing the move of bringing petroleum products under the ambit of the nationwide tax due to fears of revenue loss.
Update-2: The CBIC amended the CGST Rules 2017 (inclusion of form GST CMP-02 in rule 19) through its Notification 7/2025, which brings new provisions that allow composition taxpayers to furnish key information in FORM GST CMP-02. Sub-rule (1) of Rule 19 now allows composition taxpayers to furnish required intimations via FORM GST CMP-02. FORM GST CMP-02 simplifies the process for taxpayers opting into or maintaining the composition scheme.
Corporate Law
Update-1: The Supreme Court, in case of Central bank of India & Anr Vs. Smt Prabha Jain & Ors [2025 LiveLaw (SC)96] ruled that the Debt Recovery Tribunal (DRT) is not authorized under the SARFAESI Act to “hand over” possession of the secured asset to an individual who was neither the borrower nor the possessor of the asset. It further stated that the DRT lacks the authority to “restore” possession of secured assets to an individual who is neither the borrower nor in possession of the assets. The Court further clarified that a plea for handover or restoration of a secured asset by an individual, who is neither a borrower nor in possession of the asset, is maintainable before the civil court.
Update-2: The SC called on the RBI and other stakeholders to establish a standardized framework for preparing title clearance reports before the sanctioning of loans, highlighting that risks posed by inadequate or poorly prepared reports endanger public funds and undermine trust in the banking systems. The court further called for accountability within the banking sector, suggesting that the liability, including potential criminal action, of bank officers who approve loans based on defective title search reports must be determined. The bench also recommended standardizing the fees and costs associated with title searches to ensure the reports are comprehensive.
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