Recent Updates on Income Tax, GST & Corporate Law: 6 February 2025
Income Tax
Update 1: CBDT order for sharing information on Income Tax payers to the Department of Foods & Public Distribution
The Central Board of Direct Taxes (CBDT), vide it’s Order dated 31 January 2025, directs the Director General of Income-tax (Systems), New Delhi for furnishing information on income tax payers to Joint Secretary to Government of India, Department of Food and Public Distribution (DFPD), Ministry of Consumer Affairs, Food & Public Distribution, for identifying eligible beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKA Y).
Update 2: Revision u/s. 263 based on audit objections justified when no verification done by AO
The Punjab and Haryana High Court, in case of PCIT Vs Kirti Anand held that revisionary proceedings under section 263 of the Income Tax Act on the basis of audit objections raised by audit party justifiable since there was no verification done by AO during assessment proceedings.
Read More
Goods & Services Tax (GST)
Update 1: Jammu and Kashmir Bank receives GST notice of over Rs 16,000 crore
Jammu and Kashmir Bank (J&K Bank) announced on Wednesday that it has received a Goods and Services Tax (GST) notice amounting to over Rs 16,000 crore. Of this, Rs 8,130.66 crore pertains to the GST demand, with an equal amount imposed as a penalty, issued by the joint commissioner of the central GST commissionerate in Jammu. The bank said the notice pertains to GST being levied on interest receivable under the transfer pricing mechanism (TPM) between the corporate headquarters and branches from a common pool of funds being treated as financial services for the period July 2017 to March 2020.
Update 2: Revenue department rejects panel’s GST waiver demand on co-lending
The Department of Revenue has rejected a recommendation by a panel led by State Bank of India (SBI) to remove 18 per cent goods and services tax (GST) on activities related to co-lending among commercial banks and non-banking financial companies (NBFCs), according to a senior government official. In May last year, the Department of Financial Services had asked SBI to set up a co-lending committee to sort out issues related to its business model.
Corporate Law
Update 1: NCLT agrees to hear Glas Trust in Aakash minority shareholder rights case
The National Company Law Tribunal (NCLT) on Wednesday allowed Glas Trust, which represents the US lenders of Byju’s, to be heard in a case related to Aakash Institute in which Byju’s parent Think & Learn is a minority shareholder. Some of Aakash’s minority shareholders including private equity major Blackstone have petitioned the NCLT against what they claim a move to remove the rights of minority shareholders and confer special rights on Ranjan Pai’s Manipal Education & Medical Group, which holds an around 40% stake in the coaching centre operator.
Update 2: IBBI released discussion paper for amendments in the CIRP, liquidation, and personal guarantor insolvency process.
Insolvency and Bankruptcy Board of India (IBBI) has released a discussion paper addressing key inefficiencies in the Corporate Insolvency Resolution Process (CIRP), liquidation, and personal guarantor insolvency. The proposed reforms focus on reviewing operational expenditures, refining the classification of essential services, and enabling coordinated resolution of interconnected entities to improve efficiency and creditor recoveries. The paper also suggests amendments mandating the presentation of all resolution plans to the Committee of Creditors (CoC) and requiring corporate debtors to submit a Statement of Affairs to ensure transparency.
Also Read: Kerala High Court: Interest & Penalty on ITC Availment under Wrong Head Not Maintainable
Continue Reading
Orissa High Court Reduces Tax Deposit Requirement for GST Appeal Stay