Tax INFORM- January 2025

The forty-eighth issue of our monthly tax newsletter, Tax Inform, is out. Through these newsletters, we provide a compilation of key tax-related case laws, circulars, notifications, etc. issued by the authorities in the previous month, impacting entities and individuals operating in India.

The highlights of the current issue are:

Direct Tax:

Domestic Tax Rulings:

• Reduction in shares of Assessee in subsidiary company amounts to ‘transfer’ of capital asset, claim for capital loss allowable.
• Limitation period prescribed under Section 144C(13) commences from the date the Dispute Resolution Panel’s directions are uploaded.
• Proviso to Section 10(38) cannot be read in reverse, LTCG from sale of shares exempt even if not included as book profits.
• Profits from captive power consumption eligible for deduction under Section 80-IA.

Notifications/ Circulars:

• Notification No. 9/2025, dated January 21, 2024.
• Circular No. 1/2025, dated January 21, 2025.

Indirect Tax: 

Goods & Services Tax

Case Laws:

• Notifications extending limitation periods under Section 168A of the CGST Act must be based on prior GST Council recommendations and not on post-facto ratifications.
• Assignment of leasehold rights of industrial plots is not subject to GST.
• Solar power plant installation held to be a composite supply and not a works contract under GST.
• Notified Area Authority not a ‘local authority’ under GST; exemption under Notification No. 12/2017 denied.
• Seizure of Indian currency under GST Act held illegal.

Central Excise

Notifications/ Circulars:

• Circular No. 242/36/2024, dated December 31, 2024.
• Circular No. 243/37/2024, dated December 31, 2024.