Tax INFORM- February 2025

The forty-ninth 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:

• SC upholds penalty under S. 271AAA for undisclosed income found during the course of a search.
• SC allows compounding and holds Assessee’s offence as ‘first offence’ under 2014 guidelines.
• Assessment orders issued in the name of non-existent entities post-amalgamation are void ab initio: Bombay HC.
• Bombay HC upholds CBDT notification limiting S. 80-IB(10) benefit for slum redevelopment project.
• Assessments in the name of non-existent entities cannot be cured u/s 292B, says Delhi HC.

Notifications/ Circulars:

• Circular No. 1/2025, dated January 21, 2025.
• Notification No. 8/2025, dated January 20, 2025.

Indirect Tax: 

Goods & Services Tax

Case Laws:

• SC quashes tax demand against employee for company’s liability.
• No cash refund for unclaimed pre-GST credit: SC.
• Delhi HC sets aside order on GST registration cancellation on grounds of ‘cryptic’ allegations.
• Residency not a bar for GST registration: Andhra Pradesh HC.
• Calcutta HC condones delay in filing appeal considering lack of knowledge of GST portal.

Notifications/ Circulars:

• Circular No. 246/03/2025-GST, dated January 30, 2025.
• Notification No.1/2025-Central Excise, dated February 1, 2025.