Tax INFORM- March 2025

The fiftieth 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:

• ITAT exceeded jurisdiction by reassessing finalised income classification: Bombay HC.
• Bogus purchases’ total amount must be added to income: Bombay HC.
• Delhi HC allows ARC deduction under Section 37, remands interest deduction issue for reassessment.
• Reassessment proceedings must be based on new and tangible material and not change of opinion: Delhi HC.
• Power to grant relaxation under Rule 9C is discretionary: Delhi HC.

Notifications/ Circulars:

• Circular No. 2/2025, dated February 18, 2025
• Circular No. 3/2025, dated February 20, 2025

Indirect Tax: 

Goods & Services Tax

Case Laws:

• SC upholds the constitutional validity of Sections 69 and 70 of the CGST Act.
• Deliberate undervaluation of goods justifies seizure under GST law: Allahabad HC.
• Carbonated fruit drinks are to be classified under CTH 2202 99 20 and attract 12% GST: Gauhati HC.
• Denial of tax benefits due to GST portal-related issues must not override principles of fairness and due process: Calcutta HC.
• Taxpayers cannot be penalised for bonafide error in DRC-03 intimation: Kerala HC.

Customs

Notifications/ Circulars:

• Circular No. 04/2025-Customs, dated February 17, 2025
• Circular No. 05/2025-Customs, dated February 17, 2025