Tax INFORM- October 2025

The fifty-seventh 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:

• Prosecution under Section 276C(2) cannot be sustained in absence of wilful intent to evade tax: Madras HC.
• Interest earned from employee loans and advances constitutes business income under Section 28(i) and not “income from other sources”: Gujarat HC.
• Bombay HC holds reassessment notice issued after April 1, 2021, for AY 2015–16 to be barred by limitation, quashes consequential reassessment and penalty proceedings.
• Telangana HC quashes reassessment proceedings as time-barred under Section 149(1) and vitiated for want of jurisdiction, says notice had to be issued by faceless authority.
• Bombay HC dismisses appeal under Section 260A for absence of any substantial question of law where concurrent findings established suppression of income.

Notifications/ Circulars:

• Circular No. 13/2025, dated September 11, 2025.
• Circular No. 14/2025, dated September 25, 2025.
• Notification No. 148/2025, dated September 22, 2025.

Indirect Tax: 

Goods & Services Tax

Case Laws:

• Bombay HC: GST Act overrides RTI Act; disclosure of GST returns barred under Section 158.
• Writ petition by unregistered partnership firm maintainable; Section 69(2) of the Partnership Act does not bar enforcement of statutory rights under GST law: Delhi HC.
• Orissa HC holds parallel proceedings by Central and State authorities on the same subject matter to be impermissible under Section 6(2)(b) of the CGST Act.
• Bombay HC sets aside consolidated show cause notices issued for multiple assessment years as without jurisdiction.

Notifications/ Circulars:

• Circular No. 252/09/2025–GST, dated September 23, 2025.
• Circular No. 253/10/2025–GST, dated October 1, 2025.