Tax INFORM- April 2025

The fifty-first 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:

• Erroneous order after inquiry not ground for remand; proper course is merit-based decision: SC.
• SC restores order of remand for verification as to when the Assessee’s claim for duty drawback was accepted.
• Separate challenge to order of remand under Section 263 not needed to contest consequent order: Kerala HC.
• Bombay HC holds that Section 50C is applicable to transfer of leasehold rights.
• Madras HC allows deduction for contributions to an approved gratuity fund.

Notifications/ Circulars:

• Circular No. 5/2025, dated March 28, 2025
• Notification No. 27/2025, dated April 4, 2025

Indirect Tax: 

Goods & Services Tax

Case Laws:

• Clerical errors should be allowed to be corrected unless there is a strong justification to deny correction: SC.
• Karnataka HC rules blocking of ITC without pre-decisional hearing as invalid.
• Physical receipt not mandatory for ITC if goods delivered directly to consumers: Patna HC.
• Proof of payment not required for export of goods to claim ITC: Jharkhand HC.
• Court auctioneer not liable to pay GST on auction sale: Delhi HC.

Notifications/ Circulars:

• Notification No. 2/2025-Central Excise, dated April 7, 2025
• Circular No. 248/05/2025-GST, dated March 27, 2025