Tax INFORM- February 2026

The sixty-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:

• Kerala HC holds that electoral campaign spending by a Trust constitutes a specified violation under Section 12AB(4).
• Madras HC dismisses Revenue’s appeal on Section 12A registration as infructuous following subsequent Section 12AB regime and reversal of fresh registration.
• Madras HC holds NRI to be an ‘eligible assessee’ under amended Section 144C(15)(b)(ii), who cannot bypass DRP jurisdiction through rectification.
• Delhi HC directs issuance of a lower TDS certificate at 0.5% after applying settled PE attribution and excluding proportionate non-India POS revenue.
• Gujarat HC rules that service charges do not constitute FTS under India-Singapore DTAA without satisfaction of ‘make available’ clause; quashes Section 201 order.

Indirect Tax: 

Goods & Services Tax

Case Laws:

• SC holds that courts cannot devise extra-statutory refund mechanisms; refund of IGST held unconstitutional to be credited to Consumer Welfare Fund.
• Police authorities cannot direct debit freezing of bank account without Magistrate’s order: Calcutta HC.
• Madras HC holds that affiliation fees collected by universities are taxable; exemption under Notification No. 12/2017–Central Tax (Rate) does not extend to affiliation services.
• Andhra Pradesh HC holds that mud engineering services with supply of chemicals constitute ‘composite supply’, sets aside AAAR ruling.
• Madras HC vacates attachment of ex-directors’ bank accounts; holds Section 88(3) preconditions must be examined before fastening personal liability.

Notifications/ Circulars:

• CBIC mandates Body Worn Cameras and introduces system-based e-Scheduling for examination of import cargo to enhance transparency and create a digital audit trail.