Tax INFORM- March 2026

The sixty-second 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:

• Supreme Court rules that Benami Act attachments cannot be challenged before NCLT under the IBC.
• Bombay High Court holds that pure reimbursement under a cost-sharing arrangement without profit element is not liable to TDS under Section 40(a)(ia).
• Bombay High Court holds that an infrastructure developer is eligible for Section 80-IA deduction even if payments are periodic and ownership remains with the Government.
• Gujarat High Court holds that consideration received on transfer of self-generated trademarks prior to April 1, 2002 is not taxable as capital gains.
• Bombay High Court holds that deposits in a foreign account opened during non-residency are not taxable absent nexus with Indian income.

Indirect Tax: 

Goods & Services Tax

Case Laws:

• Bombay High Court holds that assignment of leasehold rights is not liable to GST.
• Bombay High Court holds that importers are not liable to IGST on ocean freight under CIF contracts.
• Kerala High Court holds that ITC restriction under Section 16(3) applies only to the portion on which depreciation is claimed.
• Gujarat High Court holds that inter-state transfer of ITC on amalgamation is permissible.
• Punjab and Haryana High Court holds that regulatory fees collected by Electricity Commissions are not subject to GST.

Notifications/Circulars:

• CBIC extends deferred payment facility for customs duty to Eligible Manufacturer Importers (EMI).