Tax INFORM- November 2025

The fifty-eighth 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:

• SC finds no impediment to Centre revisiting Vodafone Idea’s AGR dues, considering its 49% stake and wider public interest.
• Intervening period between contracts does not amount to cessation of business, even without a permanent establishment or active contract: SC.
• Karnataka HC upholds assessment of director’s income as salary and not professional income due to lack of proof of services rendered.
• ITAT Mumbai holds Netflix India to be a limited-risk distributor, deletes transfer pricing adjustment of ₹445 crore.
• Delhi ITAT dismisses domestic company’s appeal, holds LTCGs also taxable at 22% once option under Section 115BAA is exercised.
• ITAT Mumbai deletes addition under Section 69 as investment was proved to be funded from accumulated foreign salary of a non-resident.

Notifications/ Circulars:

• CBDT Notification No. 160/2025, dated November 10, 2025.
• CBDT Circular No. 13/2025, dated September 19, 2025.

Indirect Tax: 

Goods & Services Tax

Case Laws:

• Karnataka HC allows refund of unutilised ITC as export realisation was already established on record.
• Refund of unutilised ITC cannot be denied to a 100% Export Oriented Unit that is the actual exporter and not a deemed exporter: Gujarat HC.
• Delay in filing a GST appeal may be condoned beyond the four-month limit where a proper explanation is shown: Calcutta HC.
• Customs authorities cannot bar Container Freight Stations from collecting GST on auction of uncleared cargo: Madras HC.
• Bombay HC rules that interest is payable on refund of IGST collected under the unconstitutional ocean freight levy.

Notifications/ Circulars:

• CBIC Notification No. 18/2025 – Central Tax, dated October 31, 2025.
• CBIC Circular No. 26/2025 – Customs, dated October 31, 2025.