INDIRECT TAX E-NEWSLETTER JULY’ 2026
Direct Tax E-Newsletter for the month of July’ 2026
Direct Tax E-Newsletter for the month of April-May’2026
A buyback under Section 68 of the Companies Act is a capital reduction and not an acquisition of property. Consequently, Section 56(2)(x) cannot be invoked merely because the buyback price is lower than the fair market value
Delhi High Court: PCIT v. M/s Globe Capital Market Ltd. The controversy arose from the assessment proceedings for Assessment Year 2018–19, wherein the Assessing Officer invoked Section 56(2)(x) of the Income-tax Act, 1961, which taxes the receipt of property for inadequate consideration. The Assessing Officer treated the company’s buyback of its own shares at …
Madras High Court quashes Reassessment based on material already examined during original assessment
M/s Schwing Setter (India) Pvt. Ltd. v. Assistant Commissioner of Income Tax/Income Tax Officer The Madras High Court has set aside the reassessment proceedings initiated against an engineering equipment manufacturer after finding that the IT Deptt. reopened the assessment based on material that had already been disclosed and examined during the original assessment. Schwing …
Bombay High Court set aside ITAT Order for failing to decide challenge to faceless assessment procedure
Bombay High Court: Accost Media LLP v. DCIT The High Court has set aside ITAT Order, holding that the tribunal failed to adjudicate a taxpayer’s jurisdictional objection alleging non-compliance with the mandatory assessment procedure. The Court ruled that the issue went to the root of the matter and required adjudication by the Tribunal. The …
‘Fishing Inquiry’: Bombay High Court upholds quashing of income tax revision against Impact Foundation
Bombay High Court: CIT v. Impact Foundation The Court dismissed the Deptt. Appeal against Impact Foundation holding that revisionary proceedings under the IT Act could not be sustained merely because the Commissioner believed the AO should have conducted further enquiry. The Court held that where the AO has examined an issue and taken a …
Validity of SCN issued for Multiple SCN referred to Larger Bench
Bombay High Court: M/s. Rollmet LLP, and Ors. v. The UOI and Ors. Consolidated show cause notices issued under Sections 73 and 74 of the CGST Act were challenged on the ground that multiple financial years cannot be clubbed together. The department argued that the Act does not prohibit issuance of a composite …
Madras HC Rules Affiliation Services Not Covered Under Education Exemption
Madras High Court: Bharathidasan University v. Joint Commissioner of GST(ST-Intelligence), Trichy Division The court upheld the GST demand on affiliation and inspection fees collected by the University, holding that such services do not fall within the scope of the exemption provided to educational institutions under Notification No. 12/2017. The Court held that the GST …
GSTAT has jurisdiction to pass interim orders staying the recovery of demand
Bombay High Court: Hongkong and Shanghai Banking Corporation Ltd v. State of Maharashtra Writ Petition (L) No. 4698 of 2026 The recovery proceedings were initiated against the petitioner despite pendency of appeal before the GST Appellate Tribunal and despite payment of required pre-deposit. The petitioner contended that the Tribunal had no power to grant interim …