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Dear Reader,
Greetings for the day!!!
We are pleased to share the recent Tax notification and circulars.
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Direct Tax
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Government of India has notified the Income-Tax Act, 2025, w.e.f. 1st April 2026, after receiving President’s assent on 21st August 2025, replacing the six-decade old Income tax Act, 1961.
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CBDT provides recognition to “Kanpur Development Authority (PAN: AAALK0324M)”for tax exemption u/s 10(46A)(b) of the Income tax Act.
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CBDT, w.e.f. 21st August 2025, amended Rule 21AIA by removing the conditions for retail scheme and ETFs for the purpose of IFSC funds.
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CBDT, w.e.f. 20th August 2025, amended Form 10CCF for IFSC Insurance Offices claiming deductions u/s 80LA,clarifying that “gross income” (at S.No. 06) and “gross eligible income” (at S.No. 08) be computed as per section 44 and First Schedule of the Act and allows S.No. 08 to be reported as ‘Nil’.
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CBDT provides recognition to “Tamil Nadu Electricity Regulatory Commission (PAN AAAGT0048J)” for tax exemption u/s 10(46) of the Income tax Act, outlining specific incomes and conditions for its applicability.
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CBDT has introducednew Income tax Rule 3C andRule 3D, w.e.f. 18th August 2025, increasing income exemption limitfor perquisite taxation u/s 17(2). The salary limit for availing benefits of concessional amenities has been increased from ₹50,000 to ₹4,00,000 and GTI limit to avail medical benefits has been increased from ₹2,00,000 to ₹8,00,000.
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| Goods And Services Tax |
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GST Council – 56th Meeting Scheduled
The 56th Meeting of the GST Council, along with the Officers’ Meeting, is scheduled to be held in New Delhi. The Officers’ Meeting will take place on 2nd September 2025, followed by the Council Meetings on 3rd and 4th September 2025, all starting from 11:00 AM onwards. The sessions will be attended by the Hon’ble Finance Ministers from the Centre and States, senior officials, and CBIC representatives to deliberate on key policy and taxation matters. Detailed venue information and the agenda will be shared shortly by the Secretariat.
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Delhi HC on Limitation for SCN – Tata Play Ltd. v. Sales Tax Officer
The Delhi High Court held that the mandate under Section 73(2) CGST Act requiring issuance of SCN “three months prior” to the limitation date under Section 73(10) means three calendar months, not 90 days. Since the order for FY 2020–21 had to be passed by 28.02.2025, an SCN issued on 30.11.2024 was deemed valid, as it left December, January, and February available to the taxpayer.
On the question of natural justice, Tata Play argued that portal glitches deprived it of a hearing. However, the Court observed that adjournments were sought and granted, and one hearing was missed by the assessee itself. Thus, the allegation of denial of hearing was rejected.
As the order was appealable under Section 107, the writ petition was dismissed. Liberty was nevertheless given to file an appeal by 31.08.2025 with pre-deposit, and the appellate authority was directed to decide the matter on merits.
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Allahabad HC Quashes Penalty on Ownership of Goods under GST
The Allahabad High Court in S.S. Enterprises vs. State of U.P. (9 July 2025) held that replying via registered email on the GST portal is valid, and physical appearance is not mandatory. It clarified that non-operation at the principal place of business cannot, by itself, be treated as evidence of fake invoices or denial of ownership. Referring to CBIC Circular 76/50/2018-GST and relying on M/s Halder Enterprises (2024), the Court ruled that since the invoice bore the petitioner’s name, he was to be treated as the owner of goods.
Accordingly, the penalty imposed under Section 129(1)(b) was quashed, and the matter remanded for a fresh hearing within 8 weeks. The ruling reinforces that authorities cannot presume fake ownership merely on account of inactive premises; invoices and statutory circulars hold primacy.
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