Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ----
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    NewsBills
    Rationalization of the provisions of sections 271AAB, 271AAC and 271AAD of the Act
    NewsBills
    Rationalization of provisions relating to assessment and reassessment
    NewsBills
    Set off of loss in search cases - Amendment in the provisions of section 79A of the Act
    NewsBills
    Amendment in Faceless Assessment under section 144B of the Act
    NewsBills
    Faceless Schemes under the Act
    NewsBills
    Similar amendment is proposed in Section 271C.
    NewsBills
    Alignment of the provisions relating to Offences and Prosecutions under Chapter XXII of the Act
    NewsBills
    Cash credits under section 68 of the Act
    NewsBills
    Amendment in the provisions of section 248 of Income-tax Act and insertion of new section 239A
    NewsBills
    Withdrawal of exemption under clauses (8), (8A), (8B) and (9) of section 10 of the Income-tax Act, 1...
    NewsBills
    Withdrawal of concessional rate of taxation on dividend income under section 115BBD
    NewsBills
    Scheme for taxation of virtual digital assets
    NewsBills
    Provisions pertaining to bonus stripping and dividend stripping to be made applicable to securities ...
    NewsBills
    Widening the scope of reporting by producers of cinematograph films or persons engaged in specified ...
    NewsBills
    TDS on benefit or perquisite of a business or profession
    NewsBills
    Rationalization of provisions of TDS on sale of immovable property
    NewsBills
    Rationalization of provisions of section 206AB and 206CCA to widen and deepen tax-base
    NewsBills
    Facilitating strategic disinvestment of public sector companies
    NewsBills
    Exemption of amount received for medical treatment and on account of death due to COVID-19
    NewsBills
    Condition of releasing of annuity to a disabled person
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    NewsBills
    Show AI Summary
    Penalty authority expanded: Commissioner (Appeals) may now impose penalties for undisclosed income; per day penalty increased.
    Amendments enable the Commissioner (Appeals) to levy penalties alongside the Assessing Officer for provisions targeting undisclosed income, unexplained credits or expenditures, and falsification or omission in books of account; and increase the per day penalty for failures to answer questions, sign statements, furnish information, returns or allow inspections to strengthen deterrence. These measures are to take effect from 1 April 2022.
    NewsBills
    Show AI Summary
    Assessment and reassessment procedures clarified, aligning search linked notices, limitation exclusions and officer level safeguards.
    Proposed amendments streamline assessment and reassessment procedure by removing duplicate approval requirements for notices under section 148 where an order under section 148A(d) exists, correcting drafting errors in section 148 explanations, extending search/requisition consequences into assessments under sections 143(3), 144 and 147, prescribing officer level approval norms for post search orders, excluding a capped period from limitation where material is seized or requisitioned, and clarifying the meaning of information and threshold conditions for issuing section 148 notices.
    NewsBills
    Show AI Summary
    Undisclosed income set-off prohibited: losses and unabsorbed depreciation cannot be adjusted against income found by search or survey.
    Section 79A prohibits set-off of any loss, whether brought forward or otherwise, and unabsorbed depreciation under sub section (2) of section 32 against undisclosed income discovered as a result of a search under section 132, requisition under section 132A, or survey under section 133A (excluding surveys under sub section (2A) of section 133A). "Undisclosed income" is defined to include money, valuables, books entries or transactions not recorded or not disclosed before the detection, and expense entries found to be false and revealed only because of the detection action.
    NewsBills
    Show AI Summary
    Faceless assessment process: centralised NaFAC-driven electronic workflow directing assessment, verification, technical review and dispute procedures.
    The amendment centralises faceless assessment through a National Faceless Assessment Centre which assigns cases to Assessment Units and routes all notices, responses, verification requests and technical referrals electronically to Verification, Technical and Review Units; communications are authenticated by digital signature, electronic verification code or portal login and all internal exchanges occur via NaFAC with automated allocation and real time alerting.
    NewsBills
    Show AI Summary
    Faceless procedures expanded for transfer pricing, dispute resolution and tribunal appeals, after allowing stabilization and consultation.
    Introduction of faceless procedures under specified direct tax sections (92CA, 144C, 253, 255) is deferred to allow IT system stabilization and Ministry of Law & Justice consultation; appellate procedures must align with tribunal procedure and non-assessment functions will follow phased faceless assessment workflows.
    NewsBills
    Show AI Summary
    Prosecution for failure to pay tax collected at source extended to mirror prosecution provisions for tax deducted at source.
    The proposal brings offences for failure to pay tax collected at source into the same prosecution provisions that apply to failures to pay tax deducted at source by expressly including the statutory provision for non-payment of tax collected at source within those prosecution sections, on the basis of the similar nature of the offences; the amendment is to take effect from the stated commencement date.
    NewsBills
    Show AI Summary
    Sunset clause on historic prosecutions: prohibits initiation of fresh prosecutions under section 276AB from April 2022.
    Amendments propose a sunset clause in section 276AB to bar initiation of fresh prosecutions after 1 April 2022 for offences connected with transfers of immovable property made in the period when Chapter XX-C had been rendered inapplicable, while permitting continuation of prosecutions already initiated; additionally, section 276B is to be amended to substitute its cross-reference with an explicit reference to the proviso to the withholding provision to remove ambiguity created by prior amendments.
    NewsBills
    Show AI Summary
    Source of funds requirement for credited sums now requires creditor's explanation, with regulated venture funds exempted.
    Amendment requires that any sum credited in an assessee's books-whether as loan, borrowing or other liability-will be treated as explained only if the source of funds is satisfactorily explained in the hands of the creditor or entry-provider; exception excludes regulated venture capital entities from this additional onus, and the change applies from the stated operative date to the listed assessment year and thereafter.
    NewsBills
    Show AI Summary
    Withholding tax refund procedure now allows the payer to seek refund from the Assessing Officer, with appellate review.
    A new provision allows a person who deducted and bore tax under an agreement, where no deduction was required, to apply to the Assessing Officer for refund; the Assessing Officer may examine the underlying agreement, and the applicant may appeal the Assessing Officer's order to the Commissioner (Appeals). The previous route under section 248 will not apply for payments on or after the appointed date, effecting a procedural shift to assessment stage review.
    NewsBills
    Show AI Summary
    Exemption withdrawal for foreign technical-assistance remuneration; such income will be taxable from the assessment year beginning April next year.
    The article sets out the phase-out of exemptions under clauses (8), (8A), (8B) and (9) of section 10 for remuneration, fees and related foreign-source income connected to cooperative or agency technical assistance programmes, describing existing eligibility rules (foreign citizenship/non-ordinary residency, nonresident status, prescribed-authority approvals) and explaining the policy rationale of tax simplification and protecting India's treaty taxing rights; the clauses are proposed to be inapplicable to income for the previous year relevant to the assessment year beginning on or after 1 April 2023.
    NewsBills
    Show AI Summary
    Concessional tax on foreign dividends removed, aligning tax treatment of foreign and domestic corporate dividends going forward.
    Withdrawal of the concessional regime under Section 115BBD ends the special tax rate for dividends received by an Indian company from a specified foreign company, aligning their treatment with domestic dividends by making Section 115BBD inapplicable for assessment years beginning on or after the first day of April, 2023 so that such dividends are taxed in the shareholder's hands at applicable rates plus surcharge and cess.
    NewsBills
    Show AI Summary
    Taxation of virtual digital assets: new flat tax and mandatory withholding reshape transfers and gifting rules.
    A dedicated tax regime segregates income from transfer of virtual digital assets under section 115BBH, taxing such income at a dedicated rate without deductions except cost of acquisition and disallowing set-off or carry forward of related losses. Section 194S mandates tax deduction at source on payments for transfer to residents with rules for in-kind consideration, specified person exemptions, treatment of suspense accounts as payee credits, and Board-issued guidelines; the definition of virtual digital asset (including NFTs) and gift taxation are adjusted with notification powers for the Central Government.
    NewsBills
    Show AI Summary
    Bonus and dividend stripping rules extended to securities and pooled investment units, widening anti avoidance coverage.
    Section 94's anti avoidance provisions will be amended to apply sub section (8) on bonus stripping to securities and to expand dividend stripping rules to units of pooled investment vehicles by revising the Explanation to redefine "unit" to include business trust units such as InvITs, REITs and AIFs, thereby closing existing scope gaps and applying the provisions from the specified assessment year forward.
    NewsBills
    Show AI Summary
    Expanded reporting obligations now require producers and specified activity persons to report aggregate payments to tax authorities.
    Section 285B is expanded to require producers of cinematograph films and persons engaged in specified activities to furnish Form 52A statements reporting particulars of aggregate payments above the prescribed threshold made to or due from each person engaged, with timing governed by the end of the financial year or completion of the work.
    NewsBills
    Show AI Summary
    TDS on business perquisites: providers must deduct tax at source before delivering benefits or perquisites.
    A new section 194R mandates that the person responsible for providing any benefit or perquisite arising from business or profession to a resident must deduct tax at source on the value or aggregate value of such benefit or perquisite before providing it; where benefits are wholly in kind or partly in cash with insufficient cash to meet the deduction, tax must be ensured paid before release. Exemptions apply below a specified annual value threshold and for individuals or HUFs below specified turnover limits in the preceding year, with a stated effective date.
    NewsBills
    Show AI Summary
    TDS on immovable property: deduction based on higher of consideration or stamp duty value, with threshold exemption.
    The amendment requires TDS on transfer of immovable property to be deducted on the higher of the consideration payable or the stamp duty value of the property, ensuring consistency with valuation rules for income and capital gains; if both values are below the prescribed monetary threshold, no TDS is required, and "stamp duty value" carries the meaning assigned in the Act's Explanation.
    NewsBills
    Show AI Summary
    Specified person rule shortened to increase TDS/TCS coverage and prompt taxpayers to furnish returns under revised criteria.
    Amendments reduce the non-filing window for the specified person from two years to one year for higher TDS/TCS applicability, substitute 'furnishing' for 'filing' to reflect electronic returns, correct deductor/collectee terminology, exclude specified withholding provisions and certain simplified individual/HUF regimes from section 206AB, and amend cross-references in section 194-IB; effective from April 1, 2022.
    NewsBills
    Show AI Summary
    Change in shareholding rule: majority voting power retention after strategic disinvestment preserves carry forward of losses, subject to condition.
    Amendment creates a conditional exemption from the change in shareholding bar on carry forward and set off of losses for an erstwhile public sector company where the ultimate holding company, immediately after strategic disinvestment, continues to hold, directly or through subsidiaries, an aggregate majority of the voting power; failure to maintain that majority in a subsequent year triggers application of the change in shareholding rule for that and later years.
    NewsBills
    Show AI Summary
    Exemption for COVID-19 medical and death payments: employer payments fully exempt; third-party payments exempt subject to cap and time limit.
    Amendments exclude COVID 19 related medical and death payments from taxable income: employer payments for an employee's or family member's COVID 19 medical treatment will not be treated as a perquisite; gratuitous receipts for COVID 19 medical expenditure received from any person, and ex gratia or other payments to family members on death from the deceased's employer (without limit) or from others up to a capped aggregate within a prescribed period, will not be income, subject to conditions and the statutory definition of family. These changes are retrospective to 1 April 2020.
    NewsBills
    Show AI Summary
    Disability deduction extended to allow lifetime annuity or lump-sum payments when subscriber reaches senior age and payments cease.
    Amendment permits deduction under Section 80DD where annuity or lump-sum payments are made to a disabled dependant during the lifetime of the subscriber provided the subscriber has attained senior age and payments or deposits have been discontinued; amounts so received by the dependant before death are not to be treated as the assessee's income under the prior deeming provision.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters

      Due Compliance with Section 138C(4) of the Customs Act, 1962 for Admissibility of Electronic Records (Computer Printouts) in Customs Proceedings

      27 January, 2026

      Contents
      Acts
      Plus +
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      This note presents a concise research digest of the judicial decision, summarising the key issues, findings, and outcome. The judgment is analysed in the context of its factual background, issues framed, and conclusions reached by the Court.

      2025 (9) TMI 76 - Supreme Court

      Case Snapshot

      A set of statutory appeals under Section 130E of the Customs Act, 1962 arose from an order of the appellate tribunal which had set aside a customs adjudication primarily on the ground that electronic evidence relied upon by the department was inadmissible due to alleged non-compliance with Section 138C(4) of the Customs Act, 1962.

      The core controversy concerned what constitutes due compliance with the certificate requirement under Section 138C(4) when computer printouts and electronic records are sought to be tendered in evidence in proceedings under the Customs Act, 1962. The Court held that, on the facts, there was due compliance in substance, and therefore the tribunals approach was erroneous. The matter was remanded to the tribunal for decision on grounds other than Section 138C(4).

      Material Facts

      The respondents (referred to as the importers/assessees) were engaged in importing branded food items and selling them in the domestic market. The department carried out searches of business and residential premises and collected material, including electronic records retrieved from electronic devices.

      The departments case was that, while filing Bills of Entry for the imported goods, the importers failed to declare the actual RSP/MRP at which goods were being sold to ultimate consumers. It was alleged that a lower RSP/MRP was declared, resulting in evasion/short payment of customs duty.

      A show cause notice was issued proposing recovery of differential duty (a substantial demand), along with interest and penalty, and proposing confiscation of imported goods. The adjudicating authority confirmed the proposals by an order-in-original and imposed interest and penalties.

      On appeal, the appellate tribunal allowed the assessees appeals and set aside the adjudication order. The tribunals principal basis was that the electronic documents (computer printouts and related electronic records) relied upon by the department could not be admitted in evidence due to non-compliance with Section 138C(4) of the Customs Act, 1962. The tribunal also noted that contentions were raised regarding Section 138B of the Customs Act, 1962, but it did not decide those issues as it allowed the appeals solely on Section 138C(4).

      In further appeal by the revenue, the record placed before the Court included contemporaneous records of proceedings relating to extraction and printing of electronic data from external storage devices and electronic devices, bearing signatures of persons associated with the assessees, and statements recorded under Section 108 of the Customs Act, 1962 acknowledging the printouts and their authenticity/presence during printing. It was also material that such statements were not retracted and were not disputed in the reply to the show cause notice, to the extent relevant for the Section 138C(4) compliance issue.

      Issue Involved

      Whether the appellate tribunal erred in holding that the department failed to comply with Section 138C(4) of the Customs Act, 1962 for admitting and relying upon computer printouts/electronic records, and whether, on the facts, the available record of proceedings and Section 108 statements could amount to due compliance with Section 138C(4) even in the absence of a certificate in the strict format.

      Decision

      The Court partly allowed the revenues appeals. The tribunals order was set aside. The assessees appeals before the tribunal were restored and remanded for rehearing on grounds other than Section 138C(4) of the Customs Act, 1962.

      The Court expressly clarified that the tribunal must rehear the appeals on their own merits, without being influenced by the Courts observations, and that the Courts observations were confined only to the issue of Section 138C(4) of the Customs Act, 1962.

      Key Observations

      1. Textual requirement under Section 138C(4) of the Customs Act, 1962

      Section 138C(4) of the Customs Act, 1962 requires that where it is desired to give a statement in evidence by virtue of Section 138C, a certificate should (a) identify the document and describe the manner of its production, (b) give particulars of the device involved to show production by a computer, and (c) deal with matters related to the conditions mentioned in Section 138C(2). The certificate must purport to be signed by a person occupying a responsible official position in relation to the operation of the relevant device or management of the relevant activities.

      2. Statutory linkage with the Indian Evidence Act framework for electronic evidence

      The Court considered Sections 65A and 65B of the Indian Evidence Act, which provide that the contents of electronic records may be proved in accordance with Section 65B, and that a computer output is deemed to be a document admissible in proceedings if Section 65B conditions are satisfied.

      The Court treated Section 65B(4) of the Indian Evidence Act as pari materia to Section 138C(4) of the Customs Act, 1962, and therefore drew interpretive support from the approach to Section 65B(4) as discussed by the Court in Arjun Panditrao Khotkar v. Kailash Kushanrao Gorantyal and Others (citations not stated here for compliance reasons).

      3. Mandatory character and the impossibility maxims

      While recognising that the certificate requirement is mandatory in principle, the Court referred to the established maxims impotentia excusat legem and lex non cogit ad impossibilia to explain that the law does not compel the impossible. The Court noted that the application of these principles depends on facts and circumstances, including whether a party has done everything possible to comply and whether obtaining the certificate depends on factors beyond its control.

      4. Due compliance need not mean a strict-format certificate in every case

      On the facts, the Court held that there was due compliance with Section 138C(4) of the Customs Act, 1962. The Court reasoned that due compliance should not be understood to mean that a particular certificate stricto sensu in the exact format must necessarily be on record in every case. Instead, the contemporaneous records of proceedings concerning extraction/printing of data, coupled with statements recorded under Section 108 of the Customs Act, 1962 acknowledging the printouts and their authenticity/presence during printing, were held sufficient to constitute due compliance in substance for the limited purpose of Section 138C(4).

      5. Non-retraction and non-dispute as reinforcing factors (limited to Section 138C(4))

      The Court emphasised that the Section 108 statements were not retracted at any point, and even in the reply to the show cause notice, the contents of such statements were not disputed. The Court treated this as relevant to the question of due compliance with Section 138C(4). However, the Court cautioned that this was only for the limited purpose of assessing Section 138C(4) compliance.

      6. Evidentiary value in other contexts and the role of Section 138B

      The Court specifically observed that the evidentiary value of Section 108 statements in any other proceedings would have to be considered in accordance with law, including compliance with Section 138B of the Customs Act, 1962. The remand direction preserved the tribunals role to consider other grounds (including those not examined earlier) on their own merits.

      7. Certificate format not determinative where authenticity is not in dispute

      The Court also relied on the proposition that a certificate not given in a prescribed format would not per se make it invalid, particularly when authenticity of the marked documents is not in dispute. This observation supported the conclusion that the tribunal was not justified in rejecting the electronic material solely on a rigid view of the certificate requirement, given the nature of the record and acknowledgments available.

      Practical Relevance

      1. For customs investigations and adjudication

      The decision indicates that, in proceedings under the Customs Act, 1962, the certificate requirement under Section 138C(4) is central, but compliance may, in appropriate factual settings, be assessed substantively rather than by insisting on a single formal document labelled as a certificate. For departmental practice, contemporaneous documentation of extraction/printing processes and clear identification of devices and outputs assume importance.

      2. For assessees contesting electronic evidence

      Where the challenge is founded on Section 138C(4), the decision suggests that acknowledgments recorded during proceedings and statements under Section 108 may be treated as relevant to whether the statutory conditions have been met in substance. At the same time, the decision preserves the possibility of contesting evidentiary value on other statutory grounds where applicable, including the procedural requirements tied to statements under Section 138B.

      3. For appellate strategy and remand outcomes

      Tribunals may be required to avoid disposing of appeals solely on a narrow evidentiary objection when the record may show substantive compliance, and to adjudicate remaining grounds. Remand in such cases underscores that the Section 138C(4) issue may not be outcome-determinative once due compliance is found, shifting focus to other merits/issues raised but not previously decided.

      4. Interface with Sections 65A and 65B of the Indian Evidence Act

      By treating Section 138C(4) of the Customs Act, 1962 as pari materia to Section 65B(4) of the Indian Evidence Act, the decision reinforces a harmonised approach to electronic evidence in fiscal adjudication. Practitioners should therefore assess both the statutory wording of Section 138C(4) and the generally accepted interpretive approach to Section 65B(4) when framing objections or supporting admissibility of electronic records.

       


      Full Text:

      2025 (9) TMI 76 - Supreme Court

      Topics

      ActsIncome Tax