Vivek Jalan is a Chartered Accountant & a qualified L.LM (Constitutional Law) & LL.B. He is the Chairman of The Fiscal Affairs An Taxation Committee of The Bengal Chamber of Commerce and Industry. He is the Chairperson of The Confederation of Indian Industries (CII)- Core Group on Indirect Tax – EAC-ER. In these capacities he has made various representations before the Hon’ble Minister of Finance in Centre and States as well as CBDT/CBIC/State Commissioners on the various issues faced by Taxpayers in Indirect and Direct Taxes. He is a regular Columnist and guest expert in Economic Times, Times of India, Money Control, Live mint, CNBC, Hindustan Times, Zee Business, Financial Express, News18 and other dailies and business magazines like Dalal Street Journal, Business Today, etc. He is also a guest expert on Taxation matters in India TV, ABP, All India Radio and other media platforms. He is the Editor of Weekly Bulletin TAX CONNECT, a publication on Indirect Taxes and Direct Taxes which reaches more than 70000 professionals. He is also a visiting faculty for Taxes in The Confederation of Indian Industries (CII), The Institute Of Chartered Accountants of India, Institute of Cost Accountants of India, Indian Institute of Foreign Trade, The Bengal Chamber of Commerce and Industry, The Indian Chamber of Commerce and other Business Forums. He has also delivered Lectures at various Government Taxation Forums including the Income Tax Dept., CGST & SGST Departments across the country. He has trained GST and Income Tax Officers in the various Trade & Industry issues in Tax Laws. He has worked as a Finance Manager in ITC Ltd. and Chief Compliance Officer with IntraSoft Technologies Ltd. He has 20 years of experience in the field of Indirect & Direct Taxation. He was also an All India Rank holder in CA Final Examination conducted by the Institute of Chartered Accountants of India. His Books on taxation include the following – • COMMENTARY ON UNION BUDGET 2023 – Feb 2023 • HOW TO HANDLE GST LITIGATION – Sep 2022 • HANDBOOK ON GST 2022 – Aug 2022 • COMMENTARY ON UNION BUDGET 2022 – Feb 2022 • GST PLEADING & PRACTICE – Aug 2021 BESTSELLER • COMMENTARY ON UNION BUDGET 2021 – Feb 2021 • SECTION-WISE COMPENDIUM ON GST – Oct 2020 • INTEGRATED APPROACH TO GST E-INVOICE, E-WAYBILL & RETURN E-FILING – Oct 2020 ... He is a regular speaker at various professional forums on the various key areas in Indirect & Direct Taxes.
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Issue Id: 118688
Not very often does a justice starts a judgement with “the case is very interesting” and thereafter praising the writ petitioner. In the ...
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Standalone GST interest refunds do not require unjust-enrichment certification after the principal refund has already been sanctioned.
Standalone interest claims on delayed GST refunds are treated as outside the unjust-enrichment certification requirement where the principal tax refund has already been sanctioned and credited. Rule 89(2)(m) addresses claims for refund of tax together with interest and requires confirmation that the incidence has not been passed to another person. Separately claimed interest is compensation for delayed payment and income of the taxpayer, not an amount capable of being passed on to consumers. (AI Summary)
Goods and Services Tax - GST
Transitional tax credits remain governed by pre-GST law, limiting GST adjudication and preventing duplicative retrospective taxation.
Transitional credits arising under VAT or CENVAT law cannot be reopened or adjudicated by GST authorities merely because they were carried forward through TRAN-1. Eligibility and validity must be assessed under the law in force when the credit accrued. Section 142(11)(a) applies the test of whether tax was leviable under the existing law, not whether it was actually paid. Non-payment under service tax, VAT, or central excise does not by itself permit retrospective GST on the same transaction, thereby preventing duplication of tax. (AI Summary)
Goods and Services Tax - GST
Mining GST compliance now requires reverse-charge reporting on mineral leasing and heightened scrutiny of unreported mineral transactions.
GST enforcement in mining is strengthened through coordination between State Mining Departments and CGST field formations, including nodal officers, information sharing, joint reviews, and action where evasion is indicated. Illegal mining, suppressed supplies, non-registration, undervaluation, and short payment may invite GST scrutiny and related Income Tax proceedings. Royalty is contractual consideration under mining leases, and mine leasing with royalty is treated as licensing of rights to use minerals, taxable under the Reverse Charge Mechanism with liability on the mining lessee. (AI Summary)
Goods and Services Tax - GST
Amended third-party search assessment rules apply when related seized material and notice arise after the statutory amendment.
Section 153C permits proceedings against a person other than the searched person when books, documents or assets found in a search pertain to that other person and indicate undisclosed income or assets. The Finance Act 2015 amendment replacing the "belongs to" test with "pertains to" is presented as applicable where the search preceded 1 June 2015 but the material was seized by the non-searched person's Assessing Officer after the amendment and notice was later issued. The article supports a purposive interpretation that preserves the amendment's expanded scope. (AI Summary)
Income Tax
Transfer pricing tolerance range applies where a single comparable determines arm's length price and the transaction falls within the limit.
Transfer pricing tolerance range under the second proviso to section 92C(2) deems the actual transaction price to be the arm's length price where its variation from the determined arm's length price is within the notified limit. The expression "so determined" covers an arm's length price determined under both the main provision and the first proviso. The tolerance benefit therefore applies whether the arm's length price arises from multiple comparable prices or from a single remaining comparable in the comparable set. (AI Summary)
Income Tax
Agricultural land outside prescribed urban limits remains excluded from capital assets despite no cultivation or resale-profit intention.
Agricultural land outside the prescribed municipal or cantonment limits and aerial-distance criteria is excluded from capital assets under section 2(14)(iii). Agricultural activity or agricultural income is not a stated condition where revenue records classify the land as agricultural, no conversion to non-agricultural use has occurred, and location requirements are satisfied. Profit on transfer of such land is presented as outside income for tax purposes rather than exempt income and as not requiring disclosure in the income-tax return. (AI Summary)
Income Tax
Professional due diligence obligations extend to specified client financial transactions linked with property, assets, accounts and business entities.
Practising chartered accountants, company secretaries and cost and management accountants may fall within Prevention of Money Laundering Act reporting-entity coverage when undertaking specified financial transactions for clients. The coverage concerns property dealings, management of client assets or accounts, company-related contributions and management, and business-entity transactions. The broad connection to such transactions may extend to related professional assistance. Professionals are expected to conduct client due diligence, examine suspicious transactions involving possible money laundering or terrorist financing, report relevant matters, and retain due-diligence records for five years. (AI Summary)
Income Tax
Incriminating material governs additions in completed assessments under section 153A; finalized assessments cannot be disturbed otherwise.
In unabated or completed assessments, additions under section 153A are confined to incriminating material found during search. Where an assessment has attained finality and no search material supports the proposed addition, the concluded assessment cannot be disturbed and must be reiterated. The principle applies to issues such as bogus purchases, job work, subcontract work, labour expenses, unsecured loans, and interest disallowance only when relevant incriminating material exists. (AI Summary)
Income Tax
Compulsory scrutiny selection relies on data analytics, specific information, and cross-matched returns to identify under-reporting and tax evasion cases.
Compulsory scrutiny selections under the income-tax framework trigger issue of notices under section 143(2) for cases identified for complete scrutiny, with jurisdictional Assessing Officers preparing specific information cases under prior administrative approval and the scrutiny being conducted through NaFAC, except for cases falling under International Taxation and Central Circle charges, which continue with those charges. The selection framework relies on data analytics and cross-matching of return information with GST and other departmental inputs to identify under-reporting, overstated losses, or possible tax evasion. (AI Summary)
Income Tax
Tax-effect limits restrict departmental appeals, with year-wise calculation, composite orders, and key exceptions preserved.
Departmental appeals in income-tax matters are subject to monetary tax-effect limits, with interest and penalty included for threshold purposes. Tax effect must be calculated separately for each assessment year, and in composite orders or common orders involving multiple years or assessees, appeal lies only for the year or assessee crossing the applicable limit. The circular does not apply to constitutional validity challenges, cases where Board instructions are held ultra vires, accepted revenue audit objections, or cases where tax effect is not quantifiable, and it also extends to pending appeals. (AI Summary)
Income Tax
Trust compliance relaxations extend filing timelines, clarify provisional registration, accumulation statements, and audit reporting requirements.
Relaxations for trusts, NPOs and charitable institutions include extended filing timelines for Form No. 10A, Form No. 10AB, Form No. 10BD and Form No. 10BE, clarification on the effective period of provisional approval or registration, and timing rules for Form No. 10 and Form No. 9A. The guidance also updates Form No. 10B and Form No. 10BB reporting by requiring a bifurcation of electronic and non-electronic payments or applications, and clarifies the scope of electronic modes. (AI Summary)
Income Tax
Government securities tax exemption for FIIs and BIS expands relief on interest and capital gains with disclosure conditions.
The Income-tax (Amendment) Ordinance, 2026 inserts new entries 13D and 13E in Schedule IV of the Income-tax Act, 2025 to extend targeted exemptions to Foreign Institutional Investors (FIIs) and the Bank for International Settlements (BIS). The exemptions apply to interest on Government securities and to capital gains arising from their sale, exchange, or transfer, where such income accrues to FIIs or BIS, subject to furnishing prescribed information in the manner notified by the authorities. The ordinance is stated to operate retrospectively from 1 April 2026. (AI Summary)
Income Tax
Angel tax exemptions for specified foreign investors and start-ups expand retrospective relief, with draft valuation rules proposing new methods and a safe harbour.
Retrospective exemptions have been notified from the angel tax framework for specified foreign investors and for start-up companies meeting prescribed conditions and filing the required self-declaration. The exemptions operate from 1 April 2023, while corporate foreign direct investment outside the exempted categories remains within the angel tax ambit. Draft valuation rules for non-resident investors also propose five methods and a 10% safe-harbour tolerance where the issue price marginally exceeds fair market value. (AI Summary)
Income Tax
Valuable article under section 69A requires an intrinsically high-priced asset, not merely a quantity-based valuation.
Section 69A applies only to unexplained money, bullion, jewellery, or other valuable articles belonging to the assessee and not reflected in the books. An article is "valuable" only if it is intrinsically high-priced and commands a premium price in its own right. A thing that becomes significant only by multiplying quantities does not qualify. On that principle, bitumen is not a valuable article for section 69A. (AI Summary)
Income Tax
Transfer pricing on reimbursement and free services may still require arm's length benchmarking in associated enterprise transactions.
Reimbursement of travel, salary and other actual expenses from an associated enterprise is treated as a pass-through recovery and not as a business receipt in itself. The article notes that transfer pricing adjustment should not ordinarily be made on mere reimbursement of expenditure received from an associated enterprise, though the absence of any margin may still invite challenge on arm's length valuation. Even a free service may be an international transaction requiring benchmarking, and corporate guarantee arrangements are also discussed as transactions subject to transfer pricing analysis. (AI Summary)
Income Tax
Tax collection at source on foreign spending under LRS continues to expand, including international credit card transactions and revised exemptions.
Tax collection at source under section 206C(1G) on foreign remittances and foreign spending under the Liberalised Remittance Scheme has been revised through amendments and administrative responses. The article states that deletion of Rule 7 of the FEMA (Current Account Transaction) Rules, 2000 would extend TCS to foreign spending through international credit cards, while debit cards and travel cards continue to attract TCS. It further notes a CBDT exemption for international spending up to Rs 7 lakh from TCS at 2%. (AI Summary)
Income Tax
Angel tax relief for start-ups expands valuation options, adds safe harbour tolerance, and eases investor compliance.
Relaxation of angel tax for start-ups is discussed in relation to the omission of section 56(2)(viib), its anti-unaccounted-money rationale, and the valuation difficulties faced by start-up investors. The article notes proposed relief for DPIIT-registered start-ups, additional valuation methods for NRI investors, a price-matching facility for resident and NRI investment, a 90-day merchant banker valuation window, and a 10% safe harbour valuation tolerance limit for unquoted equity shares. (AI Summary)
Income Tax
Online gaming TDS rules govern net winnings, valuation, account aggregation, and the monthly threshold for deduction.
Tax deduction at source applies to net winnings from online gaming from 1 April 2023, and tax is deducted at withdrawal and at year-end. Net winnings are computed from withdrawals after reducing non-taxable deposits and opening balance, while bonus credits, in-kind winnings, and certain convertible deposits may form part of the taxable base. GST is excluded from valuation, multiple user accounts may be aggregated, and no deduction is required where net winnings do not exceed the prescribed monthly threshold. (AI Summary)
Income Tax
GSTAT listing process brings structured bench allocation, clearer categorisation, and faster handling of appellate disputes.
The Kolkata Bench of the Goods and Services Tax Appellate Tribunal was inaugurated as part of the Tribunal's expansion across India, with listing of matters to begin alongside the Cuttack Bench. Office Order No. 3/GSTAT/PB/2026 introduces a uniform listing process across all GSTAT Benches, classifying matters into tax determination disputes, registration-refund-assessment issues, and enforcement or residual matters. It also requires all matters to be listed first before a Division Bench, which may refer matters to a Single Bench only where no substantial question of law arises. (AI Summary)
Goods and Services Tax - GST
Safe harbour transfer pricing rules extended to Assessment Year 2023-24, preserving certainty for eligible international transactions.
Safe harbour rules for transfer pricing have been extended so that the regime continues to apply up to Assessment Year 2023-24. The extension preserves the operation of the safe harbour framework for the specified period and continues the measure intended to reduce transfer pricing disputes and provide certainty to taxpayers. The regime covers specified eligible international transactions, and for transactions falling within the prescribed categories and conditions, the transfer price declared by the assessee is to be accepted by the income-tax authorities. (AI Summary)
Income Tax
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