India: Tax Authorities

The Central Board of Direct Taxes issued an order dated 9th July, 2026, authorizing the Director General of Income-Tax (Systems) to upload financial data obtained via the Automatic Exchan-ge of Information (AEOI) framework into taxpayers’ Annual Information Statements (AIS) in Form No. 26AS. This directive requires that international financial information currently held for the years 2022, 2023 and 2024 be integrated into taxpayer records within 90 days of the order’s issuance.

A batch of writ petitions led by Maruti Enterprise challenged the constitutional validity of Section 16(2)(c) of the CGST Act, 2017 before the Hon’ble Gujarat High Court. The petitioners had been denied Input Tax Credit ("ITC") in cases where the supplier had failed to deposit the GST collected from them with the Government, despite the purchasers having paid the full invoice value including GST and having undertaken bona fide transactions.

The Supreme Court has clarified when the doctrine of 'change of opinion' applies in tax reassessment proceedings, examining whether mere production of documents satisfies the requirement of full and true disclosure.

Corporate demergers have long served as an effective mechanism for business reorganisation, enabling companies to segregate business verticals, streamline operations and facilitate strategic investments in a tax-efficient manner. It is not uncommon for group restructurings to involve transfer of an undertaking to a wholly owned subsidiary (“WOS”) while the consideration is discharged through issuance of shares by its holding company—a structure that has, on several occasions, received approval under the Companies Act, 2013.

Seaview Developers Pvt. Ltd. (‘Assessee’) was engaged in the business of developing and leasing commercial real estate property in India, particularly an SEZ project in Uttar Pradesh. Being an SEZ developer/operator, the Assessee was eligible to claim deduction under section 80-IAB of the Income-tax Act, 1961 (the ‘Act’) for profits derived from development and operation of the SEZ.

The Madras High Court has delivered a significant ruling on the constitutional limits of the GST Council's authority, specifically addressing whether this body possesses the power to ratify notifications issued by the Central Government under the CGST Act. The judgment examines the scope of powers available to constitutional and statutory bodies, establishing critical precedents for tax administration in India.

The Calcutta High Court has ruled on a critical procedural question in GST law: when goods are detained under Section 129 of the CGST Act, must authorities first determine who owns the goods before ordering their release? The Department had challenged the ownership, quality, and authenticity of tax documents for a detained consignment, raising questions about the scope of adjudication required at this stage.

The effectiveness of Tax Collection at Source (TCS) under Section 52 of the CGST Act, 2017 is called into question due to a critical legislative gap. While e-commerce operators are obligated to collect tax from suppliers using their platforms, the statute provides no express recovery mechanism in case of default. This analysis examines whether the absence of such provisions renders Section 52 unenforceable, and explores the legal implications when operators fail to collect and remit the mandated amounts.

One of the key issues before the Ld. Madhya Pradesh Electricity Regulatory Commission (“MPERC”) was whether MB Power was entitled to gross-up its Return on Equity (“RoE”) notwithstanding the fact that, at the corporate level, it had not paid income tax during certain years owing to losses and unabsorbed depreciation arising from its other businesses. MPPMCL opposed the claim, inter alia, on the grounds that the claim was barred by limitation and that grossing-up could not be permitted in the absence of actual tax payment by the corporate entity.