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Government Imposes Strict Shelf-Life Mandates for Imported Pharmaceuticals

The government has established new minimum shelf-life requirements for importing foreign medicines into the country. Under the updated regulations, standard imported drugs must retain at least seventy percent of their total shelf life upon arrival. Meanwhile, biological drugs and radiopharmaceuticals have a separate threshold permitting imports with sixty percent of their labelled shelf life.

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For professionals: Review supply chain timelines and procurement schedules for imported pharmaceutical products to ensure compliance with the new shelf-life mandates. · Advise clients importing standard medicines that they must possess at least seventy percent of their labelled shelf-life remaining upon entry. · Inform clients importing biological drugs and radiopharmaceuticals that they must meet the separate threshold of sixty percent remaining shelf-life.

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NCLT Mumbai Rules Borrower Corporate Insolvency Does Not Release Personal Guarantor

The Mumbai bench of the National Company Law Tribunal has admitted an insolvency petition against a personal guarantor. The tribunal ruled that the corporate insolvency resolution process of the primary borrower does not absolve the personal guarantor of liability. Additionally, the tribunal appointed a different resolution professional to oversee the proceedings.

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For professionals: Review existing client portfolios involving dual corporate and personal liabilities to assess guarantor exposure. Note that the tribunal established that the corporate insolvency resolution process of the principal borrower does not extinguish the obligations of the guarantor. Observe that a different resolution professional was appointed to manage the insolvency process for the guarantor.

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Madras High Court Rules MAT Inapplicable to Banks and Grants Higher Depreciation

The Madras High Court has delivered its verdict on the Indian Overseas Bank appeal for assessment year 2007-08. The court held that Section 115JB minimum alternate tax does not apply to banking companies. Additionally, the bench ruled that unpaid leave salary must be disallowed and unabsorbed depreciation on UPS is eligible for a sixty percent rate.

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For professionals: Review past assessment orders for assessment year 2007-08 and open litigations involving banking clients. · Advise banking clients that Section 115JB minimum alternate tax provisions are inapplicable to banking companies based on the Madras High Court ruling. · Note that unpaid leave salary is disallowed as a deduction while unabsorbed depreciation on UPS is eligible for the higher rate of sixty percent.

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Malicious attackers siphon 6.3 billion dollars from Binance exchange in record cyberattack

Bad actors compromised the Binance platform and made off with 6.3 billion dollars in the largest digital asset heist ever recorded. The exchange subsequently initiated recovery operations for the compromised funds after committing to reimburse affected users through its reserve mechanism.

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For professionals: Finance professionals advising digital asset investors must scrutinize exchange custody practices and reserve fund liquidity · Stakeholders should track platform announcements regarding asset recovery milestones and review portfolio risk exposure to centralized exchanges, ensuring contingency plans account for catastrophic cyber breaches

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Delhi High Court Quashes Service Tax Adjudication Order Over Ignored Extension

The Delhi High Court has quashed a service tax adjudication order because authorities ignored a formal request for an extension. The court found that denying a reasonable opportunity of defense violates principles of natural justice. Consequently, the matter has been set aside for proper reconsideration.

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Mumbai ITAT Rules CSR Spending Does Not Disqualify Section 80G Tax Deductions

The Mumbai bench of the Income Tax Appellate Tribunal has upheld relief for Sunteck Realty regarding corporate social responsibility donations. The tribunal ruled that mandatory corporate social responsibility obligations do not bar Section 80G deductions for eligible donations. Additionally, the tribunal decided in favor of the assessee on Section 14A, minimum alternate tax, finance costs, and proportionate Section 80-IBA deductions.

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For professionals: Review ongoing assessments involving corporate social responsibility donations to evaluate Section 80G deduction claims. Note that the ITAT Mumbai held that statutory corporate social responsibility obligations do not bar Section 80G deductions on eligible donations. Additionally, relief was granted on Section 14A disallowances, minimum alternate tax computations, finance costs, and proportionate Section 80-IBA deductions.

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Karnataka High Court Acquits Accused in Cheque Bounce Case Involving Lost Cheque Book

The Karnataka High Court has acquitted a man in a cheque bounce case after noting he previously reported his cheque book lost. The court ruled that an earlier police complaint and bank communication regarding the lost cheques, combined with doubts over the alleged loan, successfully rebutted statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act.

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Madras High Court Directs Bank to Prove Authorization for Fixed Deposit Loans

The Madras High Court has upheld a fixed deposit recovery decree after finding that the bank failed to prove the loans were authorized. The bank could not substantiate that loans amounting to two crore seventy lakh rupees against fixed deposits were sanctioned by the depositor. Consequently, the court dismissed the bank's appeal and confirmed the recovery liability.

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ITAT Raipur Rules Inadequate Enquiry Fails to Validate Section 263 Revision

ITAT Raipur set aside a Section 263 revision for assessment year 2015-16. The tribunal noted that insufficient investigation alone does not justify revision unless an actual error causing prejudice to the revenue is proven. The assessing officer had previously reviewed the educational institution's registration status.

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For professionals: Advise clients that tax authorities cannot initiate Section 263 revision proceedings based merely on an inadequate enquiry without establishing an actual error causing prejudice to the revenue. Representing practitioners should demand proof of actual errors rather than broad allegations of inadequate enquiry when facing supervisory revisions. The text does not specify exact filing forms, compliance steps, or specific sections other than Section 263 for assessment year 2015-16. · Tax professionals should note that judicial precedent requires the commissioner to establish a definitive error in the assessment order itself rather than simply disagreeing with the depth of the investigation conducted by the assessing officer.

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Western Overseas Study Abroad Engages in Recent Russia-India Business Forum

Western Overseas Study Abroad has participated in the Russia-India business forum. The engagement highlights international trade and educational networking initiatives between the two nations. Representatives attended discussions focused on expanding cross-border commercial opportunities.

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Delhi High Court Grants Interim Stay on Tax Penalty Recovery

The Delhi High Court granted an interim stay on the recovery of an income tax penalty while the main quantum appeal remains pending. The court observed that the penalty proceedings appeared to violate Section 275(1)(a) of the Income Tax Act.

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For professionals: Review all pending penalty orders against clients where underlying quantum appeals are active. · Identify cases where penalty proceedings may violate the procedural timelines outlined in Section 275(1)(a) of the Income Tax Act. · Advise clients on seeking interim stays on penalty recovery based on the Delhi High Court ruling when quantum appeals remain undecided.

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Delhi High Court Rules Past Tax Audits Remain Valid Following Retrospective Account Closures

The Delhi High Court has confirmed that tax authorities can conduct audits even after a business registration is cancelled retrospectively. The court held that relevant statutory provisions permit the examination of historical records. This ensures oversight remains active for prior periods despite subsequent status changes.

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