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Kolkata tax tribunal strikes down share capital addition worth 1.30 crore rupees

The Income Tax Appellate Tribunal in Kolkata removed a share capital addition of 1.30 crore rupees under Section 68 due to insufficient investigation by assessing officers. The tribunal ruled that tax authorities failed to conduct proper inquiries into the submitted investor documents before making additions. This decision protects taxpayers from arbitrary additions when primary documentation remains unexamined.

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For professionals: Maintain robust paper trails including bank statements, PAN details, and confirmation letters for all capital infusions to withstand scrutiny. · Advise corporate assessees that the revenue department must thoroughly examine furnished documents rather than rejecting them summarily when initial onus of proof is met.

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Kolkata tribunal deletes share capital addition because investor papers lacked scrutiny

The Kolkata tax tribunal set aside a share capital addition after determining that authorities failed to examine essential investor documents. The bench concluded that ignoring submitted records without proper verification renders additions legally unsustainable. Taxpayers facing similar scrutiny benefit from this ruling emphasizing thorough departmental examination.

Effective Not specified in the update

For professionals: Advise corporate clients that share capital additions under Section 68 cannot stand if assessing officers ignore primary evidence supplied during assessment proceedings. · Ensure clients furnish complete investor credentials such as income tax returns and bank accounts of subscribers to discharge the initial burden of proof.

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Trident shares surge 13 percent following a 93 percent profit rise and expansion approval

Trident shares rose 13.42 percent after the company reported a 93.1 percent year-on-year increase in September-quarter profit, reaching 175.5 crore rupees. Although revenue dipped by 3.8 percent, EBITDA grew by 46.5 percent during the same period. Additionally, the board approved an in-principle expansion and modernisation plan valued at 4,650 crore rupees.

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For professionals: Evaluate the long-term funding structure and debt-to-equity ratios behind the 4,650 crore rupee expansion before adjusting client portfolio allocations. · Analyze the Q2 financial metrics including the 93.1 percent year-on-year surge in net profit to 175.5 crore rupees and the 46.5 percent rise in EBITDA.

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Weekly roundup details key indirect tax rulings from the customs and excise tribunal

Taxscan published an analytical summary covering judgments delivered by the Customs, Excise and Services Tax Appellate Tribunal between October 28, 2026, and October 31, 2026. The weekly digest highlights important legal interpretations concerning indirect taxes, customs duties, and service tax disputes. Practitioners can utilize these summaries to track evolving departmental positions and tribunal precedents.

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For professionals: Review the weekly digests of Customs, Excise and Services Tax Appellate Tribunal rulings published for October 28, 2026, to October 31, 2026, to identify favorable precedents for pending departmental litigations. · Evaluate client exposure under legacy indirect tax frameworks and ongoing customs disputes involving customs valuations, excise duty clearances, and historical service tax liabilities.

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Kolkata tax tribunal removes 19.14 crore rupee share capital addition after proof of creditworthiness

The Kolkata bench of the Income Tax Appellate Tribunal deleted a share capital addition worth 19.14 crore rupees. The tribunal accepted the relief after the assessee successfully established the financial capacity and identity of the investing entities. This ruling reinforces protections for corporate taxpayers maintaining valid financial proof for share subscriptions.

Effective Not specified in the update

For professionals: Advise clients to compile exhaustive investor dossiers including audited financials and bank statements before closing capital raising rounds. Ensure companies satisfy authorities regarding the financial viability of subscribers under Section 68 of the Income Tax Act when receiving share capital or premium. Note that the primary evidentiary burden rests on the assessee to prove the identity, genuineness, and creditworthiness of investors.

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Supreme court rules compassionate appointment unavailable when employees opt for full gratuity

The Supreme Court ruled that compassionate appointments cannot be claimed if beneficiaries have already opted for full gratuity benefits. The bench clarified that selecting specific terminal financial benefits precludes simultaneous claims for compassionate employment under service rules. This judgment clarifies the mutual exclusivity of certain retirement and welfare benefits.

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For professionals: Advise bereaved employee families regarding the legal implications of choosing specific terminal benefits. · Note that compassionate appointments are not available to dependents who have opted to receive full gratuity benefits. · Understand that receiving full gratuity settles the financial claim, barring additional requests for job placement under welfare schemes.

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Kolkata tribunal deletes 3.59 crore rupee share capital addition following verified investor credentials

The Income Tax Appellate Tribunal in Kolkata deleted a share capital addition of 3.59 crore rupees after verifying investor creditworthiness. The tribunal confirmed that the taxpayer provided sufficient evidence supporting the financial capacity of the participating entities. The ruling offers clear guidance on contesting unwarranted additions on share subscriptions.

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For professionals: Maintain systematic records of all share subscription agreements and investor balance sheets for corporate clients. · Cite established creditworthiness when drafting submissions against arbitrary additions during scrutiny assessments under Section 68 of the Income Tax Act.

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Supreme court dismisses appeal stating limitation issues cannot follow final remand orders

The Supreme Court dismissed an appeal, ruling that questions regarding the limitation period for Central Sales Tax assessments cannot be raised after a remand order attains finality. The bench emphasized that failing to challenge a remand order at the appropriate time prevents parties from introducing new limitation arguments later. This decision brings finality to long-pending indirect tax disputes.

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For professionals: Tax advocates and corporate legal teams must raise all limitation and jurisdictional objections during the initial stages of appellate hearings rather than waiting for subsequent rounds. · Practitioners must review remand orders carefully and ensure all procedural challenges are raised at the earliest available opportunity during appellate proceedings.

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Union government considers widening authorized entry points for bringing pharmaceuticals and medical instruments into the country

The central government has put forward a proposal to increase the number of official import gateways for pharmaceuticals and medical technology. Rule 43A currently defines the permitted ports, airports, railway hubs, road checkpoints, and other entry locations for bringing medicines into the country. This regulatory adjustment aims to streamline entry procedures across national borders.

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Comprehensive list of modifications proposed for outward supply tax return forms published for professional review

A detailed compilation outlining proposed adjustments to Form GSTR-1 has been released for taxpayer examination. The document highlights structural modifications designed to capture specific transaction details within monthly or quarterly filing schedules. Stakeholders are evaluating these changes to understand their operational impact on business reporting mechanisms.

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For professionals: Review the proposed amendment lists for Form GSTR-1 against current filing practices to identify required software modifications. · Cross-verify structural modifications designed to capture specific transaction details within monthly or quarterly filing schedules. · Advise clients that reporting requirements are shifting from generic disclosure to highly structured reporting.

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GST Council proposes structured modifications to outward supply return filing forms, inviting stakeholder feedback

The Goods and Services Tax Council has suggested changes to Form GSTR-1 by introducing distinct columns and tables dedicated to Electronic Commerce Operators (ECO). The Central Board of Indirect Taxes and Customs has set a deadline of November 30, 2026, to receive public feedback on these modifications. Taxpayers and professionals must review the proposed return adjustments carefully.

Effective November 30, 2026

For professionals: Review the proposed return adjustments carefully and examine the downloadable draft PDF. Submit constructive feedback to the Central Board of Indirect Taxes and Customs prior to November 30, 2026.

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Directorate General of Foreign Trade extends Global Authorization for Export of Chemicals validity and enhances SCOMET privileges

DGFT Public Notice 37/2026-27 extends Special Chemicals, Organisms, Materials, Equipment, and Technologies export facilitation to 4-Star and 5-Star Status Holders. It also increases the validity period of the Global Authorization for Export of Chemicals to three years. These measures aim to streamline high-tech and specialized international trade processes.

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