Analysis of Notifications and Circulars for Week ending 9th March 2025

The week ending 9th March 2025 saw key regulatory updates across income tax, GST, RBI, and insolvency laws. The Delhi Building and Other Construction Workers Welfare Board received tax exemptions, while the Income Tax Department disseminated high-risk cases for verification. Courts ruled on limitations of CBDT circulars and tax implications on aircraft parts re-imported after repairs. GST updates included enhanced biometric authentication for directors, AAR rulings on tax rates for wheat milling, PVC raincoats, and municipal property tax reimbursements. The RBI announced liquidity measures, including open market operations and USD/INR swap auctions. The withdrawal of ₹2000 banknotes continues, with over 98% returned. Insolvency-related cases reaffirmed that IBC prevails over the Electricity Act and that a single homebuyer cannot challenge resolution plan approvals. The Supreme Court ruled on partnership property ownership, refunds of lost stamp paper with interest, and limitations on compassionate appointments. IBBI suspended a valuer and insolvency professional for procedural lapses, while RTI rulings clarified that public authorities are not required to generate new data.

Notifications & Circulars issued during week (3^rd – 9^th Mar 2025)

A. Income Tax

Exemptions to The Delhi Building and Other Construction Workers Welfare Board: The Delhi Building and Other Construction Workers Welfare Board, a Board established by Government of National Capital Territory of Delhi, has been notified under section 10(46) for exemption on its income arising from cess, registration & renewal fees and interest on bank deposits. (Income Tax Notification 18/2025 Dated 06/03/2025)

Dissemination of High-Risk transaction and High-Risk Non-PAN Transaction cases on the Verification module of Insight portal : Directorate of Income Tax (Systems) has provided details of high-risk transaction cases for assessment under Sections 148/148A of the Income Tax Act. These cases, identified through Risk Management Strategy, from AY 2019-20 to 2021-22 have been assigned to field officers via the Insight Portal’s Verification Module. High-Risk Transactions cases have been assigned to JAO and High-Risk Transactions (Non-PAN) cases have been assigned to PCCIT. (Income Tax Insight Instructions 86/2025 Dated 03/03/2025)

Dissemination High-Risk CRIU/VRU PAN Case and Non-PAN Cases on the ‘Verification’ module of Insight portal: Directorate of Income Tax (Systems) has released details of high-risk, Case Related Information Upload (CRIU)/ Verification Report Upload (VRU), PAN and Non- PAN cases for assessment under Sections 148/148A of the Income Tax Act, 1961. These cases identified through Risk Management Strategy, from AY 2019-20 to 2021-22 are available on the Insight Portal’s Verification Module. High-Risk CRIU/VRU Information cases have been assigned to JAO and High-Risk Non-PAN CRIU/VRU Information cases have been assigned to PCCIT. (Income Tax Insight Instructions 85/2025 Dated 03/03/2025)

Dissemination of Assessment, Investigation of Benami, Foreign Assets and TDS Cases on the ‘Verification’ module of Insight portal: Directorate of Income Tax (Systems) has provided details of high-risk cases for AY 2019- 20, 2020-21, and 2021-22 under the Risk Management Strategy. These cases, identified through verification reports on the Insight Portal, include three types, The Suspected Benami Transactions cases have been assigned to PDIT(Inv.) for action under the PBPT Act, 1988, Undisclosed Foreign Assets/Income cases have been assigned to PDIT(Inv.) for action under the BMA 2015 and TDS Compliance Issues have been assigned to respective CCIT (TDS) based on transaction value. (Income Tax Insight Instructions 84/2025 Dated 03/03/2025)

Dissemination of certain High Risk Non-filer cases on Insight Portal: Directorate of Income Tax (Systems) has provided details of high-risk non-filer cases for Assessment Years (AY) 2019-20, 2020-21, and 2021-22 under the Risk Management Strategy (RMS). These cases, identified based on parameters approved by the Board, are visible to Assessing Officers on the Insight Portal. Officers can access taxpayer profiles, including return history, financial ratios, assets, and third-party data, to assess compliance risks. Officers can also initiate proceedings under Section 148A/148 of the Income-tax Act, where applicable. (Income Tax Insight Instructions 83/2025 Dated 28/02/2025)

HC, CBDT Circular cannot override statutory provisions by prescribing limitation period: Case of Sun Pharmaceutical Industries Ltd vs ITO, HC Delhi Judgement Dated 31st January 2025. HC held that CBDT Circular No. 07/2007 dated 23^rd October 2017 imposing period of limitation of 2 years for application for excess tax deposit is not sustainable since it cannot curtail the statutory provisions by prescribing limitation periods. The petitioner contended that the circular is ultra vires and creates a condition in absent of any statutory backing. The CBDT could not have, by way of an administrative circular, created or introduced a condition of ineligibility insofar as a claim for refund of excess TDS was concerned. The court allowed the writ petition and declared paragraph 9 of the CBDT circular to be ultra vires the Act and hold that the applications for refund were wrongly rejected as being barred by time. (HC Delhi Judgement Dated 31/01/2025)

B. GST

Enhancements in Biometric Functionality- Allowing Directors to Opt for Biometric Authentication in Their Home State: The new GST registration applicants who opt for Aadhaar authentication are required to undergo the process either through OTP verification or Biometric Authentication at a designated GST Suvidha Kendra (GSK), based on system-driven data analysis. As per the existing system, applicants selected for Biometric Authentication must visit the designated GSK mapped to their jurisdiction.

— However, GSTN has now introduced an additional facility allowing certain Promoters/Directors to complete their Biometric Authentication at any GSK in their Home State. This facility applies to individuals listed in the Promoter/Partner tab for Public Limited Company, Private Limited Company, Unlimited Company and Foreign Company. Such Promoters/Directors can now choose any available GSK within their Home State in India for Biometric Authentication. (GSTN Advisory Dated 03/03/2025)

AAR, GST Rate on Wheat Milling Services for PDS in West Bengal: Case of Shree Krishna Roller and Floor Mills, AAR West Bengal Ruling Dated 18th February 2025. The applicant is a flour miller, engaged in providing services of crushing wheat provided by the State Government, into fortified atta which in turn is supplied by the State Government through Public Distribution System (PDS). The ownership of wheat or atta is never transferred to the applicant. AAR ruled that value of the supply comprises of the consideration in money as well as non-cash consideration. It further ruled that the supply is in nature of composite supply of services, and is eligible for exemption under serial no 3A of notification 12/2017 (Rate) dated 28^th June 2017, since the value of goods involved in such composite supply does not exceed 25% of value of supply. (AAR West Bengal Ruling Dated 18/02/2025)

AAR, Supply of MVU personnel under Livestock Health & Disease Control Scheme is not eligible for exemption: Case of Utpal Kumar Guha, AAR West Bengal Ruling Dated 18^th February 2025. AAR ruled that the supply of Mobile Veterinary Unit (MVU)  personnel on contractual basis for implementation of “Establishment and Strengthening of Veterinary Hospitals & Dispensaries (ESVHD) – Mobile Veterinary Unit (MVU) under Livestock Health & Disease Control Scheme” is not eligible for exemption benefit under serial no. 3 or 3A or 5 or 6 or 46 of the notification 12/2017 (Rate) dated 28^th June 2017. (AAR West Bengal Ruling Dated 18/02/2025)

AAR, GST Classification of PVC Raincoats: Case of Dollar Industries Limited, AAR West Bengal Ruling Dated 27th February 2025. The applicant is engaged in the manufacture and supply of raincoats primarily composed of polyvinyl chloride (PVC), a synthetic polymer widely recognized for its durability and water- resistant properties, which makes it suitable for protective outerwear. AAR ruled that supply of PVC raincoat as manufactured by the applicant would be plastic and covered under Heading 3926 and would attract tax @ 18% vide entry no. 111 of of Schedule-III of notification 01/2017 (Rate) dated 28^th June 2017. (AAR West Bengal Ruling Dated 27/02/2025)

AAR, GST Implications on Liquidation: Case of Maheshwary Ispat Limited, AAR West Bengal Ruling Dated 27th February 2025. The applicant is a company which is presently in liquidation, Liquidator has been appointed by NCLT, Kolkata vide order dated 19^th December 2023. AAR ruled that any sale of assets of the company which is in liquidation, done by the Liquidator of the company results in a supply of goods and/or services or both within the meaning of “supply” as defined under section 7 of the CGST Act. The Liquidator is required to obtain GST registration in terms of Section 24 read together with the notification 11/2020 dated 21^st March 2020. (AAR West Bengal Ruling Dated 27/02/2025)

AAR, GST on reimbursement of municipal property tax by lessee / occupier: Case of Kolay Properties Limited, AAR West Bengal Ruling Dated 27th February 2025. The applicant has entered into a lease agreement with Andhra Bank, to let out an area on the first floor, to use the said leased premises for locating the Branch for carrying out banking business only. The lessee rent is payable at a fixed rate per square foot, exclusive of the occupier share of Property Tax. AAR ruled that the value of supply would be inclusive of municipal property tax and tax under the GST Act is payable on such value. (AAR West Bengal Ruling Dated 27/02/2025)

AAR, No GST on reimbursement of electricity charges on actual basis: Case of Mega Flex Plastics Limited, AAR West Bengal Ruling Dated 27th February 2025. The applicant has taken a land on lease, situated in Howrah for a period of 99 years by a Deed of Lease executed with WBIDC with a right to transfer or mortgage or assign its leasehold interest. The applicant has constructed factory building & warehouse over the said land. It has let out a warehouse space to White Saffron Grains LLP  for a period of ten years for putting up a manufacturing unit, against a lease rent payable on monthly basis. The applicant is also entitled to reimbursement for electricity charges on an actual basis as specified in the agreement. AAR ruled that the applicant is not liable to pay GST on reimbursement of electricity charges on actual basis. (AAR West Bengal Ruling Dated 27/02/2025)

HC, No additional tax on aircraft parts re-imported following repairs: Case of Interglobe Aviation Ltd. Versus Principal Comm Of Customs (Import), HC Delhi Judgement Dated 4^th March 2025. The petitioner argued that it had already paid import duties on overseas repairs as part of the import of services and should not be taxed again upon re-importing the repaired aircraft parts. HC struck down the Integrated Goods and Services Tax (IGST) levy on the repair cost of goods re-imported into India after being sent abroad for maintenance. (HC Delhi Judgement Dated 04/03/2025)

C. Central Excise

No Notification/ Circular during the week.

D. Custom Duty

Amend import duty on Lentils (Mosur): The notification seeks to amend various existing notifications related to customs duties. (Custom Notification 16/2025 (T) Dated 07/03/2025)

Extension of concessional duty on Yellow Peas: The notification amends existing notification 64/2023 dated 7^th December 2023 to extend concessional duty on Yellow Peas till 31^st May, 2025. (Custom Notification 17/2025 (T) Dated 07/03/2025)

Anti-dumping Duty on Trichloro Isocyanuric Acid originating  in or exported from China, and Japan: Anti-dumping Duty has been imposed on imports of Trichloro Isocyanuric Acid originating in or exported from China and Japan, and imported into India. It shall be applicable for a period of 5 years. (Custom Notification 01/2025 (ADD) Dated 07/03/2025)

Disposal of Unmanned Aircraft Systems (UAS)/Unmanned Aerial Vehicles (UAV)/Remotely Piloted Aircraft Systems (RPAS)/Drones:  The circular modify the existing guidelines on the disposal of UAS/UAV/RPAS including drones. The changes designate five focal Customs Commissionerate, i.e. Chennai, Delhi (IGIA), Kolkata, Mumbai, and Bengaluru, for storing, inspecting, and distributing confiscated drones. All Customs Zones across India have been mapped to these locations for streamlined processing. Moreover, Annexure-A and Annexure-C have been replaced, updating storage assignments and listing nodal officers responsible for overseeing the process. (Custom Circular 06/2025 Dated 04/03/2025)

Regulation of import of pet dog and pet cat under the Livestock Importation Act, 1898- Facilitation for final Quarantine Clearance: The Ministry of Fisheries, Animal Husbandry & Dairying (DAHD) has introduced measures to streamline the quarantine clearance process. Previously, pet owners faced difficulties in obtaining final quarantine clearance after importing their pets under baggage rules. Now, the Animal Quarantine and Certification Service Station (AQCS) will issue the final “No Objection Certificate (NoC)” at the port of entry round the clock. However, pet owners must obtain an advance NoC from AQCS by submitting required documents and providing prior notice of their pet’s arrival via email. (Custom Circular 07/2025 Dated 05/03/2025)

HC, Baggage rules have ‘Limited Application’ on foreign tourists, orders release of Russian national’s gold chain: Case of Makhinder Chopra vs Comm of Customs, HC Delhi Judgement Dated 19th February 2025. HC held that the Baggage Rules would have limited application to foreign nationals and as jewellery is part of personal effects, the detention of gold chain is liable to be set aside. (HC Delhi Judgement Dated 19/02/2025)

E. Directorate General of Foreign Trade (DGFT)

Amendment in Import Policy and Policy Condition of Platinum products: The notification modifies the import classification for certain platinum products. The import of unwrought platinum (71101110), platinum in powder form (71101120), and other forms of platinum (71101900) has been changed from “Free” to “Restricted.” However, an exception has been made for platinum alloy containing 99% or more purity by weight of platinum, which will continue to have unrestricted import status. (DGFT Notification 60/2025 Dated 05/03/2025)

Amendment in Export Policy of Broken Rice: The export policy of Broken Rice has been amended from ‘Prohibited’ to ‘Free’. (DGFT Notification 61/2025 Dated 07/03/2025)

Fixation of new Standard Input Output Norms (SIONs) A- 3684 under ‘Chemical and Allied Product’: The Public Notice specifies input-output norms for Metronidazole Gel USP 1% in different packaging sizes. According to the notification, for the export of a 55 gm pack, 0.561 gm of Metronidazole (Micronized) USP is allowed as input per unit, while for a 60 gm tube, the permitted input quantity is 0.612 gm per unit. It standardizes the input-output ratio for exporters, ensuring clarity in trade compliance. (DGFT Public Notice 49/2025 Dated 03/03/2025)

F. Securities and Exchange Board of India (SEBI)

SEBI Mutual Funds Regulation Amendment notification Corrigendum: The corrigendum notification has been issued for minor corrections in Mutual Funds Regulation Amendment notification Dated 14^th February 2025 (notified on 17^th February). (SEBI Notification Dated 04/03/2025)

Relaxation in timeline for reporting of differential rights issued by AIFs: SEBI has extended the timeline for Alternative Investment Funds (AIFs) to comply with reporting requirements related to differential rights issued under their schemes. The deadline has been extended to 31^st March, 2025, following requests from the AIF industry for additional time. This one-time reporting requirement applies to AIFs whose Private Placement Memorandums (PPMs) were filed with SEBI on or after March 1, 2020, and where issued differential rights deviate from implementation standards established by the Standard Setting Forum for AIFs. (SEBI Circular Dated 03/03/2025)

Consultation Paper on minimum application size for Zero Coupon Zero Principal Instruments issued by Non- profit organizations on Social Stock Exchange: It relates to revision of the minimum application size for Zero Coupon Zero Principal (ZCZP) instruments issued by non-profit organizations (NPOs) on the Social Stock Exchange (SSE). Currently set at ₹10,000, SEBI is considering lowering this threshold to ₹5,000 or ₹1,000 to increase retail participation. SSEs are also working to introduce a Unified Payment Interface (UPI) mechanism for investments up to ₹5 lakh. The Social Stock Exchange Advisory Committee (SSEAC) has noted rising retail interest in philanthropic contributions via SSE but highlighted that the existing minimum application size may be a barrier for many investors. The comments/suggestions from stake holders are invited. (SEBI Consultation Paper dated 07/03/2025)

G. Ministry of Corporate Affairs (MCA)

No Notification/ Circular during the week.

H. Insolvency and Bankruptcy Board of India (IBBI)

IBC would prevail over Electricity Act: Case of Punjab State Power Corporation Limited vs Akums Lifesciences Limited, NCLAT Delhi Judgement Dated 25th February 2025. The present appeal has been filed by Punjab State Power Corporation Limited against the order of NCLT wherein the outstanding dues payable to the Appellant have been nullified for the period prior to initiation of Corporate Insolvency Resolution Process. The Tribunal held that Insolvency and Bankruptcy Code (IBC) would prevail over Electricity Act. The power distribution company cannot insist on the payment of arrears for restoration of the electricity connection and such a matter would fall within the ambit of Section 60(5)(c) of the IBC, 2016. (NCLAT Delhi Judgement Dated 25/02/2025)

Single homebuyer cannot challenge Resolution Plan approval: Case of Jai Prakash Keshwani vs MB Malls Pvt Ltd, NCLAT Delhi Judgement Dated 21^st February 2025. The Tribunal has dismissed appeals challenging the approval of a resolution plan. The appeals were filed by the promoter, Jai Prakash Keswani, and a homebuyer, Harvinder Singh. The key contention was that the resolution plan was unviable and conditional upon obtaining an occupancy certificate, making it non-implementable. However, NCLAT upheld the commercial wisdom of the Committee of Creditors (CoC), emphasizing that objections related to viability and feasibility fall within the CoC’s domain. The tribunal also ruled that a single homebuyer cannot contest an approved plan when it has been passed with a 100% voting share. (NCLAT Delhi Judgement Dated 21/02/2025)

RTI Act Grants Access to Records, Not Obligations to Compile Non-Existent Information: IBBI has dismissed an RTI appeal, seeking a detailed breakup of claims submitted in the insolvency resolution process. The First Appellate Authority ruled that the requested information is not maintained by IBBI and cannot be created as per the RTI Act. The order highlighted that under Section 2(f) of the RTI Act, public authorities are only obligated to provide information that exists in their records and are not required to generate new data. The order further emphasized that compiling the requested data would disproportionately divert IBBI’s resources, invoking Section 7(9) of the RTI Act. (IBBI FAA Order dated 03/03/2025)

IBBI Suspends Valuer’s Registration for flawed Valuation Report in CIRP & Liquidation: The valuation report prepared by Mr Darisipudi Veerraju Rajkumar, a registered valuer of Land and Building, was found to lack transparency and justification in the valuation methods applied. The discrepancies arose from significant discounts applied to determine the fair value and liquidation value of a residential flat in Mumbai. The valuation reduced the current market value applying multiple layers of discounts without adequate explanation. The final liquidation value was 25% lower than the government guideline rate for the area. The valuation report also did not specify credible sources of information, methodologies, or factors influencing these reductions, violating prescribed valuation rules. IBBI has suspended his registration for six months. (IBBI Order Dated 05/03/2025)

IBBI Suspends IP for Two Years for Filing Lapses and Valuation Errors: IBBI finds that Mr Lingumgunta Venkata Shyam Sundar had failed to file the Corporate Debtor’s (CD’s) claim in the CIRP. He has also committed an error by not explicitly instructing the valuers to assess the CD’s brand and state its determination in the valuation report. It suspends his registration for a period of two years. (IBBI Order Dated 04/03/2025)

I. Reserve Bank of India (RBI)

RBI Announces Measures to Manage Liquidity Conditions:  On a review of current and evolving liquidity conditions, RBI has decided to inject liquidity into the banking system. Open market Operations (OMO) purchase auctions of Government of India securities to be conducted for an aggregate amount of ₹1,00,000 crore in two tranches of ₹50,000 crore each to be held on 12^th March 2025, and 18^th March 2025. USD/INR Buy/Sell Swap auction to be conducted of USD 10 billion for a tenor of thirty-six months to be held on 24^th March 24, 2025. (RBI Press Release Dared 05/03/2025)

Withdrawal of ₹2000 Denomination Banknotes Status: RBI had announced the withdrawal of ₹2000 denomination banknotes from circulation vide Press Release dated 19th May 2023. These notes can be exchanged/ deposited/ send through India Post from any post office in the country, to any of the 19 RBI Issue Offices for credit to their bank accounts in India. The ₹2000 banknotes continue to be legal tender. The total value of ₹2000 banknotes in circulation, which amounted to ₹3.56 lakh crore, has declined to ₹6471 crore as at the close of business on 30^th April, 2024. Thus, 98.18% of the banknotes has since been returned. (RBI Press Release Dated 01/03/2025)

J. Miscellaneous

SC, Partner’s contribution becomes firm’s property, legal heirs cannot claim ownership: Case of Sachin Jaiswal vs Hotel Alka Raje, SC Judgement Dated 27th February 2025. The apex court reaffirmed that any contribution made by a partner to a partnership firm becomes the firm’s property under Section 14 of the Partnership Act, 1932. The Court ruled that neither the partner nor their legal heirs hold exclusive rights over the firm’s property after the partner’s death or retirement, except for their share in the firm’s profits in proportion to their contribution. The Court emphasized that no formal transfer document is required, a partner’s intention to contribute the property to the firm is sufficient. It concluded that contribution of land and building to the partnership firm, along with the hotel’s construction, clearly established the intent to transfer ownership to the firm. (SC Judgement Dated 27/02/2025)

SC, Citizens entitled to interest on lost stamp paper refund, Govt cannot retain money without legal basis: Case of Dr Poornima Advani vs Govt of NCT, SC Judgement Dated 18th February 2025. The apex court ruled that citizens are entitled to interest on refunds for lost stamp paper. The court also explained that the government cannot retain money without a legal basis. The appellants sought a refund of Rs. 28,10,000 in stamp duty after their e-stamp paper was lost before it could be used in a property transaction. The couple had purchased a new e-stamp paper and completed the transaction, but they argued that the lost stamp duty amount should be refunded since it was never utilized. The Collector of Stamps rejected their application for a refund, citing the absence of a statutory provision allowing refunds for lost e-stamp papers. SC directed the government to pay interest on the refund amount and clarified that even in the absence of an explicit statutory provision, principles of restitution and fairness necessitate the payment of interest. (SC Judgement Dated 18/02/2025)

SC, Compassionate appointments are not a right, but a relief for the indigent: Case of Canara Bank vs Ajithkumar GK, Supreme Court Judgement Dated 11^th February 2025. The Court emphasized that such appointments must be granted at the earliest to serve their intended purpose. The Court observed that “unless appointment is made soon after the need to mitigate hardship arises,” the very objective of such appointments may be frustrated. However, it clarified that delays caused by judicial proceedings should not be held against the applicant, stating that “it would, therefore, not be prudent or wise to reject a claim only because of the time taken by the court(s) to decide the issue.”

— On the financial condition of the applicant’s family, the Court stressed that the assessment must be thorough, stating, “examination of the financial condition to ascertain whether the respondent and his mother were left in utter financial distress… is not something that can be loosely brushed aside.” It distinguished between mere loss of income and indigent circumstances, noting that compassionate appointments should be reserved for cases where the family is in a “hand-to-mouth” situation.

— The Court reaffirmed that compassionate appointments cannot become a form of hereditary entitlement, cautioning that “grant of relief in furtherance of protective discrimination would result in a sort of reservation for the dependents of the employee dying-in-harness, thereby directly conflicting with the ideal of equality guaranteed under the constitution”. The court allowed the appeal. (SC Judgement Dated 11/02/2025)

HC, Rejects plea for Income Tax probe Into wife’s family over dowry claims: Case of Ateesh Aggarwal vs Union of India, HC Delhi Judgement Dated 19th February 2025. HC dismissed a petition seeking a directive for the Income Tax Department to investigate alleged illegal cash transactions of ₹2 crore in dowry payments by his wife’s family. The court found no fundamental or statutory right of the petitioner that had been infringed. It observed that the case arose from a matrimonial dispute and involved complex factual issues that were outside the purview of the Income Tax Department and Article 226 jurisdiction.

— The petitioner contended that his wife had filed a police complaint and a civil suit alleging that her family gave ₹2 crore as dowry and spent additional crores on their wedding. The petitioner argued that these transactions violated Section 269ST of the Income Tax Act, which prohibits cash transactions exceeding ₹2 lakh. The plea sought an inquiry into the financial records and income tax returns of his wife and her family members. The court, ruled that a writ petition cannot be used to initiate a “roving and fishing inquiry” into private disputes without a clear legal basis. (HC Delhi Judgement Dated 18/02/2025)

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Disclaimer: The contents of this article are for informational purposes only. The user may refer to the relevant notification/ circular/ decisions issued by the respective authorities for specific interpretation and compliances related to a particular subject matter)