Over the first week of September 2025, various regulatory bodies issued several key updates. The Income Tax Department extended deadlines for tax exemptions for Sovereign Wealth Funds and Pension Funds and notified exemptions for several government-related bodies, including the Lucknow Development Authority and CBSE. A Supreme Court ruling reinforced that jurisdictional officers cannot issue reassessment notices after the faceless assessment regime is operational. In GST matters, the Delhi High Court directed the processing of ITC refunds for inverted duty structures and clarified that arrests require written approval with recorded reasons. The DGFT clarified that the Minimum Import Price for certain paper imports does not apply to EOUs or SEZ units. The SEBI made extensive amendments to regulations for InvITs, REITs, Portfolio Managers, and the delisting of PSUs, lowering minimum investment for privately placed InvITs and defining rules for PSU delisting with a 90% shareholding threshold. Finally, the RBI directed banks to submit returns through the new CIMS system and reported that 98.33% of Rs.2000 banknotes have been returned to circulation.
Notifications & Circulars issued during week (01th– 07th Sep 2025)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)
A. Income Tax
CBDT amends Income Tax Rule 2DCA: The amendment revises several key financial years mentioned within Rule 2DCA, aligns it with the changes made to Section 10(23FE) of the Income Tax Act. The figures ‘2025-26’ and ‘2024-25’ are being replaced with ‘2031-32’ and ‘2030-31’, respectively, in the sub-rules (2), (3), an. It extends the timelines for exemption for income of Sovereign Wealth Funds and Pension Funds, subject to specified conditions.
(Link: Income Tax Notification 141/2025 Dated 01/09/2025)
Exemptions to Lucknow Development Authority: Lucknow Development Authority, an authority constituted under the Uttar Pradesh Urban Planning and Development Act 1973, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for the specified purposes under Section 10(46A) (a) of the Act.
(Link: Income Tax Notification 142/2025 Dated 02/09/2025)
Exemptions to The Commissioners for the Rabindra Setu, Kolkata: The Commissioners for the Rabindra Setu, Kolkata, a body established under the Howrah Bridge (Amendment) Act 1965, has been notified under section 10(46) for exemption on its income arising from Proceeds from taxes of Municipalities/ Municipal corporation and Railways, Miscellaneous income and interest on bank deposits.
(Link:Income Tax Notification 143/2025 Dated 02/09/2025)
Exemptions to Maharashtra State Pharmacy Council: Maharashtra State Pharmacy Council, a body constituted by the Government of Maharashtra, has been notified under section 10(46) for exemption on its income arising from Fees and subscriptions and interest on bank deposits.
(Link: Income Tax Notification 144/2025 Dated 02/09/2025)
Exemptions to Central Board of Secondary Education, Delhi: Central Board of Secondary Education, Delhi, a Board constituted by the Central Government, has been notified under section 10(46) for exemption on its income arising from Examination fees, Affiliation fees, registration fees, Sports fees, Training fees, Other academic receipts, receipts from CBSE projects/programmes and interest on bank deposits.
(Link: Income Tax Notification 145/2025 Dated 02/09/2025)
CBDT extends Investment deadline under section 10(23FE): The Circular modify earlier circular 09/2025 dated 9th May 2022, relating to section 10(23FE) of the Income Tax Act. The section provides tax exemption for income of certain investment funds, including Sovereign Wealth Funds and Pension Funds, subject to specified conditions. The Finance Act, 2025 amended this clause to extend the deadline for making qualifying investments from 31st March 2025 to 31st March 2030. Accordingly, the earlier references to the date are now to be read as ‘31 March 2030’.
(Link: Income Tax Circular 11/2025 Dated 02/09/2025)
SC, Reassessment notices by Jurisdictional AO invalid after Faceless Regime: Case of ITO vs Prakash Padurang Patil, Supreme Court Judgement Dated 18th August 2025. The apex court has dismissed the income-tax department special leave petition (SLP) against an order passed by the Bombay High Court, which quashed a reassessment notice. The judgement reinforces the sanctity of the faceless assessment regime, making it clear that jurisdictional officers cannot issue reassessment notices once the scheme has been operationalised. It also reiterates that a sanction from the correct authority is a mandatory safeguard when notices are issued beyond the three-year limitation period.
B. GST
HC directs processing of GST ITC Refund under Inverted Tax Structure: Case of Prem Polymers vs Sales Tax Officer, HC Delhi Judgement Dated 14th August 2025. HC directed the tax department to process refund claims of excess Input Tax Credit (ITC) arising out of the inverted duty structure within a strict timeline of three weeks. The ruling came in response to the petitioner’s grievance that their refund application was being delayed without lawful justification, despite being entitled under Section 54(3) of the CGST Act.
HC, Arrest under CGST Act only with written approval and recorded reasons: Case of Azad Malik vs DGGI, HC Delhi Judgement Dated 22nd August 2025. HC has dismissed an anticipatory bail application filed by Azad Malik, in connection with an ongoing investigation by the Directorate General of GST Intelligence (DGGI), Zonal Unit, Meerut. The decision was based on the finding that the plea was premature, as there was no immediate or reasonable apprehension of arrest.
— The DGGI counsel, had stated that a pre-requisite for granting anticipatory bail, a “reason to believe” that an arrest is imminent, had not been established. It highlighted that for an arrest to be made under the CGST Act, a competent authority like the Commissioner or Additional Director General must issue a written approval based on a reason to believe. The court was informed that no such proposal for the petitioner’s arrest had been initiated.
C. Central Excise
No Notification/ Circular during the week.
D. Custom Duty
No Notification/ Circular during the week.
E. Directorate General of Foreign Trade (DGFT)
Clarification regarding applicability of MIP on Virgin Multi-layer Paper Board (VPB): The Minimum Import Price (MIP) for Virgin Multi-layer Paper Board (VPB), was set at INR 67,220 per metric ton on a Cost, Insurance, and Freight (CIF) basis until 31st March 2026. DGFT has clarified that the MIP does not apply to imports of VPB by 100% Export Oriented Units (EOUs) and units operating in Special Economic Zones (SEZs). This exemption is valid as long as the imported goods are not sold within the Domestic Tariff Area (DTA). Furthermore, imports under the Advance Authorization or Duty-Free Import Authorization (DFIA) schemes are also exempt from the MIP restriction.
(Link: DGFT Circular 04/2025 Dated 03/09/2025)
Fixation of one new Standard Input Output Norm (SION) under Chemical and Allied Product: The new SION, numbered A-3695, sets a standard for the export product ‘Acetyl Salicylic acid 75 mg. Film-coated Tablets’. Under this new rule, the import of 76.50 mg of Acetyl Salicylic Acid is permitted for every single tablet of export product.
(Link: DGFT Public Notice 21/2025 Dated 03/09/2025)
F. Securities and Exchange Board of India (SEBI)
Amendments to SEBI Infrastructure Investment Trusts (InvITs) Regulations: The notification redefine “public” to include a qualified institutional buyer who is also a related party, while excluding the sponsor, sponsor group, investment manager, and project manager of the InvIT. It also adjust reporting and valuation timelines, mandating the submission of valuation reports and financial results to the stock exchanges and trustees within specified periods. It also introduce a quarterly valuation requirement for InvITs whose consolidated borrowings exceed 49%. For privately placed InvITs, the minimum investment from an investor has been reduced to ₹25 lakh.
(Link: SEBI Notification Dated 02/09/2025)
Amendments to SEBI Portfolio Managers Regulations: The amendment substitutes regulation 20(xi) with a reference to Schedule IV. It also revises sub-regulation (3) of regulation 22, now mandating that a portfolio manager must provide a client with a Disclosure Document in a format specified by SEBI, along with a Form C certificate as outlined in Schedule I, before entering into an agreement. It also provide for deletion of Schedule V from the original regulations.
(Link: SEBI Notification Dated 02/09/2025)
Amendments to SEBI Real Estate Investment Trusts (REIT) Regulations: The amendment redefine ‘public’, to excludes related parties of the REIT, its sponsor, or manager, but specifies that a qualified institutional buyer will be included in it. Sponsors and managers are explicitly excluded. It also alter the timelines and requirements for valuation reports and financial disclosures. Managers must now submit reports on the status of under-construction properties within a time specified by the board, not necessarily thirty days after the quarter’s end. The valuation reports must be submitted to the trustee simultaneously with their submission to stock exchanges. It also modify the requirements for the distribution of net cash flow from a Holdco, allowing it to adjust a negative distributable cash flow against cash flows from its underlying Special Purpose Vehicles (SPVs) with proper disclosures.
(Link: SEBI Notification Dated 02/09/2025)
Amendments to SEBI Delisting of Equity Shares Regulations: The notification introduce specific rules for the delisting of public sector undertakings (PSUs), excluding banks, non-banking financial companies, and insurance companies. The new regulations permit delisting from all stock exchanges if the combined shareholding of the acquirer and other PSUs reaches or exceeds 90%. This process requires approval via a special resolution from shareholders and must be conducted using a fixed-price method. The floor price for the delisting must be at least the higher of the volume-weighted average price over the preceding 52 weeks or the highest price paid in the last 26 weeks, or a price determined by a joint valuation report from two independent registered valuers. The final delisting price must be at least 15% higher than this calculated floor price. It also outlines procedures for a voluntary strike-off of a delisted PSU, specifying how funds for remaining public shareholders will be managed and transferred.
(Link: SEBI Notification Dated 02/09/2025)
Amendments to SEBI Investor Protection and Education Fund (IPEF) Regulations: The notification add a new provision to Regulation 4(1), which outlines the sources of funds for the Investor Protection and Education Fund. The new clause (1a) states that the fund will now include monies transferred in accordance with regulation 38B(3)(c) of the IPEF Regulations’. This expands the fund’s sources to include monies from specific delisting processes.
(Link: SEBI Notification Dated 02/09/2025)
Framework for Intraday Position Limits Monitoring for Equity Index Derivatives: The circular sets a specific intraday net position limit of ₹5,000 crore (on a Future Equivalent, or FutEq, basis) and an intraday gross position limit of Rs. 10,000 crore for each entity. These limits are significantly higher than the end-of-day limits. It mandates stock exchanges to monitor these positions through a minimum of four random snapshots throughout the trading day, with a focus on heightened activity near market closing. Breaches on expiry days will now incur additional penalties or surveillance deposits.
(Link: SEBI Circular Dated 01/09/2025)
Streamlining of the process for surrender of (Know Your Client) Registration Agency (KRA) registration: The framework addresses both voluntary surrenders, stemming from business decisions, and involuntary ones, such as those caused by financial distress or regulatory action. A core requirement is that any surrendering KRA, designated as a ‘Transferor KRA,’ must transfer all client KYC records to a ‘Transferee KRA’ to ensure seamless continuity of critical services for investors. The circular mandates that all KRAs must establish a board-approved Standard Operating Procedure (SOP) detailing this winding-down process, which includes secure data migration, stakeholder notification, and the settlement of statutory obligations.
(Link: SEBI Circular Dated 05/09/2025)
G. Ministry of Corporate Affairs (MCA)
No Notifications and Circulars during the week.
H. Insolvency and Bankruptcy Board of India (IBBI)
NCLAT reverses direction of NCLT to invoke Personal Guarantees: Case of Mukesh Goel vs Santanu Brahma, NCLAT Delhi Judgement Dated 11th August 2025. The appellate tribunal observed that the resolution plan, which was approved with 100% support from the Committee of Creditors (CoC), explicitly stated that all personal and corporate guarantees would be released upon the full implementation of the plan and payment of agreed amount. It concluded that since the resolution plan and the CoC had already agreed to release the guarantees upon payment, the NCLT’s direction to invoke them was inconsistent with the approved terms and therefore unsustainable.
NCLAT, EPFO Recovery Certificate not sustainable after CIRP Moratorium: Case of EPFO vs Rajat Minerals, NCLAT Delhi Judgement Dated 11th August 2025. The appellate tribunal noted that the EPFO’s recovery certificate was issued after the moratorium began and that no claim had been filed during the CIRP. The tribunal cited the Supreme Court judgment, which established that a successful resolution applicant cannot be saddled with any claim that was not a part of the final resolution plan. The NCLAT found no error in the Adjudicating Authority’s decision and dismissed the EPFO’s appeal.
NCLAT, Intervention petition under section 65 of IBC revived as application not filed to derail CIRP: Case of Anil Singh vs SREI Equipment Finance Ltd, NCLAT Delhi Judgement Dated 25th August 2025. The appellate tribunal held that order rejecting application for intervention under section 65 of the Insolvency and Bankruptcy Code is set aside and intervention petition is revived since application is not filed to derail CIRP.
NCLAT, CIRP closed after debtor pays full dues including interest: Case of Girish Maganlal Limbachiya vs Dharmil R Mehta, NCLAT Delhi Judgement Dated 18th July 2025. The appellate tribunal has set aside an order that initiated insolvency proceedings against a Corporate Debtor, following the full repayment of the outstanding debt. The case relates to an appeal against NCLT order that had admitted an insolvency application under Section 7 of the Insolvency and Bankruptcy Code.
IBBI, RTI Appeal over grievance against IP & ICSI IIP rejected by appellate authority: The appellant had sought copies of various proceedings and documents relating to his grievance against insolvency professional (IP) and the ICSI Institute of Insolvency Professionals (ICSI IIP). The Central Public Information Officer (CPIO) had earlier provided office notings and the letter that recorded examination of the complaint. The Authority held that the public authority had already supplied the information available on record and reiterated that under the RTI Act, only information that exists and is held by the authority can be shared, and no further obligation lay on the CPIO, the appeal was dismissed.
(Link: IBBI ED & FAA Order Dated 03/09/2025)
I. Reserve Bank of India (RBI)
Submission of returns in CIMS system: RBI has instructed all Scheduled Commercial Banks (SCBs), including RRBs, UCBs, StCBs, DCCBs, Payment Banks, and Small Finance Banks, to begin submitting their Internet Banking and Mobile Banking returns through the newly launched Centralised Information Management System (CIMS). The reporting for these two returns will commence with data from reporting period of August 2025.
(Link: RBI Notification 77/2025 Dated 05/09/2025)
Withdrawal of Rs 2000 Denomination Banknotes Status: The Reserve Bank of India (RBI) had announced the withdrawal of Rs 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 Rs 2000 banknotes in circulation, which amounted to Rs 3.56 lakh crore, has declined to Rs 5956 crore as at the close of business on 31st August 2025. Thus, 98.33% of the banknotes has since been returned.
(Link: RBI Press Release Dated 01/09/2025)
J. Miscellaneous
SC, Auction sale stands, confirms appellant’s title but orders additional compensation: Case of R Raghu vs M Krishna, Supreme Court Judgement Dated 25th August 2025. The apex court upheld the auction sale of the land but directed R Raghu to pay an additional Rs. 25 lakhs per acre to G M Krishna. It also ordered a fresh survey to demarcate the exact boundaries of the auctioned property.
SC, Contract clause not enough to deny Pendente Lite interest: Case of ONGC vs Beckfield Drilling Services Pvt Ltd, Supreme Court Judgement Dated 2nd September 2025. The apex court held that a general clause excluding interest on delayed payments or disputed claims cannot be construed as a prohibition to award pendente lite interest. It dismissed ONGC appeal & upheld the arbitral award granting interest @12% p.a. from the date of filing of claim before the arbitral tribunal.
SC, Gift Deed to Mother-in-Law struck down, fraudulent share transfer invalid: Case of Shalija Krishna vs Satari Global Limited, Supreme Court Judgement Dated 2nd September 2025. The apex court in restored the NCLT order & set aside the NCLAT decision, declaring the alleged gift deed & share transfers invalid & reinstating Mrs. Shailja Krishna as the lawful majority shareholder & Director of the Company.
SC, Property Title passes only by registered sale deed, not GPA/Will: Case of Ramesh Chand vs Suresh Chand, Supreme Court Judgement Dated 1st September 2025. The apex court held that an agreement to sell does not confer a valid title as it is not a deed of conveyance as per Section 54 of the Transfer of Property Act. The court further held that a power of Attorney as well as a Will surrounded by suspicious circumstances would not confer any valid title.
HC, Non-Compete clause ends with contract term: Case of Neosky India limited vs Nagendran Kandasamy, HC Delhi Judgement Dated 11th August 2025. The dispute arose from agreement between Neosky India Limited and the founding members of investee company. The agreement bound respondents, i.e. former key managerial persons to a five year service term and three year non-compete period. However, three employees resigned and incorporated a new entity. The court draws a clear distinction between non-compete clause that operates during employment and the one to be enforced post termination. The court found that since the respondents had resigned and three-year term of non-compete had expired by efflux of time, the injunction was no longer sustainable.
HC cancels Land Transfer based on dead man’s Power of Attorney: Case of Smt Kamla Khinchi wife of Shri Dilsukh Khinchi vs Smt Kamla wife of Panchu, HC Rajasthan Judgement Dated 29th August 2025. HC held that Death Ends Authority, and there cannot be sale beyond the grave. It cancels Land Transfer based on dead man’s Power of Attorney.
*****
Compiled by:- CMA Yash Paul Bhola, MBA, FCMA. Former Director (Finance), National Fertilizers Limited.
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)
Author Bio
