During the week of 3rd–9th November 2025, multiple notifications, circulars, and judicial rulings were issued across Income Tax, GST, Customs, DGFT, SEBI, MCA, IBBI, and other regulatory authorities. Key developments in Income Tax included exemptions granted to various state boards and development authorities under sections 10(46) and 10(46A), along with important High Court rulings on TDS delay penalties and interest calculation. GST updates featured Supreme Court and High Court judgments on SCN validity, DIN requirements, refund timelines, ITC blocking, and reinsurance service taxation. Customs saw amendments in Nepal cargo transshipment regulations, anti-dumping duties on flax fabric imports, and addition of Kannur Airport as a food import point. DGFT restricted exports of Red Sanders wood under quota management. SEBI issued a consultation on certification, clarified pro-rata rights for AIFs, and cautioned investors on unregulated digital gold products. MCA and IBBI released circulars on board meetings, valuation compliance, IP undertakings, and cross-border insolvency issues. RBI had no updates this week.
Notifications & Circulars issued during week (3rd – 9th Nov 2025)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)
A. Income Tax
Exemptions to Karnataka Housing Board: Karnataka Housing Board, a board constituted under the Karnataka Housing Board Act, 1962, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for specified purpose under section 10(46A)(a) of Act.
(Link: Income Tax Notification 156/2025 Dated 04/11/2025)
Notification of Arm’s Length Price (ALP) Tolerance Range for AY 2025-26: The Central Government has set a tolerance range for the variation between the calculated ALP and the actual transaction price for international or specified domestic transactions. If the variation does not exceed one percent of the actual price for wholesale trading, or three percent in all other cases, the actual transaction price will be deemed to be the ALP.. “Wholesale trading” is explicitly defined as trading in goods where the purchase cost of finished goods constitutes eighty percent or more of the total trading cost, and average monthly closing inventory is ten percent or less of the sales related to trading activity.
(Link: Income Tax Notification 157/2025 Dated 06/11/2025)
Exemptions to Haryana Building and Other Construction Workers Welfare Board, Panchkula: Haryana Building and Other Construction Workers Welfare Board, Panchkula, a Board constituted by the State Government of Haryana, has been notified under section 10(46) for exemption on its income arising from Proceeds from Registration fees and subscription collected from construction workers, Cess collected under the Building and Other Construction Workers Welfare Cess Act and interest on bank deposits.
(Link: Income Tax Notification 158/2025 Dated 07/11/2025)
Exemptions to Ayodhya Vikas Pradhikaran: Ayodhya Vikas Pradhikaran (Ayodhya 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 specified purpose under section 10(46A)(a) of Act.
(Link: Income Tax Notification 159/2025 Dated 04/11/2025)
HC Restores conviction for delay in depositing TDS, Financial Hardship not a valid defence: Case of ITO vs Great Indian Nautanki Co Pvt Ltd, HC Delhi, Judgement Dated 16th October 2025. The petitioner has challenged the acquittal of the respondent company by the Sessions Court in a case concerning delayed deposit of TDS. HC held that the company had committed an offence under Section 276B of the Income Tax Act, but considering the circumstances and that the dues were fully paid with interest, modified the punishment to admonition in place of a fine of Rs 25 lakh.
HC, Interest on Income Tax Demand starts after 30 days of valid section 156 Notice: Case of Karnal Coop Sugar Mills Ltd vs CIT, HC P&H, Judgement Dated 27th October 2025. HC concluded that the petitioner was not liable to pay interest as per the first notice, as it was rendered ineffective upon refund of tax following the Commissioner (Appeals)’s decision. The respondent was directed to recalculate interest as per fresh notice until the actual date of payment.
B. GST
SC to decide fate of Notices and Orders under GST without DIN: Case of Assistant Commissioner vs Novelty Reddy and Reddy Motors Private Limited, SC Judgement Dated 13th October 2025.The apex court has stayed the operation of the AP High Court judgment, which had set aside GST assessment orders and show cause notices for want of Document Identification Number (DIN). The key legal question of whether the absence of a DIN renders GST communications void ab initio remains pending final decision by the apex court.
HC quashes premature GST SCN issued before reply deadline: Case of Varian Medical Systems International India Pvt Ltd vs Union of India, HC Delhi, Judgement Dated 28th October 2025. HC set aside the SCN and remanded the matter to the pre-SCN stage. The Petitioner was permitted to file or supplement its reply to the pre-SCN. The concerned authority shall thereafter decide whether issuance of a fresh SCN is warranted and proceed in accordance with law.
HC, GST Deficiency Memo must be issued within 15 Days: Case of Gameloft Software Private Limited vs Asstt. Commissioner Central Tax, HC Delhi, Judgement Dated 28th October 2025. HC reiterated that refund applications under Section 54(7) of CGST Act must be adjudicated within 60 days from the date of receipt of a complete application, ensuring timely relief to taxpayers. As per Rule 90(2) of CGST Rules, any deficiency memo must be issued within 15 days of filing. The delays beyond this period are not permissible and cannot be used to deny or delay refunds. It directed the Revenue to fix a hearing date and decide the refund claim within one month, while preserving the taxpayer’s rights and remedies under law.
HC quashes GST demand on Reinsurance Services for Oriental Insurance: Case of Oriental Insurance Company Limited vs Addl. Commissioner CGST, HC Delhi, Judgement Dated 26th September 2025. CBIC Circular No. 228/2024-GST, had clarified that GST on reinsurance (including retrocession) of specified general and life insurance schemes for the period 1st July 2017, to 26th July 2018 stands regularized on an “as is where is” basis, effectively granting relief for that period. The Revenue contended that since the adjudication and appellate orders were passed before issuance of the Circular, the assessee could not claim the benefit retrospectively. HC held that the benefit of the circular extends to the assessee, rejecting the Revenue’s stance.
HC, Blocking beyond ITC available in credit ledgers is Illegal: Case of Shyam Sunder Strips vs Union of India, HC P&H, Judgement Dated 4th November 2025. HC ruled that the blocking of petitioners’ Electronic Credit Ledgers (ECL to create negative balances exceeded the authority granted under Rule 86-A and was unsustainable. The impugned orders were set aside to the extent that they disallowed debit beyond the ITC available at the time of blocking.
C. Central Excise
No Notification/ Circular during the Week.
D. Custom Duty
ECTS Regulations for Nepal Cargo Transhipment amended: The Notification amends Regulation 3 of the Transhipment of Cargo to Nepal under Electronic Cargo Tracking System (ECTS) Regulations, concerning the application scope of the ECTS system for cargo moving from India to Nepal. The permissible routes now include rail transhipment to Birgunj and Biratnagar in Nepal. It is mandated for two specific multi-modal routes, One- rail transport to Batnaha (India) followed by road transport to Biratnagar (Nepal) and Two- rail transport to the Indian Customs Yard, Jogbani (India), followed by road transport to Biratnagar (Nepal).
(Link: Customs Notification 73/2025 (NT) Dated 04/11/2025)
Anti-dumping Duty on Woven Fabric (having more than 50% Flax content) commonly known as “Flax Fabric” originating in or exported from China and Hongkong: Anti-dumping Duty has been imposed on imports of Woven Fabric (having more than 50% Flax content) commonly known as “Flax Fabric” originating in or exported from China and Hongkong and imported into India. The anti-dumping duty shall be effective for a period of five years.
(Link: Customs Notification 31/2025 (ADD) Dated 07/11/2025)
Kannur Airport added as New Food Import Entry Point: The Instruction notify a modification to the list of authorized officers and points of entry (PoEs) for food imports under the Food Safety Standards (FSS) Act. This new notification adds Air Cargo Complex, Kannur International Airport (INCNN4) in Kerala, to the existing 165 specified PoEs. At this new entry point, the designated Authorized Officers are Customs officials holding the rank of Superintendent, Appraiser, Inspector, or Examiner. The custom officials be sensitized accordingly.
(Link: Customs Instructions 31/2025 Dated 03/11/2025)
E. Directorate General of Foreign Trade (DGFT)
Export Policy for Red Sanders amended: The notification amends the export policy for Red Sanders wood (Pterocarpus Santalinus) sourced from cultivation on private land. The export of Red Sanders in log form and roots is now restricted and requires a Restricted Export Authorisation. Applications for this authorization must include attested copies of the Certificate of Origin from the Principal Chief Conservator of Forests (PCCF), confirming procurement from legal sources, and a certificate verifying the current stock position after physical inspection. The total annual quota is set at 1,290 MT, with specific quotas including 280 MT for Andhra Pradesh, 900 MT for Tamil Nadu, 10 MT for Karnataka, and 100 MT for Gujarat. It also imposes a zero export quota for wild specimens and mandates that State Governments develop a digital platform with Geo-referenced sites for tracking trees.
(DGFT Notification 47/2025 Dated 04/11/2025)
F. Securities and Exchange Board of India (SEBI)
Consultation paper on Amendments to SEBI (CAPSM) Regulations: It proposes certain amendments to the SEBI (Certification of Associated Persons in the Securities Markets) Regulations (CAPSM Regulations). The key proposals include the expansion of the “Associated Person” definition to cover regulated entities, those “intending to be engaged,” and those involved “directly or indirectly” to encourage wider participation and enhance knowledge. A new method for obtaining the required National Institute of Securities Markets (NISM) certificate is proposed, i.e. successfully completing long-term courses or programs offered by NISM, which would also count for Continuing Professional Education (CPE). Additionally, the method of conducting CPE programs will be expanded to include electronic mode for increased reach and convenience. It also proposes to remove existing exemptions from passing the certification exam previously available to “Principals,” persons over 50 years old, or those with 10 years of experience. The Feedback/ comments from stakeholders are invited.
(Link: SEBI Consultation Paper Dated 06/11/2025)
Draft Circular on Clarifications and specific modalities with respect to maintaining pro-rata rights of investors of AIFs: The draft circular elaborates on methodologies for drawing down and distributing capital in both close-ended and open-ended AIF schemes to ensure proportional rights among investors. The proposals include defining whether “commitment” refers to total or undrawn commitments, disclosure requirements in Private Placement Memoranda (PPM), and treatment of investors excused from certain investments. The existing schemes must align with one of the specified drawdown methods, and the circular clarifies that such alignment will not be treated as a material change. It also clarifies that carried interest or profit sharing with fund managers is excluded from pro-rata requirements and that all commitments must be recorded in INR. The Feedback/ comments from stakeholders are invited.
(Link: SEBI Draft Circular Dated 07/11/2025)
Caution to public regarding dealing in ‘Digital Gold’: SEBI has warned investors against dealing in “Digital Gold” or “E- Gold” products offered by certain online platforms. It clarified that while it has enabled regulated investment options in gold and gold-related instruments, such as exchange-traded commodity derivative contracts, Gold Exchange Traded Funds (ETFs) offered by mutual funds, and Electronic Gold Receipts (EGRs) traded on stock exchanges, these products are distinctly different from the digital gold products being promoted online. The so-called “Digital Gold” or “E-Gold” products being marketed by unregulated entities do not fall under SEBI’s purview. Investors have been advised to exercise caution and ensure that any gold-related investment is made only through SEBI-regulated channels.
(Link: SEBI Press Release 70/2025 Dated 08/11/2025)
G. Ministry of Corporate Affairs (MCA)
Amendments to Companies Meetings of Board and its Powers Rules: The amendment substitutes Sub-rule (2) of Rule 11, which defines the expression “business of financing industrial enterprises” for the purpose of Section 186(11)(a) of the Companies Act, 2013, related to restrictions on inter-corporate loans and investments. The expression now includes two distinct categories. For a NBFC registered with the Reserve Bank of India, it includes the ordinary course of business of giving loans or providing guarantees/security for loan repayment. For a Finance Company registered with the International Financial Services Centres Authority (IFSCA), the expression includes activities provided in specific sub-clauses of Regulation 5(1)(ii) of the IFSCA (Finance Company) Regulations, when done in the ordinary course of its business.
(Link: MCA Notification Dated 03/11/2025)
Start-up penalized for Share Allotment without Registered Valuer Report: The company admitted to the default, which occurred when it issued Compulsorily Convertible Preference Shares (CCPS) through private placement/preferential allotment following a shareholder sanction. The specific violation was the failure to obtain a valuation report from a Registered Valuer, as strictly required for such share issuance. The company clarified that, acting under the impression that a report obtained from a SEBI-registered Merchant Banker would suffice, this omission was an unintentional, inadvertent technical lapse resulting from lack of professional guidance. Since Cos Act does not prescribe a specific penalty for the violation of Section 62(1)(c), the liability was adjudicated under the general penalty provision, Section 450 of the Act. The ROC imposed a penalty of Rs 1,50,000/- (Rupees One Lakh Fifty Thousand Only).
(Link: ROC Adjudication Order Dated 03/11/2025)
H. Insolvency and Bankruptcy Board of India (IBBI)
Undertaking by IPs before Special Courts under PMLA: The circular advises Insolvency Professionals (IPs) to file applications before the Special Court under the Prevention of Money Laundering Act (PMLA) for the restitution of corporate debtor assets attached by the Enforcement Directorate (ED). Restituting these attached assets is deemed vital for significantly enhancing the corporate debtor’s value and overall realization for stakeholders. The IBBI, in consultation with the ED, has formulated a standard undertaking that the IP must furnish along with the restitution application, which imposes strict conditions on the IP, including preventing the transfer or sale of the restituted assets to ineligible persons under Section 32A of the IBC, ensuring the assets do not benefit accused parties under PMLA, and mandating quarterly reporting on the status and usage of the assets to the Special Court.
(IBBI Circular Dated 04/11/2025)
Discussion Paper on Template for declaration of Beneficial Ownership and Section 32A Affidavit to be submitted by Prospective Resolution Applicant (PRA): The proposal mandates every PRA to file a statement of beneficial ownership, identifying all natural persons who ultimately own or control the applicant, including the full ownership structure and jurisdictions, based on the Reserve Bank of India’s KYC Master Direction. Further, PRAs must submit an affidavit declaring eligibility under Section 32A. The draft template includes exemptions for listed entities where ownership details are already publicly available through SEBI or equivalent regulatory filings. The Feedback/ comments from stakeholders are invited.
(Link: IBBI Discussion Paper Dated 06/11/2025)
SC orders Restoration of attached properties to Resolution Applicant under IBC–PMLA Overlap: Case of Udaipur Entertainment World Private Limited vs Union of India, SC Judgement Dated 10th October 2025.The apex court not only sanctioned the restoration of properties worth Rs 175 crore to 213 homebuyers but expressly commended the Enforcement Directorate for its discriminating approach in segregating innocent purchasers from those whose acquisitions were tainted by proceeds of crime.
NCLAT, Pre-CIRP claims cannot be reopened after Approved Resolution Plan: Case of Trinity Auto Components vs Axis Bank, NCLAT Delhi Judgement Dated 11th September 2025. The appellate tribunal held that once a resolution plan under IBC is approved, it overrides and supersedes any previous BIFR scheme or benefits claimed thereunder. Both parties are bound exclusively by the terms of the approved resolution plan.
NCLAT, Mediation family settlement upheld as sum received under consent terms: Case of Sonali Prashant Shinde vs Vikram Vilasrao Salunke, NCLAT Delhi Judgement Dated 15th October 2025. The appellate tribunal upheld the mediation family settlement since entire sum as per consent terms duly received.
NCLAT, Financial Creditor mandatorily needs to prove disbursement as defined under section 5(8) of IBC: Case of Dr Anupam Jain vs Chhaya Gupta, NCLAT Delhi Judgement Dated 10th October 2025. The appellate tribunal held that appellant doesn’t qualify as a Financial Creditor since appellant has failed to discharge the burden of proving any disbursement as defined under Section 5(8)(f) of the Insolvency and Bankruptcy Code. Accordingly, order upheld and appeal dismissed.
NCLAT, Insolvency admission without Hearing Debtor Unsustainable: Case of Mehul Harish Gosar vs Athena Constructions Ltd, NCLAT Delhi Judgement Dated 13th October 2025. The appeal arose from an order passed by the NCLT admitting the respondent company into CIRP without granting an opportunity of hearing to the appellant. The appellant contended that before the admission of the insolvency petition, it had already informed the adjudicating authority that the matter was likely to be settled and sought time to file a reply. It was further submitted that the entire dispute with the financial creditor had now been settled. The appellate tribunal observed that the appellant was not heard on merits before the CIRP admission and, therefore, deserved an opportunity to be heard. Accordingly, the impugned order of the NCLT was set aside. The bench return the matter to the NCLT, which will decide on the settlement and handle any claims already lodged in accordance with IBC.
RTI Appeal denied, No Comprehensive Cross-Border Insolvency data available: The appellant sought information regarding the number of cases dealt with by NCLTs and NCLAT under the cross- border insolvency framework of IBC, including the number and amount of personal guarantors and corporate debtors involved. The CPIO had responded by stating that it does not currently have a comprehensive cross-border insolvency framework. The appellant cited known cases like Jet Airways, Essar Steel, and Videocon Industries as evidence of such matters being handled. The First Appellate Authority (FAA) noted that while these cases did involve cross- border aspects, they were dealt with by courts devising their own protocols, as a statutorily defined cross-border insolvency framework under Section 240C of the Code is yet to be notified by the Central Government. It found the CPIO reply appropriate and disposed of the appeal.
(IBBI FAA Order Dated 27/10/2025)
I. Reserve Bank of India (RBI)
No Notification/ Circular during the Week.
J. Miscellaneous
SC, Mere use of word ‘Arbitration’ not enough to create Arbitration Agreement: Case of Alcheist Hospitals Limited vs ICT Health Technology Services Ltd, SC Judgement Dated 6th November 2025.The apex court clarified the legal distinction between clauses that merely employ the term “arbitration” and those that genuinely constitute binding arbitration agreements. The decision reinforces the principle that mere terminology cannot substitute for intention, what matters is whether parties truly agreed to submit disputes to a private adjudicatory forum with binding effect.
SC, Fraud on Self no ground to resist Rs 1087 Crore Arbitral Award: Case of MMTC vs Anglo American Coal Pvt Ltd, SC Judgement Dated 3rd November 2025. MMTC had sought to stall the enforcement of the award by alleging fraud and collusion by its own employees, but the court found no sufficient grounds for these claims. The apex court restored the arbitral award for damages against MMTC and limited the scope of objections to a decree to only jurisdictional or void issues.
SC, Family Partition dispute, Registered Release Deeds valid even if not “Acted Upon”: Case of P Anjanappa vs AP Nanjundappa, SC Judgement Dated 6th November 2025.The apex court held that the registered release deeds were valid, binding, and operative to completely sever plaintiff(2) and defendant(3) from the joint family and bar their claims to the family estate. It further held that the unregistered palupatti was admissible for collateral purposes and proved severance of joint status and separate possession from that date onward. SC held that both the Trial Court and High Court erred in discarding the release deeds on grounds of “not acted upon” and in refusing to recognize the collateral evidentiary value of the palupatti.
******
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
thank you Sir.