Case Details: Tuesonpower International (P.) Ltd. vs. Union of India [2026] 184 taxmann.com 631 (Bombay)

Judiciary and Counsel Details

• G. S. Kulkarni & Aarti Sathe, JJ.
• Abhishek A. Rastogi, Pooja Rastogi, Advs., Meenal Songire & Aarya for the Petitioner.
• Ram Ochani & Sangeeta Yadav for the Respondent.

Facts of the Case

The petitioner was subjected to summons proceedings in connection with an enquiry on ITC availed on purchases claimed to have been made bona fide from certain suppliers. Another petitioner, to whom summons were issued, was undergoing cancer treatment and, in view of the same, filed a writ petition seeking limited relief that another petitioner be permitted to have an advocate present during the recording of his statement at a visible but not audible distance and that the proceedings be video recorded at his own cost. It was submitted that such requests were necessitated by medical condition and were made while expressing full willingness to cooperate with the investigation. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that, considering the nature of the enquiry initiated pursuant to a summons under Section 70 of the CGST Act and Maharashtra GST Act, and in light of the willingness expressed to cooperate, the limited requests deserved acceptance. It was observed that permitting the petitioner to record the statement at the petitioner’s cost would not prejudice the investigation and would ensure procedural transparency in the given facts. The Court held that allowing the presence of an advocate at a visible but not audible distance during the summons proceedings was justified. Accordingly, the authorities were directed to permit video recording and allow the advocate’s presence as requested.

List of Cases Referred to

• Suumaya Industries Ltd. v. Union of India (2023) 69 G.S.T.L. 351/(2023) 3 Centax 130 (Bom.) (para 6).

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Order F. No. ADG(S)-1/PAN/M/3699/2026, dated 01-04-2026

The Central Board of Direct Taxes (CBDT), exercising powers under Rule 158(12), has notified the procedure for furnishing applications for correction of PAN data, along with prescribed forms and guidelines.

1. Introduction of New PAN Correction Forms

The CBDT has specified separate forms for different categories of applicants:

• Form PAN CR-01 – Request for Changes or Correction in PAN Data (For Individuals)
• Form PAN CR-02 – Request for Changes or Correction in PAN Data (For Non-Individuals)

This bifurcation ensures a more structured and category-specific approach to PAN correction requests.

2. Modes of Submission

The application for PAN correction can be submitted through the following modes:

• Physical submission at PAN service centres of:

1. 1. M/s UTIITSL
   2. M/s Protean eGov Technologies Ltd.

• Online submission through the respective official websites of these service providers

This provides flexibility and ease of access for applicants.

3. Procedure and Guidelines

The notified procedure lays down:

• Standardised formats for correction requests
• Documentation requirements
• Processing guidelines to ensure accuracy and consistency in PAN data

4. Effective Date

The notification shall come into force from 1st April 2026.

5. Conclusion

This move streamlines the PAN correction process, enhances clarity through dedicated forms, and supports efficient data management and taxpayer services under the income-tax framework.

Click Here To Read The Full Update

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Circular No. DOR.STR.REC.No.455, Dated: 31.03.2026

The Reserve Bank of India (RBI) has issued the ‘Trade Relief Measures Directions, 2026’ in public interest to mitigate debt servicing burdens arising from geopolitical tensions and to ensure the continuity of viable businesses engaged in international trade.

1. Objective of the Directions

The Directions aim to:

• Provide temporary relief to exporters facing external disruptions
• Support liquidity and working capital management
• Ensure smooth functioning of export financing mechanisms

2. Extension of Export Credit Tenor

The RBI has permitted an extension of the export credit tenor up to 450 days for eligible entities.

This extended period provides exporters with additional time to realise export proceeds and manage repayment obligations.

3. Flexibility in Liquidation of Packing Credit

The Directions allow greater flexibility in the liquidation of packing credit, including:

• Adjustment through domestic sale proceeds
• Substitution with other export orders

This helps businesses manage situations where original export orders are delayed, cancelled, or disrupted.

4. Applicability of the Directions

These Directions apply to the following Regulated Entities (REs) engaged in export financing:

• Commercial Banks
• Primary (Urban) Co-operative Banks, State Co-operative Banks, and Central Co-operative Banks
• Non-Banking Financial Companies – Factors (NBFC-Factors)
• All-India Financial Institutions

5. Conclusion

The Trade Relief Measures Directions, 2026, provide targeted regulatory flexibility to support exporters during periods of global uncertainty, ensuring business continuity, liquidity support, and stability in trade finance operations.

Click Here To Read The Full Circular

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Notification No. 54/2026 & Notification No. 55/2026, dated 31-03-2026

The Central Board of Direct Taxes (CBDT) has amended Rule 10U and corresponding Rule 128 of the Income-tax Rules to provide clarity on the scope of grandfathering under the General Anti-Avoidance Rules (GAAR).

1. Background – Grandfathering under Rule 10U

Rule 10U specifies situations where GAAR shall not apply, particularly through the concept of grandfathering.

• Rule 10U(1)(d) provides that GAAR shall not apply to income arising from the transfer of investments made before 1st April 2017.
• This ensures protection for investments made prior to the introduction of GAAR.

2. Issue with Pre-Amendment Position

Earlier, Rule 10U(2) was framed using a ‘without prejudice’ clause, which:

• Operated alongside Rule 10U(1)(d)
• Effectively overrode the grandfathering provision in certain cases
• Allowed GAAR to apply if tax benefits arose on or after 1st April 2017, irrespective of when the investment was made

This created ambiguity and uncertainty for taxpayers.

4. Key Amendments Introduced

The CBDT has now made the following significant changes:

• Removal of ‘without prejudice’ language from Rule 10U(2)
• Introduction of a clear and explicit exception structure
• Clarification that grandfathering applies strictly to investments made before 01-04-2017

5. Revised Position on GAAR Applicability

Under the amended rules:

• GAAR applies to arrangements generating tax benefits on or after 1st April 2017
• Exception: GAAR shall not apply where such income arises from the transfer of investments made before 1st April 2017

This restores and reinforces the intended protection under the grandfathering provision.

6. Effective Date of Amendment

• The amendment comes into force on 31st March 2026
• The Explanatory Memorandum clarifies that Chapter X-A (GAAR provisions) shall not be invoked on or after the date of publication in cases involving pre-April 2017 investments

7. Conclusion

The amendment brings much-needed clarity and certainty to the application of GAAR by:

• Strengthening the grandfathering protection
• Eliminating interpretational conflicts
• Ensuring that legacy investments are not adversely impacted by post-2017 anti-avoidance provisions

This move aligns with the principle of tax certainty and fairness in retrospective application of anti-avoidance rules.

Click Here To Read The Full Notification

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The Institute of Chartered Accountants of India (ICAI), vide its announcement dated 14th October 2024, had issued two new Standards on Quality Management, SQM 1,”Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements”; and SQM 2, “Engagement Quality Reviews”.

These standards were introduced to strengthen the quality management framework for audit and assurance firms by focusing on a more proactive and risk-based approach. They were scheduled to become mandatorily effective from April 1, 2026, and were to replace the existing Standard on Quality Control (SQC 1).

However, the ICAI Council, at its 451st meeting held on 30th–31st March 2026, reviewed the implementation timeline of these standards. After considering the readiness of firms and the transition efforts required, the Council has decided to defer the mandatory applicability of SQM 1 and SQM 2 until further announcement.

As a result, there is no immediate change in the current framework. The existing SQC 1 will continue to remain in force, and firms should keep following the present quality control requirements.

Click Here To Read The Full Story

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World Corporate Law News provides a weekly snapshot of corporate law developments from around the globe. Here’s a glimpse of the key corporate law update this week.

1. Securities Law

1.1 ASIC Launches e-learning Educational Modules on Sustainability Reporting

On March 30, 2026, the Australian Securities and Investments Commission (ASIC) published e-learning sustainability reporting educational Modules 1 to 3 to assist companies in understanding the core concepts behind the new sustainability reporting requirements in the Corporations Act 2001 (Corporations Act).

ASIC has developed the e-learning modules in partnership with the Australian Accounting Standards Board (AASB). The modules are designed to be self-paced and accessible.

The e-learning modules are primarily aimed at Group 2 and 3 entities that are not yet subject to the sustainability reporting requirements but are expected to commence sustainability reporting for financial years beginning on or after 1 July 2026.

However, the e-learning modules are suitable for any report preparer new to sustainability reporting requirements, as well as other stakeholders in the climate reporting ecosystem seeking to build their understanding in this area. This includes employees, advisers, accountants, auditors, directors, shareholders, members, creditors and owners and operators of small-to-medium businesses.

The e-learning modules are designed to help individuals understand foundational concepts related to climate-related financial disclosures, such as climate risks and opportunities. By building a strong understanding of these foundational concepts, users will be able to interpret the sustainability reporting requirements in the Corporations Act and begin preparing for compliance.

ASIC recommends that Group 2 and 3 entities begin building their capability and preparing for sustainability reporting early.

The first three e-learning modules are published after the PDF versions of all eight modules are posted on the ASIC website.

Module 1 explains how stakeholders should engage with the materials and introduces the basics of the new sustainability reporting requirements under the Corporations Act.

Module 2 covers the basics of climate change, and Module 3 covers climate-related physical risks.

ASIC will publish Modules 4 to 8 of the e-learning program in the coming months. This will be followed by in-person workshops in major cities to further engage with companies that are not yet subject to the sustainability reporting requirements, looking for more information about these educational materials.

Source: Official Announcement

Click Here To Read The Full Article

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Circular no. 3 of 2026, dated 30-03-2026

The Central Board of Direct Taxes (CBDT) has notified the procedure for Sovereign Wealth Funds (SWFs) to seek exemption under Schedule V of the Income-tax Act, 2025, providing clarity on eligibility, application, and compliance requirements.

1. Scope of Exemption under Schedule V

The Schedule grants exemption to SWFs in respect of income arising from investments in India, specifically:

• Dividend income
• Interest income
• Any sum referred to in section 92(2)(k)
• Long-term capital gains

Such exemption is available where the income arises from investments in specified infrastructure businesses in India.

2. Application Procedure (Form I)

To avail the exemption, the SWF is required to:

• Submit an application in Form I
• Address it to the Member, CBDT, having supervision over the Foreign Tax and Tax Research Division

This ensures centralised review and approval of exemption claims.

3. Ongoing Compliance Requirements

Once notified, the SWF must adhere to the following compliance obligations:

• Filing of Income Tax Return along with the prescribed audit report
• Quarterly reporting through Form II, to be filed within one month from the end of each quarter

4. Regulatory Intent and Impact

The framework aims to:

• Facilitate foreign sovereign investments in India’s infrastructure sector
• Ensure transparency and regulatory oversight
• Balance tax incentives with reporting discipline

5. Conclusion

The notified procedure provides a structured and compliance-driven pathway for SWFs to claim tax exemptions, supporting long-term capital inflows into critical infrastructure while maintaining accountability under the tax framework.

Click Here To Read The Full Circular

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Circular No. DOR.CRE.REC.453, Dated: 30.03.2026

The Reserve Bank of India (RBI), pursuant to the Credit Facilities Amendment Directions, 2026, has introduced amendments to the Prudential Norms on Capital Adequacy applicable to commercial banks and small finance banks.

1. Regulatory Context and Objective

The amendment is part of RBI’s ongoing efforts to strengthen risk management practices and capital adequacy frameworks. It provides clarity on the treatment of specific exposures arising from commitments made to clearing corporations.

2. Treatment of Irrevocable Payment Commitment (IPC)

The RBI has clarified that an Irrevocable Payment Commitment (IPC) issued to clearing corporations shall be treated as a financial guarantee.

Accordingly, such exposures will attract a Credit Conversion Factor (CCF) of 100%, reflecting the full potential risk associated with the commitment.

3. Capital Requirement and Exposure Classification

While IPCs are treated as financial guarantees, the capital requirement will be applicable only to the portion of exposure classified as Capital Market Exposure (CME).

This ensures that capital is not unnecessarily applied to non-relevant portions of exposure.

4. Applicable Risk Weight

The exposure identified as Capital Market Exposure (CME) shall carry a risk weight of 125% for the purpose of capital adequacy computation.

This higher risk weight reflects the inherent volatility and risk associated with capital market-related exposures.

5. Effective Date

These amendments shall come into effect from the earlier of:

• The date of implementation, or
• 1st July 2026

6. Conclusion

The revised norms bring greater clarity and precision in capital treatment of IPCs, aligning regulatory capital requirements with the actual risk profile of exposures, particularly in the context of capital market transactions.

Click Here To Read The Full Circular

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Circular No. DOR.CRE.REC.447, Dated: 30.06.2026

The Reserve Bank of India (RBI) has issued revised directions for commercial banks, encompassing credit facilities, concentration risk management, and financial statement disclosures. These Directions aim to strengthen prudential regulation and enhance transparency in banking operations.

1. Framework for Credit Facilities

The Directions introduce a comprehensive framework governing:

• Loans against eligible securities
• Acquisition finance
• Bridge finance

This framework ensures that lending practices are aligned with the nature and risk profile of underlying transactions.

2. Credit to Capital Market Intermediaries

Specific provisions have been laid down for extending credit facilities to capital market intermediaries, ensuring that such exposures are carefully monitored and regulated due to their inherent market-linked risks.

3. Prudential Limits on Capital Market Exposures

The RBI has prescribed prudential limits on capital market exposures, aiming to:

• Prevent excessive concentration of risk
• Maintain financial stability
• Ensure balanced exposure across sectors

These limits are critical in mitigating systemic risks arising from volatility in capital markets.

4. Concentration Risk Management

The revised Directions strengthen the framework for concentration risk management, requiring banks to:

• Monitor exposure to specific sectors and counterparties
• Avoid over-dependence on capital market-linked exposures
• Implement robust internal risk controls

5. Revised Disclosure Requirements

The Directions also revise financial disclosure requirements, mandating banks to provide detailed disclosures of such exposures in the Notes to Accounts.

This enhances transparency, comparability, and stakeholder confidence in financial reporting.

6. Conclusion

Overall, the revised Directions represent a significant step towards strengthening credit discipline, improving risk management practices, and enhancing disclosure standards, thereby reinforcing the resilience and integrity of the banking system.

Click Here To Read The Full Circular

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Notification No. 39/2026, dated 30-03-2026

The Central Board of Direct Taxes (CBDT) has notified a Protocol amending the Convention and the Protocol between the Government of the Republic of India and the Government of the Federative Republic of Brazil for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.

1. Background of the Amendment

The existing Double Taxation Avoidance Agreement (DTAA) between India and Brazil governs the taxation of cross-border income and aims to:

• Prevent double taxation
• Provide certainty in tax treatment
• Facilitate bilateral trade and investment

The notified Protocol updates specific provisions of this Convention.

2. Objective of the Protocol

The amendment seeks to:

• Align the DTAA with international tax standards and evolving global practices
• Strengthen measures for the prevention of tax evasion and avoidance
• Enhance clarity and efficiency in tax administration between the two countries

3. Implications of the Amendment

The revised Protocol is expected to:

• Impact the taxation of cross-border income flows between India and Brazil
• Provide greater certainty to taxpayers and businesses
• Improve exchange of information and cooperation between tax authorities

4. Conclusion

The notification of the amended Protocol reinforces India’s commitment to maintaining robust and updated tax treaties, supporting international economic cooperation while ensuring effective safeguards against tax avoidance.

Click Here To Read The Full Notification

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