India: Tax Authorities

An Indian resident can live, work and build wealth entirely in India and still have a potential U.S. federal estate-tax exposure merely because part of their wealth is invested in U.S. securities.

In Fireeye Ireland Ltd v ACIT, the Delhi Bench of the Income Tax Appellate Tribunal (ITAT) allowed the benefit of the capital gains tax exemption to an Irish tax resident on sale of shares of a US LLC deriving substantial value from India, a transaction commonly referred to as an ‘indirect transfer’. While allowing such exemption, the ITAT relied on Article 13(6) of the India-Ireland Double Taxation Avoidance Agreement (DTAA) which provides that income arising from the alienation of assets is taxable only in the state of which the seller is a resident.

The Madras High Court held that ADD under Notification No. 42/2017 is leviable only on Castings for wind-operated electricity generators and cannot be extended to the entire gearbox merely because castings form part of such equipment.

The Supreme Court has established critical procedural requirements for arrests under the CGST Act, mandating that orders under Section 69 must be communicated to the accused before arrest to protect their right to seek anticipatory bail. This landmark ruling addresses the balance between investigative powers and fundamental rights to liberty, while also clarifying limitations on interim relief when pre-arrest bail petitions are dismissed as non-maintainable.

Structuring an acquisition carries real consequences for control, liability, tax treatment, and continuity of a target’s contracts and licenses. The reverse triangular merger (“RTM”), or reverse subsidiary merger, is among the most widely used structures in USA M&A practice for the way it treats the target after closing.

Hon’ble Mumbai Tribunal holds that where the sale consideration for unquoted shares exceeds the Rule 11UA FMV, the AO cannot substitute the actual consideration with a higher value derived from asubsequent independent strategic transaction.

The Lok Sabha has passed the Taxation & Other Laws (Amendment) Bill, 2026 (‘Amendment Bill’). The said Amendment Bill replaces the Income-tax (Amendment) Ordinance, 2026 which was earlier passed on 5 June 2026 and also proposes other amendments to the Income-tax Act, 2025 (‘the Act’), the most notable amendment being in respect of taxation of unitholders and SPVs of business trusts.

Rule 96(10) of the CGST Rules, 2017 restricted the refund of IGST paid on exports where the exporter had received supplies or imported inputs by availing specified concessional or dutyfree benefits under the relevant GST notifications.

Business trusts — Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) — and their unit holders are taxed under a pass-through framework built around Section 223 of the Income-tax Act, 2025 (corresponding to Section 115UA of the erstwhile 1961 Act), read with Schedule V (Table Serial Nos. 3, 4 and 5) of the ITA 2025, which mirror clauses (23FC), (23FCA) and (23FD) of Section 10 of the ITA 1961.