Realtime Updates

*REALTIME Updates*

1. *Income Tax Collections*: Net direct tax collections for the current financial year rose 9.4% year-on-year to Rs 19.43 lakh crore as of February 10, reflecting steady growth in revenue mobilisation compared with the same period last year. The increase signals continued momentum in tax compliance and economic activity during the ongoing fiscal.

2. *Income Tax Collections*: Data released by the Income Tax Department showed that net corporate tax collection grew 14.51 per cent to Rs 8.90 lakh crore, while taxes from non-corporates, including individuals and Hindu Undivided Families (HUFs), rose 5.91 per cent to about Rs 10.03 lakh crore. Securities Transaction Tax collection stood at Rs 50,279 crore between April 1 and February 10, almost flat as compared to the same period last year.

3. *FDI*: Government has created a special window for Foreign Direct Investment (FDI) of up to 20% in Life Insurance Corporation of India (LIC) through changes in the FDI Policy. This FDI in LIC has been allowed through the automatic route. The amendments to the FDI Policy by the Department for Promotion of Industry and Internal Trade (DPIIT) through Press Note 1 of 2026.

4. *FDI*: The changes in the policy would also allow for FDI up to 100% in an insurance company through an automatic route. Closing the Float Gap FDI limit will aid the offer for sale (OFS) in LIC, a large stock which commands a market cap of around Rs 5.6 lakh crore. The OFS is required to help the company meet the minimum public shareholding norms.

5. *GST Refund*: Rajasthan High Court disposed of a batch of writ petitions by a common order, taking facts from B. Civil Writ Petition No. 12413/2025. The petitioner, a proprietorship concern based in Karnataka, is engaged in trading arecanut and makes taxable supplies in the State of Karnataka. The dispute arose from an order dated 08.07.2025 passed under Section 130 of the Central Goods and Services Tax Act, 2017 (CGST Act), whereby penalty and fine aggregating to Rs. 53,33,125/- were imposed.

6. *GST Refund* Delay Beyond One Year Requires Decision Within Fixed Time: Case: ITPreneurs Technology Private Limited Vs Joint Commissioner & Anr (Delhi High Court)

With best regards

*CA Prabina Kumar Moningi*
Founder REALTIME Updates
Platform of 21000+ Professionals
Hyderabad
📞9866431188

*REALTIME* Updates;

1. *Supreme Court observed* that a partnership firm with more than two partners does not dissolve upon the death of one partner, provided the partnership deed contains a clause allowing the firm's continuity.

2. *The bench comprising Justices Pankaj Mithal* and Ahsanuddin Amanullah heard the case where the Appellant-Indian Oil Corporation stopped the supply of kerosene to the Respondent-Partnership Firm (with three partners) just because one of its partners died. The partnership deed contains a clause that in the event of the death of one of the partner, the firm will not cease to function; rather, it shall continue to carry on the business, and the surviving partners may admit any of the competent heirs of the deceased partner to the partnership so as to reconstitute it.

3. *Aggrieved by the Calcutta High Court's decision* directing it to resume the supply to the firm, the Appellant approached the Supreme Court, arguing that the firm stands dissolved upon the death of the partner.

4. *Affirming the High Court's decision,* the judgment authored by Justice Mithal observed that though it is correct that a partnership firm ceases to function upon the death of a partner, this rule would not apply when there exist more than two partners.

5. *“It is settled in law by virtue of Section 42 of the Partnership Act, 1932* that the partnership will stand dissolved inter alia on the death of the partner but this is applicable in cases where there are only two partners constituting the partnership firm. The aforesaid principle would not apply where there are more than two partners in a partnership firm and the deed of partnership provides otherwise that the firm will not stand automatically dissolved on the death of one of the partners.”, the court observed.

6 *“In the case at hand, the partnership consisted of three parpartnersd* the deed of partnership, in unequivocal terms, provided that the death of a partner shall not cause discontinuance of partnership and the surviving partners may continue with the business. Therefore, the principle laid down under Section 42 of the Partnership Act would not be applicable and the partnership would continue despite the death of one of the partners.”, the court added.

7. *Also, the Court noted that the Appellant-IOCL must not act arbitrarily to disrupt* the business activities and justified the High Court's decision directing IOCL to continue the supply of kerosene to the existing partnership firm till it is properly reconstituted, subject to other orders. Accordingly, the appeal was dismissed.

With best regards

*CA Prabina kumar Moningi*
Founder: REALTIME Updates
Platform of 21000+ Professionals
Hyderabad
📞9866431188

*REALTIME* Updates

1. *Income tax returns forms for AY 2025-26* require mandatory disclosure of the exact date of transfer for each asset for capital gains. The revised ITR forms include specific schedules for reporting capital gains with segregation based on transfer dates.

2. *An assessee must collect all transaction statements* from brokers and investment platforms and segregate them based on whether the date of transfer is before or on/after July 23, 2024. He should consolidate sales of each transaction as equity, debt, real estate, gold, or other capital assets and calculate the tax rate accordingly.

3. *Allahabad High Court* has quashed a demand of Rs. 59,00,000/- levied against SL Yadav Cranes Pvt. Ltd. under Section 129(3) of the Central Goods and Services Tax Act, 2017. The court’s decision cited a minor typographical error in an e-way bill as the basis for setting aside the penalty.

4. *Government of India has issued* an update dated 9th July, 2025 regarding appointment of an individual to the post of Technical member (State) in Goods and Services Tax Appellate Tribunal (GSTAT) for the bench located in the state of Bihar.

5. *The GST Department issued* notices to small traders by the Commercial Tax Department, the state government clarified that the action was based on data collected from Unified Payments Interface (UPI) service providers to ensure compliance with Goods and Services Tax (GST) laws.

6. *Under the GST Act,* in force since July 1, 2017, suppliers with an annual turnover exceeding Rs 40 lakh (for goods) or Rs 20 lakh (for services) are required to register for GST. This turnover includes both taxable and exempt goods and services, although tax is applicable only on taxable items

With best regards

*CA Prabina kumar Moningi*
Founder *REALTIME Updates*
Platform of 21000+ Professionals
Hyderabad
📞9866431188