India

Hindu Business Line | English | News | Nov. 5, 2025 | Regulation

The Supreme Court has clarified that the Union government can reassess and reconcile all adjusted gross revenue (AGR) dues of Vodafone-Idea up to the financial year 2016-17, based on the Deduction Verification Guidelines dated February 3, 2020. This clarification followed an oral mention by Vodafone-Idea, which sought a composite reassessment of its total AGR dues rather than only the additional AGR demand initially referenced.

The court had previously, on October 27, left it to the government to reconsider its AGR dues demand in accordance with the law. The government's softened position was attributed to a "huge change in circumstances," including the infusion of a 49 percent equity stake by the government in Vodafone-Idea, linking public interest with the company’s fate.

The Solicitor-General emphasized that any decision regarding Vodafone-Idea would have significant implications for its 20 crore customers, highlighting the issue as within the government's policy domain due to its substantial equity involvement and the wide customer impact.

Trilegal | English | AcademicThink | Nov. 5, 2025 | UndeterminedTaxes

The Supreme Court of India has ruled that Hyatt International Southwest Asia Ltd., a UAE tax resident, has a fixed place permanent establishment (PE) in India under the India-UAE tax treaty. The Court found that Hyatt's Strategic Oversight Services Agreements with Asian Hotels Limited, an Indian company, allowed Hyatt to exercise pervasive control over hotel operations, thus establishing a PE despite no physical office space. The ruling emphasizes a substance-over-form approach and cautions foreign entities providing long-term managerial services in India to reassess their arrangements and documentation to mitigate PE risk.

Separately, the Telangana High Court has set aside proceedings under the General Anti-Avoidance Rules (GAAR) related to stock market transactions. The case involved a taxpayer offsetting short-term capital losses from listed shares against long-term gains from unlisted shares. The Court held that transactions via stock exchanges do not constitute an impermissible avoidance arrangement and thus do not attract GAAR provisions, affirming the expert committee's position that stock market trades fall outside GAAR's scope. This ruling reinforces that bona fide commercial transactions executed through recognized exchanges are not subject to GAAR.

The Hindu | English | News | Nov. 5, 2025 | Regulation

The Supreme Court of India has asked the Union government to respond to a petition seeking a ban on online gambling and betting platforms disguised as social and e-sports games. The court will hear the petition on November 5, 2025. The petitioners, represented by advocate Virag Gupta, submitted that details of approximately 2,000 such apps had already been shared with the government, emphasizing the need to protect children from exposure to these platforms.

The plea calls for a coordinated interpretation of the Promotion and Regulation of Online Gaming Act, 2025, alongside laws enacted by various State legislatures, to prohibit online gambling and betting games operating under false pretenses. Betting and gambling are considered illegal activities in most Indian states, though over 65 crore individuals currently engage in these games, generating an annual revenue exceeding ₹1.8 lakh crore for betting platforms.

The petition also requests the issuance of blocking orders under Section 69A of the IT Act to curb all unlawful betting and gambling platforms nationwide. This move comes amidst concerns over the proliferation of such platforms and their impact on society, particularly on vulnerable groups like children.