2025MONTHLY NEWS & UPDATES FOR JUNE 2025

Executive Summary

Income Tax

• Section 143- Processing of Return filed under section 139 beyond the prescribed time limit.
• Section 143- Guidelines for compulsory selection of returns for complete scrutiny during FY 2025-26.

Goods And Service Tax (GST)

• Generation and quoting of document identification number (DIN) on any communication issued by the officers of the central board of indirect taxes and customs to taxpayers and other concerned persons, Circular no. 249/06/2025-gst [F No. GST/INV/UTILITY/2022-23], dated 9-6-2025
• Guidelines for mandatory conduct of personal hearings through virtual mode in all proceedings under the Delhi GST Act, 2017 and the Rules framed there under, Circular No. F.3 (640)/GST/ P & R/2025/348-55, dated 13-06-2025
• Corrigendum G.S.R. 389 (E) [F.No. A-50050/264/2024-GSTAT-DOR], dated 18-6-2025, Goods and services tax appellate tribunal (procedure) rules, 2025
• Circular No. 250/07/2025-GST dated 24-06-25, Reviewing authority, Revisional Authority and Appellate Authority in respect of orders passed by Common Adjudicating Authority (CAA) for show cause notices issued by DGGI

Companies Act 2013/ Other Laws

• MCA revamps corporate reporting with new disclosure norms effective July 14, 2025
• Companies (audit and auditors) amendment rules, 2025 – amendment in rule 13; substitution of forms ADT-1, ADT-2, ADT-3 and ADT-4
• Companies (registration offices and fees) amendment rules, 2025 – substitution of form GNL-1
• Companies (filing of documents and forms in extensible business reporting language) amendment rules, 2025 – amendment in rule 3; substitution of E-form AOC-4 XBRL
• Limited relaxation from compliance with certain provisions of the SEBI (listing obligations and disclosure requirements) regulations, 2015
• Modifications Under The International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing And Know Your Customer) Guidelines, 2022

A. Section 143, Read with sections 119 and 139 of the Income Tax Act, 1961- Assessment- Processing of Return filed under Section 139 beyond prescribed time limit, Dated 09-06-2025

• Central Board of Direct Taxes, in exercise of its powers under section 119(2)(a) of the Income-tax Act,1961, hereby relaxes the time-frame prescribed in second proviso to sub-section (1) of section 143 of the Act and directs that electronically filed valid returns of income filed u/s 139 of the Act for Assessment Years (AY) 2023-24, for which date of sending intimation under sub-section (1) of section 143 of the Act has lapsed, shall be processed now and intimation under sub-section (1) of section 143 of the Act shall be sent to the assessee concerned by 31-11-2025.

 The relaxation accorded above shall not be applicable to the following returns:

1. returns selected in scrutiny;
2. returns remain unprocessed for any reason attributable to the assessee.

B. Section 143 of the Income Tax Act, 1961 – Scrutiny Assessment- Guidelines for compulsory selection of returns for complete scrutiny during FY 2025-26, Dated 13-06-2025

• It is clarified that where return has been furnished in response to notice u/s 142(1) of the Act and such notice u/s 142(1) of the Act was issued due to the information contained in NMS Cycle/ AIS/ Statement of Financial Transactions (SFT)/ CPC-TDS information/ information received from Directorate of I&CI, such return will not be taken up for compulsory scrutiny. Selection of such cases for scrutiny will be done through the CASS cycle.

Jurisdictional Assessing Officers (JAOs) shall upload the underlying documents for access by NaFAC in the following cases which are to be completed by NaFAC on or before 31-03-2026 and Notice u/s 143(2)/142(l) of the Act calling for information shall be served on the assessee through NaFAC in these cases’.

1. Cases (other than search & seizure/survey) in which notices u/s 148 of the Act have been issued where return is either furnished or not furnished in response to notice u/s 148 of the Act.
2. Cases in which notices u/s 142(1) of the Act calling for return, have been issued & no returns have been furnished.

Cases, where notices u/s 148 of the Act have been issued pursuant to search & seizure/survey actions conducted on or after the 1-04-2021 but before 1-09-2024, if lying outside Central Charges,

1. where return is furnished, the Jurisdictional Assessing Officer (JAO) concerned shall serve the Notice u/s 143(2) of the Act and Pr.CIT/Pr.DIT/CIT/DIT concerned shall ensure that such cases are transferred to central charges u/s 127 of the Act.
2. Where return is not furnished, these cases shall be transferred to central charges for further necessary action.

A.Generation and quoting of document identification number (DIN) on any communication issued by the officers of the central board of indirect taxes and customs to taxpayers and other concerned persons, Circular no. 249/06/2025-gst [F No. GST/INV/UTILITY/2022-23], dated 9-6-2025

CBIC had earlier made quoting of Document Identification Number (DIN) mandatory through Circulars 122/41/2019-GST and 128/47/2019-GST to ensure transparency. However, since GST portal-generated documents already contain a verifiable Reference Number (RFN) providing full details and are considered valid under Section 169(1)(d) of the CGST Act, 2017, and as per Instruction No. 4/2023-GST, it is now clarified that quoting DIN is not required for such communications. The presence of both DIN and RFN creates duplication, which is unnecessary.

B.Guidelines for mandatory conduct of personal hearings through virtual mode in all proceedings under the Delhi GST Act, 2017, and the Rules framed thereunder, Circular No. F.3 (640)/GST/ P & R/2025/348-55, dated 13-06-2025

• All personal hearings to be conducted only through virtual mode (e.g., Webex, Google Meet).
• Link, date & time shared in advance via email/mobile.
• Taxpayers must share ID proof, vakalatnama, and ensure technical readiness.
• Maintain proper decorum; hearings are legally valid under the GST & IT Act.
• Hearing records sent via email, adjournments via BO portal.
• Emails allowed for additional documents; physical copies if specifically needed.

In-person hearings are only in rare cases, with the Zonal In-Charge’s approval

C. Corrigendum G.S.R. 389 (E) [F.No. A-50050/264/2024-GSTAT-DOR], dated 18-6-2025, Goods and services tax appellate tribunal (procedure) rules, 2025

• Background: CAA (Joint/Addl. Commissioner) adjudicates SCNs issued by DGGI (as per Notification 02/2017 & Circular 239/33/2024-GST). Earlier circulars didn’t clarify review, revision, and appeal procedure for such orders.
• Clarifications Issued:
• Reviewing Authority (Section 107, CGST Act): Principal/Commissioner of Central Tax under whom the CAA is posted.
• Revisional Authority (Section 108, CGST Act): Same Principal/Commissioner of Central Tax under whom the CAA is posted.
• Appellate Authority (Section 107, CGST Act): Commissioner (Appeals) with territorial jurisdiction of the CAA’s reporting Commissionerate (as per Table III of Notification 02/2017).
• Department Representation in Appeals:
• Concerned, the Principal/Commissioner shall represent the department.
• May nominate a subordinate officer for filing appeals

DGGI comments on the Orders-in-Original (O-I-O) can be sought before review/revision.

D. Circular No. 250/07/2025-GST dated 24-06-25, Reviewing authority, Revisional Authority and Appellate Authority in respect of orders passed by Common Adjudicating Authority (CAA) for show cause notices issued by DGGI

• Joint/Addl. Commissioners act as Common Adjudicating Authorities (CAA) for DGGI SCNs (as per Notification 02/2017 & Circular 239/33/2024-GST).
• Principal/Commissioner under whom CAA is posted will be: Reviewing Authority (Sec. 107) and Revisional Authority (Sec. 108)
• Appeals to be filed before the Commissioner (Appeals) of CAA’s jurisdiction.
• Same Principal/Commissioner to represent the department and can authorize subordinates.
• DGGI comments on the order may be taken before review/revision.
• Trade notices to be issued; implementation issues to be reported to the Board.

A. MCA REVAMPS CORPORATE REPORTING WITH NEW DISCLOSURE NORMS EFFECTIVE JULY 14, 2025

The Ministry of Corporate Affairs (MCA) has notified the Companies (Accounts) Second Amendment Rules, 2025, effective from July 14, 2025, introducing significant changes to corporate disclosures and filings. Key updates include mandatory detailed disclosures in the Board’s Report on sexual harassment complaints and a statement of compliance under the Maternity Benefit Act, 1961. Companies must also submit new e-Forms capturing extracts of the Board’s Report and Auditor’s Reports in a machine-readable format alongside the full financial statements. The rules formalize the shift to electronic filing by replacing all references from “Form” to “e-Form.” These amendments aim to enhance corporate governance, ensure accountability, and enable better data analysis by regulators. Companies must promptly align their internal processes and ensure compliance, with strict penalties for false filings under Sections 448 and 449 of the Companies Act, 2013.

B. COMPANIES (AUDIT AND AUDITORS) AMENDMENT RULES, 2025 -AMENDMENT IN RULE 13; SUBSTITUTION OF FORMS ADT-1, ADT-2, ADT-3 AND ADT-4

The Companies (Audit and Auditors) Amendment Rules, 2025, notified on May 30, 2025, and effective from July 14, 2025, introduce key updates to Rule 13 of the Companies (Audit and Auditors) Rules, 2014. The amendment mandates electronic filing of the auditor’s report in Form ADT-4 by substituting clause (d) and omits clauses (e) and (f) of Rule 13(2). Additionally, Forms ADT-1, ADT-2, ADT-3, and ADT-4 have been completely revised and replaced with updated versions in the Annexure. These changes align with the government’s push for digital compliance and streamlined reporting under the Companies Act, 2013.

C.COMPANIES (REGISTRATION OFFICES AND FEES) AMENDMENT RULES, 2025 – SUBSTITUTION OF FORM GNL-1

The Companies (Registration Offices and Fees) Amendment Rules, 2025, notified via G.S.R. 360(E) on May 30, 2025, and effective from July 14, 2025, introduce a key change to the Companies (Registration Offices and Fees) Rules, 2014. The amendment substitutes the existing Form GNL-1 with a revised version in the Annexure. This change is part of the government’s continued efforts to modernize and streamline company filings under the Companies Act, 2013.

D. COMPANIES (FILING OF DOCUMENTS AND FORMS IN EXTENSIBLE BUSINESS REPORTING LANGUAGE) AMENDMENT RULES, 2025 – AMENDMENT IN RULE 3; SUBSTITUTION OF EFORM AOC-4 XBRL

The Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Amendment Rules, 2025, notified on June 6, 2025, and effective from July 14, 2025, introduce key changes to XBRL filings. Companies filing financial statements in eForm AOC-4 XBRL must now also attach a signed PDF copy of the complete financial statements, including the Board’s Report, Auditor’s Report, and other documents as per Section 134 of the Companies Act, 2013. Additionally, the format of eForm AOC-4 XBRL in Annexure-I has been substituted with a revised version. These changes aim to enhance the authenticity and completeness of digital filings.

A. MODIFICATIONS UNDER THE INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY (ANTI MONEY LAUNDERING, COUNTER-TERRORIST FINANCING AND KNOW YOUR CUSTOMER) GUIDELINES, 2022

IFSCA’s circular dated June 5, 2025, updates its AML/CFT and KYC Guidelines to align with amended PML Rules. Key updates include:

• Removal of “city council tax receipts” as address proof.
• Customers using alternate address documents must submit updated OVDs within 3 months.
• Regulated Entities must use KYC Identifiers from CKYCR and avoid duplicate KYC unless necessary.
• Any KYC updates must be shared with CKYCR within 7 days; CKYCR will inform other linked entities.
• Applies to banks, insurers, brokers, fund managers, and other financial entities.
• Indian nationals’ KYC must be uploaded to CKYCR; for foreign nationals, specified documents are acceptable.

A. LIMITED RELAXATION FROM COMPLIANCE WITH CERTAIN PROVISIONS OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

SEBI, via Circular No. SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2025/83 dated June 5, 2025, has extended relaxation from compliance with Regulation 58(1)(b) of the SEBI LODR Regulations for listed entities with non-convertible securities. This regulation mandates sending hard copies of salient financial document summaries to security holders without registered email IDs.

In line with MCA’s General Circular No. 9/2024, SEBI has:

• Exempted penal action for non-sending of hard copies during the period October 1, 2024 to June 5, 2025, provided MCA conditions are met.
• Extended similar relaxation from June 6 to September 30, 2025, on the condition that web-links to the financial summaries are provided in advertisements as per Regulation 52(8).

This circular is effective immediately and aims to reduce compliance burden while ensuring digital accessibility of financial information.

Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates for the period 31.05.2025