Editorial January 2026
Dear Readers,
During the month of January 2026 Team RNM participated in the World Forum of Accountants (WOFA 2.0) at Greater Noida organized by Institute of Chartered Accountants of India. The WOFA 2.0 had over 9000 delegates and illustrious speakers including Mr. Piyush Goyal, Union Minister of Commerce and Mr. Kumar Mangalam Birla, Chairman Aditya Birla Group. We were able to reconnect with old associates from various cities from across the world and India, besides various learning events covering AI, Outsourcing, Branding, Wellness and Capital Markets.
In a leading judgement of the Honorable Supreme Court (SC) of India, in the mater of Monty Goyal Vs. Navrang Singh under the Advocates Act, 1961 which has applicability on complaints filed against any professional including Chartered Accountants, it has been held that once the complainant categorically withdraws the complaint the “very substratum of the disciplinary proceedings ceased to exist” and the continuation of the disciplinary proceedings is unsustainable. The judgement will reduce litigation and bring about ease of doing business amongst the professionals practicing in India, who have increasingly become soft targets.
On the International Tax front, the honorable Supreme Court (SC) in the case of Tiger Global International Holding has effectively ended the benefits of the Mauritius Tax Treaty. When the Treaty was amended the benefit for grandfathered investments made prior to 1 April 2017 was retained, specifically to avoid any push back of retrospective action after the lessons learned from the Vodafone case. However, this judgement brings an end to Tax Residency Certificate (TRC) being the litmus test as laid down in the 2003 SC judgement in Azadi Bachaon Andalon case. The golden rule of ‘substance over form’ has been re-affirmed.
On the Direct Tax front, the honorable Supreme Court (SC) has clarified the taxability of shares received on amalgamation. The SC examined whether allotment of shares of an amalgamated company, received in substitution of shares of an amalgamating company pursuant to a court-approved scheme of amalgamation, gives rise to taxable business income under Section 28 of the Income-tax Act, 1961, when the original shares were held as stock-in-trade.
I hope you enjoyed reading the RNM Union Budget Highlights which were separately sent to all of you.
We would like to take this opportunity of wishing all our readers all the best for India’s 77th Republic Day which showcased India’s military might and cultural heritage. Ms. Ursula Von Der Leyen and Mr. Antonio Costa EU Presidents were the Chief Guests and the next day added to the bonhomie by executing the EU-India Free Trade Agreement (FTA) leading to significant win-win.