Pending Arbitration Does Not Bar Wilful Defaulter Proceedings Against Borrower: Calcutta High Court

On 23 September, the Calcutta High Court held that the pendency of arbitration proceedings cannot prevent a lender from issuing a show-cause notice to declare a borrower a wilful defaulter. Justice Krishna Rao dismissed Kitply Industries' writ petition challenging SREI Equipment Finance Ltd.'s (SEFL) show-cause notice alleging that it had disposed of assets securing its credit facility without the lender's approval. The Bench observed: “Pendency of the arbitration proceeding could not debar...

Punjab & Haryana High Court Sets Aside PCIT Order Rejecting Delay Condonation In HMT VRS Tax Claim

The Punjab & Haryana High Court on 23 September set aside the Principal Commissioner of Income Tax's (PCIT) rejection of an HMT Limited's employee's request to condone the delay in filing a revised return to claim an additional exemption on VRS compensation.A Division Bench of Justices Deepak Sibal and Sunish Bindlish held that delay in filing a revised income tax return cannot be treated as a standalone test while considering a request for condonation under CBDT Circular No. 9/2015. The...

Must Assets Seized Under The Income Tax Act Be Automatically Released After 120 Days? Gujarat HC Refers Issue To Larger Bench

The Gujarat High Court has referred to a Larger Bench the question of whether seized assets must be mandatorily released upon completion of 120 days under Section 132B of the Income Tax Act, where an application for release is filed within 30 days.A Division Bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati referred three questions concerning the interpretation of the First and Second Provisos to Section 132B(1)(i).The questions are:“(1) Whether the release of seized assets is...

Taxpayer Can't Be Denied Sabka Vishwas Benefit Over Tax Quantification Sent To Bank: Bombay High Court

The Bombay High Court on 22 September held that a taxpayer cannot be denied the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme merely because the department quantified its service tax liability in a communication addressed to the taxpayer's bank rather than directly to the taxpayer. A Division Bench of Justices M.S. Karnik and Sandesh D. Patil allowed RG Studios' petition challenging the rejection of its declaration under the Scheme, under which the firm had declared service...

Delhi High Court Finds 'Herbawish' Deceptively Similar To Herbalife, Temporarily Restrains Use

The Delhi High Court on 15 September temporarily restrained Ashish Kumar and his company from using “Herbawish” and “Herbawish Nutrition”, along with a similar three-leaf logo and trade dress, in a trademark infringement suit filed by Herbalife International. A Bench comprising Justice Jyoti Singh held that “the deception is enhanced owing to common prefix 'Herba.'” Herbalife told the Court that, besides the word marks “Herbalife” and “Herbalife Nutrition”, it owns registrations for a...

Chewing Gum Not Taxable At 4% As 'Sweets And Sweetmeats': Gujarat High Court Holds 12.5% VAT Applies

The Gujarat High Court has recently ruled that chewing gum cannot be classified as “sweets and sweetmeats” under the Gujarat Value Added Tax Act, 2003. It held that the product is taxable at 12.5%, instead of the 4% rate applicable to sweets and sweetmeats.A bench comprising Justice Bhargav D. Karia and Justice Pranav Trivedi relied on the Supreme Court's ruling in Commissioner of Trade Tax, U.P. v. Associated Distributors Ltd. The court also held that the tribunal was wrong in deleting the...

Madras High Court Directs Registry Not To Register Article 226 Pleas Against DRT, DRAT Orders

The Madras High Court has directed its Registry not to register petitions under Article 226 of the Constitution challenging orders passed by the Debts Recovery Tribunal (DRT) or Debt Recovery Appellate Tribunal (DRAT). A Bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan permitted petitioner R. Ravi to withdraw his petition and dismissed it as withdrawn. The judges stated: “Registrar Judicial is directed to instruct the Registry not to register petition under...

Andhra Pradesh High Court Says Agricultural Land Outside SARFAESI Scope, Sets Aside Canara Bank Auction

The Andhra Pradesh High Court has held that properties which are agricultural lands fall outside the scope of the SARFAESI Act, and that banks must exercise due diligence before accepting such properties as security, particularly when registered documents describe them as agricultural lands. A Division Bench comprising Justices Battu Devanand and Sunitha Gandham allowed a writ petition challenging Canara Bank's sale notice and auction of two lands, holding that the properties were agricultural...

Madras High Court Quashes ₹20 Lakh Penalty On Customs Broker, Finds No Proof Of Collusion

The Madras High Court on 17 September set aside the Rs. 20 lakh penalty imposed on Newport Shipping and Logistics, holding that the material relied upon by the Customs authorities did not establish the broker's knowledge, conscious involvement or collusion in the attempted export of prohibited bull/ox meat. Justice Hemant Chandangoudar observed that a Customs Broker cannot be held liable for abetment of the attempted export of prohibited goods merely on the basis of routine activities such as...

Stay Period Must Be Excluded Before Testing TOLA Extension To Assessment Limitation: Madras High Court

On 23 September, the Madras High Court held that the period during which assessment proceedings remain stayed by a court must be excluded while computing the limitation period before determining whether an extension under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) is available. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan held that the limitation period under Section 153B of the Income Tax...

Delhi High Court Issues Notice To JioStar On Zee Entertainment's Contempt Plea Over Copyrighted Music

The Delhi High Court has issued notice on a contempt application filed by Zee Entertainment against JioStar India, alleging continued violation of an injunction order restraining use of Zee's copyrighted music.Justice Anup Jairam Bhambhani cautioned JioStar against any further non-compliance with the May 2026 order in the meantime, while directing Zee to hand JioStar a specific list of works it says are still being used without authorisation, so these can be verified and taken down.The dispute...

“No Perceptible Difference”: Delhi High Court Restrains Bombay Shaving Co. From Running Revised Ad In Gillette Suit

The Delhi High Court has restrained Bombay Shaving Company from running its "revised" advertisement, holding that on a first look, there is "no perceptible difference in the impact" between this version and the original ad the company had already agreed to take down.Justice Anup Jairam Bhambhani passed the order while issuing notice on a contempt application filed by Gillette India, which accused the company of going back on its undertaking to the court.Senior Advocate Chander M. Lall, appearing...