Proportionate Rights Shares Allotment Not Taxable Merely Due to Price Difference: Bombay High Court

On Thursday, 22 October, the Bombay High Court held that the difference between the subscription price and fair market value of proportionately allotted rights shares cannot, by itself, be taxed under Section 56(2)(x) of the Income-tax Act when the shareholder's percentage holding remains unchanged and no disproportionate benefit is identified. A Division Bench comprising Justices B. P. Colabawalla and Farhan P. Dubash allowed Grasim Industries Limited's petition challenging reassessment...

Gujarat High Court Quashes Reassessment Based On Broker's Register Without Live Nexus On-Money Payment

The Gujarat High Court on 8 October quashed a reassessment notice issued under Section 148 of the Income Tax Act, 1961, against Sanjaykumar Amrutlal Patel for Assessment Year 2022-23, holding that a seized broker's register entry, without a live nexus to the taxpayer, could not justify reopening the assessment. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati held that the entry dated 16 January 2020, at best, reflected the asking rate for land in the Bhadaj area and...

Delhi High Court Permanently Injuncts Jabalpur Real Estate Developers From Using 'ANANTARA' Trademark

The Delhi High Court on 15 October permanently restrained Evergreen Dealcom Pvt. Ltd. and other defendants from using the 'ANANTARA' trademark or any identical or deceptively similar mark for real estate, hospitality, residential and allied services. A Bench of Justice Purushaindra Kumar Kaurav passed the summary judgment in a trademark infringement and passing off suit filed by MHG IP Holding Singapore Pte. Ltd., M & H Management Limited, and MHG Management (India) Private Limited against...

Bombay High Court Declares 5 Paintings, Including 2 By M.F. Husain, Mafatlal's Liquidation Assets

The Bombay High Court on 21 October declared five of 44 paintings, including works by M.F. Husain, as assets of Mafatlal Dyes & Chemicals Limited, which is undergoing liquidation, allowing their sale to realise proceeds for the company's creditors and other stakeholders. Justice Somasekhar Sundaresan considered rival ownership claims over the paintings and the Official Liquidator's application seeking permission to sell the five paintings identified as company assets. The Bench held: “...I...

Bombay High Court Dismisses ₹29.36 Lakh Arbitration Plea For Failure To Follow Agreed Mediation Process

The Bombay High Court on 29 September held that courts cannot appoint an arbitrator without ensuring compliance with the pre-arbitration procedure agreed upon by the parties. Justice Amit Borkar dismissed an application filed by Wellgroomed Venture against Dr. Kamat's Hospital under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to resolve a dispute over alleged maintenance and assessment dues of Rs. 29.36 lakh. The Bench observed: ...

Delhi High Court Restrains Herbax Ayurveda From Selling Joint Pain Products Under 'FASTACTIVE' Mark

The Delhi High Court on 13 October restrained Herbax Ayurveda and others from dealing in pharmaceutical preparations under the mark 'FASTACTIVE', allegedly infringing Nectar Biopharma Private Limited's registered trademark. A Bench of Justice Vikas Mahajan granted an interim injunction after finding a prima facie case of trademark infringement and passing off in favour of Nectar Biopharma. Nectar Biopharma told the Court that it held the registered trademark 'FASTACTIVE' in Class 5. It alleged...

Delhi High Court Directs Bikanervala To Remove 'ANANDAM' Products From Website Within 24 Hours

The Delhi High Court on 16 October directed Bikanervala Foods Private Limited to remove all products bearing the “ANANDAM” mark from its website within 24 hours in a trademark dispute with Anandam Sweets Private Limited. Justice Vikas Mahajan also directed Bikanervala's authorised representative who gave the undertaking to remain physically present at the next hearing. The Bench observed: “Having regard to the rival contentions, this Court is of the view that it is not the case of the...

Bombay High Court Allows Five Doctors' Appeal In 21-Year Property Dispute, Finds Prima Facie Fraud

The Bombay High Court on 21 October set aside a Single Judge's order refusing interim protection to five doctors who invested Rs. 60 lakh in commercial premises under a 2005 agreement, holding that the developers had prima facie attempted to cheat them by retaining their investment for over 21 years without delivering the promised property. A Division Bench comprising Justices A.S. Gadkari and Kamal Khata allowed the appeal filed by Dr. Devidas R. Sheregar, Dr. Alka Jain, Dr. Manoj S. Aithal,...

Income Tax Cannot Be Reassessed After Insolvency Plan Approval Even If New Information Emerges: Bombay High Court

The Bombay High Court has recently reiterated that the Income Tax Department cannot reassess a company's income for a period before its insolvency resolution plan was approved. This applies even when the Department receives fresh information suggesting fraudulent transactions.A Division Bench of Justice B.P. Colabawalla and Justice Farhan P. Dubash quashed reassessment proceedings initiated against Swan Defence and Heavy Industries Ltd., formerly Reliance Naval and Engineering Ltd. The...

Delhi High Court Grants Ex Parte Injunction Protecting REZONI Marks And Copyrighted Marketing Material

The Delhi High Court on 1 October granted an ex parte ad-interim injunction to Ritvik Bansal, proprietor of 7R, restraining multiple defendants from using his copyrighted marketing material and REZONI trademarks. Justice A. J. Bhambhani passed the order after finding that Bansal had established a prima facie case. He stated: “Based on a preliminary appreciation of the matter, this court is of the view that the plaintiff has succeeded in making-out a prima-facie case in its favour; that the...

Orissa High Court Issues Notice On Challenge To Section 147A Of Income Tax Act

The Orissa High Court has recently issued notice on a plea challenging the constitutional validity of Section 147A of the Income Tax Act, 1961, which was introduced by the Finance Act, 2026, with retrospective effect from April 1, 2021.Section 147A was introduced to clarify that the Assessing Officer issuing notices under Sections 148 and 148A would mean an officer other than the National Faceless Assessment Centre or an assessment unit under Section 144B. The provision was made retrospective...

Mere Location Of Customs Headquarters In Delhi Does Not Confer Territorial Jurisdiction: Delhi High Court

The Delhi High Court has dismissed a writ petition challenging the seizure of imported stainless-steel coils at the Inland Container Depot (ICD), Dadri, Uttar Pradesh, holding that the location of the Customs Commissionerate's headquarters in Delhi does not confer territorial jurisdiction on the Court when no part of the cause of action has arisen within its jurisdiction.The Division Bench of Justices Avneesh Jhingan and Shail Jain held that the dispute concerning the seizure of goods and their...