Karnataka High Court Rules Secret Commission Claims Need Evidence, Upholds ₹53.48 Lakh Disallowance

The Karnataka High Court on 9 July held that a taxpayer cannot claim deduction for alleged secret commission payments as business promotion expenditure without proving the claim through adequate evidence, and upheld the disallowance of Rs. 53.48 lakh claimed as a business deduction. A Division Bench of Justices S.G. Pandit and K.M. Manmadha Rao dismissed Rampur Arvind's (taxpayer) appeal and upheld the orders of the Income Tax Appellate Tribunal, the Commissioner of Income Tax (Appeals) and the...

Advocates Should Be Summoned Only In Rare And Exceptional Circumstances: Delhi High Court Cautions DRI

The Delhi High Court has observed that advocates should be summoned only in "rare and exceptional circumstances" after disposing of a plea challenging a Directorate of Revenue Intelligence (DRI) summons issued to a lawyer who had rendered a legal opinion to a client.The Division Bench of Justices Anil Kshetarpal and Amit Mahajan disposed of the petition after recording the DRI's submission that the impugned summons issued under Section 108 of the Customs Act, 1962 had already been...

Delhi High Court Issues Notice On Times Now Suit Against Network18, Sushant Sinha Over 'Desh Ki Paatshala'

The Delhi High Court on Friday issued notice on a suit filed by Bennett Coleman and Company Limited, which runs the Times Now Navbharat news channel, against Network18 Media and Investments Limited and journalist Sushant Sinha, alleging copyright and trademark infringement over the show 'Desh Ki Paatshala.'Justice Anup Jairam Bhambhani declined to pass an ad-interim injunction at this stage. Observing that the defendants had entered an appearance on caveat, the court said they were entitled to...

Delhi High Court Restrains Gujarati Newspaper From Using 'Saurashtra Aaj Tak' In TV Today's Suit

The Delhi High Court has recently restrained a Gujarati newspaper from using the name 'Saurashtra Aaj Tak', holding that TV Today Network, which operates the news channel 'Aaj Tak,' is the prior user of the mark.Justice Mini Pushkarna set aside a 2012 trial court judgment that had allowed the Rajkot-based newspaper to continue using the name 'Saurashtra Aaj Tak', provided it carried a disclaimer stating it had no connection with TV Today Network's 'Aaj Tak' channel. Instead, the court granted...

Delhi High Court Slams Customs-CONCOR Standoff Over Container, Says Dispute Driven By 'Ego' Not 'Law'

The Delhi High Court recently observed that a dispute between the Customs Department and the Container Corporation of India (CONCOR) over the release of a shipping container appeared to be "driven more on account of ego than on any question of law," after the container remained stranded for more than three years.A Division Bench of Justices Anil Kshetrapal and Shail Jain made the observation while hearing a plea filed by Ukraine-based freight forwarding company, seeking release of its container...

Madras High Court Quashes SFIO Case Against Deloitte Partner In Subhiksha Fraud Probe

The Madras High Court on Wednesday has quashed criminal proceedings initiated by the Serious Fraud Investigation Office (SFIO) against Deloitte Haskins & Sells partner and statutory auditor M.K. Ananthanarayanan over his audit of Subhiksha Trading Services Limited (STSL). The SFIO had accused him of failing to verify the retailer's sales, purchases and related-party transactions, and of not reporting its non-compliance with prescribed accounting standards. Justice Sunder Mohan held that,...

Gujarat High Court Reiterates Trade Associations Can Qualify As Charitable Institutions Under Income Tax Act

The Gujarat High court has recently upheld an Income Tax Appellate tribunal order directing the Commissioner of Income Tax (Exemptions) to reconsider a trade association's application for registration as a charitable institution.It held that trade promotion bodies established to advance trade and commerce can qualify as charitable institutions under the "general public utility" category of the Income Tax Act.A division bench of Justice Bhargav D. Karia and Justice Pranav Trivedi said the...

Madras High Court Restrains Edible Oil Firm, Holds 'CYCLE' Mark Has Reputation Beyond Agarbattis

The Madras High Court has recently restrained an Erode-based edible oil manufacturer from using the trademark "CYCLE", holding that N. Ranga Rao & Sons, the maker of Cycle brand agarbathies, had established that the mark enjoys a reputation beyond incense sticks and is entitled to protection even against use on dissimilar goods.A Division Bench of Justice P. Velmurugan and Justice K. Govindarajan Thilakavadi partly allowed an appeal filed by N. Ranga Rao & Sons Private Ltd., setting...

Karnataka High Court Quashes Temporary Injunction Against Areca Nut Dehusking Machine Maker In Patent Suit

The Karnataka High court has set aside an ex parte ad interim injunction that had barred Priya Industries from making or selling an areca nut dehusking machine allegedly infringing a patent held by V-Tech Engineers.The court found that the Commercial Court had granted the injunction without analysing either the patent claims or whether Priya Industries' machine actually infringed them."We find that the impugned order is not sustainable, as it does not clearly set out the reasons for arriving at...

Delhi High Court Restrains Use Of PHENSERYL Mark In Opella Healthcare's Trademark Suit

The Delhi High Court has restrained a pharmaceutical company from selling a syrup under the mark PHENSERYL, holding that its name and packaging were deceptively similar to another company's long-registered PHENSEDYL trademark and were likely to confuse consumers.Justice Jyoti Singh observed that the rival marks and packaging were deceptively similar, noting: "The rival marks are visually and phonetically similar; dark blue colour in the trade dress/packaging and white font to depict the names...

Mere Delay In Paying Income Tax Does Not Amount To Wilful Tax Evasion: Bombay High Court

The Goa bench of the Bombay High Court has held that mere delay in paying an admitted tax liability, without a deliberate intention to evade payment, does not amount to a "wilful attempt" to evade tax. Justice Amit S. Jamsandekar observed that criminal prosecution requires proof of mens rea and cannot be invoked merely because there has been a delay or failure in paying tax."The word 'wilful' introduces a mental element and requires looking into the mind of a person by gauging the person's...

Income Tax Act | Trustee's Shareholding Doesn't Make Public Trust A 'Concern' Under Deemed Dividend Provision: Gujarat High Court

The Gujarat High Court has recently held that a public trust cannot be treated as a "concern" under the deemed dividend provisions of the Income Tax Act (Section 2(22)(e)) merely because its trustee holds substantial shares in the lending company. Holding that the legal fiction created by the provision cannot be stretched to cover such trusts, the court observed, "The word "concern" used under the Act in such Explanation, which encompasses a Hindu Undivided Family (HUF), or a firm, or an...