Income Tax Authority Must Record Prima Facie View On Taxability Before Issuing Withholding Certificate: Delhi High Court

The Delhi High Court has held that while issuing a certificate for lower deduction of tax at source under Section 197 of the Income Tax Act, 1961, the competent authority is required to record a prima facie view on the taxability of the receipts, and that such certificates cannot be issued mechanically or without reasons.A division bench of Justices Dinesh Mehta and Vinod Kumar made the observation while disposing of a writ petition filed by Ireland-based Workday Limited, which had challenged a...

Delhi High Court Upholds Rejection Of Crystal Crop's Herbicidal Composition Patent

The Delhi High Court has dismissed an appeal filed by Crystal Crop Protection Ltd., upholding a decision by the Assistant Controller of Patents and Designs to reject a patent application for a herbicidal composition designed for field crops.Justice Tejas Karia upheld the Assistant Controller's finding that the proposed invention lacked an inventive step and fell under the statutory bar of Section 3(e) of the Patents Act, as it constituted a 'mere admixture' of known substances. The Court held...

Delhi High Court Bars Groundless Copyright Threats Against TV9 Over Brief Use Of Third-Party Footage

The Delhi High Court has declared that certain TV9 Network news videos uploaded on its YouTube channels do not infringe the copyright of third parties and restrained four foreign entities from issuing further groundless copyright threats against the broadcaster.The videos covered events such as Hurricane Laura in the United States, heavy snowfall and floods, the Israel–Hamas conflict, and the 2023 Chinese balloon incident. In a judgment dated February 28, 2026, Justice Tejas Karia considered...

Continuing Look Out Circular After Tax Proceedings Conclude Violates Fundamental Rights: Delhi High Court

The Delhi High Court has held that failure of tax authorities to obtain information about an assessee's assets in foreign jurisdictions cannot be used to keep a Look Out Circular (LOC) alive indefinitely, particularly when income tax proceedings have already concluded and no demand is outstanding against the assessee.A Division Bench of Justices Dinesh Mehta and Vinod Kumar thus allowed writ petitions filed by the assessees and observed,“If for one reason or the other, the respondents are not in...

Delhi High Court Directs 2% Withholding Tax Certificate For US Software Firm DocuSign

The Delhi High Court has directed the Income Tax Department to issue a withholding tax certificate at the rate of 2% in favour of a US-based software company, after finding that the transactions prima-facie look to be not exigible to tax.A division bench of Justices Dinesh Mehta and Vinod Kumar passed the order while hearing DocuSign's writ petition challenging a certificate issued under Section 197 of the Income Tax Act, 1961.DocuSign provides electronic signature and digital transaction...

Denial Of Cross-Examination Justified Under Excise Act When Statements Are Corroborated: Delhi High Court

The Delhi High Court has held that the right of cross-examination under Section 9D of the Central Excise Act, 1944 is not absolute, and may be lawfully denied in fact-specific circumstances, particularly where the witnesses are closely connected to the assessee and the allegations are supported by independent corroborative evidence.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul thus dismissed the appeal filed by an assessee, holding that neither the adjudicating authority nor...

Delhi High Court Quashes Draft IT Assessment Order Passed Before Upload Of Transfer Pricing Relief Order

The Delhi High Court has recently quashed a draft assessment order passed by the Faceless Assessing Officer (FAO) against Lindstrom Services India, after noting that it was issued without knowledge of the Court's order quashing transfer pricing, due to delay in uploading the High Court direction on its website.The division bench of Justices Dinesh Mehta and Vinod Kumar clarified that while the FAO could not be faulted personally, an assessment order passed in ignorance of a subsisting High Court...

Mere Presence Of Finance Ministry, CBIC In Delhi Doesn't Confer It Jurisdiction To Entertain Petition: Delhi High Court

The Delhi High Court has held that the mere presence of the Ministry of Finance and the Central Board of Indirect Taxes and Customs (CBIC) in Delhi does not, by itself, confer territorial jurisdiction on the High Court, when the cause of action arises from summons and demands issued by authorities located outside Delhi.The Division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul dismissed a writ petition filed by an exporter challenging summons issued by the Directorate of Revenue...

Delhi High Court Grants Interim Injunction To GSK Against Zee Laboratories In 'PHEXIN'-'FEXIT' Trademark Dispute

Calling it “a case of triple identity,” the Delhi High Court has restrained Zee Laboratories from using the marks 'FEXIT', 'FEXIT-B' and 'FEXIT-M', holding them deceptively similar to GlaxoSmithKline's registered antibiotic brand 'PHEXIN'. Justice Tejas Karia passed the order on February 28, 2026, on an interim application by GlaxoSmithKline Pharmaceuticals Ltd. seeking restraint against infringement of its mark 'PHEXIN', passing off, unfair competition and dilution. GlaxoSmithKline (GSK)...

Service Taxability Appeals Lie To Supreme Court, Not High Court: Delhi High Court Reiterates

The Delhi High Court has dismissed a service tax appeal filed by the Revenue, holding that questions relating to taxability fall outside the High Court's appellate jurisdiction under Section 35G of the Central Excise Act, and can be examined only by the Supreme Court.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed, “we have gone through the judgments cited by the counsel for the respondent in the matter of M/S Konark Exim Pvt. Ltd (referred supra). In the said matter,...

Delhi High Court Upholds CESTAT Order Allowing Verification Of Tax Exemption On Services To Foreign Embassies

The Delhi High Court has recently upheld an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) permitting verification of certificates for claiming service tax exemption on services rendered to foreign embassies and diplomatic missions.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul held that no substantial question of law arose from the CESTAT's decision, which had remanded the matter to the adjudicating authority for the limited purpose of...

Delhi High Court Declines Interference With Arbitral Award In TDI-DMRC Advertising Rights Dispute

The Delhi High Court on 24 February dismissed a petition filed by TDI International India Ltd., challenging an arbitral award in a dispute with Delhi Metro Rail Corporation (DMRC), holding that no grounds existed for interference under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Justice Harish Vaidyanathan Shankar observed: “...the grant of an ad hoc remission of 50% of the licence fee for the uninstalled area represents an exercise of contractual interpretation...