Karnataka High Court Says Pregnancy Justifies Absence From GST Proceedings, Remands Ex-Parte Order

The Karnataka High Court on 18 September held that an ex-parte GST adjudication order can be set aside where a taxpayer's non-appearance is sufficiently justified, including on account of pregnancy and related medical complications. Justice Vijaykumar A. Patil of the Kalaburagi Bench allowed a writ petition filed by Soumya, proprietrix of Ganga Medical Stores, against the Deputy Commissioner of Commercial Taxes (Audit), Bidar and the Commissioner of Central Tax and Central Excise. The Bench...

Karnataka High Court Says Appeal Against CESTAT Order On GTA Classification Lies Before Supreme Court

The Karnataka High Court on 24 September held that an appeal against an order of a Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on the classification and taxability of services as “Goods Transport Agency” (GTA) service lies before the Supreme Court under Section 35L of the Central Excise Act, 1944, and not before the High Court under Section 35G. A Division Bench comprising Justices R. Devdas and K. Manmadha Rao dismissed the Central Excise Appeal filed by the Commissioner of...

Karnataka High Court Quashes Black Money Act Assessment Against Moroccan Woman For Wrong Assessment Year

The Karnataka High Court has quashed an assessment order against a Moroccan woman under the Black Money Act after holding that the Income Tax Department had assessed her foreign assets in the wrong assessment year. The Court held that since she had acquired the assets before the Black Money Act came into force and had not made a declaration under Section 59, Section 72(c) deemed the assets to have been acquired in the year in which the first notice under Section 10 was issued. As that notice...

Karnataka High Court Upholds Award Rejecting ₹1.37 Crore Contractor Claim In Mysuru Zoo Park Project

The Karnataka High Court on 23 September dismissed contractor C. C. Kondaiah's appeal against the Commercial Court's decision not to interfere with an arbitral award rejecting his claims for additional expenditure, price escalation and idling costs against the Mysore City Corporation. A Division Bench of Justices Anu Sivaraman and T.P. Vivekananda reiterated that an appellate court cannot reappreciate evidence or substitute the reasoning of an arbitral tribunal while exercising jurisdiction...

Karnataka High Court Retains Ozone Urbana Buyer & ED Cases, Quashes Contractor's Criminal Proceedings

The Karnataka High Court on 21 September held that criminal proceedings cannot be used to recover alleged dues arising from a purely civil dispute, while refusing to quash proceedings against Ozone Urbana Infra Developers Private Limited and its office bearers over home buyers' complaints alleging non-delivery of flats, diversion of project funds and other financial irregularities. Justice M. Nagaprasanna quashed the proceedings arising from a contractor's complaint alleging non-payment for...

Bank Suffering Financial Loss From Fund Siphoning Is “Victim” In Bail Proceedings: Karnataka High Court

The Karnataka High Court has held that a bank which suffers financial loss due to an accused allegedly siphoning funds is a “victim” entitled to participate in the accused's bail proceedings. Justice M Nagaprasanna allowed Standard Chartered Bank's petition challenging the Additional Chief Metropolitan Magistrate, Bengaluru's order rejecting its application to intervene in the bail proceedings of accused Kishore Nakka. The Bench held: “It is trite law that a person would become a victim who...

Outgoing Partner's Consent Not Required To Record Firm Reconstitution: Karnataka High Court

The Karnataka High Court has held that the signature or consent of an outgoing partner is not required for recording a change in the constitution of a registered partnership firm under Section 63 of the Indian Partnership Act, 1932. Justice Sachin Shankar Magadum allowed a petition filed by Y. Mahabaleshwarappa and Sons, a registered mining partnership firm, and quashed the District Registrar's refusal to record the firm's reconstitution on the ground that the deed did not bear the signature of...

Karnataka High Court Modifies HMT's 20% Interest On ₹1.39 Crore Damages To Ex-Employees Turned Entrepreneurs

The Karnataka High Court has modified the interest payable by HMT on ₹1.39 crore in damages awarded to eight former employees-turned-entrepreneurs for the loss caused by a shortfall in the assured workload.The entrepreneurs will get 20% annual interest on the damages only for the period during which they were repaying their Karnataka State Financial Corporation (KSFC) loans. For the remaining period, HMT will have to pay interest at 12% per annum. A Division Bench of Justice Anu Sivaraman...

Karnataka HC Sets Aside Notice Seeking Revision Of ₹27.13 Crore Tax Refund To Myntra Co-Founder Mukesh Bansal

The Karnataka High Court has set aside income tax revision proceedings initiated against entrepreneur and Myntra and Cult. fit co-founder Mukesh Bansal in connection with a refund of over ₹27.13 crore for AY 2019-20.Justice S. Sunil Dutt Yadav held that an intimation issued under Section 143(1) of the Income Tax Act, without any adjustment, could not be treated as an order for exercising revisionary powers under Section 263.Bansal had originally declared a total income of ₹231.73 crore and tax...

Personal Loans Cannot Be Treated As MSME Borrowings Merely Due To MSME Link: Karnataka High Court

The Karnataka High Court has ruled that personal loans taken by borrowers cannot be treated as MSME borrowings merely because they are connected with an MSME.“The benefit available to an MSME must be considered in relation to the enterprise and the credit facility covered by the framework. Independent personal borrowings do not acquire the character of MSME borrowings merely because the borrowers are also connected with an MSME,” Justice Lalitha Kanneganti observed.The court was dealing with a...

Karnataka High Court Dismisses Genpact's Challenge To ED Seizure Of Gurgaon Office Under FEMA

The Karnataka High Court has dismissed Genpact India's, a business process management and professional services company, challenge to the Enforcement Directorate's seizure of its Gurgaon head-office premises under Section 37A of the Foreign Exchange Management Act (FEMA).At the same time, the court set aside the ED's rejection of Genpact's application for a no-objection certificate (NOC) to invest $100 million in its GIFT City entity, holding that the rejection did not give adequate reasons for...

Extending Spouse' Tax Benefit Under IT Act For Same-Sex Couple Would Indirectly Recognise Same-Sex Marriage: Centre Tells Karnataka HC

The Centre on Saturday told the Karnataka High Court that interpreting “spouse” to include same-sex partners under a provision of the Income Tax Act would indirectly recognise a same-sex matrimonial relationship, which is not recognised under Indian law.“Same-sex marriage is not a recognised marriage in the Indian context. So, if we understand spouse to mean same sex people, we indirectly recognise their matrimonial relationship. Therefore, spouse necessarily means husband and wife,” Solicitor...