Madras High Court
Working Men/Women's Hostels Are Residential Properties, Cannot Be Taxed At Commercial Rates: Madras High Court
The Madras High Court has recently ruled that hostels providing accommodation to working men and women are residential properties and, therefore, property tax, water tax, and electricity charges cannot be levied at commercial rates. The ruling came in response to petitions filed by hostel owners in Chennai and Coimbatore challenging Chennai municipal authorities and the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) for reclassifying their hostels from residential to commercial...
No Depreciation On SIPCOT Payments For Infrastructure Development, But Eligible For 5% Annual Revenue Deduction: Madras High Court
The Madras High Court has held that depreciation on payment to State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) for infrastructure development is not allowed, but the assessee is eligible for 5% annual revenue deduction. Chief Justice Manindra Mohan Shrivastava and G. Arul Murugan were addressing the appeal pertaining to the claim of depreciation on the sum paid to the State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) for the development of...
Auction Under SARFAESI Act Valid When Property Valued By Valuer Is Registered U/S 34AB Of Wealth-Tax Act: Madras High Court
The Madras High Court held that an auction under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) Act, 1957, is valid when the property is valued by a valuer and registered under Section 34AB of the Wealth-Tax Act. Section 34AB of the Wealth-Tax Act, 1957, provides the process for individuals to become officially recognised valuers under the Act. Chief Justice Mohan Shrivastava and G. Arul Murugan opined that out of...
Madras High Court Strikes Down 'Original Choice' Trademark, Rules in Favor of 'Officer's Choice'
The Madras High Court on Friday ruled in favour of Allied Blenders and Distillers Pvt. Ltd. (ABD), the maker of Officer's Choice whisky, and ordered the removal of John Distillers Ltd.'s (JDL) 'Original Choice' trademark from the register of trademarks. A Division Bench of Justice G Jayachandran and Justice Mummineni Sudheer Kumar in an order held that Original Choice was deceptively similar to Officer's Choice and that its registration violated the Trade Marks Act, 1999. The Court also...
Madras High Court Refuses To Halt Re-Release Of Kamal Haasan Starrer "Nayagan" Movie
The Madras High Court, on Friday refused to halt the re-release of Kamal Haasan starrer “Nayagan” movie. The movie is hitting the screen again to celebrate the actor's birthday.Justice N Senthilkumar refused to grant an interim injunction on a plea filed by Karnataka based SR Film factory. The court remarked that there was no prima facie infringement and refused to grant the interim relief. The company had approached the court claiming that acquired the rights for the movie including its...
Madras High Court Reserves Verdict On Plea By Makers Of 'Good Bad Ugly' Movie To Vacate Interim Order In Copyright Case By Ilaiyaraaja
The Madras High Court has reserved orders on an application filed by Mythri Movie Makers, producers of the Ajith starrer “Good Bad Ugly” movie, seeking to set aside an interim injunction order issued against them in a copyright suit by musician Ilaiyaraaja. Justice N Senthilkumar reserved the orders on a Thursday (November 6) after hearing the arguments for Mythri Movie Makers, Ilaiyaraaja and the music labels from which Mythri had allegedly obtained rights for using the songs. It may...
Income Tax Act | Trust's Legitimate Tax Exemption Cannot Be Denied For Delay In Filing Form 10B: Madras High Court
The Madras High Court held that delay in filing Form 10B required under Section 44AB for the purpose of Section 12A(1)(b) of the Income Tax Act, 1961, is not a ground to deny legitimate exemption tax exemptions. Justice C. Saravanan observed that the assessee was registered as a “Trust” in the year 2017. Effectively, the assessee would have carried on operation as a “Trust” from 01.04.2017 onwards, which would fall under the Assessment Year 2018-2019. The failure is in the year...
TNGST Act | Purchase Tax Cannot Be Levied on Buyer for Seller's Tax Default: Madras High Court
The Madras High Court on Monday held that purchase tax cannot be levied under Section 7A of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act) on the purchaser merely because the seller failed to pay tax. The bench, comprising Justices S M Subramaniam and Mohammed Shaffiq, clarified the scope of Section 7A in transactions where the vendor has defaulted on tax payments "Having found that the sale to petitioner is liable to tax in the hands of the petitioner's vendor, levy of purchase tax...
Madras High Court Lets Udaipur Salon Keep 'Bounce,' Lifts Earlier Ban
The Madras High Court has recently lifted an interim injunction that had previously restrained an Udaipur-based salon from using the name “Bounce,” noting that the term is common in the beauty and haircare industry. In a ruling delivered on October 25, A Single Bench of Justice N. Senthilkumar, vacated the injunction that had been granted in favor of Spalon India Pvt. Ltd., the operator of the well-known “Bounce” salon chain in South India. As per Spalon India, it has been in the salon...
Approval From Higher Authority Mandatory For Issuing Notice U/S 148 Income Tax Act After Expiry Of 3-Year Limitation: Madras High Court
The Madras High Court has held that under the new regime, approval from a higher authority, such as the Principal Chief Commissioner of Income Tax or the Principal Director General, is mandatory to issue a notice under Section 148 of the Income Tax Act after the expiry of a three-year limitation period. Justice C. Saravanan stated that …….three years from the end of the Assessment Year 2016-2017, 2017-2018 and 2018-2019, to issue Section 148 Notice under the new regime had already...
Transactions Purely Commercial; Public Trust Doctrine Can't Defeat Limitation: Madras HC Dismisses GAIL Appeals In ₹246 Cr Dispute
In an important ruling for the natural gas sector, the Madras High Court Bench of Justices G Jayachandran and Mummineni Sudheer Kumar denied appeals by GAIL (India) Limited against five natural gas supplier companies in arbitrations aggregating to Rs. 246 crores, observing that natural gas transactions are commercial and GAIL could not invoke the public trust doctrine to escape limitation.Five companies, M/s Arkay Energy (Rameswaram) Limited, M/s Coromandel Electric Co Ltd, M/s Sahell Exports...
Petition U/S 34 A&C Act Filed With Deficit Court Fee Is Non-Est Unless Paid Within Limitation Period: Madras High Court
The Madras High Court held that filing of a petition with deficit court fee does not amount to proper presentation. If the entire court fee is not deposited within the limitation period under section 34(3) Arbitration and Conciliation Act, 1996 (Arbitration Act), the court is divested of its power to condone the delay. Justice N. Anand Venkatesh held that "filing of a petition with deficit Court fee cannot be construed as proper presentation of the petition. If such presentation of the...