Transfer Pricing Adjustment Cannot Amount To 'Misreporting of Income': Madras High Court Quashes Penalty On Verizon

The Madras High Court has recently quashed penalty proceedings against Verizon Data Services India Pvt Ltd, holding that a transfer pricing adjustment based on estimation of arm's length price cannot by itself constitute “misreporting of income” under Section 270A of the Income Tax Act.A single-bench of Justice C. Saravanan, while quashing the penalty order and rejection of its immunity application against Verizon observed,"The entire basis for initiation of penalty proceedings is the transfer...

Madras High Court Upholds Notification Applying Excise Act Recovery Provision To Clean Environment Cess

The Madras High Court has upheld a Central Government notification applying provisions of the Central Excise Act, including those governing recovery of duties not levied or short-paid, to Clean Environment Cess. A Division Bench of Justice G. R. Swaminathan and Justice R. Kalaimathi held that the expression “levy” in the Finance Act, 2010 includes the processes of assessment and collection, allowing the government to extend recovery provisions of the Central Excise Act to the cess through...

Affiliation Fees Collected By Universities From Colleges Liable To GST: Madras High Court

The Madras High Court has held that affiliation fees collected by universities from colleges are liable to Goods and Services Tax (GST). The Court ruled that such services do not fall within the GST exemption for services relating to the admission of students or the conduct of examinations.The Division Bench comprising Justice G. Jayachandran and Justice K. K. Ramakrishnan answered a reference arising from writ petitions filed by Bharathidasan University challenging GST notices issued by the...

Madras High Court Protects '777 Oil' Trademark, Sets Aside Order Dismissing Infringement Suit

The Madras High Court on Friday protected the trademark “777 Oil” used for a Siddha medicinal oil to treat psoriasis, setting aside a single judge's decision that had dismissed an infringement suit filed by J.R.K's Research and Pharmaceuticals against Sanjeevi Pharma. In a judgment pronounced on March 6, 2026, Justice C.V. Karthikeyan and Justice K. Kumaresh Babu allowed the company's appeal, holding that the earlier judgment suffered from “perversity,” and decreed the suit with a permanent...

Madras High Court Rejects Lahari Recording's Claim Over Satellite Telecast of Telugu-Dubbed 'Roja'

The Madras High Court has dismissed appeals filed by Lahari Recording Co. Pvt. Ltd. over the satellite telecast of the Telugu-dubbed version of Roja, the Mani Ratnam-directed Tamil film that became one of Indian cinema's most recognisable titles of the 1990s. The company had sought to block the broadcast and claim Rs 1 crore in damages, arguing that the telecast infringed its rights in the dubbed version. A division bench of Justice C.V. Karthikeyan and Justice K. Kumaresh Babu, in a judgment...

Non-Resident Individual Eligible For Dispute Resolution Panel Route In Tax Reassessment: Madras High Court Clarifies

The Madras High Court has clarified that a non-resident individual falls within the amended definition of an “eligible assessee” under the Income Tax Act, and therefore reassessment proceedings routed through the Dispute Resolution Panel cannot be challenged on that ground.The court dismissed a writ petition filed by individual taxpayers Motilal Jain and Mahaveer Jain and upheld a reassessment order issued under the Income Tax Act following directions of the Dispute Resolution Panel.The order...

Works Contract Payment Dispute Can Proceed In MSME Arbitration: Madras High Court

The Madras High Court has refused to interfere with an order of the Micro and Small Enterprises Facilitation Council rejecting a Section 16 jurisdictional objection, holding that a payment claim arising from services under a civil works contract falls within the scope of the MSMED Act and can be adjudicated in arbitration before the Council. Justice S. Sounthar observed that while courts ordinarily do not intervene when an Arbitral Tribunal rejects a jurisdictional objection, this case required...

No Service Tax Exemption Where Overriding Commission Is Received In INR: Madras High Court

The Madras High Court held that travel agents acting as General Sales Agents (GSAs) for foreign airlines cannot claim service tax exemption as an export of services when their overriding commission is received in Indian Rupees rather than convertible foreign exchange, even if the services are provided to foreign principals. A Division Bench of Justice Anita Sumanth and Justice Mummineni Sudheer Kumar held that exemption notifications are to be strictly construed, and the condition requiring...

Madras High Court Approves Settlement Favouring SNS Movies In 'Think Studio' Trademark Dispute

The Madras High Court on 23 February decreed a trademark infringement suit in favour of SNS Movies Productions LLP, owner of Think Studios, after Manjunath, the proprietor of a rival firm, named Think Studio, undertook to permanently cease using the contested mark. Justice Senthilkumar Ramamoorthy recorded a settlement in which the defendant agreed to withdraw its pending trademark application and remove the infringing name from all digital and physical platforms by 10 April 2026. He noted: ...

Arbitrator Appointed By Agreed Institution Not Per Se Unilateral: Madras High Court

Drawing a clear distinction between unilateral appointments and institutional nominations, the Madras High Court has held that an arbitrator appointed by an arbitral institution agreed upon by the parties cannot automatically be treated as a unilateral appointee, even if one side initiates the process. “The appointment of Arbitral Tribunal by an institution that is agreed upon between the parties per se cannot be dealt with in the same manner in which the Court deals with an unilateral...

Importer Who Voluntarily Pays Differential Customs Duty, Seeks DRI Probe Closure Cannot Claim Refund: Madras High Court

The Madras High Court on Wednesday held that differential customs duty voluntarily paid during a Directorate of Revenue Intelligence (DRI) investigation cannot be claimed as a refund. The Court further held that Notification No. 25/2019-Customs amended the applicable customs duty rate by treating shrimp larvae feed in both pellet and non-pellet form as attracting 5% basic customs duty. The notification cannot be applied retrospectively to imports made prior to its issuance.The judgment was...

Duty-Free Import Benefits Denied Over Unauthorised Diversion, Poor Record-Keeping: Madras High Court

The Madras High Court on 10 February, held that duty-free import benefits under the Advance Authorisation Scheme can be denied when the importer diverts the goods into the domestic market without authorisation.A Bench of Justice G.K. Ilanthiraiyan and Justice R. Poornima allowed the Department's appeals, arising from a batch of civil miscellaneous appeals filed by the Commissioner of Customs (Department) against the proprietor of Regin Agency, and Regin Exports.Setting aside the CESTAT's order,...