Madras High Court Sets Aside Orders Over Inzi Controls Air & Oil Filter Classification, Remands Matter

The Madras High Court on 8 September set aside appellate orders concerning the classification of air and oil filters manufactured by Inzi Controls India Limited and remanded the matter to the appellate authority for fresh consideration. A Bench of Justice Senthilkumar Ramamoorthy passed the order in a batch of petitions filed by Inzi Controls, which manufactures air and oil filters supplied to automobile companies. The company had classified the filters under Chapter 84, while the Tax...

Deficit Stamp Duty Demand Must Be Raised Within 3 Years Of Instrument Registration: Madras High Court

The Madras High Court has ruled that the three-year limitation for recovering deficit stamp duty runs from the date a document is registered and not from the date the Registration Department initiates proceedings.A Division Bench of Justice Abdul Quddhose and Justice R. Rajesh Vivekananthan observed:“Therefore, as per second proviso to Section 33-A of the Indian Stamp Act, for the purpose of calculating limitation, the starting date for calculating the period of limitation, is the date of...

Revenue Cannot Deny Composition Rate After Accepting Dealer's Turnover Below ₹50 Lakh: Madras High Court

The Madras High Court has ruled that a dealer eligible for the tax composition scheme cannot be denied its concessional rate when the assessing authority itself determines that the dealer's taxable turnover is below the ₹50 lakh limit.The bench held that the authority cannot rely on an earlier estimate showing turnover above the limit after finally fixing the taxable turnover below it.“The Assessing Officer could not maintain two contradictory positions in the same order, i.e., on one hand,...

Madras HC Disposes Pleas Over 'Agni Siragugal' After Maker Undertakes Not To Release Film Until Dues Cleared

The Madras High Court has disposed of three applications seeking to restrain the release and commercial exploitation of Tamil film Agni Siragugal after Amma Creations undertook not to release, distribute or otherwise commercially exploit the film without clearing the claimed dues.Justice K. Kumaresh Babu recorded the undertaking and directed that it be strictly abided by until the disposal of the arbitral proceedings. The order was passed on September 15.The applications were filed by Shanti...

Madras High Court Directs Refund Of ₹6.41 Lakh To The Madras Club, Says Tax Burden Not Passed On Members

The Madras High Court on 1 September directed the authorities to refund Rs.6.41 lakh to The Madras Club, after finding that the club had not passed on the tax burden to its members to that extent. A Division Bench of Justices Anita Sumanth and C. Kumarappan partly allowed the club's appeal against a CESTAT order rejecting its refund claim. The judges held: “...in respect of the portion of the amount in a sum of Rs.9,09,717/-, the appellant has already passed on the burden to its members....

Unilateral Arbitrator Appointment Can't Be Ground To Suo Motu Reject Award Execution: Madras High Court

The Madras High Court on 31 August held that an Executing Court cannot suo motu refuse to enforce an arbitral award on the ground that the arbitrator was unilaterally appointed when the award-debtors have neither challenged the award under Section 34 of the Arbitration and Conciliation Act, 1996 nor contested its execution. Justice P.B. Balaji allowed two civil revision petitions filed by Sundaram Finance Limited against the award-debtors, set aside the orders refusing execution and directed...

GST Authorities Cannot 'Ride Piggyback' On Adjudication Order For Income Tax Reassessment: Madras High Court

The Madras High Court has held that Income Tax authorities cannot rely solely on a GST adjudication order while conducting reassessment proceedings, cautioning that any reassessment must independently comply with the Income Tax Act.A single judge bench of Justice Senthilkumar Ramamoorthy, however, declined to interfere with the Section 148 notice issued to a granite and tiles business proprietor for AY 2023-24, as the proceedings were still at a preliminary stage.The court, however,...

Madras High Court Says Time Extension Doesn't Waive Liquidated Damages If Right Is Reserved

The Madras High Court has refused to interfere with an arbitral award in a dispute over delays in the expansion of Neyveli Lignite Corporation Limited's First Thermal Power Station by two 210 MW units. It held that NLC had not waived its right to claim liquidated damages by granting extensions of time, as each extension expressly reserved that right.A bench of Justice P. Velmurugan and Justice K. Govindarajan Thilakavadi observed:“Where the promisee permits further performance and extends the...

Madras High Court Refuses Preethi Hospitals Permission To Sue Over 'S. Preethi' College Name

The Madras High Court has recently refused to grant leave to Madurai-based Preethi Hospitals Private Limited and Blossom Global Trust to sue an educational trust in Sivagangai over its use of the name “S. Preethi” for a group of colleges.Justice A.D. Maria Clete held that the applicants had not shown that any part of the cause of action arose within the court's Chennai jurisdiction. The court observed, “It is the act of the respondent pleaded to have been done within these local limits that the...

Individual Notice To Partners Not Needed For Firm's Tax Recovery: Madras High Court

The Madras High Court on 24 August held that individual notice to partners is not required when the Income Tax Department initiates recovery proceedings against the assets of a defaulting partnership firm. It clarified that individual notice is necessary where recovery proceedings are initiated against the personal assets of an individual partner. Justice Senthilkumar Ramamoorthy disposed of four connected writ petitions concerning the recovery of income tax dues from RJK Investments and the...

Madras High Court Says Appeal Against Fresh Assessment Order Statutorily Barred, Remands BHEL Matter

The Madras High Court on 10 August remanded Bharat Heavy Electricals Limited's (BHEL) tax matter to the Assessing Officer for fresh assessment. A Division Bench comprising Justices Dr. G. Jayachandran and N. Mala passed the order while disposing of a Tax Case Revision filed by BHEL against the order of the Sales Tax Appellate Tribunal. The judges held: “The assessment orders in the instant case and the orders of the Appellate Authority are verbose and detailed. However, the fact remains that...

Madras High Court Upholds Deletion Of ₹70.95 Cr. Tax Additions In Bogus Long Term Capital Gains Cases

The Madras High Court on 28 August upheld the Income Tax Appellate Tribunal's orders deleting tax additions of Rs. 32.90 crore and Rs. 38.05 crore in cases concerning Long Term Capital Gains claimed from the sale of shares in PFL Infotech Limited and Risa International Limited. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan dismissed the Revenue's appeals and the connected appeals concerning penalty under Section 271(1)(c) of the Income Tax...