Depreciation In Sale–Leaseback Cannot Be Denied On Mere Suspicion: Madras High Court

The Madras High Court on 20 April 2026 held that under the Income Tax Act, 1961, a taxpayer is entitled to claim deduction of accrued construction expenses and depreciation arising from sale and leaseback transactions. It ruled that such transactions cannot be treated as colourable devices merely because they result in tax advantages. A Division Bench comprising Justices G. Jayachandran and Shamim Ahmed dismissed the appeals filed by the Income Tax Department under Section 260-A and affirmed...

Madras High Court Holds Post-Search Return Invalid In Block Assessment, Rejects Kerala Roadways' Claim

The Madras High Court on 7 April, held that a return filed after the initiation of search proceedings and beyond the due date cannot qualify as a valid disclosure to exclude such income from undisclosed income in block assessment under the Income Tax Act. A Division Bench of Justices G. Jayachandran and R. Sakthivel rejected the Kerala Roadways appeal. It partly accepted one of the Revenue's appeals and fully accepted another, while deciding issues on block assessment, revisional powers, and...

MSMED Act Overrides Arbitration Act In MSME Cases; 75% Pre-Deposit To Challenge Award Mandatory: Madras HC

The Madras High Court has held that in arbitration under the Micro, Small and Medium Enterprises Development Act, 2006, while the procedure is governed by the Arbitration and Conciliation Act, 1996, key substantive provisions such as the mandatory 75% pre-deposit for challenging an award will prevail in case of conflict. The court clarified that only those provisions of the Arbitration Act apply which are not inconsistent with the MSMED Act. Justice Abdul Quddhose observed that "MSMED Act is a...

RERA Can Probe Developers' Financial Affairs; Madras High Court Remands Aavisa Township Dispute To TNRERA

The Madras High Court has recently held that authorities under the Real Estate (Regulation and Development) Act, 2016 can examine the “affairs” of promoters (developers), including financial dealings, while dealing with complaints by homebuyers. It set aside orders of TNRERA and TNREAT and remanded the Aavisa Golf Township dispute for fresh consideration, including whether the Kotak Mahindra entities qualify as “promoters” under the Act. A Division Bench of Justice R. Suresh Kumar and Justice...

Madras High Court Rejects Challenge To 'GANESHA' Trademark, Allows Coexistence Of Similar Marks

The Madras High Court has recently dismissed an appeal by Ganesh Consumer Products Ltd. against the registration of the “GANESHA” trademark in favour of Shankar Industries, holding that similar marks can coexist in limited situations, including where territorial restrictions reduce the likelihood of conflict. Justice Senthilkumar Ramamoorthy upheld the September 11, 2024, order of the Registrar of Trade Marks, which granted registration of device mark No. 1831646 in Class 30 to Shankar...

No Bad Debt Deduction From Taxable Income Without Actual Write-Off: Madras High Court

The Madras High Court has held that a taxpayer cannot claim a bad debt deduction merely by declaring a debt as irrecoverable and must comply with statutory conditions requiring an actual write-off in its books. A Division Bench of Justice G. Jayachandran and Justice Shamim Ahmed observed, “Merely stating that a bad and doubtful debt is an irrecoverable is not sufficient to claim deduction. Appropriate treatment in the accounts, together with compliance of the conditions in sections 36(1)(vii),...

Madras High Court Refuses To Fast-Track Karti Chidambaram's NCLT Plea Seeking Defreezing Of Bank Account

The Madras High Court on Thursday refused to direct the National Company Law Tribunal (NCLT), Chennai Bench, to expeditiously dispose of an application filed by Karti P. Chidambaram, son of former Union Minister P. Chidambaram, in PMLA proceedings against him, seeking defreezing of his bank account, holding that such directions would place “unnecessary pressure” on judicial forums. A Division Bench of Justice S.M. Subramaniam and Justice K. Surender said constitutional courts must exercise...

Madras High Court Dismisses Actress Tamanna Bhatia's Rs 1 Crore Damages Claim Against Soap Maker

The court held that use of an actress’s image after expiry of an endorsement agreement amounts to violation of personality and privacy rights, but found no evidence linking the company to the alleged use.

Lottery Ticket Discount Not “Commission” Absent Payment Or Credit, No TDS Applicable: Madras High Court

The Madras High Court on 9 April held that the difference between the face value of lottery tickets and the discounted price at which a taxpayer sells them to dealers does not constitute “commission.” Therefore, it is not subject to tax deduction at source (TDS) under Section 194G of the Income Tax Act. The Division Bench of Justices G. Jayachandran and Shamim Ahmed dismissed the Revenue's appeal and upheld the Tribunal's order in favour of Martin Lottery Agencies Ltd. The judges observed: ...

Madras High Court Temporarily Restrains Illegal Broadcast Of Vijay Starrer “Jana Nayagan” Movie

The Madras High Court, on Thursday (16 April), granted an interim injunction restraining internet service providers (ISPs) and cable operators from illegally streaming the “Jana Nayagan” movie, starring Actor Vijay.Justice Senthilkumar Ramamoorthy granted the interim relief in a suit moved by the movie's producers, KVN Productions.The production company had approached the court seeking a permanent injunction restraining the ISPs and cable operators from infringing on the movie and blocking all...

CBFC Certificate Only Prima Facie Evidence Of Who Produced the Film In Copyright Dispute: Madras High Court

The Madras High Court has recently held that a Central Board of Film Certification certificate is only “prima facie evidence” of who produced a film and cannot be determinative in a copyright suit when weighed against other material on record. A bench of Justice Senthilkumar Ramamoorthy made the observation while deciding a copyright dispute between R. Kishore Kumar, proprietor of Anna Therasa International Films, and Durairajan and Rafiq of R.R. Cine Productions over the ownership of a Tamil...

Madras High Court Dismisses Appeal Against Execution Order After Arbitral Award Attains Finality

After Jumbo World Holdings Ltd. and Dandavati Investments and Trading Company Pvt. Ltd. failed in their challenge to an arbitral award up to the Supreme Court, the Madras High Court has refused to entertain their appeal against an execution order passed in proceedings to give effect to the award, holding that such orders are not appealable under the statutory framework. The court held that orders passed in execution proceedings of an arbitral award that has attained finality neither constitute...