Madras High Court
Realty Company's Sale of Long-Held Freehold Land Is Capital Gains Not Business Income: Madras Court
The Madras High Court has held that profits earned from the sale of decades-old freehold land must be taxed as capital gains and not as business income, rejecting the income tax department's attempt to treat the transaction as part of a real estate business. A division bench of Justices Anita Sumanth and Mummineni Sudheer Kumar said the record clearly showed that the land was held as a long-term asset and was sold without any development or trading activity. "The accounts reveal that the...
Limitation Plea Can Be Raised At Any Stage As Long As Facts Are On Record: Madras High Court
In a recent ruling, the Madras High Court held that a belated plea of limitation cannot be entertained where the factual foundation necessary to examine such a plea is absent on record. The ruling came from a bench of Justice Dr. Anita Sumanth and Justice P Dhanabal while dismissing an appeal filed by Modern Engineering & Plastics Pvt. Ltd. The court noted that "Normally, limitation, if it were to be a pure question of law may be raised at any stage of the proceeding, and it would not...
Patent Opposition Board Recommendations Are Advisory, Not Binding Decision: Madras High Court
The Madras High Court has refused to step in midway in a patent dispute over a cancer drug, holding that a recommendation made by the Opposition Board during post-grant opposition proceedings is only advisory and does not create anu valid binding rights. Dismissing the writ petition filed by two foreign pharma firms, Justice N. Senthilkumar said the patent holders must place all their objections before the Controller of Patents, who alone takes the final call.The court was hearing a...
Madras High Court Upholds Grant Of Virtual Agent Patent To US Company, Dismisses Flipkart's Challenge
The Madras High Court on Monday refused to interfere with the Patent Office's rejection of Flipkart's post-grant opposition, allowing a US company's patent on virtual agents used in online customer interactions to continue.In an order dated January 5, 2026, Justice N. Senthilkumar refused to interfere with the decision of the Patent Office, which had dismissed Flipkart's post-grant opposition and allowed the patent titled “Systems and Methods for Virtual Agents to Help Customers and Business” to...
Madras High Court Temporarily Bars Use Of “URG-9”, Finds It Deceptively Similar To “ARG-9”
The Madras High Court has granted an interim injunction restraining Foregen Healthcare Ltd. from using the pharmaceutical mark “URG-9.” The court held that it was prima facie deceptively similar to the registered trademark “ARG-9” owned by Nouveau Medicament Private Limited.Justice Senthilkumar Ramamoorthy passed the order on January 7, 2026, while deciding the interim injunction application in a trademark infringement and passing-off suit concerning pharmaceutical products.The court observed,...
Procuring Authority Liable For Differential GST In Government Contracts: Madras High Court Reiterates
Reiterating that additional GST arising from the rollout of the GST regime in government works contracts must be borne by the procuring authority, the Madras High Court has directed the Tamil Nadu Housing Board to consider a contractor's claim for reimbursement of differential tax.A Bench of Justice N Sathish Kumar relying on settled law, held that contractors cannot be fastened with liability for differential GST, interest, or penalties when tax was discharged strictly in accordance...
GST Late-Fee Amnesty Benefit Cannot Be Denied To Early Annual Return Filers: Madras High Court
The Madras High Court has held that GST-registered persons who filed their annual returns before the amnesty scheme cannot be denied its benefit merely because the GST Council did not address their situation in its meeting. The amnesty scheme, notified in March 2023, capped the maximum late fee for delayed filing of GSTR-9 (annual GST returns) at Rs 10,000 per financial year for the financial years 2017-18 to 2021-22. A single-judge bench of Justice C Saravanan observed that such taxpayers...
Madras High Court Directs Consolidated GST Adjudication After Trader Receives Two Assessments For Same Year
After a Chennai-based trader received two separate GST assessment orders for the same financial year, the Madras High Court remanded the matter for consolidated adjudication by a single authority. A single-judge bench of Justice C Saravanan noted that, for the same tax period, “two officers who are the Respondents in the respective Writ Petitions filed respective impugned orders,” and proceeded to consider the grievance raised by the trader. The dispute relates to two assessment orders issued...