Telangana High Court Allows Retired Partner To Invoke Arbitration Clause In Reconstitution Of Partnership Deed

The Telangana High Court has held that a retired partner could invoke an arbitration clause in a Reconstitution of a partnership deed (retirement deed) because the clause covered disputes between the parties and did not limit arbitration to existing partners.Referring to Article 12 of the deed, Justice K. Lakshman ruled, “The arbitration clause clearly specifies that the disputes arising between the parties shall be referred to arbitration. It is nowhere stated that disputes between existing...

Telangana High Court Upholds ₹43.48 Crore CST Demand Against Mahindra & Mahindra For Inter-State Sales

The Telangana High Court on 5 August held that movement of vehicles from Mahindra & Mahindra Ltd.'s Zaheerabad manufacturing unit to its regional sales offices in other States constituted inter-State sales under Section 3(a) of the Central Sales Tax Act, 1956. A Division Bench comprising Justices P. Sam Koshy and Narsing Rao Nandikonda upheld a tax demand of around Rs. 43.48 crore, and dismissed two writ petitions filed by the company. It observed: “...It is not necessary, for a...

Telangana High Court Refuses To Quash FIR Against SREI, Says Forgery Allegations Require Investigation

The Telangana High Court on 24 July held that it cannot decide the genuineness of disputed documents or examine allegations of forgery while exercising inherent powers to quash criminal proceedings, as such issues require investigation and adjudication of facts. Justice J Sreenivas Rao refused to quash the First Information Report (FIR) registered against SREI Equipment Finance Limited and its officials over allegations of forgery, fabrication of loan documents, falsification of accounts and...

Telangana High Court Upholds Mayuri Film's Tax Benefit, Says Unrescinded Notification Can't Be Overridden

The Telangana High Court on 24 July held that a tax concession granted through a Government notification cannot be withdrawn merely because a new entry is introduced in a tax schedule, unless the notification granting the benefit is expressly withdrawn, superseded or rescinded. A Division Bench of Justices P. Sam Koshy and Suddala Chalapathi Rao upheld the concessional sales tax benefit claimed by Mayuri Film Distributors on the sale of audio cassettes, holding that the Government Order...

Telangana High Court Restores Relief To Radiant Digital Solutions, Says Bona Fide Lapse Can't Deny Benefit

The Telangana High Court on 2 July held that a company cannot be denied the benefit of the concessional corporate tax regime under Section 115BAA of the Income Tax Act due to a bona fide delay in filing Form 10-IC, where it has substantially complied with the statutory requirements. A Division Bench of Justices P. Sam Koshy and Narsing Rao Nandikonda allowed the writ petition filed by Radiant Digital Solutions Pvt. Ltd. and set aside the Income Tax Department's order rejecting the company's...

Telangana High Court Holds Deferred Sales Tax Benefit Cannot Be Denied, Remands Krebs Biochemicals Case

The Telangana High Court on 19 June held that tax authorities cannot deny a taxpayer the benefit of a sales tax deferment scheme merely because statutory adjustment orders supporting the claim were not available during the original assessment proceedings, and directed the Assessing Officer to reconsider the claim after examining the subsequent orders. A Division Bench of Justices P. Sam Koshy and Suddala Chalapathi Rao partly allowed the appeals filed by Krebs Biochemicals & Industries...

Telangana High Court Upholds Capital Gains Tax Exemption Despite Delay In Villa Registration

The Telangana High Court has held that a taxpayer who invested capital gains in a residential villa under a joint development agreement cannot be denied tax exemption merely because the developer delayed construction and execution of the sale deed. The court observed that delays beyond the assessee's control cannot defeat the benefit intended under the law. A Division Bench of Justice P. Sam Koshy and Justice Narsing Rao Nandikonda allowed the appeal filed by non-resident Indian Sudhakar...

State Cannot Recover Unintended Benefit From Contractor After Accepting Lump Sum Contract: Telangana HC

The Telangana High Court on 9 July held that the State cannot withhold a contractor's security deposit by raising a claim of “unintended benefit” from Central Excise Duty exemption after accepting a lump-sum contract value without accounting for the exemption at the tender stage. A Division Bench of Justices Moushumi Bhattacharya and Gadi Praveen Kumar dismissed the State's appeal and partly allowed the appeal filed by Gammon Engineers and Contractors Pvt. Ltd. by setting aside the liberty...

Best Judgment Assessment Cannot Ignore VAT Composition Scheme Compliance By Contractor: Telangana HC

The Telangana High Court on 13 July held that a best judgment assessment cannot be sustained when the assessing authority fails to consider the statutory composition scheme opted by a works contractor and ignores the records maintained in accordance with the law. A Division Bench comprising Justices P. Sam Koshy and Nandikonda Narsing Rao set aside the assessment order passed against Chaitanya Enterprises, a proprietary concern engaged in electrical contracting works, which had challenged the...

SARFAESI Action Against Personal Guarantors Can Continue Without No Pending IBC Case: Telangana High Court

The Telangana High Court has held that a secured creditor is not barred from proceeding against personal guarantors under the SARFAESI Act merely because insolvency proceedings are pending against the corporate debtor. It observed that where no insolvency proceedings have been initiated against the guarantors before the National Company Law Tribunal (NCLT), there is "no legal argument against a secured creditor proceeding against personal guarantors for realization of its dues" under the...

Telangana High Court Holds Valid Reasons To Believe Justify ED Asset Retention In MMTC Fraud Case

The Telangana High Court on 1 July upheld the Enforcement Directorate's (ED) power to retain seized cash, gold jewellery, precious stones, documents and electronic devices where the adjudicating authority records reasons to believe that such assets may constitute proceeds of crime under the Prevention of Money Laundering Act (PMLA). A Division Bench of Justices P. Sam Koshy and Narsing Rao Nandikonda dismissed an appeal filed by Musaddilal Gems and related entities, while affirming the...

Telangana High Court Upholds Sales Tax On Blended Coffee Sold By Trademark Holder Beyond First Sale

The Telangana High Court has upheld the levy of sales tax on blended coffee sold by a trademark holder. It held that a dealer marketing goods under its own brand name at a point other than the first sale is liable to tax under the Andhra Pradesh General Sales Tax Act. A division bench of Justice P. Sam Koshy and Justice Narsing Rao Nandikonda dismissed the tax revision cases filed by Amalgamated Holdings Limited. Relying on an earlier ruling, it found no reason to interfere with the concurrent...