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...

Telangana HC Restores DBS Technology Services' Tax Deduction Claim, Says Technical Lapse Cannot Prevail

The Telangana High Court on 3 July held that the Income Tax Department cannot reject a genuine claim for deduction on the sole ground of a technical or procedural lapse if the taxpayer is otherwise entitled to the benefit. A Division Bench of Justices P. Sam Koshy and Suddala Chalapathi Rao set aside the order rejecting the deduction claimed by DBS Technology Services India Private Limited and directed the Assessing Officer to reconsider the company's claim in accordance with law. The judges...

Telangana High Court Dismisses Plea To Enforce €247.61 Million Arbitral Award Against RUSAL And Subsidiaries

The Telangana High Court has recently dismissed an execution petition filed by German company OWH SE i.L. seeking enforcement of London Court of International Arbitration (LCIA) awards against Russian aluminium producer United Company RUSAL International P.J.S.C. (RUSAL) and its subsidiaries. The court held that it lacked territorial jurisdiction to entertain the petition.The court stayed the operation of its judgment until June 2, 2026, to enable OWH to prefer an appeal.While doing so, Justice...

Suspension Of Fraud Classification Does Not Automatically Nullify Criminal Investigation: Telangana High Court

The Telangana High Court has held that suspension of a bank's administrative decision classifying a borrower's account as "fraud" does not prevent investigation into cognizable offences. The court observed that the CBI's jurisdiction to investigate cognizable offences does not derive its authority merely from the bank's administrative fraud classification. A bench of Justice Nagesh Bheemapaka dismissed a writ petition filed by Vivimed Labs Ltd and its Managing Director challenging the CBI's...

'Enforced' Is Not The Same As 'Enforceable' For Post-Arbitral Award Interim Relief: Telangana High Court

The Telangana High Court has recently held that an award-holder can invoke Section 9 of the Arbitration and Conciliation Act to seek interim protection until an arbitral award is actually enforced. The remedy remains available even after the award becomes enforceable. A Division Bench of Justices Moushumi Bhattacharya and Gadi Praveen Kumar ruled that the expression "before it is enforced" in Section 9 refers to the completion of enforcement proceedings. It cannot be equated with the stage when...

Rent For Furniture In Commercial Lease Not Taxable As Deemed Sale: Telangana High Court

The Telangana High Court on 3 July held that rent received from leasing commercial buildings along with furniture, fixtures and other amenities cannot be taxed as a transfer of the right to use goods under the Andhra Pradesh Value Added Tax Act, 2005 (APVAT Act) or the Andhra Pradesh General Sales Tax Act, 1957 (APGST Act), where the transaction is essentially one of renting immovable property and no exclusive right over the goods is transferred to the tenant. A Division Bench of Justices P....

Post-Arbitral Award Interim Relief Does Not Require 'Exceptional Circumstances': Telangana High Court

An award holder can seek interim protection after an arbitral award becomes enforceable and need not demonstrate exceptional circumstances to obtain such relief, the Telangana High Court has held while restoring a petition seeking disclosure of the award debtor's assets. A division bench of Justices Moushumi Bhattacharya and Gadi Praveen Kumar set aside a Commercial Court order that had rejected KPB Consumers' plea for post-award interim relief. The court held that the Commercial Court's...