Deduction Can't Be Availed On Expenditure Incurred For Overseeing Project Of Holding Company: Telangana High Court

The Telangana High Court has held that deductions cannot be availed on expenditures incurred for overseeing the project of holding a company.The bench of Justice P. Sam Koshy and Justice Laxmi Narayana Alishetty has observed that, as per Section 37 of the Income Tax Act, 1961, the prerequisites for allowing deduction are that the expenditure should have been incurred in respect of a business carried on by the assessee and should be spent wholly and exclusively for its own business. The bench...

MSMED Act Prevail Over Arbitration Act, Seller Can Approach Facilitation Council Even In Presence Of Arbitration Act: Telangana High Court

The Telangana High Court bench of Justice B. Vijaysen Reddy held that the provisions of the MSMED Act, 2006 will prevail over the Arbitration and Conciliation Act, 1996. The bench held that even if parties have an arbitration agreement, if the seller falls under the purview of the MSMED, it has the right to seek resolution through the designated authority for its claims. Brief Facts: The Applicant, engaged in electricity production in Gurha, Bikaner, Rajasthan, sought to purchase...

Section 9 IBC Petition Does Not Bar Arbitration Under Section 11(6) Of Arbitration Act: Telangana High Court

The Telangana High Court bench of Chief Justice Alok Aradhe has held that the mere filing of such petition under Section 9 of IBC before NCLT does not bar initiation of proceeding under Section 11(6) of the Arbitration and Conciliation Act, 1996. The bench held that there is no statutory provision which bars a party from initiating the proceeding under Section 11 of the Arbitration Act. Section 9 of the IBC deals with the application for initiation of the corporate insolvency resolution...

Scope of Power Of High Court Under Section 11 Is Extremely Limited, Court Can't Go Into Disputed Questions Of Facts: Telangana High Court

The Telangana High Court bench of Justice K. Lakshman has held that the scope of power of the High Court under Section 11 of the Arbitration and Conciliation Act, 1996 is extremely limited. It held that the court cannot go into disputed questions of facts which are to be decided by the arbitrator. Section 11 of the Arbitration and Conciliation Act, 1996 deals with the appointment of arbitrators by the courts. It states the procedure for appointing arbitrators when parties fail to agree...

Court Must Assign Reasons When Releasing Amount Under Section 19 of MSME Act: Telangana High Court

The Telangana High Court bench of Chief Justice Alok Aradhe and Justice Anil Kumar Jukanti has held that the court while dealing with a prayer under Section 19 Micro, Small and Medium Enterprises Development Act, 2006 to release the amount has to assign reasons for releasing such percentage of the amount. Section 19 of the MSME Act provides that the court may permit the release of a portion of the deposited amount to the supplier pending the decision on the application to set aside...

Court Under Section 11(6) Must Determine Existence And Validity Of Arbitration Agreement: Telangana High Court

The Telangana High Court bench of ChiefJustice Alok Aradhe has dismissed an application filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 for the appointment of an arbitrator noting that the party failed to establish prima facie evidence of the existence of valid arbitration agreement. The bench held that the court while exercising the jurisdiction under Section 11(6) must conclusively determine the existence and validity of the arbitration agreement as the same ...