Director Can't Challenge Income-Tax Search Against Company In Individual Capacity: Karnataka High Court

On 6 October, the Karnataka High Court held that a company director cannot challenge an income-tax search and seizure conducted against the company in his individual capacity when the search is not directed against him personally. Justice B M Shyam Prasad found force in the Revenue's contention that Obedulla A, a director of Attica Gold Private Limited, could not challenge the search against the company in his individual capacity. The Bench observed: “If any person could have a grievance with...

DRT Sale Certificate Does Not Require Compulsory Registration: Madhya Pradesh High Court

The Madhya Pradesh High Court has held that a sale certificate issued in favour of a successful auction purchaser in proceedings before the Debt Recovery Tribunal (DRT) does not require compulsory registration. A Single-Judge Bench comprising Justice Sandeep N. Bhatt allowed Sukh Sagar Agro Industries' petition challenging the refusal to file/record its sale certificate in Book No. I. Sukh Sagar Agro had purchased the property in an auction conducted by the Recovery Officer, DRT-Jabalpur, who...

Calcutta High Court Rejects Revenue's Bid To Reopen Facts In ₹9.32 Crore Unlisted Share Sale Addition

The Calcutta High Court on 5 October dismissed the Revenue's appeal against deletion of a Rs. 9.32 crore addition relating to sale proceeds from unlisted equity shares of Superdeal Resources Private Limited, finding that the Tribunal's conclusions were based on the evidence on record. A Division Bench comprising Justices Rajarshi Bharadwaj and Sudip Deb held that the Revenue cannot seek a fresh examination of factual findings in an appeal under Section 260A of the Income Tax Act in the absence...

Kerala High Court Upholds Rejection Of South Indian Bank's ₹52 Cr. Additional Bad-Debt Claim To ITAT

The Kerala High Court on 28 September held that the Income Tax Appellate Tribunal (ITAT) cannot refuse to examine a bad-debt disallowance on merits merely because a separate additional claim was raised before the first appellate authority. A Division Bench comprising Justices Devan Ramachandran and Basant Balaji remanded South Indian Bank's Rs. 14.10 crore bad-debt disallowance to the ITAT for fresh consideration, while upholding the rejection of the Bank's separate Rs. 52 crore additional...

Customs Dispute Over Car, Cash Confiscation Go To CESTAT, Not Revision Authority: Madras High Court

The Madras High Court on 1 October held that a customs dispute concerning confiscation of a vehicle and Indian currency seized in connection with alleged gold smuggling has to be challenged before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and not through a revision application before the Central Government. Justice C. Saravanan granted S. Michael Kennadi liberty to approach the CESTAT against the First Appellate Authority's order, while declining to interfere with the...

Madras High Court Warns Bank-Initiated LOCs Could Leave Debtors At “Mercy Of Wolves Of Creditors”

The Madras High Court has held that a bank manager's letter to the Bureau of Immigration seeking issuance of a Look Out Circular cannot be treated as “law” for restricting a citizen's fundamental right to travel abroad. The court warned that allowing nationalised banks to seek Look Out Circulars (LOCs) against debtors could embolden private creditors and non-banking financial companies (NBFCs) to seek similar restrictions, leaving debtors “at the mercy of wolves of creditors.”“'Law' under...

Delhi High Court Issues Summons On Actor, BJP MP Kangana Ranaut's Personality Rights Plea

The Delhi High Court on Thursday issued summons in a suit filed by Bollywood actor and BJP MP Kangana Ranaut seeking protection of her personality rights. Justice Vikas Mahajan also issued notice on Ranaut's application seeking an interim injunction against the alleged misuse of her persona. Appearing for Ranaut, her counsel submitted that the actress was being targeted through pornographic and obscene material circulated on social media. The counsel also drew the court's attention to...

Delhi High Court To Pass Order On Vijay Deverakonda's Plea Seeking Protection Of Personality Rights

The Delhi High Court on Thursday said that it will pass an order on actor Vijay Deverakonda's plea seeking protection of his personality rights. Justice Vikas Mahajan briefly heard the matter and issued summons in the suit and notice on Deverakonda's application seeking an interim injunction. Senior Advocate Swathi Sukumar, appearing for the actor, submitted that Deverakonda was aggrieved by fake endorsements and impersonation, with various individuals allegedly posing as his agents. She also...

Himachal Pradesh High Court Sets Aside Award Over Unilateral Arbitrator Appointment Without State's Consent

The Himachal Pradesh High Court has emphasized that where a party consistently objects to the unilateral appointment of an arbitrator, seeks appointment of an independent arbitrator, and does not consent to the tribunal's constitution, such objection cannot be treated as waived.The court further noted that despite the absence of consent, the arbitrator proceeded with the arbitration and failed to decide the State's application challenging his appointment under Section 13 of the Arbitration and...

SARFAESI | Secured Creditor's Prior Charge Over Property Takes Precedence Over State VAT Charge: Gujarat High Court

The Gujarat High Court has reiterated that a secured creditor's charge over a property will take precedence over a subsequent charge created by the State VAT Department. The court applied the principle to a property purchased by auction purchasers in proceedings under the SARFAESI Act.The court relied on its earlier rulings, as well as the Supreme Court's judgment in Punjab National Bank v. Union of India.A division bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati observed, “once...

Electricity Subsidy Linked To Power Charges Is Revenue Receipt: Supreme Court

The Supreme Court has held that the “purpose test” is the governing test for deciding whether a subsidy is a capital or revenue receipt, and that the purpose must be determined from the scheme as a whole rather than from one broad policy objective.“The “purpose test” cannot be applied by isolating one general object clause while disregarding the operative provisions of the scheme. The scheme must be read as a whole, and when so read, the general object of industrial development is implemented...

Attempt To Transfer Property To Defeat Creditors Not 'Act Of Insolvency' Under Provincial Insolvency Act: Madras HC

The Madras High Court at Madurai recently held that an attempt by a debtor to transfer property to defeat creditors may justify attachment before judgment under Order 38 of the Code of Civil Procedure (CPC). However, such an attempt by itself does not amount to an “act of insolvency” under Section 6 of the Provincial Insolvency Act, 1920.“Attempting to transfer one's property to defeat the interest of the creditors can be a good ground for attaching the property before judgment under Order 38 of...