No Income Tax On RFCTLARR Land Acquisition Compensation: Andhra Pradesh High Court

The Andhra Pradesh High Court on 7 August held that compensation paid for compulsory acquisition of land under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) is exempt from income tax, except in cases covered by Section 46 of the Act. A Single Bench comprising Justice Tarlada Rajasekhar Rao set aside the executing court's orders permitting deduction of tax from compensation awarded to landowners and remanded the...

Writ Against Highways Act Arbitration Award Not Entertainable When Statutory Remedy Available: Andhra Pradesh High Court

The Andhra Pradesh High Court has recently ruled that a party challenging an arbitral award under the National Highways Act, 1956 cannot ordinarily bypass the statutory remedy under the Arbitration and Conciliation Act, 1996. The party cannot directly approach the court under Article 226 of the Constitution“The N.H. Act and the Act, 1996 are complete code. The statute provides the remedy under Section 34 of the Act, 1996 to challenge the award of the arbitrator on specified grounds and any...

Income Tax Authorities Can Condon Delay Despite CBDT Time Limit: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that tax authorities cannot reject an application for condonation of delay merely because it was filed beyond the time limit prescribed by a CBDT circular. The court held that the authorities have discretion under the Income Tax Act to consider genuine hardship while deciding such applications.A Division Bench comprising Justice Ninala Jayasurya and Justice T.C.D. Sekhar observed that Section 119(2)(b) of the Income Tax Act allows tax authorities to accept...

Andhra Pradesh High Court Declines To Interfere With SARFAESI Action, Cites Alternative DRT Remedy

Holding that a litigant with an effective statutory remedy before the Debts Recovery Tribunal cannot ordinarily invoke the High Court's writ jurisdiction, the Andhra Pradesh High Court dismissed a writ petition challenging a Canara Bank communication concerning unhypothecated machinery at an auctioned property. The decision was rendered by a Division Bench of Justice Battu Devanand and Justice A. Hari Haranadha Sarma. The court observed, "From the above factual position, it is evident that an...

Andhra Pradesh High Court Quashes GST Detention Over Expired E-Way Bill After Vehicle Breakdown

The Andhra Pradesh High Court on 16 July held that GST authorities cannot invoke detention proceedings merely because an e-way bill had expired when the delay in delivery of goods was caused by a vehicle breakdown and there was no evidence of tax evasion. A Division Bench of Justices Ninala Jayasurya and T.C.D. Sekhar allowed the writ petition filed by SLV Elite Spaces LLP and directed the GST authorities to drop further proceedings initiated under Section 129 of the GST Act (which provides for...

Auction Purchaser Can Seek Refund If Material Title Defects Were Not Disclosed: Andhra Pradesh High Court

The Andhra Pradesh High Court has directed Indian Bank to refund the entire auction consideration paid by an auction purchaser, along with stamp duty, registration charges, and 9% simple interest, after holding that he could not be compelled to continue with a purchase clouded by title disputes. The court also set aside the sale certificate and the registered sale deed issued in his favour. A Division Bench of Justice Battu Devanand and Justice A. Hari Haranadha Sarma observed that an auction...

AP High Court Sets Aside VAT Orders On ISRO's Satish Dhawan Space Centre, Flags National Interest

The Andhra Pradesh High Court on 22 June set aside VAT assessment orders passed against Satish Dhawan Space Centre SHAR, a unit of the Indian Space Research Organisation, holding that an improper tax burden on an institution engaged in critical space programmes could adversely affect national interest. A Division Bench of Justices R. Raghunandan Rao and T. C. D. Sekhar allowed the writ petition, set aside the assessment orders, and remanded the matter to the assessing authority for fresh...

Absence Of Signature On GST Assessment Order Renders It Legally Invalid: Andhra Pradesh High Court

On 15 June, the Andhra Pradesh High Court held that an unsigned GST assessment order suffers from an inherent legal defect and cannot be sustained in law, reaffirming that statutory orders must bear proper authentication to be enforceable. A Division Bench of Justices R. Raghunandan Rao and T.C.D. Sekhar set aside the impugned assessment order while allowing the writ petition filed by Nominee Works Committee Kalavalla and remanded the matter for fresh adjudication. The judges held: “This Court...

Arbitral Mandate Can Be Extended After Expiry; No Limitation Prescribed: Andhra Pradesh High Court

The Andhra Pradesh High Court has recently reiterated that applications seeking extension of an arbitral tribunal's mandate can be filed even after expiry of the prescribed period and that courts must adopt a liberal approach while considering whether sufficient cause exists for granting such extensions. Relying on the Supreme Court's decision in Rohan Builders (India) Private Limited v. Berger Paints India Limited and its own earlier ruling in Chidepudi Bhanu Srivastava v. Kancharla...

Commercial Courts Act Amendment Lowering Threshold To ₹3 Lakh Took Effect In 2018, Andhra Pradesh HC Rules In 2:1 Ruling

The Andhra Pradesh High Court has, by a 2:1 majority, held that Parliament's 2018 amendment lowering the minimum threshold for commercial disputes from ₹1 crore to ₹3 lakh took effect immediately, bringing such disputes within the commercial courts' framework without any separate State notification.The Court held that the threshold that determines whether a dispute qualifies as a commercial dispute (specified value) is distinct from the monetary limits that determine which court hears it...

Arbitration Venue Cannot Become Seat Where Contra Indicia Exists In Agreement: Andhra Pradesh High Court

The Andhra Pradesh High Court on 7 May held that a mere stipulation in an arbitration agreement that proceedings “shall be held” at Hyderabad does not, by itself, make Hyderabad the juridical seat of arbitration, especially where the agreement separately confers exclusive jurisdiction on civil courts in East Godavari District. A Division Bench of Justices Ravi Nath Tilhari and Balaji Medamalli allowed a Commercial Court Appeal filed by Carolyn Joyce Tadamala against Royal City Developer Private...

Borrower Consent Mandatory For SARFAESI Sale At Reserve Price: Andhra Pradesh High Court

The Andhra Pradesh High Court has recently held that a bank cannot confirm the sale of a secured asset in a SARFAESI auction when the highest bid matches the reserve price unless the borrower consents. “The sale of the secured asset in the auction exactly at the reserve price cannot be confirmed by the Authorised Officer without the consent of the borrower,” the Court held. A Division Bench of Justice Cheekati Manavendranath Roy and Justice V. Gopala Krishna Rao dismissed writ petitions filed...