IT Appellate Authority Must Pass Speaking Order, Hear AO Before Admitting Fresh Evidence: J&K&L High Court

The Jammu and Kashmir and Ladakh High Court has recently held that an appellate authority under the Income Tax law cannot allow a taxpayer to file fresh evidence at the appeal stage without first passing a reasoned order and giving the tax officer a fair chance to respond. A bench of Justice Sanjeev Kumar and Justice Sanjay Parihar said, “We are also of the clear view that the opportunity to lead additional evidence at the appellate stage could not be granted by the First Appellate Authority...

State Cannot Defer MSME Payments Once Work Is Completed; Funds Shortage No Defence: J&K&L High Court

The Jammu & Kashmir and Ladakh High Court has recently held that under the Micro, Small and Medium Enterprises framework, once execution of work is admitted, the State and its instrumentalities cannot defer their obligation to make payment on the plea of paucity of funds or administrative approval. A bench of Justice Wasim Sadiq Nargal observed, “Once the execution of work is admitted, the obligation to make payment stands crystallized and cannot be deferred on the plea of paucity of funds...

Limitation For Plea-Seeking Arbitrator Appointment Begins From Failure Of Opposite Party To Act On Invocation Notice: J&K&L High Court

The High Court of Jammu & Kashmir and Ladakh recently held that an application under Section 11(6) of the Arbitration and Conciliation Act, 1996, which allows a party to approach the court for appointment of an arbitrator when the other side fails or refuses to do so, must be filed within three years from the date of such failure or refusal. The court clarified that the cause of action arises upon such failure or neglect, and once limitation begins to run, it continues without...

Direct Tax Vivad Se Vishwas Act | Revival On Default Applies To Proceedings Initiated By Both Department And Assessee: J&K&L High Court

The Jammu & Kashmir and Ladakh High Court has held that under the Direct Tax Vivad Se Vishwas Act, 2020, failure to comply with the conditions of the scheme results in automatic revival of all proceedings withdrawn earlier, irrespective of whether they were initiated by the assessee or the Income Tax Department. A Division Bench of Chief Justice Arun Palli and Justice Rajnesh Oswal ruled that Section 4(6) of the act applies to “all proceedings and claims” without distinction, and therefore...

J&K & Ladakh High Court Refers Contract Dispute To Arbitration, Leaves Limitation Issue To Tribunal

The High Court of Jammu & Kashmir and Ladakh has recently reiterated that while deciding petitions for appointment of an arbitrator, the court cannot undertake a detailed inquiry into limitation, and such issues must be decided by the arbitral tribunal. The court was hearing four petitions filed under Section 11(6) of the Arbitration and Conciliation Act, seeking appointment of an independent arbitrator to adjudicate disputes arising between Ace Consultants, a proprietorship firm, and...

J&K&L High Court Upholds Income Tax Addition After Taxpayer Gave Inflated Stock Statement To Bank

The Jammu & Kashmir and Ladakh High Court on Wednesday upheld an addition to taxable income made on the basis of a stock statement furnished by a taxpayer to a bank while availing a cash credit facility, holding that the tax authorities were justified in relying on the declaration where discrepancies with the books of account remained unexplained. A Division Bench of Chief Justice Arun Palli and Justice Rajnesh Oswal dismissed an appeal filed by Ajay Food Products challenging an...

Auction Of Pledged Gold Not Governed By SARFAESI: J&K and Ladakh High Court

The High Court of Jammu & Kashmir and Ladakh on Wednesday dismissed writ petitions challenging Axis Bank's proposed auction of pledged gold ornaments, observing that such action does not fall within the ambit of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) since pledges of movable property are excluded under Section 31(b) of the statute. A division bench of Justice Sindhu Sharma and Justice Shahzad Azeem was dealing...

Appellate Court Cannot Reassess Valuation Findings in Arbitration Appeal: Jammu & Kashmir and Ladakh High Court

The High Court of Jammu & Kashmir and Ladakh has held that an arbitral award determining compensation under the National Highways Act cannot be interfered with in a Section 37 appeal merely because another view on valuation is possible. Dismissing two appeals filed by the National Highways Authority of India (NHAI), Justice Javed Iqbal Wani reiterated that Section 37 of the Arbitration and Conciliation Act, 1996 provides only a limited right of appeal. “Section 37 of the Act of 1996...

Venue Of Arbitration Is Seat In Absence Of Contrary Indication: J&K&L High Court

The Jammu & Kashmir and Ladkah High Court has recently reiterated that where an arbitration clause designates a particular place as the “venue” of arbitration and there is no contrary indication, such place must be treated as the “seat” of arbitration, thereby conferring exclusive jurisdiction on courts at that location."It is, thus settled that whenever there is mention of place of arbitration in an arbitration clause as being the venue of arbitration proceedings, it would really...

J&K&L High Court Dismisses Contractor's Arbitration Plea Against Railways After He Issued Unconditional No Claim Certificate

The Jammu & Kashmir& Ladkah High Court on 13 February 2026 held that once a contractor voluntarily executes a supplementary agreement rescinding the original contract and issues an unconditional “No Claim Certificate,” no arbitral dispute survives. A Bench of Justice Sanjeev Kumar dismissed the petition filed by H.P. Singh & Co. under Section 11(6) of the J&K Arbitration and Conciliation Act, 1997, seeking appointment of an independent arbitrator against the Union of India and...

Jammu & Kashmir & Ladakh High Court Upholds 12% Post-Award Interest Despite 18% Rate Under Unamended Arbitration Law

The High Court of Jammu and Kashmir and Ladakh has dismissed an appeal filed by the Union of India challenging an arbitral award that granted 12 percent post-award interest, holding that the statutory 18 percent rate under the unamended law applies only where the award is silent.A Division Bench of Justice Rajnesh Oswal and Justice Rahul Bharti dismissed an appeal filed by the Union of India challenging and award including the grant of 12 percent future interest in favour of K.K. Enterprises...

J&K High Court Sets Aside Interim Order Against Developer Passed By Special Tribunal Without Jurisdiction

The Jammu & Kashmir and Ladakh High Court has set aside a status quo order passed against a real estate developer by the Jammu and Kashmir Special Tribunal, which was functioning as the interim Real Estate Appellate Tribunal. Justice Rahul Bharti held that once a tribunal acknowledges that it lacks jurisdiction, it cannot issue or continue any interim or supplementary directions. Any such directions, the court said, are “nugatory in the eyes of law”. The petition was filed by Royal Omkar...