Madras High Court Quashes GST Demand On GAIL, Says No Recovery If Tax Already Paid

The Madurai Bench of the Madras High Court has quashed a show cause notice issued to GAIL (India) Ltd. under Section 76 CGST Act, holding that recovery proceedings cannot be sustained where the tax collected has already been remitted to the Government, even if paid through another GST registration of the same entity. Section 76 of the CGST Act, 2017 provides that any person who collects an amount as representing tax must forthwith pay the same to the Government, irrespective of whether the...

Madras High Court Holds Cut Tobacco Processed With Jaggery Water Is Unmanufactured Tobacco

The Madras High Court has recently held that cut tobacco processed by curing with jaggery water and sold in cut form would be classifiable as unmanufactured tobacco, setting aside advance rulings that had described it as manufactured chewing tobacco and subjected it to a higher compensation cess under GST.The court set aside the rulings of the Authority for Advance Ruling and the Appellate Authority for Advance Ruling, as well as a single judge's order that had upheld the description of the...

Madras High Court Upholds Partial Setting Aside Of Arbitral Awards In Railway Contracts Dispute, Cites GCC Bars

The Madras High Court recently upheld the partial setting aside of arbitral awards in a railway contracts dispute, holding that claims granted by an arbitral tribunal contrary to express contractual prohibitions under the General Conditions of Contract (GCC) are unsustainable.The court also observed that, in the facts of the case, the contractor's issuance of a “No Claim Certificate” and the agreed GCC clauses barred it from raising further claims against the Railways. A Division Bench of...

Depreciation In Sale–Leaseback Cannot Be Denied On Mere Suspicion: Madras High Court

The Madras High Court on 20 April 2026 held that under the Income Tax Act, 1961, a taxpayer is entitled to claim deduction of accrued construction expenses and depreciation arising from sale and leaseback transactions. It ruled that such transactions cannot be treated as colourable devices merely because they result in tax advantages. A Division Bench comprising Justices G. Jayachandran and Shamim Ahmed dismissed the appeals filed by the Income Tax Department under Section 260-A and affirmed...

Madras High Court Holds Post-Search Return Invalid In Block Assessment, Rejects Kerala Roadways' Claim

The Madras High Court on 7 April, held that a return filed after the initiation of search proceedings and beyond the due date cannot qualify as a valid disclosure to exclude such income from undisclosed income in block assessment under the Income Tax Act. A Division Bench of Justices G. Jayachandran and R. Sakthivel rejected the Kerala Roadways appeal. It partly accepted one of the Revenue's appeals and fully accepted another, while deciding issues on block assessment, revisional powers, and...

MSMED Act Overrides Arbitration Act In MSME Cases; 75% Pre-Deposit To Challenge Award Mandatory: Madras HC

The Madras High Court has held that in arbitration under the Micro, Small and Medium Enterprises Development Act, 2006, while the procedure is governed by the Arbitration and Conciliation Act, 1996, key substantive provisions such as the mandatory 75% pre-deposit for challenging an award will prevail in case of conflict. The court clarified that only those provisions of the Arbitration Act apply which are not inconsistent with the MSMED Act. Justice Abdul Quddhose observed that "MSMED Act is a...

RERA Can Probe Developers' Financial Affairs; Madras High Court Remands Aavisa Township Dispute To TNRERA

The Madras High Court has recently held that authorities under the Real Estate (Regulation and Development) Act, 2016 can examine the “affairs” of promoters (developers), including financial dealings, while dealing with complaints by homebuyers. It set aside orders of TNRERA and TNREAT and remanded the Aavisa Golf Township dispute for fresh consideration, including whether the Kotak Mahindra entities qualify as “promoters” under the Act. A Division Bench of Justice R. Suresh Kumar and Justice...

Madras High Court Rejects Challenge To 'GANESHA' Trademark, Allows Coexistence Of Similar Marks

The Madras High Court has recently dismissed an appeal by Ganesh Consumer Products Ltd. against the registration of the “GANESHA” trademark in favour of Shankar Industries, holding that similar marks can coexist in limited situations, including where territorial restrictions reduce the likelihood of conflict. Justice Senthilkumar Ramamoorthy upheld the September 11, 2024, order of the Registrar of Trade Marks, which granted registration of device mark No. 1831646 in Class 30 to Shankar...

No Bad Debt Deduction From Taxable Income Without Actual Write-Off: Madras High Court

The Madras High Court has held that a taxpayer cannot claim a bad debt deduction merely by declaring a debt as irrecoverable and must comply with statutory conditions requiring an actual write-off in its books. A Division Bench of Justice G. Jayachandran and Justice Shamim Ahmed observed, “Merely stating that a bad and doubtful debt is an irrecoverable is not sufficient to claim deduction. Appropriate treatment in the accounts, together with compliance of the conditions in sections 36(1)(vii),...

Madras High Court Refuses To Fast-Track Karti Chidambaram's NCLT Plea Seeking Defreezing Of Bank Account

The Madras High Court on Thursday refused to direct the National Company Law Tribunal (NCLT), Chennai Bench, to expeditiously dispose of an application filed by Karti P. Chidambaram, son of former Union Minister P. Chidambaram, in PMLA proceedings against him, seeking defreezing of his bank account, holding that such directions would place “unnecessary pressure” on judicial forums. A Division Bench of Justice S.M. Subramaniam and Justice K. Surender said constitutional courts must exercise...

Madras High Court Dismisses Actress Tamanna Bhatia's Rs 1 Crore Damages Claim Against Soap Maker

The court held that use of an actress’s image after expiry of an endorsement agreement amounts to violation of personality and privacy rights, but found no evidence linking the company to the alleged use.

Lottery Ticket Discount Not “Commission” Absent Payment Or Credit, No TDS Applicable: Madras High Court

The Madras High Court on 9 April held that the difference between the face value of lottery tickets and the discounted price at which a taxpayer sells them to dealers does not constitute “commission.” Therefore, it is not subject to tax deduction at source (TDS) under Section 194G of the Income Tax Act. The Division Bench of Justices G. Jayachandran and Shamim Ahmed dismissed the Revenue's appeal and upheld the Tribunal's order in favour of Martin Lottery Agencies Ltd. The judges observed: ...