Benefit Of Input Tax Credit Can't Be Reduced Without Statutory Sanction : Supreme Court

The Supreme Court recently held that Rule 21(8) of the Punjab Value Added Tax Rules, 2005, which was notified on January 25, 2014, could not be applied to transactions before April 1, 2014, as the enabling amendment to Section 13 of the parent statute, the Punjab Value Added Tax Act, 2005, was effective from that date.This means businesses that bought goods at a higher tax rate before this date are not subject to the limitation imposed by Rule 21(8) when claiming ITC, even if the tax rate was...

Charitable Trust's Registration For Income Tax Exemption To Be Decided Based On Proposed Activities & Not Actual Activities : Supreme Court

The Supreme Court reiterated that when a charitable trust applies under Section 12-AA of the Income Tax Act (“Act”) for income tax exemptions (under Sections 10 and 11), the tax authorities should decide on the registration based on the charity's "proposed activities" than its actual activities, as stated in the Ananda Social case. The Court, however, clarified that mere registration under Section 12-AA would not entitle a charitable trust to claim exemption under Sections 10 and 11...

Income Tax Act | No Penalty Under S.271AAA If Undisclosed Income Is Admitted, Explained & Tax Paid Even With Delay : Supreme Court

The Supreme Court, while determining a tax matter, observed that the undisclosed income, under Section 271AAA(1) of the Income Tax Act, surrendered by the assessee during the search, is not sufficient to levy the penalty. Essentially, the said provision talks about penalty where a search has been initiated. The explanation reads as: “(a) “Undisclosed income” means— (i) any income of the specified previous year represented, either wholly or partly, by any money, bullion, jewellery or...

'Every Statute Prima Facie Prospective Unless Stated Otherwise' : Supreme Court Says 2002 Amendment To CST Act Won't Affect Accrued Rights

The Supreme Court yesterday (on February 12) held that though after the amendment of Section 8(5) of the Central Sales Tax Act, the State Government's right to grant exemption from tax has ceased to exist, the amendment is prospective. Thus, it would not apply to the cases where an absolute exemption has already been granted.The amended Act nowhere stipulates that rights previously accrued stand nullified or all previous exemptions stand cancelled or revoked., the Bench of Justices P.S....

Concept Of PMLA Not To Keep Accused Somehow In Jail : Supreme Court To ED

The Supreme Court today (February 12) while granting bail to an IAS officer accused in the Chhatisgarh liquor scam observed that provisions of PMLA cannot be misused to keep individuals in jail. The bench comprising Justice Abhay S Oka and Justice Ujjal Bhuyan, was considering the bail petition of an accused in a PMLA matter arising out of the alleged Chhattisgarh liquor scam. Justice Oka noted that the accused was arrested on August 8, 2024, and since then remained in custody despite the...

Supreme Court Seeks Data From High Courts On Pendency Of Commercial Disputes & Available Commercial Court Infrastructure

In a matter pertaining to implementation of the Commercial Courts Act, 2015, the Supreme Court today called on High Courts across the country to furnish data on pendency of commercial disputes and the infrastructure available for dealing with the same.A bench of Justices KV Viswanathan and N Kotiswar Singh was dealing with a petition seeking directions for time-bound implementation of the Commercial Courts Act, 2015. Earlier, when the matter was taken up in 2023, the Court had asked Union of...

'Oral Undertaking Falls Within Scope Of Arbitration Clause' : Supreme Court Upholds Award Against Husband For Operation In Wife's Demat Account

The Supreme Court today (February 10) held that an oral contract undertaking joint and several liability falls within the scope of an arbitration clause.Holding so , the Court affirmed an arbitral award against a husband, finding him jointly liable for the award due to a debit balance in a joint demat account registered in his wife's name.The Court rejected the contention that the husband's liability constituted a "private transaction" beyond the scope of arbitration. Instead, it held that...

Income Tax Act | Offence Committed Before Show-Cause Notice Compoundable As Covered By 'First Offence' In Compounding Guidelines: Supreme Court

The Supreme Court on January 7 set aside the Gujarat High Court's judgment dated March 21, 2017, through which the rejection to the compounding application of the Appellant for the assessment year 2013-2014, for having filed the belated income tax return, was upheld on the ground that only for the "first offence" compounding of offence is possible. Since the Appellant had filed delayed income tax for 2011-2012 and his compounding application was accepted, it now cannot be accepted.However,...

Supreme Court Reiterates Narrow Scope Of Interference Under Section 37 Arbitration Act

The Supreme Court reiterated that in appeal under Section 37 of the Arbitration and Conciliation Act, the Court has a narrower scope to review the arbitral award if the award has already been upheld under Section 34 (application for setting aside arbitral awards). Reliance was placed on the recent decision in Larsen Air Conditioning and Refrigeration Company vs Union of India, wherein the Court had said:“The limited and extremely circumscribed jurisdiction of the court under Section 34 of the...

IBC | For Resolution Plan Involving Combination, Prior Approval Of Competition Commission Mandatory Before CoC Examination : Supreme Court

The Supreme Court on January 29, by 2:1 majority, observed that a resolution plan under the Insolvency and Bankruptcy Code, containing a proposed combination(a merger or amalgamation of entities), should only be placed before the Committee of Creditors (CoC), after it has been approved by the Competition Commission of India (CCI).In this regard, the Court referred to Section 31(4) proviso of the IBC. This proviso talks about the approval of the resolution plan and its proviso reads as:“Provided...

Adani-Hindenburg Matter : Supreme Court Affirms Registry's Refusal To Accept Plea To Direct SEBI To Complete Probe

The Supreme Court on January 27 dismissed a litigant's challenge to an order passed by the Registrar of the Court refusing to register his application for direction to the Securities and Exchange Board (SEBI) to file its investigation report in the Hindenburg Research-Adani Group matter.A bench of Justices JB Pardiwala and R Mahadevan passed the order rejecting a Miscellaneous Application filed by Advocate Vishal Tiwari.To recap, on January 3, 2024, while refusing to order SIT/CBI investigation...

Arbitration Act | Appellate Courts Can't Reassess Awards, Must Limit Enquiry On Public Policy Breach : Supreme Court

The Supreme Court reaffirmed that arbitral awards should only be interfered with in cases of perversity, violation of public policy, or patent illegality. It emphasized that appellate courts cannot reassess the merits of awards and must limit their inquiry to whether the award breaches Section 34(2)(b)(ii) of the Arbitration Act i.e., if the award is against the public policy of India.The bench comprising Justices Abhay S Oka and Ujjal Bhuyan was hearing the case where the dispute arose...