Reduction In Share Capital Amounts To Transfer Of Capital Asset Under Income Tax Act : Supreme Court

The Supreme Court (recently on January 02) reiterated that reduction in share capital is covered under Section 2(47) of the Income Tax Act, 1961, which talks about transfer of a capital asset. It explained that such reduction would be come under the expression “sale, exchange or relinquishment of the asset” used in the provision.For reference, the concerned portion of Section 2(47) reads as:“transfer' in relation to a capital asset, includes, (i) the sale, exchange or relinquishment of the...

SEBI v. Sahara| Supreme Court Asks SEBI To Examine Sahara Group's Proposed JV Agreement For Versova Land

The Supreme Court today (January 8) directed the Security Exchange Board of India (SEBI) to examine Sahara Group's Joint Venture Agreement proposed for developing latter's Versova land in Mumbai and file sealed cover response before the Court. The proposed developer for the project is also ordered to deposit Rs.1000 Crores with the Court in 15 days from today. The bench of CJI Sanjiv Khanna and Justices MM Sundresh and Bela Trivedi was hearing a batch of contempt petitions against Sahara...

Supreme Court Dismisses Builder's Plea To Confine Insolvency Process To Single Real Estate Project

The Supreme Court recently dismissed an appeal seeking to confine Corporate Insolvency Resolution Process (CIRP) of Spaze Towers Pvt. Ltd. (Corporate Debtor) to a single real estate project of the company located in Gurugram.A bench of Justice Abhay Oka and Justice Augustine George Masih dismissed an appeal against the decision of National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi rejecting an application to confine the CIRP of the corporate debtor to a single...

'IBC A Complete Code' : Supreme Court Disapproves Of High Court Exercising Writ Jurisdiction To Interdict CIRP

Disapproving a High Court's order interdicting a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), the Supreme Court recently observed that the IBC is a complete code in itself, having sufficient checks and balances, and thus, the exercise of supervisory and judicial review powers by High Courts demands rigorous scrutiny and judicious application.Allowing the appeal of a successful resolution applicant against Karnataka High Court's interdicting of...

High Court's Interference Under Article 226/227 Permissible Only If Arbitral Tribunal's Order Is Patently Perverse : Supreme Court

The Supreme Court today criticized the High Court's intervention under its Writ Jurisdiction in the Arbitral Proceedings, where it had directed the Arbitral Tribunal to grant additional time for one party to cross-examine another, despite the Tribunal already having provided ample time for cross-examination.Setting aside the High Court's decision, the bench comprising Justices PS Narasimha and Manoj Misra observed that the High Court can interfere with the impugned order under its Writ...

Tax Law : Important Judgments By Supreme Court In 2024

As the year 2024 nears its end, LiveLaw brings to you a summary of important Supreme Court judgments of the year rendered in connection with Tax Law. The same are as follows:1. Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme CourtCase: M/s. K.P. Mozika v Oil and Natural Gas Corporation Ltd. & Ors. [2024 LiveLaw (SC) 26]In this case, a bench of Justice Abhay S Oka and Justice Rajesh Bindal held that...

IBC | Moratorium Does Not Extinguish Claim : Supreme Court

The Supreme Court has held that a moratorium declared under Section 14 of the Insolvency and Bankruptcy Code, 2016 will not extinguish a claim. The Court stated that Section 14 bars the institution/continuation of legal proceedings against the corporate debtor, transfer of assets, enforcement of security interest etc."If the argument that the claims of all the creditors of the Corporate Debtor are extinguished once the moratorium comes into force is accepted, no creditor would be able to file a...

IBC | Financial Creditor Can Submit Claim Even If There Is No Default Of Debt : Supreme Court

The Supreme Court has observed a default is not necessary for a debt to become a financial debt under the Insolvency and Bankruptcy Code, 2016. A bench comprising Justice Abhay S Oka and Justice Augustine George Masih held that under Section 5(7) of the IBC, any person to whom financial debt is owed becomes a Financial Creditor even if there is no default in payment of debt. "Therefore, for submitting the claim by a Financial Creditor, there is no requirement of actual default," the Court...

'Contrary To Statute' : Supreme Court Pulls Up ED For Arguing That Stringent PMLA Bail Rigours Will Apply To Women

The Supreme Court on Thursday (December 19) pulled up the counsel representing the Enforcement Directorate (ED) for contending that rigorous bail conditions under the Prevention of Money Laundering Act (PMLA) will apply to women.A bench of Justice Abhay Oka and Justice Augustine George Masih was hearing a petition challenging the denial of bail to woman accused of money laundering.“If submissions are going to be made by Union of India contrary to express statute, we will ask Attorney General to...

Summons Under PMLA Can't Be Quashed Merely Because Accused Was Discharged In Predicate Offence : Supreme Court

The Supreme Court yesterday (December 19) set aside an order of the Gauhati High Court which quashed summons under the Prevention of Money Laundering Act, 2002, (PMLA) to investigate proceeds of crime involved money laundering on grounds that the Respondent was discharged in scheduled offence (offences related to property in this case). A bench of Justices MM Sundresh and Aravind Kumar was hearing a challenge to the judgment of the Gauhati High Court dated January 3, whereby the summons...

Coconut Oil Classifiable As 'Edible Oil' For Central Excise Tariff; If Sold As Cosmetic, Taxable As 'Hair Oil' : Supreme Court

The Supreme Court has held that pure coconut oil, packaged and sold in small quantities ranging from 5 ml to 2 litres, would be classifiable as 'Edible oil' for the purposes of the Central Excise Tariff Act, 1985. It will be classifiable as "hair oil" if it is packaged and sold as a cosmetic."we are of the opinion that pure coconut oil sold in small quantities as 'edible oil' would be classifiable under Heading 1513 in Section III-Chapter 15 of the First Schedule to the Central Excise Tariff...

S. 33 Arbitration Act | Clarification On Award Can Be Issued Even After Arbitral Tribunal Becomes Functus Officio : Supreme Court

The Supreme Court observed that although the Arbitral Tribunal becomes functus officio after passing an award, it would still retain the limited jurisdiction to clarify or correct errors in an award under Section 33 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). The bench comprising Justices Abhay S. Oka and Ujjal Bhuyan dismissed the appeal filed against the Delhi High Court's decision allowing the respondent to seek clarification from the Arbitral Tribunal about whether...