Supreme Court Strikes Down Expulsion of Bihar MLC as Disproportionate, Orders Immediate Reinstatement Private Banks Not Subject to Writ Jurisdiction Under Article 226: Punjab & Haryana High Court Mere Allegation of Forgery is Not Enough: Madhya Pradesh High Court Dismisses Second Appeal in Partition Dispute When a Case is Made Out for Bail, Courts Should Not Hesitate: Kerala High Court Allows Bail Despite Commercial Quantity of Drugs Seized Retailers Cannot Be Prosecuted for Manufacturer’s Fault" – Karnataka High Court Quashes Case Against Pesticide Dealers Mere Issuance of a Cheque Does Not Prove Legally Enforceable Debt": Delhi High Court Upholds Acquittal in Cheque Dishonor Case Courts Cannot Ignore Urgent Repairs When Public Safety is at Stake: Calcutta High Court Upholds Trial Court's Order Mutation Entries Do Not Confer Ownership: Bombay High Court Rejects Premature Dismissal of Partition Suit No Substantial Question of Law – High Court Cannot Re-Appreciate Evidence Under Section 100 CPC: Andhra Pradesh High Court Injunction Cannot Be Granted Without Proof of Possession: Allahabad High Court Quashes Relief in Land Dispute Section 197 CrPC | Sanction for Prosecution is a Shield, Not a Sword: Supreme Court Quashes Criminal Case Against BIS Officer Landlord is the Best Judge of His Needs: Supreme Court Orders Eviction in Favor of Landowner Vijaya Bank TT Scam | Supreme Court Acquits Jeweller in ₹6.7 Crore Vijaya Bank Fraud Case, Orders Return of 205 Gold Bars Procurement Preference for Small Enterprises is a Legal Mandate, Not a Mere Policy: Supreme Court Rules in Favor of MSMEs Revisional Jurisdiction Cannot Be Invoked Against Interlocutory Orders of Commercial Courts: Orissa High Court Declares Section 8 Bar Absolute Victim’s Testimony Must Be of Sterling Quality to Be Sole Basis of Conviction: Kerala High Court Reduces Sentence of Pastor Convicted for Repeated Rape of Minor Providing Set-Top Boxes to Subscribers Constitutes Sale”: Karnataka High Court Upholds VAT on Tata Play Limited Mere Registration of FIR Cannot Justify Denial of Passport Renewal: Jammu & Kashmir and Ladakh High Court

"TAXATION LAW" Digest

Taxation Law – VAT - Taxation of Set-Top Boxes (STBs) – Whether STBs are Goods – Interpretation of Section 2(15) KVAT Act, 2003 – The petitioners challenged the Karnataka Appellate Tribunal’s decision, which held that Set-Top Boxes (STBs) provided to subscribers for a fee constitute a ‘sale’ under Section 2(29)(d) of KVAT Act, 2003 – Petitioners argu...

Service Tax – Lottery Distributors – Principal-Agent vs. Principal-to-Principal Relationship – No Service Tax Liability – The Government of Sikkim entered into agreements with the respondents for the sale of lottery tickets – The agreements provided for the outright sale of tickets, with unsold tickets being returned for destruction to ensure transparency – The ...

Taxation Law - Fixed Place Permanent Establishment (PE) – Business Connection – No Fixed Place PE Established – Test of Disposal Not Satisfied – The Revenue contended that Nokia OY had a Fixed Place PE in India through its subsidiary, NIPL – The Court examined whether a fixed place of business was at the disposal of the assessee for conducting its business – Hel...

Taxation Law - Admissibility of Additional Evidence – Rule 46A of the Income Tax Rules, 1962 – Tribunal's Action Justified – The appellant challenged the ITAT's refusal to admit additional evidence regarding a Will that was not presented during the assessment or CIT(A) stages – Held: Rule 46A conditions were not met, as no application for admitting new evidence was ...

Taxation Law  – Withholding Tax under Section 197 Income Tax Act  – Assessing Officer must consider previous years' tax treatment – The Court held that under Rule 28AA of the Income Tax Rules, the Assessing Officer (AO) is required to consider the past four years' tax history before issuing a withholding tax certificate – Since in the previous assessment y...

Income Tax – Penalty under Section 271AAA – Interpretation of "Undisclosed Income" – Partial Relief Granted – The appellant challenged the penalty imposed on his total assessed income under Section 271AAA – Held: The imposition of penalty is not automatic; the Assessing Officer must establish the existence of "undisclosed income" as defined in the ...

Taxation Law - Sales Tax – Exemption Under PSI 1993 – Whether Withdrawable After 2002 Amendment – Held: No – The State of Maharashtra granted tax exemption to the respondent under PSI 1993 based on Eligibility Certificate (1998) and Entitlement Certificate (1998) – The 2002 amendment to Section 8(5) of CST Act imposed a new requirement for submitting Form ‘C&rsq...

Taxation Law - Section 80IA of the Income Tax Act  - Transfer Pricing – Use of Indian Energy Exchange (IEX) Rates as External CUP – IEX Rates Not Comparable to SEB Rates – The Revenue challenged the ITAT’s decision to reject IEX rates as a comparable uncontrolled price (CUP) for determining ALP under Section 80IA(8) of the Act for electricity transferred from the Asses...

Writ – Taxation Law - Exemption under Section 80G – Denial of Renewal – Non-Charitable Use of Funds Not Proven – The Commissioner of Income Tax rejected the petitioner-Trust’s application for continuation of exemption under Section 80G of the IT Act on grounds that the Trust allegedly did not engage in charitable activities and misused funds by making donations to unr...

Taxation Law – Compounded Rate of Tax – Bakery Products and Beverages – Petitioners, dealers in bakery products and beverages, contested the denial of compounded tax rate under Section 8(c)(i) of the Kerala Value Added Tax Act for the turnover of packaged bakery items – Assessing Authorities applied regular tax rates under Section 6 for resale items – Appellate Author...