Corporate
'Don't Blindly Trust AI'; Bombay High Court Quashes Income Tax Assessment Passed On Unverified AI-Generated Case Laws
The Bombay High Court has quashed an income tax assessment after noting that the Assessing Officer had relied upon non-existent, AI-generated case laws while passing the assessment order. The Court stated that in the era of Artificial Intelligence, the tax authorities cannot blindly rely on such AI-generated results. AI-generated case laws must be cross-verified before using them...
Listing of Mediated Settlements Within 14 Days is Directory Not Mandatory : NCLAT
The National Company Law Appellate Tribunal (NCLAT) has recently clarified that the 14-day period under Rule 26(1) of the Companies (Mediation and Conciliation) Rules, 2016, for listing a mediated settlement before the Tribunal, is only advisory and not mandatory.A coram comprising Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra made the clarification while hearing...
“Debt Due” U/S 18(1) SARFAESI Act Includes Future Interest Accrued Till Filing Of Appeal: Kerala High Court
The Kerala High Court has held that “debt due” under the proviso to Section 18(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) includes not only the amount claimed in the demand notice issued under Section 13(2), but also interest accruing thereafter up to the date of filing the appeal.Justice Mohammed Nias C...
Belated Claims Of Homebuyers Can't Be Rejected When Reflected In Corporate Debtor's Records: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT) New Delhi held that claims of genuine allottees whose names are reflected in the corporate debtor's records cannot be rejected merely on the ground that the claims were filed belatedly. A bench of Justice Ashok Bhushan and Mr. Arun Baroka (Technical Member) held that “when the amount paid by the unit holders on the basis of...
Delhi High Court Dismisses Income Tax Dept's Appeals Against Remfry & Sagar Law Firm Over Goodwill License Fees
The Delhi High Court has upheld an order of the ITAT allowing IPR law firm Remfry & Sagar to treat the license fees paid by it to acquire its founder's goodwill, as a business expense deductible under Section 37 of the Income Tax Act.A division bench of Justices V. Kameswar Rao and Vinod Kumar thus dismissed the appeals preferred by the Income Tax Department against the firm.The Court...
Non-Declaration Of Beneficial Ownership U/S 9 Companies Act Does Not Amount To Oppression & Mismanagement: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), New Delhi, comprising Justice Yogesh Khanna (Member-Judicial) and Mr. Ajai Das Mehrotra (Member-Technical), has held that the non-declaration of the beneficial ownership under section 89 of the Companies Act, 2013, doesn't amount to oppression and mismanagement. The bench ruled that section 89 casts a duty upon the owner to...
Customs Commissioner Cannot Reassess Duty On Warehoused Imports Cleared From Refineries Beyond His Jurisdiction: Gujarat High Court
The Gujarat High Court stated that the customs commissioner cannot reassess duty on warehoused imports cleared from refineries beyond his jurisdiction. Justices Bhargav D. Karia and Justice Pranav Trivedi agreed with the Tribunal that a proper officer having the administrative jurisdiction over the respective refineries where the goods were removed under section 67 of the Customs...
Supreme Court Stays Bombay High Court Order Restricting Kirloskar Trademark Licensing
The Supreme Court on October 17 stayed a Bombay High Court order that had barred Kirloskar Proprietary Limited from licensing the 'Kirloskar' trademark to other group companies operating in businesses that overlap with Kirloskar Brothers Limited.The interim order was passed by a Division Bench of Justices Manoj Misra and Ujjal Bhuyan. The court noted that the licensing ban was added through...
Revenue Cannot Treat Sale Price As 'Tax Inclusive' Without Proof: Gujarat High Court Quashes ₹25.53 Crore Penalty On Coca-Cola
The Gujarat High Court, while quashing the penalty of Rs. 25.53 Cr. on Hindustan Coca-Cola, stated that the amount of tax could not have been bifurcated by the revenue simply because the sales had been inclusive of tax. The bench found that there is no evidence on record to show that the assessee had collected any amount by way of tax from its distributors, retailers or customers, as...
SEBI Proposes Standard Process For Opening Mutual Fund Accounts & First Investments
The Securities and Exchange Board of India (SEBI) has proposed a new standard process for opening mutual fund accounts and executing the first investment. The move is aimed at ensuring that all new accounts are fully KYC-compliant before any money is invested.Currently, mutual fund companies carry out their own KYC checks when opening a folio and then send the investor's documents to a...
NCLT Rejects Byju's' Plea to Halt Aakash's Proposed Rights Issue
The National Company Law Tribunal (NCLT) at Bengaluru, has recently refused to grant interim relief to insolvent ed-tech Byju's (Think and Learn Pvt Ltd) in its bid to stop Aakash Educational Services Ltd. (AESL) from proceeding with a proposed rights issue.The order, allows AESL to hold its Extraordinary General Meeting (EGM) on October 29 as scheduled.The order was passed by a coram...