Business Advance Granted To Shareholder Not Utilised For Company Work Will Be Treated As Deemed Dividend Under Income Tax Act: Bombay HC

The Bombay High Court has held that where a company grants an advance to one of its shareholders and such advance is not demonstrated to have been utilised for the business of the company, the amount would be treated as deemed dividend under Section 2(22)(e) of the Income Tax Act, 1961. The Court declined to interfere with the order of the Income Tax Appellate Tribunal (ITAT), which had...

Bombay High Court Weekly Round-Up: August 11 - August 17, 2025

Nominal Index [Citations: 2025 LiveLaw (Bom) 327 to 2025 LiveLaw (Bom) 336]Shivshankar vs Sanjay, 2025 LiveLaw (Bom) 327Jayesh Bandu Limie vs State of Maharashtra, 2025 LiveLaw (Bom) 328Babu Abdul Ruf Sarkar vs State of Maharashtra, 2025 LiveLaw (Bom) 329Shashikant Vitthal Kothawade vs State of Maharashtra, 2025 LiveLaw (Bom) 330Ashwini Trading Co. vs Housing Bank Ltd., 2025 LiveLaw...

Bombay HC Judge Refuses To Recuse From Cases Over 'Scurrilous' Bribery Claims Against 2 Sitting Judges, Including Himself; Imposes ₹50K Cost

Justice Milind Jadhav of the Bombay High Court last week refused to recuse himself from hearing a set of writ petitions filed in 2016, in which the petitioner levelled serious allegations of corruption, bribery and bias against two sitting Judges of the HC, including Justice Jadhav himself. Dismissing an interim application seeking his recusal from the matters, Justice...

No Sales Tax On HDPE Bags Used To Pack Cement When Sold Separately: Bombay High Court

The Bombay High Court stated that no sales tax can be levied on HDPE (High-Density Polyethylene) bags at cement rate when sold separately. Justices M.S. Sonak and Jitendra Jain were addressing the issue of whether there is an express and independent contract on the sale of HDPE bags in which cement is packed. “HDPE bags used to pack the cement were a distinct commodity with its...

Concurrent Proceedings Under MCOCA Not Sufficient Explanation For Delay In Trial Under SC/ST Act: Bombay High Court Grants Bail

The Bombay High Court (Nagpur Bench) has held that pendency of a trial under the Maharashtra Control of Organised Crime Act, 1999 (MCOC Act) is not, by itself, a sufficient reason to keep another trial in abeyance, and prolonged custody without progress in trial amounts to a violation of the right to a speedy trial under Article 21 of the Constitution.A bench of Justice Urmila Joshi-Phalke...

'Previous Decisions Taken By Gram Panchayat Cannot Be Cancelled Merely Due To Change In Body Of Representatives': Bombay High Court

The Bombay High Court (Nagpur Bench) has held that a subsequent change in the elected body of a Grampanchayat does not, by itself, justify the cancellation of decisions or resolutions passed by its earlier body. Such an approach would undermine the stability of local administration and is contrary to the purpose of Panchayati Raj institutions.A Division Bench of Justice Smt. M. S. Jawalkar...

Cops Must Discharge Power With Accountability, Not On Apprehensions: Bombay High Court Declares Alleged PFI Member's Arrest 'Illegal'

The Goa bench of the Bombay High Court while declaring 'illegal' the arrest of a sitting Councillor of a local body for being an alleged member of the Popular Front of India (PFI), recently held that the police cannot arrest a person under section 151 of the Criminal Procedure Code (CrPC) merely on the apprehension that the said person may indulge in illegal activities in future and that there...

Centre Notifies Appointment Of 3 Advocates As Bombay High Court Judges

The Central Government has notified the appointment of three advocates as the Additional Judges of the Bombay High Court.They are :1. Ajit Bhagwanrao Kadethankar2. Sushil Manohar Ghodeswar3. Ms. Aarti Arun Sathe.The Supreme Court Collegium had recommended their elevation on July 28. The recommendation to appoint Aarti Sathe had created a controversy as she was earlier a BJP...

[RDB Act] Bombay High Court Upholds Transfer Of Recovery Suit From Commercial Court To DRT, Says S.31 Must Be Given Purposive Interpretation

The Bombay High Court has held that Section 31 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) must be given a purposive interpretation to ensure that recovery proceedings by banks fall within the exclusive jurisdiction of the Debts Recovery Tribunal (DRT), even if the suit was not originally within its jurisdiction at the time of filing. The Court ruled that when a non-banking...

Bombay High Court Slaps ₹50K Cost On Litigant Over Repeated Pleas Against Closure Of Right To Cross-Examine

The Bombay High Court has dismissed with costs a petition filed by an accused under the Prevention of Corruption Act seeking to set aside a 'no cross' order passed by the trial court, after he failed to cross-examine the prosecution's prime witness despite being given repeated opportunities over a span of five years.A single judge bench of Justice Kishore C. Sant was hearing the criminal...

"You Don't Like The Serial, Don't Watch It": Bombay High Court Mulls Community Service For Man Who Lodged Complaint Over Zee TV Show

While indicating that it will order the complainant to do cleaning and mopping work at one of the hospitals in Mumbai, the Bombay High Court on Tuesday closed for orders, the petition filed by Zee TV seeking to quash the First Information Report (FIR) lodged against the channel for its new show titled 'Tum Se Tum Tak' which revolves around the love story of a nearly 46-year-old man and...

Merely Possessing Aadhar Card, PAN Card, Voter ID Card Not Proof Of Being Indian Citizen : Bombay High Court

In a significant order, the Bombay High Court while denying bail to an alleged Bangladeshi national, held that merely having documents such as Aadhar Card, PAN Card or a Voter ID Card, does not make someone a citizen of India and in fact the concerned person must place on record the verification of these documents. A Single-judge denied bail to the Petitioner, who was booked by the Thane...