Tax Cases Weekly Round-Up: 15 January to 21 January 2023

Delhi High Court VAT Department Not To Initiate Coercive Measures Against PSU Pawan Hans: Delhi High Court Case Title: Pawan Hans Ltd. Versus Commissioner of Trade and Taxes Citation: 2023 LiveLaw (Del) 65 The Delhi High Court has granted a stay to helicopter charterer PSU Pawan Hans Ltd. against a VAT demand of Rs. 176 crores. The division bench of Justice Vibhu...

Arbitration Cases Weekly Round-Up: 15 January to 21 January 2022

Supreme Court: 12 Months Time Limit Under Section 29A Arbitration Act Not Applicable To International Commercial Arbitration: Supreme Court Case Title: TATA Sons Pvt Ltd versus Siva Industries and Holdings Ltd The Supreme Court has held that the time limit of twelve months as prescribed in Section 29A of Arbitration and Conciliation Act is not applicable for international...

Religion Is Born Out Of Cow; Problems On Earth Will Be Solved The Day Cow Slaughter Is Stopped: Gujarat Court

While sentencing a 22-year-old man to life imprisonment for illegally transporting cattle from the state of Maharashtra, a Court in Gujarat's Tapi District recently said that all problems of the earth will be solved and the well-being of the earth will be established the day no drop of blood of cow drops on the earth. The Sessions Judge S. V. Vyas presiding over the District Court, Tapi...

Hire Charges Received Under ‘Time Charter Agreement’ Not Taxable As Royalty, If Control Over Ship Remained With Owner: ITAT

The Mumbai bench of the ITAT has ruled that hire charges received by the owner of a ship for chartering its vessel under a ‘Time Charter Agreement’, is not taxable as ‘royalty’ under Section 9(1) (vi) of the Income Tax Act, 1961, if control and dominance over the ship remained with the assessee/ owner and not with the charterer. The bench of Amit Shukla (Judicial Member) and...

Operational Creditors Only Entitled To Minimum Of The Liquidation Value: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Dharmindra Constructions Pvt. Ltd. & Anr. v Rajendra Kumar Jain, has held that Operational Creditors are only entitled for minimum of the liquidation...

"Why Don't You Close Retail TASMAC Outlets By 9:30 PM Instead Of 10 PM?" Madras High Court Asks State

The Madras High Court recently asked the state government if it was feasible to close the retail liquor vending shops associated with TASMAC by 9:30 pm and keep the bars running till 10 pm so that the last minute consumers do not end up consuming alcohol on the streets.The bench of Acting Chief Justice T Raja and Justice Bharatha Chakravarthy was hearing pleas filed by two shopkeepers,...

Landowner In A Development Agreement Not A Financial Creditor: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Ashoka Hi-Tech Builders Pvt. Ltd. v Sanjay Kundra & Anr., has held that a landowner in a development agreement is not a financial creditor within the meaning of Section 5(8) of...

18% GST Payable On The Forest Permit Fee: Telangana AAR

The Telangana Authority for Advance Ruling (AAR) has held that 18% GST is payable on the forest permit fee.The two-member bench of B.P. Naga Siva Kumari observed that the permit fees collected by the forest department are used by forest officials to monitor mining activity, assess the quantity and type of mineral being quarried, conduct surveys, and keep a constant eye on the movement of...

Arbitral Reference Can’t Be Made Mechanically Under Section 8, If Some Parties To Suit Are Non-Signatories To Arbitration Agreement: Bombay High Court

The Bombay High Court has ruled that if the plaintiff seeks relief in a suit against parties, some of whom are not signatories to the arbitration agreement, the matter cannot be mechanically referred to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996 (A&C Act). The bench of Justice Manish Pitale remarked that amendment of Section 8 by the 2015...

Allahabad High Court Stays Rs.1,081 Crores GST Demand Against Paytm

The Allahabad High Court has stayed the Goods and Service Tax (GST) demand of Rs. 1,081 crores against Paytm."The amount of tax due on the transaction has already been paid, and the only dispute is whether it is to be treated as an intra-state sale or an inter-state sale; recovery of the demand raised shall remain stayed till the next date of hearing," the division bench headed by Chief...

Interest Income Earned By A Co-Operative Society Eligible For Deduction: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held that interest income earned by a co-operative society on its investments held with co-operative banks would be eligible for claim of deduction under section 80P(2)(d) of the Income Tax Act.The two-member bench of Kuldip Singh (Judicial Member) and S Rifaur Rahman (Accountant Member) found that the CIT(A) erred in upholding...

Period Of Limitation Begins To Run On The Date Of Payment Of Final Bill For Claims Rejected: Calcutta HC

The Calcutta High Court has held that the period of limitation would begin to run from the date of final payment for the claims that are rejected under it. The Court held that once a claim that was existing at the time of preparation of the final bill is rejected in the final payment, the limitation period commences which cannot be stopped by issuing unilateral letters by a party....