Kerala High Court
Kerala Building Tax Act | Increased Plinth Area Due To Additional Construction Justifies Building Tax Reassessment: High Court
The Kerala High Court held that once the plinth area of a building increases due to additional construction, a fresh building tax assessment must be carried out under the Kerala Building Tax Act. Justice Ziyad Rahman A.A., after examining the documents produced by the assessee, stated that the assessee had carried out additional constructions after the initial construction, which was subjected to assessment under the Kerala Building Tax Act. In this case, the assessee/petitioners...
No 'Perversity': Kerala High Court Upholds Arbitral Award Dissolving 'Zephyr' Coaching Institute
The Kerala High Court on 28th November, 2025 dismissed an appeal sought to challenge an arbitral award that dissolved a coaching partnership firm, ruling that courts can neither re-examine expert valuations nor can the parties introduce fresh evidence at the appellate stage under section 34 and 37 of the Arbitration and Conciliation Act, 1996. A Division Bench of Chief Justice Nitin Jamdar and Justice Syam Kumar V.M. held that “no case whatsoever under Section 34” was established to...
SVLDRS Benefits Cannot Be Denied If Payment Falls Within SC's COVID-19 Extended Limitation Period: Kerala High Court
The Kerala High Court held that payments made under Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) are valid if they fall within the extended limitation period granted by the Supreme Court during the COVID-19 pandemic. Justice Ziyad Rahman A.A. found that SVLDRS proceedings are quasi-judicial in nature, and hence covered under Supreme Court's suo moto extension orders. In this case, the assessee is aggrieved by the revenue recovery proceedings initiated against him...
Ayurvedic Treatment Centre Classified As 'Hospital', Not 'Hotel', Luxury Tax Cannot Be Imposed: Kerala High Court
The Kerala High Court has held that an Ayurvedic Treatment centre is to be classified as a 'hospital' and not 'hotel', and therefore, luxury tax cannot be imposed. Justices A. Muhamed Mustaque and Harisankar V. Menon stated that the Ayurvedic Treatment Centre admits patients undergoing prescribed Ayurvedic treatment for a minimum duration, without offering hotel amenities, it qualifies as a hospital and luxury tax is not liable under the Luxury Tax Act. In this case, the...
CGST | Dept Must First Proceed Against Supplier Before Issuing Show Cause To Recipient For ITC Mismatch: Kerala High Court
The Kerala High Court has held that the department cannot proceed against a recipient for ITC mismatch without first initiating proceedings against the supplier. Section 42(3) of the Central Goods and Services Tax (CGST) Act, 2017, deals with the communication of discrepancies in Input Tax Credit (ITC) claims between the recipient and the supplier. Justice Ziyad Rahman A.A. observed that no proceedings had been initiated against the suppliers before the issuance of notice under...
Revisional Power U/S 263 Income Tax Act Cannot Be Upheld By Tribunal On Grounds Not Taken By Commissioner: Kerala High Court
The Kerala High Court has held that a tribunal cannot travel beyond the grounds not cited by the commissioner while exercising jurisdiction under Section 263 Income Tax Act.Justices A. Muhamed Mustaque and Harisankar V. Menon stated that only one reason was highlighted by the Commissioner for exercising the power under Section 263 of the Act and the Tribunal having found the said reason as not a valid one, the Tribunal should have stopped there rather than making further observations as regards...
Kerala High Court Grants Interim Protection To 'Bokashi Bucket' Mark, Bars Sale Of Identical Compost Bins
The Kerala High Court has put a temporary restraint on a Kozhikode-based business from making or selling compost bins using the name “Bokashi Bucket,” after finding that the term is a registered trademark owned by Global Pharmaceuticals. A single bench of Justice S Manu passed the order on November 18, 2025, overturning a Additional District Court order refusing to grant protection to the company.Global Pharma told the court that “Bokashi Bucket” is both its registered trademark and part of a...
Single Partner In A Firm Cannot Invoke Arbitration Without Explicit Authority From Other Partners: Kerala High Court
The Kerala High Court has held that one partner of a partnership firm cannot, without explicit authorisation from the other partners, invoke an arbitration clause or seek appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.Justice S. Manu, delivered the judgment in an arbitration request.The arbitration request was filed by a partner of M/s P K Chandrasekharan Nair and Co., a partnership firm, which was operating a retail outlet of petroleum products of...
Income Tax Act | SBI Not 'Assessee In Default' U/S 201 For Not Deducting TDS While Obeying Court's Interim Order: Kerala High Court
The Kerala High Court has held that the State Bank of India (SBI) cannot be treated as an 'assessee in default' under Section 201 of the Income Tax Act for not deducting Tax Deducted at Source (TDS) on Leave Travel Concession (LTC) payments, as it was bound by an interim order which prohibited such deduction. Justices A. Muhamed Mustaque and Harisankar V. Menon examined whether the SBI, having been restrained by an interim order of the High Court from deducting TDS, could be held to be...
Assessee Missed Hearing Due To Faulty VC Link & Hearing Email Sent At 3AM: Kerala High Court Quashes CIT(A) Order
The Kerala High Court has set aside an order passed by the Commissioner of Income Tax (Appeals) after finding that the assessee missed the hearing due to the non-functional video-conference link (VC link) and because the hearing link was emailed at an odd hour, i.e., at 3:13 a.m. CDT (Central Daylight Time) while he was in the U.S. Justice Ziyad Rahman A.A. stated that the assessee could not utilise the opportunities for reasons beyond his control. Therefore, the assessee can be...
Affidavit Of Cost Accountant In Personal Hearing Cannot Be Ignored When Facts Are Admitted By State Tax Officer: Kerala High Court
The Kerala High Court has held that an affidavit by professionals, such as a cost accountant, given during a personal hearing, cannot be ignored, especially when a state tax officer admits facts referred therein. Justice Ziyad Rahman A.A. stated that when a professional swears an affidavit before this Court, highlighting the matters that transpired during the course of the hearing, the same cannot be simply ignored, particularly in a situation where, to some extent, there is an...
KVAT Act | Permission For Compounding Tax Cannot Be Cancelled For Suppression; Only Suppressed Turnover Can Be Taxed: Kerala High Court
The Kerala High Court has held that under the KVAT Act (Kerala Value Added Tax Act, 2003), the assessing authority cannot cancel permission to pay tax at compounding rates for suppression in the same year it was opted, and only the suppressed turnover can be taxed at normal rates. Justice M.A. Abdul Hakhim opined that cancellation proceedings are still pending, and the cancellation is not carried out, and the assessment is not concluded on a best judgment assessment basis. In such a...