Madras High Court Rejects Minister I Periyasamy's Plea Against ED Probe, Tells Him To Approach PMLA Adjudicating Authority First

The Madras High Court has dismissed a plea filed by Tamil Nadu Minister for Rural Development I Periyasamy and his family members challenging an ECIR registered against them by the Enforcement Directorate in connection with a money laundering case. The bench of Chief Justice Manindra Mohan Shrivastava and Justice G Arul Murugan noted that the parties had filed the plea without approaching the adjudicating authority first. The bench thus directed them to approach the adjudicating...

Income Tax Act | Long Term Capital Gains Exemption Available Even If Residential House Was Demolished Before Sale: Madras High Court

The Madras High Court held that the Long-Term Capital Gains exemption under Section 54 of the Income Tax Act cannot be denied merely because the residential house was demolished before its sale. The bench stated that since the sale took place later and the assessee reinvested the capital gains in another house within the prescribed time, the exemption is allowable. Section 54 of the Income Tax Act, 1961, provides a Long-Term Capital Gains (LTCG) exemption when an individual or HUF...

Entity Recognised As Charitable Under Income Tax Act With S.12A Registration Cannot Be Treated Otherwise Under FCRA: Madras High Court

The Madurai Bench of the Madras High Court has held that a trust already recognised as a charitable organisation under the Income Tax Act cannot be ignored as such while considering its application under the Foreign Contribution (Regulation) Act, 2010 (FCRA). A Single Judge Bench of Justice G.R. Swaminathan was dealing with a writ petition filed by Arsha Vidya Parampara Trust challenging the rejection of its FCRA registration by the Ministry of Home Affairs . The Bench stated that when ...

Madras High Court Annual Tax Digest 2025

Direct TaxFAOs And JAOs Have Concurrent Jurisdiction For Assessment, Re-assessment Or Re-Computation U/S 147 Income Tax Act: Madras High CourtCase Title: Mark Studio India Private Limited v. Income Tax Officer and OthersCase No: W.P.Nos.25223 & 25227 of 2024The Madras High Court recently clarified that both the Faceless Assessment Officer and Jurisdictional Assessment Officer have concurrent jurisdiction as far as assessment, re-assessment or re-computation under Section 147 of the Income...

Income Tax | Revised 2024 Compounding Guidelines Cannot Be Applied After Case Attains Finality: Madras High Court

The Madras High Court held that once the assessee's entitlement to compounding had attained finality through earlier orders, then the Income Tax Department could not apply the revised Compounding Guidelines. Justice C. Saravanan referred to the Explanation to Section 279(6) of the Income Tax Act, 1961 and noted that the new compounding Guidelines dated 17.10.2024 bearing reference F.No.285/08/2014-IT (Inv.V) would apply, only if a new application is/was filed in terms of paragraph 3.2...

Income Tax | Govt Grant/Subsidy Under Rehabilitation Scheme Is Capital Receipt, Not Taxable As Revenue: Madras High Court

The Madras High Court held that the grant-in-aid/subsidy received by the assessee under a government rehabilitation scheme is a capital receipt and is not taxable as revenue. Chief Justice Manindra Mohan Shrivastava and G. Arul Murugan examined whether the grant-in-aid/subsidy received by the assessee from the Government under the rehabilitation scheme should be treated as a revenue receipt in the hands of the assessee or as a capital receipt, taking it out of the purview of the...

Madras High Court Grants Inventor Opportunity To Demonstrate His Solar Power Device Before Patent Office

The Madras High Court has directed the Patent Office to grant an inventor one opportunity to demonstrate the working of his invention, holding that a potentially viable invention should not be rejected without adequate consideration.Justice N Anand Venkatesh passed the order on December 18, 2025, while disposing of a writ petition filed by Kannan Gopalakrishnan challenging the rejection of his patent review application relating to an invention titled “Solar Supplemental Power Source.” The...

Income Tax Act | S.153C Notices Unsustainable When Search For 'Other Person' Initiated After 01.04.2021: Madras High Court

The Madras High Court held that the notices under Section 153C are unsustainable where a search for 'other person' was initiated after 01.04.2021. Section 153C of the Income Tax Act applies when documents or assets belonging to a third party are found during a search, and an assessment is made against that person. Section 153C(3) of the Income Tax Act states that Section 153C shall not apply to any search initiated under Section 132 or books/assets requisitioned under Section 132A...

Madras High Court Rejects Jaipur Restaurant's Co-Ownership Claim To 'Dasaprakash' Trademark

The Madras High Court has refused to recognise a Jaipur-based company as a co-owner of the “Dasaprakash” trademark, holding that the brand is a jointly owned family mark that could not have been transferred by a single family member.The original mark is commonly associated with a South Indian restaurant chain. A single bench of Justice N Anand Venkatesh, in a judgment dated December 16, 2025, dismissed an appeal filed by Dasaprakash Restaurant and Ice Cream Parlour Pvt. Ltd. and upheld a...

Commercial Courts Act Bars Intra-Court Appeals In Patent Disputes: Madras High Court

The Madras High Court has held that an intra-court appeal is not maintainable against an order passed by a Single Judge while deciding a statutory patent appeal under the Patents Act. The court reiterated that the Commercial Courts Act does not permit a second appeal within the High Court. “Any expansion of scope of the Commercial Courts Act will defeat its objectives and there is no ambiguity regarding appeals from decrees of Commercial Courts and Commercial Divisions under Section 13 of the...

Income Tax Act | Reassessment U/S 147 Valid If Original Order Did Not Consider S. 80HHC Claim Earlier: Madras High Court

The Madras High Court held that reassessment under Section 147 of the Income Tax Act is valid if the original order is completely silent on the assessee's claim for deduction under Section 80HHC of the Income Tax Act. Section 147 of the Income Tax Act, 1961, empowers the Assessing Officer (AO) to assess or reassess income that has escaped assessment. Justices Anita Sumanth and Mummineni Sudheer Kumar stated that the original order of assessment is wholly silent in regard to the ...

IBC | All Property, Including Alleged Benami Assets, Shielded From Action Over Pre-Resolution Offences: Madras High Court

The Madras High Court has recently held that once a resolution plan is approved under the Insolvency and Bankruptcy Code, authorities cannot proceed against any property standing in the name of a corporate debtor for offences committed before the insolvency process, even if such property is alleged to be held benami. A single bench of Justice G R Swaminathan ruled that Section 32A(2) of the Insolvency and Bankruptcy Code, 2016, offers wide protection to the property of a corporate debtor after...