S.263 Income Tax Act | Commissioner Cannot Revise Assessment Merely Because Detailed Reasoning Was Not Given: Madras High Court

The Madras High Court stated that the Income Tax commissioner cannot revise an assessment merely because detailed reasoning was not given in the order. Section 263 of the Income Tax Act, 1961, empowers the Commissioner of Income Tax to revise any order passed under the Income-tax Act, 1961, “the Act” which is erroneous insofar as it is prejudicial to the interest of the revenue. Chief Justice Manindra Mohan Shrivastava and Justice Sunder Mohan stated that, "an order cannot be...

[GST] 'Ill-Advice From Unqualified Consultants Leading To Clients' Inability To Appear Before Authorities': Madras High Court

The Madras High Court has directed the department to issue a circular urging assessees to engage only qualified consultants for GST compliance. Justice Krishnan Ramasamy stated that, "This Court comes across similar instances in several cases, extending ill advice to the clients by the consultants, who are all not qualified persons. Such kind of ill-advice leads to the fact that the clients are not in a position to appear before the Officers concerned with suitable reply supported by...

Madras High Court Summons ED Assistant Director In Contempt Plea For Continuing PMLA Probe Despite HC Stay Order

The Madras High Court, on Wednesday, issued a statutory notice to the Assistant Director of Enforcement, Vikas Kumar, in a contempt petition filed by film producer Akash Baskaran for continuing the probe in an alleged money laundering case despite a stay issued by the High Court. The bench of Justice MS Ramesh and Justice V Lakshminarayanan issued notice asking the Assistant Director to appear before it on September 17. The bench expressed its displeasure after noting that the...

Insolvency Resolution Professional Is Public Servant, Sanction Needed To Prosecute Him Under Prevention Of Corruption Act: Madras High Court

The Madras High Court has recently directed the Insolvency and Bankruptcy Board of India to consider granting sanction for prosecuting a Resolution Professional for allegedly mismanaging funds of a company during a resolution process. Justice Bharatha Chakravarthy noted that the resolution professional performed duties in connection with the administration of justice, was a person from whom a report was called for by the court of justice, and was performing a public duty. Thus, the...

Relief For Actor Vijay, Madras High Court Refuses To Restrain His Party Flag For Alleged Trademark Infringement

The Madras High Court on Monday dismissed an application seeking interim injunction to restrain actor Vijay's Tamilaga Vetrri Kazhagam party from using the party flag, over alleged infringement of a Trust's trademark.Justice Senthilkumar Ramamoorthy rejected the plaintiff's claim that the usage of the flag by Vijay's party amounted to copyright infringement, trademark infringement, and passing off. The court, however, added that these were tentative observations and the matter would be dealt...

Digital Marketing Is Business, Not Profession; Audit Report Not Required For Turnover Below ₹5 Crores: Madras High Court

The Madras High Court held that digital marketing is a business and not a profession; and an audit report is not required for turnovers below Rs. 5 crores. Justice Krishnan Ramasamy stated that “Digital Marketing is the business for persons who carry out the said activities. In the event anybody carrying on the business of Digital Marketing with cash transactions both on the aspect of receipts and payments in cash below 5% of the turnover, which is below Rs.5 Crores as per the proviso...

S. 161 CGST Act | Adjudicating Authority Can Dismiss GST Rectification Application Without Personal Hearing: Madras High Court

The Madras High Court stated that the GST authority can dismiss the rectification application without a personal hearing. The issue before the bench was whether the third proviso to Section 161 of the TNGST Act, 2017, requires complying with the principles of natural justice even for dismissing a rectification petition. Section 161 of the Goods and Services Tax Act, 2017 talks about the rectification of errors apparent on the face of the record. The third proviso to Section 161...

Party Can't Evade Two-Tier Arbitration By Questioning Authority Of Appellate Tribunal To Dismiss Appeal On Grounds Of Limitation: Madras HC

The Madras High Court bench of Justice Abdul Quddhose has held that once the petitioner chooses to file the appeal instead of directly approaching the Court under Section 34 of the Arbitration Act, the petitioner cannot wriggle out of the two-tier arbitration, by stating that they were not given an opportunity by the Appellate Tribunal to prosecute the appeal on grounds of limitation.Two-tier arbitration refers to a process where a dissatisfied party can file an appeal in the Appellate...

NCLT Is Bound To Appoint IRP Proposed By Corporate Debtor: Madras High Court

The Madras High Court on Monday held that the suggestions of the financial creditor, operational creditor, or corporate debtor with regard to the appointment of the IRP are liable to be accepted. While hearing a writ petition challenging the appointment of an Interim Resolution Professional (IRP) by the National Company Law Tribunal (NCLT), Chennai, the Madras High Court interpreted Sections 10 and 16 of the Insolvency and Bankruptcy Code, 2016. The petition was filed challenging the...

Madras HC Issues Notice On Plea Claiming Scenes From Rajnikanth-Starrer 'Chandramukhi' Were Unauthorisedly Used In Nayanthara's Documentary

The Madras High Court has issued notice on a plea claiming that the scenes from Rajnikanth starrer “Chandramukhi” movie had been used unauthorisedly in Actor Nayanthara's documentary “Nayanthara: Beyond the fairytale”. Justice Senthilkumar Ramamoorthy issued notices to Tarc Studio LLP and Netflix Entertainment Services India LLP, returnable by 2 weeks. The notices were issued on the plea filed by AP International, a major film distributor, who had acquired the copyright over the...

Assessing Authority Not Bound By Appellate Tribunal's Observations In De Novo Assessment: Madras High Court

The Madras High Court has stated that the assessing authority is not bound by the appellate tribunal's observations in a De Novo assessment. Justices Anita Sumanth and N. Senthilkumar opined that while concluding the assessment de novo, the assessing authority is not bound by the observations made by the first appellate authority. In this case, the Commercial Taxes Department has filed the appeal challenging the order of the Tamil Nadu Sales Tax Appellate Tribunal relating to the...

Customs Department Bound By DGFT's Classification Of Capital Goods Under EPCG Scheme: Madras High Court

The Madras High Court stated that customs department bound by DGFT's classification of capital goods under EPCG scheme (export promotion capital goods scheme). The Division Bench consists of Justices Anita Sumanth and N. Senthilkumar observed that “there is no justification in the Department having made the assessee litigate the issue needlessly despite the CBEC having categorically confirmed as early as in 2002 that the Customs Department must align with the stand of the DGFT and DG...