Can MVAT Credit Be Denied To Genuine Buyers For Sellers' Tax Default? Bombay High Court To Examine

The Bombay High Court will examine whether Section 48(5) of the Maharashtra Value Added Tax Act, 2002, permits the denial of input tax credit (ITC) to a bona fide purchaser without any allegation of fraud, collusion, or connivance, particularly when the State has failed to recover the tax from the defaulting seller.A Division Bench of Justices Suman Shyam and Gautam A. Ankhad admitted six appeals filed by IJM (India) Infrastructure Limited against the State of Maharashtra. The court will also...

Stamp Duty On NCLT-Liquidated Property Can Be Based On Auction Price, Not ASR Rates: Bombay High Court

The Bombay High Court has held that stamp duty on property sold through a liquidation auction conducted by an NCLT-appointed liquidator can be calculated on the auction value rather than the Annual Statement of Rates (ASR) value when the auction process is transparent and there is no basis to suspect deliberate undervaluation.The Court rejected the Maharashtra Advocate General's argument that the National Company Law Tribunal (NCLT) could not be treated as a civil court for this purpose. It held...

Cash Loan Violating Income Tax Provisions Still Enforceable Under Cheque Bounce Law: Bombay High Court

The Bombay High Court on 30 September held that a cash loan does not become unenforceable under Section 138 of the Negotiable Instruments Act, 1881, merely because it violates income tax provisions. Justice M.M. Sathaye dismissed Manoj Oswal's revision application challenging his conviction in a cheque dishonour case filed by businessman Vijay Gandhi over a Rs. 8.5 lakh loan. Referring to an earlier Division Bench ruling, he observed: “Violation of section 269SS and/or section 271AAD of the...

Bombay High Court Imposes ₹5 Lakh Costs On Man For Police Complaint Against Court Officers In Data Theft Case

The Bombay High Court has imposed costs of ₹5 lakh on a former employee for filing a “plainly vexatious” police complaint against court officers, a forensic agency, and an advocate involved in executing an order to mirror his electronic devices.Justice Arif S. Doctor observed that the complaint was “really in the nature of a counterblast against those executing the Order of this Court”.The court dismissed Arun Kumar Arjunan's plea to set aside an order appointing a Court Receiver and forensic...

Vodafone Idea Tax Dispute: Bombay HC Directs Income Tax Dept To Pass Orders In 13 Matters In 6 Weeks

The court also continued its interim protection restraining the department from recovering ₹699.54 crore already refunded to Vodafone Idea.

Bombay High Court Upholds Tata Chemicals' Tax Deduction For Non-Compete Fee Paid To Former Employee

The Bombay High Court on 8 October held that payments made to a former employee under a non-compete agreement qualify as revenue expenditure for income tax purposes, even when paid in instalments across multiple financial years. A Division Bench comprising Justices Suman Shyam and Gautam A. Ankhad dismissed the Income Tax Department's appeal against Tata Chemicals Ltd., upholding deductions claimed by the company for non-compete compensation and expenditure on projects that were later written...

Bombay High Court Refuses To Restrain Kangana Ranaut's 'Queen Full Power' Over Copyright Dispute

The Bombay High Court on Wednesday refused to restrain the making and release of Queen Full Power, a film starring Kangana Ranaut and directed by Vikas Bahl, in a suit filed by Phantom Studios India Pvt. Ltd., which claims 50% ownership of the intellectual property rights in the 2014 film Queen. Justice Sandeep V. Marne held that Phantom had failed to establish a prima facie case of passing off or breach of contract. The Court also found that Phantom had not demonstrated that the word “queen”...

NMC Founder BR Shetty Sues Bank Of Baroda For $15 Billion Over Alleged Fraud

Dr Bavaguthu Raghuram (B R) Shetty, founder of the NMC healthcare group and UAE Exchange, has filed a $15 billion (approximately ₹1.43 lakh crore) suit against Bank of Baroda and 25 others before the Bombay High Court, alleging that the bank facilitated a fraud that led to the collapse of his business empire.Shetty has sought $5 billion each in direct and consequential damages, including loss of business opportunities, jointly and severally from all defendants. He has claimed a further $5...

Charitable Hospital Cannot Be Denied Income Tax Exemption For Charging Patients, Making Surplus: Bombay High Court

The Bombay High Court has ruled that a hospital seeking income tax exemption on philanthropic grounds cannot be denied the benefit merely because it earns a surplus, charges patients for treatment, or collects professional fees on behalf of consultant doctors. The question is whether its actual activities and use of funds establish that it exists solely for philanthropic purposes and not for profit.A division bench of Justice B.P. Colabawalla and Justice Farhan P. Dubash set aside orders passed...

Interim Protection In Arbitration Can't Be Granted Merely On Disputed Money Claim: Bombay High Court

The Bombay High Court on 5 October held that a party seeking interim protection under Section 9 of the Arbitration and Conciliation Act, 1996, must demonstrate a real risk that recovery under a future arbitral award may become difficult, as a disputed monetary claim alone does not justify such relief. Justice Amit Borkar directed Alag Property Constructions Pvt. Ltd. to deposit Rs. 58,97,600 within four weeks in a dispute with flat purchaser Hemlata Ajay Ramani over the refund of money...

Bombay High Court Denies Anticipatory Bail To Tax Consultant Accused Of Misusing ₹45 Lakh Meant For GST Payment

The Bombay High Court has refused anticipatory bail to a tax consultant accused of retaining over ₹45 lakh given to him by a client for GST payments and allegedly preparing fake GST bills to show that the amount had been deposited with the government.Justice Madhav J. Jamdar was hearing an anticipatory bail application filed by Rakesh Rajendra Thakur, who was booked under Sections 316(2) and 318(4) of the Bharatiya Nyaya Sanhita (BNS), 2023, for criminal breach of trust and cheating.The court...

Developer's Ordinary Business Selling Flats Doesn't Give Partner Blanket Authority: Bombay High Court

On Tuesday, 13 October, the Bombay High Court held that a real estate developer's ordinary business of selling flats does not, by itself, establish a partner's authority to enter into every property transaction on behalf of the firm. Justice Amit Borkar partly allowed a petition filed by Aatif Javeed Merchant, a majority profit-sharing partner of S.S. Crown Infrastructure, under Section 9 of the Arbitration and Conciliation Act, 1996, granting limited interim protection against unauthorised...