Rajasthan High Court Upholds Hindustan Zinc's ₹18.87 Crore Additional Depreciation Claim On Power Plant Machinery

The Rajasthan High Court has upheld Hindustan Zinc Ltd.'s claim for additional depreciation of ₹18.87 crore on new plant and machinery installed at its captive power plant and wind power plant. The court held that electricity generation falls within the scope of “production”, which has a wider connotation than “manufacture”. It also held that an assessee engaged in manufacturing or producing an article or thing can claim additional depreciation on qualifying power-generation machinery,...

Section 21 Of Companies Act Does Not Bar Oral Agreements Between Companies: Rajasthan High Court

The Rajasthan High Court on 15 September held that Section 21 of the Companies Act, 2013, does not bar oral agreements between companies, clarifying that the provision governing authorised signatories does not require every agreement to be in writing. Justice Rekha Borana dismissed a civil revision petition filed by Gnex Impex Private Limited and its director against an order dated 22 May 2025, by which the District Judge, Jodhpur Metropolitan, rejected their application to dismiss a suit filed...

Rajasthan High Court Orders Release Of ₹47.45 Lakh Cash Seized Over Alleged Unaccounted Sales

The Rajasthan High Court on 14 September directed the GST department to release Rs. 47.45 lakh seized during a search of residential premises, along with applicable interest. A Division Bench comprising Justices Arun Monga and Ashutosh Kumar held that Section 67(2) of the Central Goods and Services Tax (CGST) Act does not authorise the seizure of cash merely on suspicion that it represents proceeds from unaccounted sales. It observed: “...the jurisdictional condition of 'reasons to believe'...

Rajasthan High Court Restores Canara Bank's Recovery Suit, Faults Court For Denying Chance To Remove Defects

The Rajasthan High Court has criticised the “undue haste” with which a Commercial Court handled a Canara Bank recovery suit, noting that the bank was not given adequate opportunity to remove procedural defects before the suit was dismissed.“One fails to understand the undue haste and alacrity with which the office of the Commercial Court as well the Court itself acted. Such swiftness, coupled with the fact that the learned Commercial Court also did not grant any opportunity to the appellant by...

Rajasthan High Court Quashes Jepee Construction's ₹6.93 Crore Tax Addition Over Short Response Time

On 6 October, the Rajasthan High Court held that less than three days to respond to a substantial tax addition is not a reasonable opportunity of hearing and set aside an assessment order passed by the National Faceless Assessment Centre against Jepee Construction Pvt. Ltd., involving an addition of about Rs. 6.93 crore. A Division Bench comprising Chief Justice Sanjay K. Agrawal and Justice Baljinder Singh Sandhu found that the assessment order wrongly recorded that the company had not filed...

Interim Arbitration Relief Plea Cannot Be Rejected At Threshold Merely Because It Covers Two Agreements: Rajasthan High Court

The Rajasthan High Court has held that an application seeking interim relief in aid of arbitration cannot be rejected at the threshold under Order VII Rule 11 merely on an objection that it covers two separate agreements containing separate arbitration clauses.Justice Anand Sharma observed, “The question whether two agreements are wholly independent or are interrelated is not necessarily capable of determination merely by looking at the title of the agreements or the fact that they contain...

Gulf Trade Disruptions: Rajasthan HC Issues Notice On MSME's Challenge To RELIEF Scheme Cut-Off Date

The Rajasthan High Court has recently issued notices to the government on a petition challenging the cut-off under Component III of the Resilience and Logistics Intervention for Export Facilitation (RELIEF) Scheme, which restricts reimbursement support to shipments having Onboard Bills of Lading issued between February 14, 2026 and March 15, 2026.A Division Bench of Justices Inderjeet Singh and Sandeep Taneja was hearing a petition filed by Agrim Overseas, an MSME exporter of perishable...

Denying Borrower Access To DRT To Challenge SARFAESI Possession Measures Violate Article 300A: Rajasthan HC

The Rajasthan High Court has held that denying a borrower an opportunity to approach the Debt Recovery Tribunal (DRT) while challenging steps taken by a bank to obtain physical possession of mortgaged property could amount to ignoring the borrower's constitutional right to property under Article 300A.“To deny the borrower an opportunity to access or approach the DRT while questioning the steps taken by the secured creditor to get physical possession of the mortgaged assets, would tantamount to...

Deductions Under Different Income Tax Provisions Must Be Computed Independently: Rajasthan High Court

The Rajasthan High Court on 5 September held that deductions available under different provisions of the Income Tax Act must be computed independently, and the restriction against double deduction can be applied only while allowing the deductions. A Division Bench of Justices Pushpendra Singh Bhati and Praveer Bhatnagar allowed Secure Meters Ltd.'s appeal and set aside the Income Tax Appellate Tribunal's finding on the computation of deductions under Sections 80-IA/80-IB and Section 80HHC for...

25-Year Pendency Cannot Allow Writ Court To Decide Disputed Facts In Tax Case: Rajasthan High Court

The Rajasthan High Court on 21 August held that the mere pendency of a tax dispute for 25 years does not permit the Court to decide disputed questions of fact in writ proceedings on the basis of pleadings and affidavits, as this would bypass the fact-finding process under the Income Tax Act. A Division Bench of Justices Arun Monga and Ashutosh Kumar declined to interfere with reassessment notices issued to Mahesh Kumar Gupta for Assessment Years 1995-96 to 1999-2000, holding that the disputed...

Rajasthan High Court Rejects Challenge To GST Provision Requiring Supplier Tax Payment For ITC

The Rajasthan High Court has upheld the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, holding that actual payment of tax by the supplier is a valid condition for availing Input Tax Credit (ITC). A Division Bench of Justices Arun Monga and Ashutosh Kumar dismissed Sumetco Alloys Private Limited's challenge to Section 16(2)(c) as well as its challenge to a Rs. 56.44 crore GST demand for the financial years 2020-21 to 2023-24. The judges observed: ...

Rajasthan High Court Declines Writ Against Entry Tax Assessment, Says Appeal Is Equally Efficacious

The Rajasthan High Court on 6 August held that a statutory appeal under the Rajasthan Tax on Entry of Goods into Local Areas Act, 1999 is an equally efficacious remedy against an assessment order, including a challenge based on limitation. A Division Bench comprising Justices Arun Monga and Ashutosh Kumar disposed of a writ petition filed by Sika India Pvt. Ltd. challenging an assessment order dated 18 December 2018 and the consequential demand of Rs. 21.24 lakh towards entry tax, interest and...