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High Court Rules Income Tax Cash Violations Do Not Void Property Sales

The Punjab and Haryana High Court recently ruled that alleged breaches of cash payment rules under the Income Tax Act do not invalidate property sale agreements or warrant the rejection of a legal plaint. This decision ensures that civil courts cannot dismiss property suits solely based on tax infractions. The ruling protects contractual enforcement rights while separating tax compliance issues from civil property disputes.

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Jaipur Tax Tribunal Quashes Reassessment Due to Flawed Approval Process

The Jaipur bench of the Income Tax Appellate Tribunal has set aside a reassessment proceeding. The tribunal deleted an addition of ₹19.81 lakh related to LIC and cancelled all associated penalties and interest. This decision emphasizes the requirement for proper administrative consideration before reopening tax cases.

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For professionals: Review sanction files and approval orders in reassessment disputes to identify any lack of independent application of mind by the sanctioning authority under Section 151. · File preliminary objections against m

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Supreme Court Restricts Late Rejection Pleas Under Order VII Rule 11 at Final Stage

The Supreme Court has barred parties from filing Order VII Rule 11 applications to reject a plaint at the final argument stage after evidence collection concludes. The bench reinstated the original plaint and directed the trial court to expedite the proceedings. This ruling curbs procedural delays in commercial and civil litigation.

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Calcutta High Court rules unwritten property sale contracts can justify temporary injunctions

The Calcutta High Court has affirmed that verbal property sale contracts can serve as the basis for granting temporary injunctions in specific performance lawsuits. The court noted that statutory stamp duty and registration mandates do not apply to unwritten agreements.

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Kolkata Tax Tribunal Throws Out Appeal Delayed by Over Twenty-Six Hundred Days

The Kolkata bench of the Income Tax Appellate Tribunal rejected an appeal filed after a delay of 2,628 days. The assessee failed to file a condonation petition, correct filing errors, or clarify disputed signatures on the paperwork. This procedural lapse led to the outright dismissal of the case.

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For professionals: Advise clients that filing tax appeals beyond the statutory limitation period requires a formal condonation application with sufficient cause and documentary proof. · Ensure all filing defects are rectified and discrepancies regarding disputed signatures are resolved before tribunal submission.

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NCLAT Delhi Rules Unconditional Bank Guarantees Remain Enforceable During Corporate Insolvency Moratorium

The appellate tribunal has ruled that unconditional bank guarantees can be encashed despite an ongoing insolvency resolution moratorium. This decision dismissed an appeal brought forward by IDBI Bank. Finance professionals should note the explicit statutory backing for creditors holding independent financial instruments.

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Supreme Court Rules Company Incorporation Certificate Fails to Prove Partnership Succession

The Supreme Court dismissed a company's bid to join a service charges lawsuit based solely on its incorporation document. Justices held that registration as a corporate entity does not establish the legal succession of an earlier partnership. Furthermore, the tribunal noted the plea was filed far too late and lacked substantive merit.

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Jefferies Reports Potential GST Relief for Foreign Portfolio Investors Will Boost Intermediaries

Financial services firm Jefferies indicates that prospective Goods and Services Tax relief for Foreign Portfolio Investors could positively impact local brokers and depositories. This potential policy change is expected to lower compliance costs and attract higher foreign capital inflows into domestic markets. Market participants are closely watching for official notifications to gauge the exact financial impact.

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Supreme Court Rules Reassessment Based on Opinion Shifts Invalid Within Four-Year Window

The Supreme Court has sustained a Madras High Court judgment invalidating tax reassessments initiated solely due to a shift in opinion. Tax authorities cannot reopen cases where assessees have fully disclosed all pertinent facts.

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For professionals: Review ongoing reassessment notices for unauthorized opinion shifts and guide clients to challenge such actions legally. · Meticulously document all disclosures made during original filings to defend against retrospective scrutiny.

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Madras High Court Sets Aside Section 148 Reassessment Over Share Issue Expenses Classification

The Madras High Court has nullified a Section 148 tax reassessment that relied on a modified viewpoint regarding share issue expenses. Authorities attempted to contest claims originally categorized under Section 37 rather than Section 35D.

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For professionals: Verify whether Section 148 notices rely on new facts or merely contest previously evaluated expense classifications. · Assist clients in citing judicial precedents against arbitrary reclassifications during appellate proceedings.

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Food Delivery Giant Zomato Prepares Launch of Price-Masking Mehmaan Mode

Online food delivery platform Zomato is introducing a distinct price-masking feature known as Mehmaan Mode. This upcoming functionality is designed to hide specific monetary details within the application. Users can soon expect this specialized mode to go live on the platform.

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Delhi High Court Quashes Time-Barred Tax Reassessment Triggered by Internal Audit Objections

The Delhi High Court has invalidated a tax reopening tied to audit objections, ruling that shifting opinions remain impermissible. The court also confirmed that the reassessment action was barred by statutory time limitations.

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For professionals: Examine the genesis of reassessment notices to determine if they originate from internal audit pressure or genuine escaped income. · Track statutory timeframes closely to invalidate delayed notices.

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