Insights & Resources

The NCLAT held that a statutory demand notice under Rule 7(1) of the 2019 IBC Rules does not amount to the invocation of a personal guarantee. The Tribunal reaffirmed that personal guarantor liability arises only when the guarantee is contractually invoked in accordance with its terms. This judgment reinforces procedural safeguards and curbs premature insolvency filings under s. 95 of the IBC.

The Delhi High Court, in Shiv Prakash Bansal v. DCIT, reaffirmed that proceedings under Section 153C of the Income-tax Act can be initiated solely on incriminating material found during a search, without requiring any nexus between the searched and non-searched persons. This judgment strengthens the Department’s power to act on discovered evidence, even against third parties not named in the search warrant.

SC sets aside High Court’s interference in IBC proceedings, affirming that insolvency disputes must follow statutory resolution channels.

In a landmark ruling, the Supreme Court has clarified that maintenance and alimony under Sections 24 and 25 of the Hindu Marriage Act, 1955 may be granted even in void marriages. While affirming judicial discretion based on parties’ conduct and circumstances, the Court refrained from laying down fixed standards. This ruling addresses long-standing ambiguity but leaves key interpretive questions open for future litigation.

The Appellate Tribunal under PMLA has clarified that while seizure and attachment can co-exist, the ED cannot attach property beyond the proceeds quantified in the scheduled offence. In Barik Biswas v. ED, the Tribunal reaffirmed key safeguards—procedural and proportionality-based—while reiterating that attachment must have a direct or equivalent nexus to the predicate offence under PMLA.

In a notable decision, the Karnataka High Court affirmed that the DCF method, when used in compliance with Rule 11UA(2), cannot be disregarded without a reasoned and case-specific analysis. The ruling reinforces that Revenue authorities must exercise subjective satisfaction, backed by substantive evidence, before invoking Section 56(2)(viib) to tax share premiums.

Did the Supreme Court overlook BNSS’s deemed sanction provision? This analysis dissects the ruling's impact on public servant prosecutions.

In a decisive ruling, the ITAT Mumbai held that a BMA assessment cannot be sustained without a valid notice under section 10(1), reinforcing that procedural compliance is not a mere formality but a jurisdictional precondition. The case underscores the interplay between notice issuance, deemed acquisition under section 72(c), and the consequences of retrospective taxation under the Black Money regime.

The NCLAT has held that the absence of charge registration under the Companies Act, 2013 does not bar a creditor from being treated as a secured financial creditor under the IBC. The ruling underscores that commercial arrangements creating security—such as escrowed flats—remain valid during CIRP, reinforcing substance over statutory formality.

Delhi HC clarifies that cash violations under Section 269ST don't void contracts; unjust enrichment cannot override contractual claims.

In a pivotal ruling, the Delhi High Court has reaffirmed that borrowers are entitled to a personal hearing before their accounts are classified as fraud under the RBI Master Directions. Drawing upon the Supreme Court’s decision in SBI v. Rajesh Agarwal, the Court reinforced that procedural fairness and natural justice demand more than just written representation when civil consequences are involved.

SC clarifies whether royalty on minerals is a tax or a fee, reaffirming state powers in a landmark ruling with retrospective effect.

NCLT reaffirms that the IBC cannot override PMLA enforcement; RPs must approach the PMLA authority to unfreeze attached assets.

Special Bench of ITAT rules in favour of Mashreq Bank, allowing full PE expense deductions under pre-2008 India–UAE tax treaty.

The Delhi High Court clarifies reassessment timelines, approvals, and JAO powers under the faceless regime post Finance Act, 2021.

SC rules that statutory amendments apply prospectively and cannot extinguish vested tax exemptions granted under unamended law.

The Supreme Court reinforces strict bail conditions under PMLA, setting a crucial precedent in Union of India v. Kanhaiya Prasad.

In a landmark ruling, the Madras High Court quashed the provisional attachment of bank accounts in Kesar Jewellers v. ADG, holding that such drastic powers under Section 83 of the CGST Act require demonstrable necessity and tangible material. The judgment reaffirms that procedural fairness and reasoned decision-making cannot be overridden by technical formalities or digital platform constraints.

In a significant ruling, the Kerala High Court held that writ petitions challenging show cause notices under Section 74 of the CGST Act are not maintainable. The Court clarified that piecemeal adjudication of tax disputes is impermissible under the GST framework and upheld the requirement for a composite final order, reinforcing the boundaries of judicial interference at the pre-adjudication stage.

In a significant ruling, the ITAT Mumbai held that a non-beneficial joint holder of a foreign asset is not liable under the Black Money Act for non-disclosure, provided the omission was based on a bona fide belief and the asset was fully disclosed by the beneficial owner. This judgment reinforces judicial discretion in imposing penalties under Section 43 and underscores the importance of intent in tax compliance.