Insights & Resources

Bombay High Court reaffirms that statutory law prevails over CBDT guidelines in compounding offences under income tax legislation.

The ITAT Mumbai held that recording a bank-transferred loan via a journal entry does not violate s. 269SS of the Income-tax Act. The decision reinforces that substance prevails over form in genuine business transactions, especially where funds are routed through banking channels and properly documented.

Rajasthan High Court upholds Section 153C action based on WhatsApp chats corroborated by digital records and cash book evidence.

The SAFEMA Appellate Tribunal upheld FEMA liability against former partners of Rosecut Diamonds for failure to realise export proceeds within the prescribed timeframe under GR forms. Despite their resignation prior to adjudication, the Tribunal held that the obligation under sections 7 and 8 of FEMA had crystallised during their tenure. The penalty was reduced, but liability was affirmed for non-compliance with foreign exchange regulations.

SEBI’s 2025 amendment to the Insider Trading Regulations expands the definition of Unpublished Price Sensitive Information (UPSI), introduces new disclosure triggers, and streamlines compliance with structured data protocols. This regulatory update signals a decisive shift toward pre-emptive corporate transparency and robust market integrity safeguards.

The IFSCA has issued a comprehensive framework on cyber security and resilience for regulated entities operating in IFSC. These guidelines mandate robust governance, data protection, IT asset management, and incident reporting measures to counter escalating cyber threats. Regulated entities must adopt structured protocols, undergo annual audits, and manage third-party risk to ensure financial system stability.

ITAT rules that failure to transfer liabilities with assets disqualifies a demerger from tax exemption under Section 2(19AA) of the IT Act.

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.