Insights & Resources

The Appellate Tribunal under SAFEMA held that a mere agreement to sell, unsupported by a registered sale deed or actual possession, does not constitute a benami transaction under section 2(9)(A) of the Benami Act. In setting aside the provisional attachment, the Tribunal reaffirmed settled law that partial payments and unproven cash transfers do not suffice to trigger Benami Act consequences.

In K.S. Mehta v. Morgan Securities, the Supreme Court decisively addressed the vicarious liability of non-executive directors under the Negotiable Instruments Act, 1881. Reinforcing strict construction principles, the Court quashed criminal proceedings against directors lacking active involvement, setting a clear precedent on the necessity of specific allegations for liability under Section 141.

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SEBI’s 2025 amendment to the Insider Trading Regulations expands the definition of Unpublished Price Sensitive Information (UPSI), introduces new disclosure triggers, and streamlines compliance with structured data protocols.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.