Sunday special-30th Jan 2022

👉 If we desire respect for the law, we must first make the law respectable.

👉 Change is the law of life. And those who look only to the past or present are certain to miss the future.

👉 The power of the lawyer is in the uncertainty of the law.

👉 The end of law is not to abolish or restrain, but to preserve and enlarge freedom. For in all the states of created beings capable of law, where there is no law, there is no freedom.

Why is self-awareness so important? We need it for self growth. Otherwise, it’s just self-flagellation. Self-awareness gives us an understanding of the qualities that can truly enrich our lives. Essential moral qualities are Forgiveness, Gratitude and Giving.*

Regards,

🙏🙏🙏🙏💐💐💐💐

Judicial updates-29th Jan 2022

Judicial updates-29th Jan 2022

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K. Arumuga Velaiah vs P.R. Ramasamy Supreme Court Judgement dated 27th Jan 2022

👉 Document of partition which provides for effectuating division of properties in future is not compulsorily registrable u/s 17 of the Registration Act


SC not entertain the petitions under Article 32 of the Constitution in the first instance. The petitioners have an alternate and efficacious remedy of moving the concerned High Courts under Article 226 of the Constitution.

Udaipur Chambers of Commerce  Vs Union of India (Supreme Court of India) dated 04/01/2022


Tenancy Transfer not Amounts to Creation of New Tenancy

Bombay HC- Alice Realties Pvt. Ltd. Vs State of Maharashtra dated 03/01/2022


HC should Exercise jurisdiction under Article 226 on sound judicial principles

LNJ Power Ventures Ltd. Vs Rajasthan Electricity Regulatory Commission (Rajasthan High Court) dated 06/01/2022

For regular updates:

Judicial updates (Tax Laws)- 27th Jan 2022

Claim of Assessee of Profit lower than 8% cannot be denied for mere non-submission of Tax Audit Report

ACIT Vs Vairam Constructions (ITAT Chennai) dated 18/01/2022

Rs. 258 Crore illegal ITC availment case – HC refuses Bail to accused

Paritosh Kumar Siingh Vs Senior Intelligence Officer (Chhattisgarh High Court) dated 18/01/2022


Income Tax Notice issued issued against a dead person, is null and void

Dharamraj Vs ITO (Delhi High Court) dated 17/01/2022


Directors’ personal property cannot be Attached to Recover Companies Sales Tax Dues
Sunita Ramesh Bansal Vs Assistant Commissioner of State Tax (Gujarat High Court) dated 13/01/2022


HC disposes petition as department granted credit as per courts direction which was earlier not given

Siddharth Enterprises Vs Nodal Officer (Gujarat High Court) dated 12/01/2022


Expenses towards provision for pension fund allowable as expenses

ACIT Vs Punjab & Sind Bank (ITAT Delhi) dated 05/01/2022


HC directs unblocking of Electronic Credit Ledger as one year period was expired

Krishna Fashion Vs Union of India (Delhi High Court) dated 18/01/2022

GST Cash credit account of assessee cannot be provisionally attached

Manish Scrap Traders Vs Principal Commissioner (Gujarat High Court) dated 12/01/2022


If assessee resold goods imported from AE without any value addition, than most appropriate method for determining ALP is RPM

Randox Laboratories India Private Limited Vs ACIT (ITAT Bangalore) dated 04/01/2022

Judicial updates -21st January 2022

SC in G.T. Girish Vs Y. Subba Raju (D) By LRs judgment dated 18th Jan 2022 held that Subordinate Legislation in the form of Statutory Rules is a ‘law’ u/s 23 of Indian Contract Act


Matter involving large scale State Revenues should be disposed speedily Dalmia Refractories Limited Vs State of Tamil Nadu (Madras High Court) dated 11/01/2022


One Time Settlement (OTS) of Bank Loan is Not a Right of Borrowers held by SC in
matter of Bijnor Urban Cooperative Bank Limited dated 15/12/2021


SEBI impose penalty for dealings in illiquid Stock Options at the BSE In Re Ashok Kumar Sharma HUF (SEBI) -23/12/2021


Taxation

Rajasthan HC disposes Plea seeking extension of due dates till portal Glitches removed

Tax Bar Association Vs Union of India (Rajasthan High Court) dated 12/01/2022

If AO accepts objections of assessee and does not assess or reassess the income which was the basis of notice than he cannot made additions on other issues

Yashoda Shivappa Nagangoudar Vs ITO (Bombay High Court) dated 05/01/2022

Provisional custom duty paid by Assessee cannot be treated as deposit

Nirma Ltd Vs C.C.-Jamnagar(prev) (CESTAT Ahmedabad) dated 13/01/2022

Bombay HC in Vodafone Idea Ltd. Vs ACIT dated 03/01/2022 held-

Reopening of Assessment not permissible to take another view on same material

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Regards,

Bipul Kumar

Tribunals/Quasi-Judicial Bodies

In India, Tribunals are a part of the Executive branch of the Government which are assigned with the powers and duties to act in judicial capacity for settlement of disputes. Part XIV of the Constitution of India makes provisions for establishment and functioning of the Tribunals in India. They are quasi-judicial bodies that are less formal, less expensive and enable speedy disposal of cases.

There are tribunals for settling various administrative and tax-related disputes, including Central Administrative Tribunal (CAT), Income Tax Appellate Tribunal (ITAT), National Company Law Tribunal (NCLT), Customs, Excise and Service Tax Appellate Tribunal (CESTAT), National Green Tribunal (NGT) and Securities Appellate Tribunal (SAT), among others. Tribunals were added in the Constitution by Constitution (Forty-second Amendment) Act, 1976 as Part XIV-A, which has only two articles viz. 323-A and 323-B. Article 323A provides that a law made by the parliament may provide for establishment of an Administrative Tribunal for the Union and a separate Administrative Tribunal for each state or two or more states. Article 323 B empowers the parliament or state legislatures to set up tribunals for matters other than those mentioned under Article 323A.

Types of Tribunal in India

1. Debt recovery Tribunal

The Debt Recovery Tribunals have been constituted under Section 3 of the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993. The original aim of the Debts Recovery Tribunal was to receive claim applications from Banks and Financial Institutions against their defaulting borrowers. (DRT) was established for expeditious adjudication and recovery of debts due to banks and financial institutions in order to reduce the non-performing assets of the Banks and Financial Institutions. Prior to the introduction of Debt Recovery Tribunal, petitions had to be filed separately for adjudication of cases and execution proceedings in different courts depending upon their jurisdiction. DRT acts as a single judicial forum for adjudication of cases as well as execution of the decrees passed for recovery of debts due to banks and financial institutions under RDDBFI Act and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002.

2. National Company law

Tribunal National Company Law Tribunal (NCLT) is a quasi-judicial body exercising equitable jurisdiction, which was earlier being exercised by the High Court or the Central Government. It has been established by the Central government under section 408 of the Companies Act, 2013 with effect from 1st June 2016. The Tribunal has powers to regulate its own procedures. The establishment of the National Company Law Tribunal (NCLT) consolidates the corporate jurisdiction of the following authorities:

i)Company Law Board


ii) Board for Industrial and Financial Reconstruction.

iii) The Appellate Authority for Industrial and Financial Reconstruction

iv) Jurisdiction and powers relating to winding up restructuring and other such provisions, vested in the High Courts.

3. Consumer Forum

To protect the rights of the consumers in India and establish a mechanism for settlement of consumer disputes, a three-tier redressal forum containing District, State and National level consumer forums has been set up. The District Consumer Forum deals with consumer disputes involving a value of upto Rs. 1 crore. State Commission has jurisdiction in consumer disputes having a value of upto Rs.10 crore. The National Commission deals in consumer disputes above Rs.10 crores, in respect of defects in goods and or deficiency in service. It is important to note that consumer courts do not entertain complaints for alleged deficiency in any service that is rendered free of charge or under a contract of personal service.

4. Motor Accident Claims

Tribunal (MACT) The Motor Accidents Claims Tribunal deals with matters related to compensation of motor accidents victims or their next of kin. Victims of motor accident or legal heirs of motor accident victims or a representing Advocate can file claims relating to loss of life/property and injury cases resulting from Motor Accidents. Motor Accident Claims Tribunal are presided over by Judicial Officers from the State Higher Judicial Service and are under direct supervision of the Hon’ble High Court of the respective state.

5. Central Administrative Tribunal (CAT)

Central administrative Tribunal is a multi-member body to hear on cases filed by the staff members alleging non-observation of their terms of service or any other related matters and to pass judgments on those cases. This Tribunal established in pursuance of the amendment of Constitution of India by Articles 323A.

6. National Green Tribunal (NGT)

National Green Tribunal was established for effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources including enforcement of any legal right relating to environment and giving relief and compensation of damages to persons and property and for related matters.

7. Income Tax Appellate Tribunal (ITAT)

ITAT is a quasi judicial institution set up in January, 1941 and specializes in dealing with appeals under the Direct Taxes Acts. The orders passed by the ITAT are final, an appeal lies to the High Court only if a substantial question of law arises for determination.

Presently ITAT has 63 Benches at 27 different stations covering almost all the cities having a seat of the High Court

Judicial updates-19th Jan 2022

Judicial updates-19th Jan 2022

CCI directs probe against Google for Abusing its Dominant Position against Publishers

In re Digital News Publishers Association (CCI) dated 07/01/2022

NCLT/NCLAT should not pass ad hoc orders regarding fee and expenses payable to Resolution Professionals

Devarajan Raman Vs Bank of India Limited (Supreme Court of India) dated 05/01/2022

NCLAT Stays Order Initiating CIRP as parties entered Settlement Agreement

Vinayak K Deshpande Vs Nexo Industries P Ltd (NCLAT Chennai) dated 04/01/2022

SC Restores Limitation Extension & excludes Period From 15.03.2020 to 28.02.2022 From Limitation

In Re Cognizance For Extension of Limitation (Supreme Court of India) dated 10/01/2022

Section 45 PMLA Act Gets Triggered while Considering Anticipatory Bail Plea

Asst. Director Enforcement Directorate Vs Dr. V.C. Mohan (Supreme Court of India) dated 04/01/2022

Builder obliged to provide occupancy certificate to flat owners & Failure amount to deficiency in service

Samruddhi Co-operative Housing Society Ltd. Vs Mumbai Mahalaxmi Construction Pvt. Ltd. (Supreme Court of India) -11/01/2022

Comments made during Mediation or Settlement Proceedings cannot be relied by Courts

Arjab Jena@ Arjab Kumar Jena Vs. Utsa Jena @ Pattnaik (Supreme Court of India) dated 05/01/2022

Nobody has a fundamental right to a public holiday

Kishnabhai Nathubhai Ghutia Vs Administrator Union Territory (Bombay High Court) dated 05/01/2022

God cannot be summoned by Court for inspection or verification

S.P. Eswaramurthy Vs Government of Tamil nadu (Madras High Court) dated 06/01/2022

Employees refusing regular promotion offer disentitled to financial upgradation benefits

Union of India Vs Manju Arora (Supreme Court of India) dated 03/01/2022

Legal updates

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Bipul Kumar

Delhi HC dismisses conducting of alleged parallel investigation by various jurisdictional authorities

Delhi HC dismisses conducting of alleged parallel investigation by various jurisdictional authorities

Indo International Tobacco Ltd Vs Vivek Prasad (Delhi High Court) judgement date 11 Jan 2022

Finding: In the facts of the present case, we find that the investigations were initiated by various jurisdictional authorities against different entities. As contended by the respondents, as common thread were allegedly found in these investigations, the same have been transferred to DGGI, AZU to be brought under one umbrella. We also find that in the CGST Act there is no prohibition to such transfer. Section 6(2)(b) of the CGST Act has limited application and therefore, is not applicable to the facts of the present petitions. Similarly, the Circular dated 05.10.2018 also has no application to the facts of the present petitions.

https://documentcloud.adobe.com/link/review?uri=urn:aaid:scds:US:4843e83b-7fa7-3b8e-9f05-3b137fd83c66

Emergence of Lok Adalat as the most efficacious tool of Alternative Dispute Resolution (Press release dated 12 Jan 2022)

Emergence of Lok Adalat as the most efficacious tool of Alternative Dispute Resolution


A total number of 1,27,87,329 cases were disposed off in 2021

Due to technological advancement like E-Lok Adalats, Lok Adalats have reached doorsteps of parties

National Legal Services Authority (NALSA) is committed to deliver prompt and inexpensive justice to the citizens. Recently, it has decided to lay more emphasis on contribution of National Lok Adalat in effectively reducing the number of pending cases through Alternative Dispute Mechanisms.

To achieve this goal, the Legal Services Authorities shifted to dynamic preparation strategies for organization of the Lok Adalats. As a preparatory measure, NALSA started organization of prior consultative and review meetings with all the State Legal Services Authorities to guide them towards the maximum disposal during such Lok Adalats. Before the organization of each National Lok Adalat, multiple interactions were organised with the Executive Chairpersons of all the State Legal Services Authorities, wherein one-to-one interactions were made to take a stock of the preparations as well as to boost the morale of the stakeholders tasked to organize the Lok Adalats.

A cumulative effect of all the preparatory and mobilization measures resulted in extraordinary disposal figures during the year 2021. Across the country, a total number of 1,27,87,329 cases were disposed of in four National Lok Adalats, which included a huge number of pending cases i.e., 55,81,117 and a record number of pre-litigation cases i.e., 72,06,212. Through these activities the Legal Services Authorities disposed off a large number of cases giving relief to the common citizens by ending or preventing long lasting legal battles.

Achieving these unprecedented disposal figures was not an easy task. A major contribution to this success can be attributed to the technological advancements. In June 2020, the Legal Services Authorities integrated technology with the conventional modes of dispute settlement and introduced virtual Lok Adalats also called as ‘E-Lok Adalats’. Since then, all the Lok Adalats including National Lok Adalats are organized through virtual and hybrid modes. To provide an unhindered experience during the proceedings, the Legal Services Authorities across the country are continuously upgrading their digital infrastructure.

Due to these technological advancements, Lok Adalats have reached to the doorsteps of the parties. The parties are now able to join the Lok Adalat proceedings from their homes or workplaces, saving them the hassle of travelling and reserving a full day for an affair, which gets over within minutes. The Authorities have witnessed that a large number of persons joined the virtual proceedings sitting hundreds of kilometers away from the physical location where the Lok Adalat was organized. Technology has also provided effective ways of supervision and monitoring of Lok Adalats.

The other major factor in the success of Lok Adalats was the formulation of decisive strategies at the National level. Under these strategies, the State Legal Services Authorities were instructed to conduct meetings with various stakeholder across every level with an objective to ensure their full cooperation and coordination. The authorities were guided to follow a litigant friendly approach as well as to persuade such litigants to settle the cases involving settled propositions of law.

Moreover, certain areas of law having greater possibilities of settlement such as NI Act cases, Bank recovery cases along other financial matters were highlighted and authorities were instructed to explore all the possibilities of compromise in such cases. The authorities were advised to proactively monitor the issuance and completion of processes in such financial matters as well as to conduct pre-Lok Adalat sittings to take a matter to a settlement.

There is no doubt regarding the fact that the number of pending cases surged during the ongoing pandemic. However, with a large number of disposals through Lok Adalats, a balance was created by the Legal Services Authorities in the judicial administration of the country. There is no gainsaying that the Lok Adalats settled greater number of cases than any other dispute resolution mechanism and emerged as the most efficacious tool of Alternative Dispute Resolution Mechanism.

During the year, the category wise list of the disposed cases was topped by the Criminal Compoundable Cases, wherein a total number of 17,63,233 such pending cases and 18,67,934 pre-litigation cases were disposed. The second in line were the Revenue cases consisting of 11,59,794 pre-litigation and 14,99,558 pending cases. Apart from these, the other disposed of cases were cheque bounce cases under NI Act, Bank Recovery Cases, Motor Accident Claims, Labour Disputes, matrimonial cases, etc.

Judicial updates (GST & Income Tax) -11 Jan 2022

GST

Patna HC Quashes GST order passed in violation of Principles of Natural Justice

Sky Vision Media Private Limited Vs State of Bihar (Patna High Court) dated 04 Jan 2022

Cash credit account cannot be provisionally attached- HC issues contempt notice to Principal Commissioner

Manish Scrap Traders Vs Principal Commissioner (Gujarat High Court) dated 05/01/2022

Levy of basic excise duty & NCCD not violative of Article 14 of Constitution

V.S. Products Vs Union of India (Karnataka High Court) dated 04/01/2022

HC quashes Order for not providing hearing opportunity to Assessee

Naresh Aggarwal Agencies Pvt. Ltd. Vs State of Punjab & anr. (Punjab and Haryana HC) dated 21/12/2021

INCOME TAX

Penalty cannot be imposed merely for non-filing of Audit Report Electronically

SLV Housing Development Corporation Vs ACIT (ITAT Bangalore) dated 22/11/2021

CIT cannot invoke section 263 if there was lack of inquiry from the end of AO

Pushp Steel and Mining Private Ltd. Vs PCIT (ITAT Delhi) dated 22/12/2021

RPM method used by Taxpayer cannot be rejected without pointing defect in the same

Randox Laboratories India Private Limited Vs ACIT (ITAT Bangalore) dated 04/01/2022

Regards,

Bipul Kumar