Supreme Court considered whether sales of natural gas transported from Andhra Pradesh to Uttar Pradesh constituted inter-State sales or intra-State transactions liable to VAT. The dispute arose after Uttar Pradesh treated the sale as completed within the State because gas became ascertainable only at buyers’ factories.
The Supreme Court held that grants disbursed by a statutory corporation formed part of its core business functions and qualified as deductible revenue expenditure. The ruling clarified that such grants were not mere application of income.
The Supreme Court restored execution proceedings after finding that the decree already contained directions for sale of the property if partition by metes and bounds was impossible. The Court ruled that further final decree proceedings were unnecessary in the facts of the case.
The Supreme Court held that constitutional courts can grant bail in UAPA cases where prolonged incarceration and delayed trial violate Article 21. The Court clarified that statutory restrictions under Section 43D(5) cannot justify indefinite pre-trial detention.
The Supreme Court dismissed the Revenue’s challenge to the Bombay High Court ruling that quashed a Section 132 search action for failure to satisfy jurisdictional conditions. The question of law was kept open.
The Supreme Court has framed substantial questions on whether DDT under Section 115-O is a tax on shareholder dividend income or on company profits. The ruling may determine applicability of DTAA treaty rates on dividend distributions to foreign shareholders.
Supreme Court dismissed the challenge against reopening of assessment where the Gujarat High Court had upheld reassessment proceedings based on Investigation Wing material alleging accommodation entries. The case reaffirmed that prima facie material is sufficient at the reopening stage.
Supreme Court upheld restoration of original Committee of Creditors and ruled that IRP could not independently reclassify financial creditors after constitution of CoC under IBC framework.
The Supreme Court dismissed the Revenue’s challenge to depreciation claims on leased assets after the Bombay High Court held that leasing constituted business use under Section 32. The ruling reaffirmed that physical use by the assessee is not necessary where assets are used in the leasing business.
The Supreme Court issued notice in a case concerning whether reimbursement paid to a municipal corporation for road restoration after electricity line work attracts GST under reverse charge mechanism.
