Legal Update as on 17.04.2023

  1. ‘DE FACTO CONTROL’ TEST APPROPRIATE TO ESTABLISH IF COMPANY IS RESIDENT IN INDIA The Supreme Court has ruled that the ‘De Facto Control’ test—where the company has the only right to manage it and control it—is the one that is decisive in determining whether a corporation is a resident of India, despite the fact that it was noted that the firm’s domicile or registration are irrelevant factors.
    Mansarovar Commercial Pvt Ltd vs. Commissioner of Income Tax, Delhi
  1. SC: TRAIL COURT JUDGES CAN’T BE IN A SENSE OF FEAR- While criticising a decision made by the Madhya Pradesh High Court to ask a judge on a trial court why he or she granted bail in a case, the Supreme Court noted that such decisions have a chilling effect on district judges, who cannot be made to feel dread.
    Totaram v. State of Madhya Pradesh
  1. Parents do not have absolute control over their children’s destiny, according to BOM.HC. – The Bombay High Court has concluded that in a divorce dispute if a parent stop seeing reasons, courts must use their parent patriae jurisdiction despite the fact that children cannot be viewed as the property of parents and do not have ultimate control over their fate and way of life.
    Ashu Dutt v. Aneesha Dutt
  1. HC: APPOINTMENT OFFER CAN’T BE CANCELLED JUST FOR INVOLVEMENT IN FIR WITHOUT CONSIDERING REASONING The Delhi High Court has ruled that an appointment offer cannot be rejected based solely on the filing of a FIR without taking the judgment’s reasoning as well as the pertinent facts and circumstances into account.
    Mahesh Kumar vs Union of India and Ors
  1. SC: IN THE ABSENCE OF SANCTIONED POSTS, THE GOVERNMENT CANNOT CREATE POSTS OR ABSORB THOSE IN SERVICE. – According to the Supreme Court, in the lack of authorised roles, the government cannot be forced to establish positions or to hire individuals who are already working for the State.
    Government of Tamil Nadu And Anr Etc. v. Tamil Nadu Makkal Nala Paniyalargal And Ors Etc.
  1. SC: CAN’T DENY INCREMENT DUE TO EMPLOYEE RETIRING NEXT DAY OF EARNING IT – According to the Supreme Court, a government worker cannot be refused the annual increment just because he retired the day after receiving it.
    The Director (Admn and HR) KPTCL & Others vs CP Mundinamani and others
  1. NON-COMPLIANCE OF SECTION 50 NDPS ACT IS ENOUGH FOR ACQUITTAL, SAYS UTTARAKHAND HC – The Uttarakhand High Court has acquitted a person who was sentenced 17 years ago under the NDPS Act, noting that non-compliance with Section 50 of the NDPS Act establishes a substantial cause for acquittal.
    Devendra Singh Malik v. State of Uttarakhand
  1. HP HC: USE PROVISION FOR ADDITIONAL EVIDENCE WISELY. U/S 391 – While noting that the powers granted by Section 391 of the Criminal Procedure Code must be used with discretion, the Himachal Pradesh High Court has ruled that admitting new evidence should not result in a new trial or an alteration of the charges.
    Kewal Krishan Vs State of HP
  1. SC: CAN’T APPEAL FOR DEFAULT BAIL WHEN FIRST EXTENSION WAS UNQUESTIONED AND SECOND WAS PASSED IN HIS PRESENCE – The Supreme Court has ruled that when two-time extensions are given by the Court, the second extension being granted in the accused’s presence, and they are not challenged, the accused is not eligible to be freed on default bail once the charge-sheet has been filed within the extension term.
  1. SC: A ACTIVITY CAN BE TAXED AS BOTH ‘GOODS’ AND ‘SERVICES’ – The Supreme Court noted that the same activity can be taxed as both “goods” and “services” provided the contract is indivisible while upholding the levy of service tax on “Engineering Design & Drawings,” which is classified as “design services” under Finance Act, 1994 and as goods under Customs Act.
    Commissioner of Customs, Central Excise & Service Tax v M/S Suzlon Energy
  1. SC: CAN’T ACT ON AMOUNT RECEIVED FROM DEPB AND DUTY DRAWBACK CLAIMS AND CLAIM DEDUCTION UNDER SECTION 80IB – According to the Supreme Court, the assessee is not entitled to a deduction for such sum under Section 80-IB of the Income Tax Act of 1961 since the profit from the Duty Entitlement Pass Book Scheme (DEPB) and Duty Drawback claims cannot be described as an income “derived from” the industrial concern.
    M/s. Saraf Exports vs. Commissioner of Income Tax, Jaipur-III
  1. HC: JUVENILE JUSTICE ACT OF 2015 ELIGIBLE TO ADOPT DIVORCEE OR A SINGLE PARENT – The Bombay High Court concluded that the Juvenile Justice Act permits single parents to adopt, and that the district court’s role is to determine if the required conditions are met, while striking aside an order that had prevented a woman from adopting her sister’s kid because she was a working single mother.
    Shabnamjahan & Ors. v. State of Maharashtra
  1. DELHI HC UPHOLDS NOTIFICATIONS IMPOSING GST ON SERVICES RESERVED VIA APPS SUCH AS UBER AND OLA – While noting that the Centre’s notification levying GST on bus and auto rickshaw services booked through e-commerce platforms like Ola and Uber does not create an arbitrary categorisation based on the mode of booking, the Delhi High Court maintained the aforementioned notification.
    UBER INDIA SYSTEMS PRIVATE LIMITED v. UNION OF INDIA & ANR and other connected matters

Legal Disclaimer: The information contained in this blog post is for general information and educational purposes only. Nothing contained in this blog post should be construed as legal advice from The Aran Law Firm or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter.

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