Insolvency Proceedings Initiated Against A Personal Guarantor Under IBC Abate Upon The Death Of The Guarantor: NCLT, New Delhi

The National Company Law Tribunal (NCLT), New Delhi, Bench VI, comprising Shri Mahendra Khandelwal (Member, Judicial) and Shri Rahul Bhatnagar (Member, Technical), has held that insolvency proceedings initiated against a personal guarantor under the IBC abate upon the death of the guarantor and that legal representatives cannot be substituted in such cases. Brief Facts: M/s...

Invoices Deemed Bogus By Income Tax Department Cannot Justify Insolvency Proceedings Against Corporate Debtor: NCLAT Principal Bench

The National Company Law Appellate Tribunal Principal Bench, New Delhi of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) has held that invoices deemed bogus by the Income Tax Department in assessment orders cannot be relied upon to initiate insolvency proceedings against a Corporate Debtor. Brief Facts: N.V. Aluminium Cast...

Female Associate Professor Of NLU Odisha Found Dead In Residence

A lady Associate Professor of National Law University, Odisha was found dead at her residence in CDA area of Cuttack on Sunday.The deceased academic has been identified to be Dr. Ananya Chakraborty, who originally hails from West Bengal.She was reportedly not attending her duties for last few days for which NLUO officials had tried to contact her. Despite of repeated calls when she did...

Power Of Recall Limited To Procedural Errors, Not Rehearing For Judgment Review: NCLAT Principal Bench

The National Company Law Appellate Tribunal Principal Bench, New Delhi of Justice Yogesh Khanna (Judicial Member) and Ajai Das Mehrotra (Technical Member) has held that the power of recall does not grant the NCLAT the authority to rehear a case in order to identify any apparent error in the judgment, as that falls within the scope of a review. The bench held that the power of recall...

AO Was Not Intimated About Removal Of Company's Name From ROC, Draft Assessment Can't Be Said To Have Passed In Name Of Non-existent Entity: Delhi ITAT

While finding that the AO/DRP was not informed about striking off the name of non-resident assessee from the ROC, the Delhi ITAT held that assessee cannot take a plea that draft assessment order was against the non-existing entity or the company whose name is struck off. Further, pointing that the objections of non-existence of company were filed only on the day on which the...

Provision For Leave Encashment Not Debited To P&L A/c, Can't Be Added As Employer's Income: Ahmedabad ITAT

The Ahmedabad ITAT held that provision for leave encashment which was inherited by the assessee on account of restructuring exercise of the GEB, by virtue of which, huge number of employees had been onboarded by the assessee-company, cannot be added to assessee's income. The Division Bench of Annapurna Gupta (Accountant Member) and T.R. Senthil Kumar (Judicial Member) observed that...

Agriculturalist Is Not Supposed To Maintain Books Of Account U/s 44AA For Claiming Exemption U/s 10(1): Delhi ITAT

While granting exemption on agricultural income u/s 10(1), the Delhi ITAT held that assessee being an agriculturalist, is not supposed to maintain books of account as per Sec 44AA. Section 44AA of Income tax Act deals with the maintenance of books of accounts by certain persons carrying on business or profession. Finding regularity and consistency of declared agricultural income...

External Development Charges Collected In Advance By Builder From Prospective Flat Owners, Can't Be Brought To Tax: Delhi ITAT

The Delhi ITAT held that when the project under consideration is not yet completed, the advance collected by infrastructure companies from the buyers cannot be charged to profit and loss account. The Division Bench of S. Rifaur Rahman (Accountant Member) and Anubhav Sharma (Judicial Member) observed that “the assessee has collected the same for providing the common services...

Telangana High Court Directs Speaker To Decide In Four Weeks Disqualification Pleas Against BRS MLAs Who Defected To Congress

The Telangana High Court today directed the Speaker of the State Legislative Assembly to fix a schedule of hearing within four weeks to decide upon the disqualification pleas preferred by the BRS and BJP MLAs against the defection of three BRS MLAs to the Congress Party.The bench comprising Justice B. Vijaysen Reddy stated that since there's no information as to the status of the...

Jharkhand Cabinet Approves Rs 5 Lakh Medical Insurance For 30K Lawyers, 5K Monthly Stipend For New Lawyers, 14K Pension For Senior Lawyers

The Jharkhand government, in a Cabinet meeting chaired by Chief Minister Hemant Soren on September 6, 2024, approved a Rs 5 lakh medical insurance cover for over 30,000 lawyers across the state. Additionally, the Cabinet approved two more key schemes aimed at supporting lawyers. Advocates aged 65 years and above will now receive a monthly pension of Rs 14,000, while newly enrolled advocates...

Extended Period Of Limitation Can't Be Invoked If Officials Are Negligent: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no further investigation was conducted by the Revenue for more than two years after the search, hence the extended period of limitation can't be invoked. The Bench of R. Muralidhar (Judicial Member) and Rajeev Tandon (Technical Member) has observed that “the officials did not take up...

Assessee Failed To Explain Huge Variation In Stock And Admitted To Shortage: CESTAT Upholds Penalty Under Section 11 AC(1)(A) Of The Central Excise Act, 1944

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the assessee has failed to explain the huge variation in stock and has admitted to the shortage, making them liable under Section 11AC(1)(A) of the Central Excise Act, 1944. Section 11 AC(1)(A) Of the Central Excise Act, 1944 provides that if any excise duty has not been levied,...