Karnataka HC on Determination of Transfer Pricing by High Court
The Karnataka High Court in an income tax appeal on June 25 2018, ruled that courts should be approached in such cases only if there is a substantial question of law. The Court observed that companies and revenue officials approach high courts when they don’t agree with facts observed by the income tax tribunal. The Court held that issues like a dispute over the methodology used for arriving at the tax amount or the facts observed by the tribunal should not be the reason for approaching the high court. In the present appeal, the Court held that “The appeal (related to transfer pricing cases) cannot be entertained at the instance by either the revenue or the assessee (companies) and the exercise of fact finding or ‘Arm’s Length Price’ determination or ‘Transfer Pricing Adjustments’ should be allowed to become final at the hands of the Tribunal”.
Kerala HC on Withdrawing Resignation Before ‘Effective’ Acceptance
The Kerala High Court has held in Shabeer Ahammed v Sivadasan VP that a government employee can withdraw the resignation tendered by him before its “effective’ acceptance” by appropriate authorities as per service rules. In the present case, the bench observed that, “A resignation submitted by an employee is no resignation in the eye of law until it is accepted by the employer as per the rules”.
Delhi HC Dismisses Plea Seeking Stay on DDCA polls
The Delhi High Court has dismissed a plea seeking to stay the elections in cricketing body Delhi and District Cricket Association (“DDCA”), saying it saw no reason to interject the poll process which was set in motion in May and culminates with the polls on 30 June. A vacation bench observed that it found no merit in the petition moved by a member of the DDCA for putting the election on hold till the finalisation of the constitution of the Board of Control for Cricket in India by the Supreme Court.
NCLT admits Insolvency Proceedings against Uttam Galva Subsidiary
The Mumbai bench of the National Company Law Tribunal (“NCLT”) on June 26, 2018 admitted the insolvency petition filed by State Bank of India (“SBI”) against Uttam Value Steel Ltd, a listed subsidiary of Uttam Galva Steels Ltd. The tribunal will rule on the bankruptcy plea against another subsidiary Uttam Galva Metallics on July 11, 2018. Uttam Value Steel and Uttam Galva Metallics owe banks INR 3,200 crore and INR 2200 crore, respectively. SBI had approached the dedicated bankruptcy court after Uttam Value Steel had defaulted on INR 334 crore.