Ergo Update

Petitioner (Munjaal Manishbhai Bhatt), an advocate entered into an agreement with a landowner/developer for purchase of an already developed plot of land (1021 sq mt) and construction of bungalow (160 sq mt) on the said plot by the developer. Separate consideration was agreed for both between the parties.

In its recent judgment in the case of Jacob Puliyel v Union of India and Others [Writ Petition (Civil) Number 607 of 2021] (Jacob Puliyel), the Supreme Court of India (Court) held that the restrictions imposed on individuals who have not fully vaccinated themselves against COVID-19 cannot be considered to be constitutional.

In a recent judgement in DCIT v Pfizer Healthcare India Private Limited (Writ Appeal No. 1148, 1149/2021) (Judgement), a division bench of the Hon’ble Madras High Court (High Court) has upheld single judge bench order which quashed the transfer pricing order (TP Order) pertaining to assessment year (AY) 2016-17 on the ground that it was ‘barred by limitation’ by one day. The High Court ruled that the TP Order was required to be passed on or before 31 October 2019.

India’s policy on foreign direct investment (FDI) is embodied in the Consolidated FDI Policy dated 15 October 2020 (as amended from time to time) (FDI Policy). The policy pronouncements made under the FDI Policy are notified in the Foreign Exchange Management (Non-Debt Instruments) Rules 2019 (NDI Rules), under the Foreign Exchange Management Act 1999.

The Hon’ble High Court at Bombay (High Court) in the case of Dinesh Vazirani (Taxpayer) [Writ Petition No. 2475 of 2015], has held that the consideration for sale of shares by a seller (Taxpayer) which has been deposited in an escrow account but withdrawn by the purchaser towards the liabilities contemplated under the share purchase agreement (SPA), cannot be taxed in the hands of the Taxpayer.

Adhering to the principles of “due processes”, Indian judicial and regulatory authorities have been taking steps to reduce delays in adjudicatory processes. Enforcement proceedings relating to anticompetitive agreements or abuse of dominance before the Competition Commission of India (CCI) may also not be immune to such inordinate delays. Thus, it may require fresh attempts to get the processes streamlined to the extent possible.

In addition to providing for a mechanism for resolution of stressed assets, the Insolvency and Bankruptcy Code, 2016 (IBC) also provides for a framework whereby a corporate person who is not under any financial stress may also voluntarily undergo liquidation to wind up its affairs.

With the increasing adoption of crypto-assets in India and the rapid developments in the crypto space, the government introduced a separate regime for levy of income tax on virtual digital assets (VDAs) in the 2022 Budget proposals (Budget VDA Proposals).

The constitutional validity of levy of Entry Tax has been a matter of constant hue and cry amongst the trade. A nine-member bench of the Hon’ble Supreme Court in the case of Jindal Stainless Steel v. State of Haryana inter alia held that only entry tax laws which are discriminatory in nature are to be declared unconstitutional and the question of entry tax laws being discriminatory or not were left to be decided by the respective High Courts.

The Online Gaming (Regulation) Bill, 2022 (Bill) was introduced in the Lok Sabha on 1 April 2022 as a private members bill, in the midst of India's most premier sporting event, and on the heels of the upcoming sale of media rights of the Indian Premier League, which is expected to fetch astronomical sums.