Ergo Update

The Reserve Bank of India (RBI) on 14 January 2022 notified the Registration of Assignment of Receivables (Reserve Bank) Regulations, 2022 (Regulation). The Regulation provides clarity in the manner of filing of particulars of assignment transactions with the Central Registry set up under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Central Registry) by the Trade Receivables Discounting System (TReDS).

The Supreme Court (SC) interpreted the scope and applicablity of Section 29A(h) of the Insolvency and Bankruptcy Code 2016 (the Code) by way of its judgement dated 18 January 2022 in Bank of Baroda and Anr. v. MBL Infrastructures Limited and Ors., 2022 SCC OnLine SC 48  providing clarity  as to whether a guarantor whose guarantee is invoked by a creditor  is eligible to submit a resolution plan under Section 29A(h) of the Code.

The Department of Telecommunications (DoT) recently added a new service authorisation, namely ‘Machine to Machine (M2M)’ (New Authorisation) in the Unified License (UL) and Unified License (Virtual Network Operators) (UL VNO) frameworks.

In a recent order in Manoj Jain v Union of India & Ors (WPA No. 11950 of 2021) (Order), the Hon’ble Calcutta High Court (High Court) has quashed reassessment notices issued by the income-tax authorities (IT Authorities) under the old reassessment regime (ie, law existing prior to 1 April 2021) under the Income Tax Act 1961 (IT Act).

While the telecom reforms initiated by the Department of Telecommunications (DoT) in 2021 continue to receive a welcoming response from the industry, the DoT has made yet another headway in this direction. On 14 January 2022, DoT issued the ‘Revised terms and conditions for issue/renewal of NOC for sale/rent of International Roaming SIM Cards/ Global Calling Cards of Foreign Operators in India’ that seek to streamline the procedures for no objection certificate (NOC) holders in India to bring them in line with the other licenses and registrations.

The Supreme Court in a recent judgment dated 07.01.2022 passed in CA No. 7319 of 2021: State of Maharashtra vs. Shri Vile Parle Kelvani Mandal & Ors. held that charitable educational institutions registered under the Societies Registration Act, 1860 and the Maharashtra Public Trusts Act, 1950 are not exempted from the levy/payment of electricity duty under the Maharashtra Electricity Duty Act, 2016 (2016 Act) post 01.09.2016. The issue arose from an appeal against the judgment and order dated 28.02.2019 (Impugned Judgment) passed by the High Court of Bombay in W.P. No.2961 of 2018. 

The Supreme Court (SC) in its judgment dated 14 December 2021, in E S Krishnamurthy & Ors. v. M/s Bharath Hi Tech Builders Pvt. Ltd., Civil Appeal No.

In a recent landmark order in Mon Mohan Kohli v ACIT and others (WP(C) No. 6176/2021) (Order), the Hon’ble Delhi High Court (High Court) has quashed over 1300 (thirteen hundred) reassessment notices issued by the income-tax authorities (IT Authorities) under the old reassessment regime (ie, law existing prior to 1 April 2021) under the Income Tax Act 1961 (IT Act).

Marking a significant step in international tax negotiations, India has issued a press release on 24 November 2021 (Press Release) confirming that India and USA have agreed on a transitional approach on India’s 2% equalization levy on e-commerce supply or services and USA’s trade action against India as a consequence of the said levy.