The Government of India, in September 2019, began the process of liberalising the long-standing restrictions imposed on mining activities in India with permitting 100% foreign direct investment (FDI) in entities engaged in coal mining activities for sale of coal.
With a view to streamline the process and reduce the time taken for rights issues undertaken by listed companies, the Securities and Exchange Board of India (SEBI) in its board meeting held on 20 November 2019, decided to amend the regulatory requirements applicable to rights issues by listed companies.
In the recent ruling (dated 31 December 2019) of ITO v APJ Construction Private Limited (ITA No. 722/Del/2015) (Ruling), the Income Tax Appellate Tribunal (Tribunal), has held that the tax officer’s (Assessing Officer) characterisation of primary share capital infusion as ‘not clean money’ was accurate as the taxpayer company (issuer) had not clarified the doubts as to the genuineness of the ‘identity’ and ‘creditworthiness’ of the share applicants or ‘genuineness of the transaction’.
On 7 December 2019, the Government of Karnataka (Government) issued a notification (Notification) amending the Karnataka Industrial Employment (Standing Orders) Rules 1961 (Rules). This Notification requires industries in Karnataka, both private and public, to give priority to Kannada-speaking individuals (Kannadigas) in local jobs. The Notification cites the lack of a common language being the cause of majority of accidents on the shop floor and the reason behind its recommendation of giving preference to locals.
Prompted by the ballooning relevance of digital commerce, the Competition Commission of India (CCI) commenced a market study on e-commerce (Study) in April 2019. The CCI published its findings on 8 January 2019, in its report titled “Market Study on E-commerce in India: Key Findings and Observations” (Report). The Report is a follow-up to the CCI’s interim observations of the Study, published in August 2019.
In Ferid Allani (Petitioner) v Union of India And Ors (Respondents), the Delhi High Court (Court) directed the Indian patent office to reassess the Petitioner’s patent application in light of the Court’s observations on patentability of computer related inventions.
The present system of stamp duty collection governing securities market transactions had many challenges such as multiple rates for the same instrument, differing rates in states and lack of clarity, often leading to higher transaction costs and roadblocks in capital formation. It also encouraged corporates to forum shop for jurisdictions which provided favourable stamp duties.
On 27 November 2019, a three-judge Bench of the Hon’ble Supreme Court struck down the newly inserted Section 87 of the Arbitration and Conciliation Act, 1996 as manifestly arbitrary and unconstitutional.
In a recent ruling in Doshi Accounting Services Pvt. Ltd v/s DCIT, (ITA No. 1352/Ahd/2011, 1285/Ahd/2012 and 1822/Ahd/2014), (Ruling), a special bench of the Income Tax Appellate Tribunal, Ahmedabad (Special Bench), has ruled that the transfer pricing provisions (TP provisions) would apply to an entity claiming tax exemption/holiday under Section 10A of the Income-tax Act, 1961 (IT Act).
On 13 December 2019, the Ministry of New and Renewable Energy, Government of India (MNRE) issued Guidelines for Development of Decentralised Solar Power Plants (Guidelines). The Guidelines have been issued to promote production of solar energy near sub-stations and to ensure availability of affordable and reliable solar power in the rural areas of the country.
