Restriction of Input Tax Credit under Rule 86A applies only to fraudulently or ineligible availed credit; mere wrongful recipient availment is insuffi...
Business reorganisation requires recognition of successor's modified return; draft orders against dissolved transferor quashed and fresh review direct...
The dominant issue was whether the petitioner could be treated as a "promoter" or otherwise brought within Clause 3(d) of the RBI Master Circular on Wilful Defaulters (01.07.2015) to sustain a wilful defaulter classification. The Court held there was no admission or documentary material showing the petitioner was a promoter, and the record (including the company prospectus) did not support such status; the matter had to be assessed on the footing that he was only a non-executive director. It further held that mere non-whole-time directorship did not satisfy Clause 3(d) and the bank failed to substantiate any complicity or the exception clause requirements. Consequently, the Review Committee's decision was set aside against the petitioner, the identification decision became ineffective, and the bank was directed to remove his name from the wilful defaulter list and reverse consequential steps within one month - HC
The dominant issue was whether the petitioner could be treated as a "promoter" or otherwise brought within Clause 3(d) of the RBI Master Circular on Wilful Defaulters (01.07.2015) to sustain a wilful defaulter classification. The Court held there was no admission or documentary material showing the petitioner was a promoter, and the record (including the company prospectus) did not support such status; the matter had to be assessed on the footing that he was only a non-executive director. It further held that mere non-whole-time directorship did not satisfy Clause 3(d) and the bank failed to substantiate any complicity or the exception clause requirements. Consequently, the Review Committee's decision was set aside against the petitioner, the identification decision became ineffective, and the bank was directed to remove his name from the wilful defaulter list and reverse consequential steps within one month - HC
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