Skip to main content

Posts

Showing posts with the label principal

Agent not personally liable under Consumer Act also

The Supreme Court Virender Khullar vs. American Consolidation Services Ltd., has reiterated that defence under Section 230 of Indian Contract Act, 1872 is available in the cases under Consumer Protection Act, 1986 by the agents of the principal with whom the complainant had the agreement. Section 230 of the Contract Act says that in the absence of any contact to that effect an agent cannot personally enforce contracts entered into by him on behalf of his principal, nor is he personally bound by them. The Apex Court Bench comprising of Justices R.K. Agrawal and Prafulla C. Pant made this observation while dismissing an appeal against NCDRC order wherein it had held that an opposite party was simply acting as an agent and in view of Section 230 of the Indian Contract Act, 1872 it cannot be held personally liable to enforce the contract entered between its principal and the appellants. The Court referred to its judgment in Marine Container Services South Pvt. Ltd. v. Go Go Garments wherei...

Waiver by the lender of even the principal amount of loan constitutes a "benefit"

CIT vs. Ramaniyam Homes P Ltd (Madras High Court) COURT: Madras High Court CORAM: T. Mathivanan J, V. Ramasubramanian J SECTION(S): 28(iv) GENRE: Domestic Tax CATCH WORDS: business income, capital vs. revenue receipt, OTSS, waiver of loan COUNSEL: Dr. Anitha Sumanth DATE: April 22, 2016 (Date of pronouncement) DATE: April 28, 2016 (Date of publication) AY: 2006-07 S. 28(iv): The waiver by the lender of even the principal amount of loan constitutes a "benefit" arising from business and is assessable to tax as income. Logitronics 333 ITR 386 (Del), Rollatainers 339 ITR 54 (Del), Mahindra & Mahindra 261 ITR 501 (Bom) and Iskraemeco Regent 196 TM 103 (Mad) not followed The High Court had to consider whether the amount representing the principal loan amount waived by the bank under the one time settlement scheme which the assessee received during the course of its business is exigible to tax. The department contended that the waiver of principal amount ...