MONTHLY JOURNAL –JANUARY 2024

1. Case: Vashist Narayan Kumar vs. The State of Bihar & Ors.

Facts: Vashist Narayan Kumar applied for a Police Constable position under the reserved
category but was disqualified due to an incorrect date of birth on the application form.

Laws Involved: Constitution of India, 1950 - Article 142.

Judgment and Court Reasoning: The Supreme Court, comprising Justices J.K. Maheshwari and
K.V. Viswanathan, ruled that the error was trivial and inadvertent, not warranting
disqualification. The court directed the state to treat Vashist Narayan Kumar as a qualified
candidate and issue him an appointment letter.

2. Case: DBS Bank Limited Singapore vs. Ruchi Soya Industries Limited

Facts: The case revolved around the interpretation of Section 30(2)(b)(ii) of the Insolvency and
Bankruptcy Code, 2016 concerning the entitlement of dissenting financial creditors to the
minimum value of their security interest.

Laws Involved: Insolvency and Bankruptcy Code, 2016.

Judgment and Court Reasoning: Justices Sanjiv Khanna and S.V.N. Bhatti decided to refer the
matter to a larger bench for further consideration, recognizing the complexity of the legal
question involved.

3. Case: Vishal Tiwari vs. Union of India

Facts: Allegations of stock manipulation by the Adani Group prompted debate on whether the
investigation should be transferred from SEBI to a Special Investigation Team (SIT).

Laws Involved: Constitution of India, 1950 - Articles 32 and 142; Companies Act, 2013;
Securities and Exchange Board of India Act, 1992; Securities Contracts (Regulations) Rules,
1957; and others.
Judgment and Court Reasoning: Chief Justice DY Chandrachud, Justice J.B. Pardiwala, and
Justice Manoj Misra upheld SEBI's authority to conduct the investigation, emphasizing the need
for verified evidence before transferring the probe to another agency.

4. Case: The State of Uttar Pradesh vs. Association of Retired Supreme Court and
High Court Judges at Allahabad

Facts: A petition sought an increase in allowances for former judges, leading to discussions on
the powers of High Courts to compel the state government to notify rules.

Laws Involved: Constitution of India, 1950 - Articles 76, 165, 226, 299; Contempt of Courts Act,
1971 - Section 14.

Judgment and Court Reasoning: Chief Justice DY Chandrachud, Justice J.B. Pardiwala, and
Justice Manoj Misra issued a Standard Operating Procedure (SOP) to regulate the summoning of
government officials by High Courts, emphasizing adherence to constitutional principles and the
separation of powers.
INCOME TAX

On January 23, 2024, the Central Board of Direct Taxes released Circular No. 01/2024,
elucidating the amendments made to the Income Tax Act, 1961, by the Finance Act of 2023.
This circular aims to provide clarity on the provisions of the Finance Act 2023 related to direct
taxes. In addition to explaining the provisions within the Income Tax Act, the circular also
addresses modifications in other legislations affecting direct taxes, including The Finance (No. 2)
Act, 2004,

The Prohibition of Benami Property Transactions Act, 1988, and the Unit Trust of India
(Transfer of Undertaking and Repeal) Act, 2002. The Finance Act of 2023 has introduced
changes to the Income Tax Act, specifying the prevailing rates of income tax for the Assessment
Year 2023-24. It has also amended certain sections of the Income Tax Act, altering the rates of
income tax for tax deduction at source and advance tax payments during the financial year 2023-
24. The circular, issued by the Finance Ministry, emphasizes crucial provisions and offers
detailed explanations to aid stakeholders such as Chartered Accountants, income tax officials,
and taxpayers in understanding the amendments comprehensively.

Interim Budget 2024 – Changes in Income-tax Act & GST Act:

Income-tax Act Changes:

 Amendment of TCS Provisions: The Finance Bill 2024 proposes amendments to align tax
collection at source (TCS) provisions with the government's press release from June 28,
2023. This move aims to address stakeholder feedback regarding Section 206C(1G).
 Extension of Sunset Dates: The sunset dates for various provisions under the Income-tax
Act, including sections like 10(4D), 10(4F), 10(23FE), and 80-IAC, are proposed to be
extended through the Finance Bill 2024.
 Withdrawal of Small Outstanding Direct Tax Demands: Finance Minister Nirmala
Sitharaman announced in the budget speech the withdrawal or waiver of small unresolved
or disputed direct tax demands for financial years up to 2014-15, addressing demands
amounting to Rs. 25,000 for the period up to FY 2009-10 and Rs. 10,000 for FYs 2010-
11 to 2014-15.
Changes under GST Act:

 Distribution of ITC through ISD: Amendments proposed in the Finance Bill 2024 aim to
alter the definition of Input Service Distributor (ISD) and the procedure for distributing
common credit using the ISD mechanism. This includes eliminating the need for issuing
prescribed documents and mandating registration as ISD for those receiving common
input tax credit.
 Penalty for Non-Registration of Machines: A new Section 122A is proposed within the
Penalties Chapter of the Finance Bill 2024, specifying penalties for manufacturers of
specified goods failing to register machines as per the special procedure. The penalty
prescribed is Rs. 1 lakh per machine, in addition to other penalties under demand and
recovery provisions or other penalty sections.

CBDT Notification on ITR Forms:

The Central Board of Direct Taxes (CBDT) has notified Income-tax Return Forms 2, 3, and 5 for
Assessment Year 2024-25, applicable for income earned during the previous year 2023-24.
Individuals and Hindu Undivided Families (HUFs) subject to tax audit under section 44AB can
now verify their return of income using an electronic verification code, a change from earlier
authorization limited to digital signature verification. The new ITR forms require additional
details from taxpayers and incorporate changes consequential to amendments by the Finance Act
2023.
IMPORTANT BILL 2024

The Public Examinations (Prevention of Unfair Means) Bill, 2024

The Public Examinations (Prevention of Unfair Means) Bill, 2024, introduced by Union Minister
Jitendra Singh in the Lok Sabha, aims to combat malpractices and irregularities in competitive
examinations by imposing stringent penalties. The bill comes in response to numerous instances
of question paper leaks in competitive tests across various states, affecting millions of students.
Currently, there is no specific law to address such malpractices. The objective of the bill is to
ensure transparency, fairness, and credibility in public examination systems and reassure the
youth about the integrity of the process. It applies to central recruitment and entrance exams
conducted by various authorities like UPSC, SSC, RRBs, IBPS, and NTA. The bill targets
individuals, organized groups, or institutions involved in unfair means for monetary gains, with
provisions for imprisonment and hefty fines. It defines various offences and proposes strict
penalties, including imprisonment of up to 10 years for cases linked to organized crime. The bill
also establishes a high-level national technical committee to enhance the security of
computerized examination processes and proposes a model draft for states to follow. Overall, it
seeks to safeguard the integrity of public examinations and ensure that genuine efforts of
candidates are duly rewarded.

Jammu and Kashmir Local Bodies Laws (Amendment) Bill, 2024

The Lok Sabha discussed the Jammu and Kashmir Local Bodies Laws (Amendment) Bill, 2024,
which aims to amend certain provisions of the Jammu and Kashmir Panchayati Raj Act, 1989,
the Jammu and Kashmir Municipal Act, 2000, and the Jammu and Kashmir Municipal
Corporation Act, 2000. The purpose of the bill is to provide reservations for Other Backward
Classes (OBCs) in Panchayats and Municipalities in the Union Territory of Jammu and Kashmir,
aligning local bodies' laws with the Constitution. Minister of State for Home Nityanand Rai
introduced the bill, emphasizing the historical neglect of OBCs in Jammu and Kashmir and
highlighting the development opportunities post the abrogation of Article 370. He stated that the
bill aims to grant reservations to OBCs in local bodies and transfer the power to prepare and
conduct local body polls to the State Election Commission, as per the Constitution. During the
discussion, Jasbir Singh Gill of Congress welcomed the OBC quota but called for provisions for
minority Sikh representation and financial autonomy for local bodies. Jugal Kishore Sharma
hailed the bill as historic and accused the Congress, National Conference, and Peoples
Democratic Party of neglecting the OBC community in the Union Territory.