Entities Involved in Trade Would Cease to be a Charitable Institution: SC
The Supreme Court (SC) ruled that any entity or institution involved in any trade or commerce under the guise of 'general public utility' will cease to be a 'charitable institution' and therefore, cannot claim tax exemption under the Income-Tax (I-T) Act.
Two key issues were heard by the Apex Court.
One scope of the expression 'general public utility' (deals with benefit to a section of the public) for claiming tax exemption as 'charitable institution'.
Two, scope of exemption to educational institutions claiming tax exemption as 'charitable institution'.
The expression 'charitable purpose' has been defined under certain clauses which include relief to the poor, for education and medical relief, preservation of the environment (including watersheds, forests and wildlife), preservation of monuments, and the advancement of any other object of public utility.
Many institutions doing trade/commerce used the 'general public utility' clause to gain exemption for profits on such trade/commerce since the meaning is ambiguous. The court has now clarified if any profit or margin is earned from such an activity, it shall cease to be a charitable activity.
This judgment could have wide-ranging ramifications since charitable institutions involved in any trade or commerce in the name of the said provision could come under its radar and would be denied the benefit of tax exemption under the I-T Act available to them.
Oct 20, 2022
Uttarakhand High Court Dismisses PIL Seeking Appointment of Judges
The Uttarakhand High Court dismissed a PIL seeking directions to appoint judges in the Uttarakhand High Court as per the sanctioned strength.
The PIL was filed by the Youth Bar Association of India.
The Division Bench of Chief Justice Vipin Sanghi and Justice Manoj Kumar Tiwari observed that it is for the Collegium, consisting of the Chief Justice and the two seniormost Judges of the High Court, to make the recommendations.
There is no reason to assume that the Collegium is not mindful of its duty, or that it would not perform its duty, as and when the occasion arises.
Oct 19, 2022
No Direction can be Issued to Parliament to Frame UCC: Centre Tells SC
The Supreme Court was apprised by the Union Law Ministry that it cannot direct the Parliament for framing or enacting any law.
The Union Law Ministry has also asked the Apex Court that the PILs pertaining to Uniform Civil Code in the country must be dismissed as non-maintainable.
While responding to the PIL filed by BJP leader and Advocate Ashwini Upadhyay with regards to seeking uniformity in the personal laws regulating marriage divorce, maintenance and alimony, the Ministry said that a writ of Mandamus cannot be issued to the legislature to enact a particular legislation.
It further said that it was policy matter which can be dealt by elected representatives and no direction in this regard can be issued by the Court. It is for the legislature to enact or not to enact a piece of legislation.
The Article 44 of the Indian Constitution is a directive principle which requires the State to endeavor to secure Uniform Civil Code for all the citizens.
The Ministry emphasized on the part Article 44 is to strengthen the object of "Secular Democratic Republic" as enshrined in the Preamble of the Constitution.
Oct 18, 2022
D.Y. Chandrachud Appointed 50th Chief Justice of India
The President of India appointed Justice Dhananjaya Yeshwant Chandrachud as the Chief Justice of India (CJI) with effect from November 9, 2022. He will take over as the 50th CJI after incumbent CJI U. U. Lalit retires.
The outgoing CJI had recommended Justice Chadrachud's name to take the reins of the judiciary on October 11. Justice Chandrachud would have a term of over two years until November 10, 2024.
Lauded as a feminist judge for his reasoning, Justice Chandrachud spoke to young law graduates recently and told them to incorporate a feminist way of thinking while dealing with the law.
He practiced law before the SC and the Bombay High Court (HC) and was designated a senior advocate by the Bombay HC in June 1998.
He served as the Additional Solicitor General of India from 1998 until he was appointed a judge of the Bombay HC in March 2000. He was later appointed as Chief Justice of the Allahabad HC on October 31, 2013.
He was appointed judge of the SC on May 13, 2016.
Oct 17, 2022
Justice Magrey Sworn in as Chief Justice of High Court of J-K and Ladakh
Justice Ali Mohammad Magrey was sworn in as the new Chief Justice of the High Court of Jammu and Kashmir and Ladakh.
Jammu and Kashmir Lieutenant Governor Manoj Sinha administered the oath of office to Justice Magrey at a ceremony at SKICC.
The warrant of appointment of Justice Magrey as Chief Justice was read out by the Registrar General of the High Court.
The ceremony was attended by politicians and senior officers of the police and civil administration.