Split Verdict - The Legal Chamber

The Supreme Court, in a review petition, reversed its earlier judgment by allowing the recall of the ban on ex-post facto environmental clearances. The Court ruled that the Environment (Protection) Act, 1986 does not absolutely prohibit such clearances and that they may be granted in exceptional cases after applying the principle of proportionality and the polluter pays principle. The bench emphasized that a balanced approach, weighing ecological damage against economic and public interest, must be adopted. Facts Of The Case: The case originates from legal challenges to a 2017 notification and a 2021 office memorandum issued by the Ministry of Environment, Forest and Climate Change (MoEF&CC). These instruments created a framework for granting ex-post facto Environmental Clearance (EC...

The Supreme Court delivered a split verdict on the interplay between Sections 144C and 153 of the Income Tax Act, 1961. The key legal question was whether the detailed procedure and timelines under Section 144C for eligible assessees operate within or in addition to the limitation period prescribed under Sections 153 for passing assessment orders. The divergence of opinion led to the matter being referred to a larger bench for final determination. Facts Of The Case: The case involved several foreign companies, including Shelf Drilling Ron Tappmeyer Ltd., engaged in oil exploration in India. For Assessment Years 2014-15 and 2018-19, the companies filed returns declaring losses. Their cases were selected for scrutiny, and the Assessing Officers passed draft assessment orders ...

Tag: Split Verdict

Supreme Court Allows Ex-Post Facto Environmental Clearance: A Major Shift in Environmental Law

Key Income Tax Ruling: Supreme Court Divided on Limitation Period Under Sections 144C & 153