Finance (No.2) Act, 1998

The case arose from allegations of irregularities in the grant of an advance licence for import of cotton fabrics, leading to a criminal complaint against a company, its directors and four public servants under the IPC, Prevention of Corruption Act and Customs Act. The company and its directors filed a declaration unde…

Berger Paints India Ltd. claimed a deduction under section 35D of the Income Tax Act for preliminary expenses, treating the premium received on its issued share capital as part of the "capital employed in the business of the company". The Assessing Officer disallowed the claim, the Commissioner of Income Tax allowed it…

Killick Nixon Ltd. filed its return for AY 1992‑93 and, after a revised return, the Assessing Officer disallowed several claims. The Commissioner of Income Tax (Appeals) upheld some items but set aside four heads – bad debt, income from house property, capital gains and a disallowance under Rule 6D – and remitted the m…

The assessee, Prakash Chand Lunia, who dealt in silver, was found to have smuggled 146 slabs of silver which were confiscated by customs and a penalty imposed. He claimed the value of the confiscated silver as a business loss under Section 37(1) of the Income‑Tax Act, relying on the High Court's application of the Piar…

Mis. Duncans Industries Ltd., a cigarette manufacturer, was served with two show‑cause notices covering the period July 1973‑February 1983, one by the Assistant Collector of Central Excise, Calcutta and another by the Commissioner of Central Excise, Delhi. The Assistant Collector incorporated the material of the Delhi …

The All India Federation of Tax Practitioners challenged the levy of service tax on chartered accountants, cost accountants and architects under the Finance Acts of 1994 and 1998, arguing that such tax fell within State List Entry 60 (taxes on professions) and was barred by Article 276. The Supreme Court examined the c…

M/s. Techno Shares & Stocks Ltd. claimed depreciation on the cost of its Bombay Stock Exchange (BSE) membership card for assessment years 1999-2003, invoking Section 32(1)(ii) of the Income Tax Act, 1961. The Assessing Officer rejected the claim, holding that the membership card was a personal, non‑transferable privile…

M/s. Swastika Enterprises imported an old vessel and, despite claiming exemption, was assessed additional customs duty of Rs. 1,52,20,000 through an endorsement on the Bill of Entry. The appellants challenged the demand by filing a writ petition, and while the Kar Vivad Samadhan Scheme was introduced during the pendenc…

The respondents, manufacturers of textile fabrics, were found to have cleared goods without paying excise duty and were served a show‑cause notice on 6 January 1999. They sought relief under the Kar Vivad Samadhan Scheme, 1998, which allowed settlement of tax arrears quantified or notified on or before 31 March 1998, b…

Shatrusail Ya Digvijay Singh Jadeja filed declarations under the Kar Vivad Samadhan Scheme, 1998, which the Income Tax Department rejected. The Gujarat High Court held the declarations competent, ordered the Designated Authority to determine the amount payable under Section 90, and additionally directed the appellant t…