Income Tax Act

The assessee company had advanced a loan to a firm whose partners were also its shareholders and directors. Interest was charged on the loan in the 1966-67 and 1967-68 assessment years, establishing it as an interest‑bearing loan. For the 1968-69 assessment year the company passed a resolution before the end of its acc…

Parasrampuria Synthetic Ltd imported a large number of printed drawings, designs and plans under a foreign technology‑transfer agreement for setting up a polyester plant. The importer claimed that the items fell within Serial No. 10 of Customs Notification No. 25/95 (dated 16‑03‑1995), which provides a nil rate of duty…

The Special Director of Enforcement imposed a penalty on Ketan V. Parekh and others under the Foreign Exchange Management Act, 1999. The appellants filed appeals under Section 35 of the Act and sought condonation of a 1,056‑day delay, arguing that the time spent pursuing writ petitions in the Delhi High Court should be…

The Delhi Development Authority (DDA) failed to deduct tax at source on interest paid to flat buyers, leading to a tax demand for assessment years 1987-88, 1988-89 and 1989-90. The Income Tax Appellate Tribunal set aside the assessments, held the payments were not "interest" within Section 2(28A), and ordered a refund.…

The Gujarat High Court, in a public‑interest litigation, directed the State to compensate trusts and institutions for religious places damaged in the 2002 communal riots and appointed special officers to assess claims. The State responded by framing an ex‑gratia scheme limiting assistance to Rs 50,000 per place, subjec…

Two consumer complaints were filed before the South Mumbai District Consumer Forum, and the opposite parties objected to the appearance of an authorized agent who was not an advocate. The High Court held that the Consumer Protection Act, 1986 permits parties to be represented by authorized agents and that this does not…

The Rajasthan Sales Tax Assessing Officer had assessed M/s Makkad Plastic Agencies at a 10% rate, which was later set aside by the Deputy Commissioner (Appeals) and then restored by the Rajasthan Taxation Board. The assessee filed a rectification application under Section 37 of the Rajasthan Sales Tax Act, 1994, prompt…

The Commercial Taxes Officer challenged the exemption claimed by M/s Bombay Machinery Store under Section 6(2) of the Central Sales Tax Act, 1956, arguing that the State’s circulars imposed a 30‑day time‑limit after which goods retained by a carrier were deemed to be constructively delivered, converting the inter‑state…

The respondent, an Income Tax Officer, was charged under Rule 14 of the Central Civil Services (Classification, Control and Appeal) Rules, 1965 for completing nine tax assessments in an irregular, hasty manner allegedly to confer undue favour, thereby violating Rules 3(1)(i)-(iii) of the Central Civil Services (Conduct…

The tenants (appellants) were ordered by the Rent Control Court to vacate premises for default in rent payment. They appealed under Section 20 of the Tripura Buildings (Lease and Rent Control) Act, 1975, but had not deposited the arrears of rent required by Section 13(1). The lower courts held the appeal inadmissible, …

Dena Bank had taken a mortgage over the property of the partnership firm Mis Bhikhabhai Prabhudas Parekh & Co. and its partners. While the suit was pending, the State of Karnataka attached and auctioned the mortgaged property to recover arrears of sales tax. The trial court granted a decree to the bank but dismissed th…

Karamchand Premchand Pvt. Ltd. set aside Rs 4,50,000 as a provision for a possible tax liability under Section 23A of the Income‑Tax Act, 1922. The company later claimed that this amount was a reserve and should be included in its capital for the purposes of Rule 1 of the Second Schedule of the Super Profits Tax Act, 1…

The Madhya Pradesh Electricity Board classified a lawyer's office as a commercial establishment and demanded commercial tariff for electricity consumption. The landlord, who owned the premises, challenged the demand in the High Court, which held that a lawyer's office is not a commercial establishment and the commercia…

The partnership firm that owned the Tariya coking coal mine had its management taken over by the Central Government in October 1971 under the Emergency Ordinance, later replaced by the Management Act. The Coking Coal Mines (Nationalisation) Act, 1971 extinguished the owners' title effective 1 May 1972 and provided comp…

The respondent purchased a flat from the appellant under an agreement dated 16 September 1985 and later filed a suit for specific performance. During the suit the parties executed a consent decree on 1 November 1991, confirming the original agreement and setting reciprocal obligations: the appellant to hand over the fl…

The Joshi Ambashankar Family Trust, a charitable trust, sought High Court permission to sell a property after obtaining a modification order allowing sale with court approval and 3/4 trustee concurrence. While the trustees received an offer of Rs.9 lakh from a group of purchasers, the appellants (Gowrishankar and other…

New India Assurance Co. Ltd. denied a claim by M/s Abhilash Jewellery for loss of gold that occurred while the jewellery was in the custody of an apprentice. The insurance policy covered loss while in the custody of the insured, his partner or his employees. The dispute turned on whether an apprentice qualifies as an "…

The Gujarat Commissioner of Wealth Tax appealed against a decision allowing Shri Vadilal Mehta to deduct certain tax liabilities in computing his net wealth for the 1964-65 wealth‑tax assessment year. The assessee sought deductions for income‑tax, wealth‑tax and gift‑tax liabilities that were quantified by assessment o…

The appellant, Bharat Bone Mill, manufactures crushed bone and argued that the product should be classified as a fertilizer and therefore exempt from Uttar Pradesh sales tax under the state's exemption notifications. The State had earlier exempted fertilizers (including chemical fertilizers) but later taxed "bone to co…

The Commissioner of Wealth Tax, Bihar appealed against the Patna High Court’s decision that Maharaja Kumar Kamal Singh’s right to receive compensation under the Bihar Land Reforms Act should be valued at nil because of arrears of agricultural income‑tax. The central issue was whether such tax arrears could be deducted …

The Andhra Pradesh government reduced the superannuation age for its employees from 58 to 55 years in 1983 and later attempted to reverse the decision by raising it back to 58 years through Ordinance No.24 of 1984 and Act No.3 of 1985. A large number of employees who had been forced to retire under the 55‑year rule cha…

The petitioners, office bearers of a charitable Sabha, challenged a search warrant issued under Section 93(1)(c) of the Code of Criminal Procedure, 1973, on the ground that it violated the constitutional protection against self‑incrimination under Article 20(3). The Supreme Court examined whether a general search of pr…

The Supreme Court examined whether the value of tangible software (discs, floppies, CD‑ROMs) sold together with a computer should be included in the assessable value of the computer for excise duty. The Customs, Excise & Gold (Control) Appellate Tribunal had held that the computer system and its software formed a singl…

The Supreme Court examined the Union of India's and CBI's challenge to a Delhi High Court order that quashed the FIR registered against W.N. Chadha in the Bofors scandal and set aside the letters rogatory issued to Swiss authorities. The Court held that the FIR disclosed a prima facie offence and that the High Court ha…

The appellant, Sonia Bhatia, claimed ownership of 80 bighas of land gifted to her by her grandfather on 28 January 1972, after the statutory cut‑off date of 24 January 1971 under the Uttar Pradesh Imposition of Ceiling on Land Holdings Act, 1960. The Prescribed Authority ignored the gift under Section 5(6), treating it…

Laxmi Sugar & Oil Mills Ltd. had debited Rs 8,16,000 as a provision for additional cane price payable to cane‑growers under the Sugarcane Price Control Order, 1955, and shown it under "Current liabilities and provisions". The amount was later reversed and no actual payment was made. The Income‑Tax Officer excluded the …

The beneficiaries of the H.E.H. Nizam Jewellery Trust valued their interest in the trust's jewellery based on a valuer's report. The Commissioner of Wealth Tax challenged this valuation, arguing that the estate duty payable on the deemed death of the life tenant had been incorrectly deducted, among other objections. Th…

The petitioners, senior officers of the Canara Bank Officers' Association, alleged that senior bank officials forced bank staff to collect donations and sell greeting cards for the Canara Bank Relief and Welfare Society and the Association's Trust Fund, claiming coercion and victimisation. The Bombay High Court dismiss…

Vikram Cotton Mills Ltd., a textile manufacturer, incurred heavy losses and ceased production in 1953. In 1956, under a court‑approved scheme, its plant and machinery were leased to General Fibres Dealers for Rs 2.5 lakh per year for ten years (renewable) to generate income for creditors and enable future reconstructio…

The respondent, owner of a 2.5‑acre farmhouse in the agricultural green belt of Delhi, constructed a dwelling house on the land. The Municipal Corporation of Delhi (MCD) levied General Tax under Section 115 of the Delhi Municipal Corporation Act, 1957, treating the entire farm as taxable. The High Court directed that f…

The appellant, a permanent driver at DAV Public School, was declared surplus and retrenched by the school’s Managing Committee in 2003. The school served a notice under Section 25F(a) of the Industrial Disputes Act but failed to send the statutory notice to the appropriate government authority under Section 25F(c) and …

The assessee sought to deduct wealth‑tax liabilities of Rs 22,679 (assessment year 1960‑61) and Rs 39,692 (assessment year 1961‑62) while computing net wealth for the valuation dates of 31 March 1961 and 31 March 1962. The Wealth Tax Officer rejected the claim, the Appellate Assistant Commissioner allowed part of it, a…

The Commissioner of Trade Tax, U.P. appealed against the eligibility certificate granted to Mis. Kajaria Ceramics Ltd. for exemption from trade tax under the 1991 Notification. The company had expanded its ceramic tile plant in three stages between 1990 and 1994, increasing capacity from 12,000 TPA to 60,000 TPA, and c…

The landlord filed an eviction petition under Section 12 of the Tripura Buildings (Lease and Rent Control) Act, 1975 alleging non‑payment of rent and a bona‑fide requirement. The Rent Control Court found the tenants in arrears and ordered eviction; the tenants’ appeal under Section 20 was dismissed by the Civil Judge b…

The Supreme Court examined appeals by Delhi International Airport Ltd. (DIAL) and Mumbai International Airport Ltd. (MIAL) challenging tariff determinations made by the Airports Economic Regulatory Authority of India (AERA) under the Airports Economic Regulatory Authority of India Act, 2008. The key disputes involved t…

The appellant sold a house that was mortgaged and the mortgage debt was discharged by the buyer from the sale proceeds. The appellant argued that the amount used to clear the mortgage should be treated as part of the cost of acquisition or as an improvement, thereby reducing the capital gains tax of Rs.68,400 computed …

The Supreme Court examined the constitutional validity of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987, particularly its provisions abolishing hereditary rights of Archakas and other temple officials. It held that such abolition was not unconstitutional and that the Act's welf…

Empire Jute Co., a member of the Indian Jute Mills Association, purchased loom‑hours from four other mills under a quinquennial working‑time agreement that limited weekly loom operation. The company claimed Rs 2,03,255 as a revenue expense deductible under section 10(2)(xv) of the Income‑Tax Act, arguing that the payme…

The Supreme Court examined the constitutional validity of the Auroville (Emergency Provisions) Act, 1980, which authorised the Government of India to take over the management of the Auroville township for a limited period due to alleged mismanagement and fund diversion by the Sri Aurobindo Society. The petitioners chal…

The assessees purchased deferred annuity policies and claimed exemption from wealth tax under section 5(1)(vi) of the Wealth Tax Act, 1957, arguing that such policies fell within the phrase "any policy of insurance". The Wealth Tax Officer rejected the claim, but the Appellate Assistant Commissioner, the Income Tax App…

The appellants purchased Kisan Vikas Patras (KVPs) in joint names and, relying on an agent named Rukhsana, handed the certificates to her for transfer. Rukhsana encashed the KVPs at a different post office and received Rs. 25,54,000 in cash, which she kept. The appellants filed a consumer complaint; the NCDRC dismissed…

The case concerned the Delhi Tax Compliance Achievement Scheme (Amnesty Scheme) under Section 107 of the Delhi Value Added Tax Act, 2004. The Additional Commissioner, acting as the "Designated Authority", issued a show‑cause notice under clause 8 of the Scheme alleging false declaration by MIS Ahluwalia Contracts. The …

The State of Punjab appealed against the High Court’s decision that the Commissioner of Excise and Taxation could not extend the three‑year limitation period for passing a sales‑tax assessment after that period had expired. The assessee, M/s Shreyans Indus Ltd., had filed returns for assessment years 2000‑01 to 2003‑04…

Dr. Vinod Bhandari, Managing Director of a medical institute, was alleged to have conspired with Vyapam officials and middlemen to secure illegal admissions for undeserving candidates into MBBS courses, involving large sums of money and fraud. He was arrested in January 2014 and his bail applications were rejected by t…

E.I.D. Parry (India) Ltd., a sugar manufacturer, purchased sugarcane at a statutory minimum price and an additional price under Clause 5‑A of the Sugarcane (Control) Order, 1966. The additional price could be determined only after the sugar year ended, so the company paid an advance on that price, recorded only the min…

The Federation of Hotel & Restaurant Association of India and other hotel operators challenged the Expenditure Tax Act, 1987, alleging that Parliament lacked legislative competence and that the Act violated Articles 14 and 19(1)(g) by arbitrarily classifying hotels based on a Rs.400 per day room charge and imposing an …

The Supreme Court dealt with the aftermath of the Sanchaita Investment Company case, where a Commissioner was appointed to attach and sell properties of the defunct firm. One such property, house No. 52/1/IB, was sold on an "as is where is" basis to Ashim Kumar Mandal and others, who then sought vacant possession. The …

The appellants, Kothari Industrial Corporation Ltd. and others, set up new industrial units attracted by a five‑year tariff concession under the Tamil Nadu Revision of Tariff Rates on Supply of Electrical Energy Act, 1978. A later notification (30‑April‑1982) altered the concession, stipulating it would not apply once …

M/S Sonebhadra Fuels, which manufactures coal briquettes (coal tikli), sought exemption/rebate of sales tax on the basis that the briquettes were the same commodity as coal, which had already been taxed. The Assessing Authority, Appellate Authority and the Sales Tax Tribunal rejected the claim, holding the briquettes t…