Income Tax Act, 1961

Virtual Soft Systems Ltd claimed a deduction for lease equalisation charges in its 1999-2000 income tax return. The Assessing Officer disallowed the deduction, but the Income Tax Appellate Tribunal allowed it, a decision upheld by the High Court. The Revenue appealed to the Supreme Court, questioning whether such a ded…

M/s Container Corporation of India Ltd. (CONCOR) claimed a deduction under Section 80‑IA of the Income Tax Act, 1961 for profits earned from its Inland Container Depots (ICDs) for assessment years 2003‑04 to 2005‑06. The Assessing Officer rejected the claim, the Tribunal allowed deduction only for rolling stock and not…

The respondent, a stock broker approved by Indian Bank, was instructed to purchase securities on the bank's behalf and to use part of the proceeds to pay additional interest to certain public sector undertakings (PSUs) via demand drafts. The Assessing Officer treated the amount of Rs 14.73 crore, paid to the PSUs, as t…

M/s Calcutta Export Company, a partnership engaged in manufacturing and exporting casting materials, claimed a deduction for export commission charges under Section 40(a)(ia) of the Income Tax Act for AY 2005-06. The Assessing Officer disallowed the deduction because the TDS on the commission was deposited after the st…

The respondent, Bharat V. Patel, Chairman and MD of Procter & Gamble India, received Rs 6,80,40,724 on redemption of Stock Appreciation Rights (SARs) issued by P&G USA in 1997, before the Finance Act, 1999 amendment to Section 17(2) became effective on 1 April 2000. The Revenue argued that the amount should be taxed as…

HCL Technologies Ltd. claimed deductions under Section 10A of the Income Tax Act, 1961 for freight, telecommunication, insurance and software development expenses incurred in exporting software and providing technical services abroad. The Assessing Officer excluded these expenses from the total turnover, leading to a h…

Formula One World Championship Ltd (FOWC), a UK company, entered into a Race Promotion Contract with Jaypee Sports International Ltd to host the Formula One Grand Prix in India for US$40 million. The dispute centered on whether FOWC had a Permanent Establishment (PE) in India under Article 5 of the India‑UK Double Taxa…

The Income Tax Department conducted searches at the premises of K.P. Mohammed Salim and his associates and, to facilitate coordinated investigation, the Chief Commissioner transferred the cases to the Calicut Investigation Circle under Section 127(2) of the Income Tax Act. The Assessing Officer then issued a notice und…

The plaintiff, Jaipur Traders Corp. Pvt. Ltd., executed a sale deed for an oil mill and received an initial payment, but the balance consideration was withheld pending income‑tax clearance. The parties entered into a written settlement with a director that deferred the balance payment until all formalities were complet…

The Thiagarajar Charities Trust, created in 1962, carried on a business of buying and selling cotton yarn under a board resolution. The Trust claimed exemption from income tax under Section 11 of the Income‑Tax Act, arguing that the business was merely a means to achieve its charitable objects and that any profit was s…

The assessees were searched under two authorisations issued on 13‑03‑2001 and 26‑03‑2001, resulting in panchnamas drawn on 11‑04‑2001 and 26‑03‑2001 respectively. Block assessment notices were issued and assessment orders were passed in April 2003, which the assessees challenged as time‑barred under Section 158BE of th…

The case concerned the constitutional validity of the retrospective amendment to Section 143(1A) of the Income Tax Act, 1961, which imposes a 20% additional tax when adjustments increase declared income or reduce loss. The appellant‑Commissioner had levied additional tax on M/s. Sati Oil Udyog Ltd. for assessment years…

The assessees operated large‑scale poultry hatcheries and claimed that they were industrial undertakings engaged in the manufacture or production of "articles or things" and therefore eligible for investment allowance under s.32A and deductions under ss.80HH, 80HHA, 80I and 80J of the Income Tax Act, 1961. The Revenue …

The assessee, a Hindu Undivided Family (HUF), was granted a development rebate under Sections 33 and 34 of the Income‑Tax Act for new machinery used in its business for assessment years 1960‑61 to 1965‑66. In 1967 a partial partition of the HUF allotted the machinery to two coparceners, who subsequently sold it to a th…

Oxford University Press, a branch of the UK university, claimed exemption from income tax for its 1976-77 earnings under Section 10(22) of the Income Tax Act, 1961, arguing that the income belonged to a university existing solely for educational purposes. The Income Tax Officer rejected the claim; the Commissioner (App…

Anarkali Sarabhai held 297 redeemable preference shares of Universal Corporation Pvt Ltd, purchased for Rs 2,68,550. The company redeemed the shares, paying the face value of Rs 2,97,000, resulting in a surplus of Rs 30,450. The Income Tax Officer treated the surplus as a capital gain under Section 45 of the Income‑Tax…

Wesman Engineering Co. (P) Ltd., a licensee, sought a certificate under s.195(2) of the Income Tax Act to remit payments to its foreign collaborators for royalties and cost of working drawings. The Income Tax Officer held the entire remittance taxable and directed 65% TDS. The assessee appealed, contending that the cos…

The Supreme Court examined whether Income Tax Circular No. 3 of 2011, which bars filing of High Court appeals where the tax impact is below Rs 10 lakh, applies retrospectively to appeals already pending before the circular came into force. The Court noted divergent views among High Courts and considered the National Li…

Mis. Gem Granites, an exporter of cut and polished granite, claimed a deduction under Section 80‑HHC of the Income Tax Act, 1961 for the assessment year 1987‑88. The issue was whether processed granite fell within the exclusionary clause "minerals and ores" in sub‑section (2)(b) of the provision as it stood before the …

Bikaner Gypsums Ltd., a mining company, held a lease for gypsum extraction but the railway had encroached on the leased land, obstructing mining. The parties negotiated a cost‑sharing arrangement for shifting the railway, and the company paid Rs 3 lakh of the total Rs 12 lakh expense. The company claimed a deduction of…

The assessee, M/s HCL Com Net Systems & Services Ltd, for Assessment Year 1997-98, debited Rs 92,15,187 as bad debts in its profit and loss account. The Assessing Officer (AO) added this amount back to the book profit under clause (c) of the Explanation to section 115JA(2) of the Income‑Tax Act, treating it as a provis…

The appellant, a female partner in two firms, omitted from her 1964-65 return the shares of profit attributable to her husband and minor daughter, which under s.64(1)(i) and (iii) of the Income Tax Act, 1961 must be included in her total income. The Revenue assessed the omitted amount and imposed a penalty under s.271(…

Dalhousie Properties Ltd, assessed for the year 1966-67, claimed a deduction of Rs.1,78,784 for municipal taxes under the proviso to section 23(1) of the Income‑Tax Act, 1961, arguing that the deduction should be allowed on the basis of the tax liability even though the amount was not fully paid and was under dispute. …

The dispute concerned the assessment year 1997‑98 where the assessing officer had included excise duty and sales tax in the "total turnover" for computing the deduction under section 80HHC(3)(b) of the Income Tax Act, 1961. The Revenue appealed, arguing that the plain meaning of "turnover" required inclusion of these t…

The respondent, Rajesh Jha Ver! Stock Brokers Pvt. Ltd., filed its return for AY 2001‑02 showing a loss, which was processed under Section 143(1) of the Income Tax Act. The Assessing Officer later issued a notice under Section 148 alleging that the claim of bad debts was not allowable, and initiated reassessment. The r…

The assessee filed returns for assessment years 1964-65 and 1965-66 under Section 139(4) of the Income Tax Act, having missed the regular filing deadline, and later filed what he called revised returns under Section 139(5). The Income Tax Officer assessed the returns after the four‑year limitation period but within the…

The petitioners purchased immovable property at auction sales conducted by the Tax Recovery Officer (TRO) for recovery of income‑tax and were issued certificates of sale. They approached the Sub‑Registrar to register the certificates, but the Sub‑Registrar and the Collector of Stamps refused unless stamp duty was paid.…

K.C. Joshi was appointed as Store Keeper in the Oil and Natural Gas Commission (ONGC) and, after completing his probation, was placed on the regular establishment. He was an active trade‑union worker and, following union actions, his services were terminated on 29 December 1967 with one month’s pay in lieu of notice, t…

The assessee, Ganga Saran and Sons Pvt. Ltd., incorporated in 1947, paid salary, commission and bonus to its managing director Deo Datt Sharma, who was also its brother‑in‑law and managed the Delhi branch. The Income Tax Officer, after several assessments where the remuneration was allowed as a deduction, issued a noti…

Taparia Tools Ltd issued non‑convertible debentures offering investors a choice of either periodic interest or a one‑time upfront interest of Rs.55 per debenture. The company paid the upfront interest in the years 1995‑96 and 1996‑97 and, following mercantile accounting, recorded it as deferred revenue expenditure to b…

Madhumilan Syntex Ltd., a public limited company, failed to deposit Tax Deducted at Source (TDS) within the statutory period for AY 1989-90, though it later paid the amount with interest. The Income Tax Officer issued a show‑cause notice under Section 276B read with Section 278B, treating the company and its directors …

The Supreme Court considered two appeals – one by Universal Plast Ltd. (UPL) and another by Guntur Merchants Cotton Press Co. – challenging High Court rulings that licence fees and rent received from leasing out a factory, godowns and machinery were not business income under the Income Tax Act, 1961. Both appellants ha…

Premier Cable Co. Ltd installed machinery in the previous year relevant to assessment year (AY) 1967‑68 and, under sections 33 and 80J of the Income‑Tax Act, was entitled to carry forward unabsorbed development rebate for eight assessment years and unabsorbed deduction for four assessment years. The company altered its…

The Associated Cement Company (ACC) entered into a contract with a contractor for loading cement bags and reimbursing certain wage components. ACC paid the contractor as per the contract but did not deduct tax under Section 194C(1) of the Income Tax Act, 1961. The Income Tax Officer issued notices for non‑deduction of …

The appellant, Horticulture Experiment Station Gonikoppal, failed to deposit EPF contributions for the period 1975‑1988 and was assessed damages under Section 14B of the Employees Provident Fund & Miscellaneous Provisions Act, 1952. The appellant argued that mens rea or actus reus should be required before imposing suc…

Share Medical Care, a charitable hospital society, imported medical equipment in 1992‑93 and obtained customs duty exemption under paragraph 2 of Notification No. 64/88. The society later applied for exemption under paragraph 3, claiming eligibility as a non‑profit rural institution, but the Deputy Director General (Me…

The assessee company Mis Indore Construction Co. Pvt. Ltd. was subjected to a block assessment under Section 158BC of the Income Tax Act after a search was conducted at the residence of its director, Rameshwar Maheshwari, under Section 132. The Assessing Officer issued a notice under Section 15880 but did not record an…

The respondents, shareholders of Ambassador Steamship Ltd., received 14 shares of Collis Line Ltd. for each share they held in the amalgamating company under a scheme of arrangement. They later sold 45,318 of these new shares at a profit, and the Income Tax Officer levied capital gains tax, treating the transaction as …

The Rajasthan State Warehousing Corporation (appellant) earned income in AY 1977-78 from interest, warehouse rentals and administrative charges, part of which was exempt under Section 10(29) of the Income Tax Act, 1961. It claimed a full deduction of its business expenditure under Section 37, but the assessing officer …

W.T. Suren & Co. Ltd transferred its distribution unit to Rallis India Ltd, terminating the employment of the unit's staff. Employees were offered similar jobs with continuity of service; those who did not join received gratuity directly, while the assessee paid the gratuity due to those who joined to Rallis, which hel…

M/s Mangalam Publications, a partnership engaged in publishing, filed returns for assessment years 1990-91, 1991-92 and 1992-93 without regular books of account, citing seizure of records. The assessing officer later compared a balance sheet submitted to a bank in 1989-90 with a later balance sheet for 1993-94 and conc…

The respondents, shareholders of a company in voluntary liquidation, received dividends from the liquidator after the sale of the company's assets. The sale proceeds exceeded the written‑down value of the assets but were less than the original purchase price, so the excess was taxed in the company under Section 41(2) o…

Genpact India Private Limited bought back shares from its Mauritius holding company and was assessed a tax under Section 115QA of the Income Tax Act, 1961. The assessee denied liability and challenged the assessment order through a writ petition under Article 226, arguing that no statutory appeal was available. The Hig…

The Union of India suspended an Indian Revenue Service officer in 1999 pending two CBI criminal investigations; the Central Administrative Tribunal later quashed the suspension and directed a review, but the government issued fresh suspension orders in 2012 without complying with the Tribunal’s directions, leading the …

The respondent, Hooghly Mills Co. Ltd., purchased an industrial undertaking from Fort Gloster Industries Ltd. and, under the sale agreement, assumed the vendor’s accrued and future gratuity liability of about Rs 3.5 crore. The assessee claimed depreciation on this amount under Section 32 of the Income Tax Act, arguing …

The Income Tax Department ordered HDFC Bank to stop operation of certain lockers and accounts, but later revoked the order only for the accounts, leading bank officials to mistakenly allow a locker to be operated. The department filed a complaint and an FIR was registered against the bank and its officials for multiple…

Escorts Ltd. and other assessees challenged the Finance (No.2) Act, 1980 amendment that gave retrospective effect to clause (iv) of Section 35(2) of the Income‑Tax Act, 1961, arguing it allowed a double deduction for scientific‑research expenditure and violated Articles 14, 19(1)(g) and 300A of the Constitution. The Co…

The Andhra Bank Ltd. appealed against the Income Tax Commissioner challenging the disallowance of deductions for amounts transferred to its reserve fund exceeding the statutory 20% of profit. The bank argued that a direction from the Reserve Bank of India under Section 35A compelled it to transfer a larger sum, which s…

The Karnataka State Cooperative Apex Bank was statutorily required to place a portion of its reserve funds with the State Bank of India or the Reserve Bank of India. The interest earned on these mandatory investments was challenged by the Revenue, which argued that the income was taxable. The Tribunal held the interest…

Shiv Raj Gupta, former chairman and MD of Central Distillery and Breweries Ltd., sold his controlling shareholding to the Shaw Wallace Company (SWC) group and received Rs 6.6 crore as a non‑competition fee under a deed of covenant. The Assessing Officer treated the payment as taxable under s.28(ii)(a) of the Income Tax…

The case concerned a turnkey contract awarded by ONGC to a consortium that included Samsung Heavy Industries (Korea). Samsung opened a project office in Mumbai to coordinate the Vasai East Development Project. The tax authorities treated the office as a permanent establishment (PE) under Article 5(1) of the India‑Korea…

Visvesvaraya Technological University (VTU) claimed exemption from income tax under Section 10(23C)(iiiab) of the Income Tax Act for assessment years 2004‑05 to 2009‑10, asserting that it is an educational institution solely for education and wholly or substantially financed by the Government. The university generated …

M/s. Chillies Export House Ltd., a public limited company engaged in exporting chillies, claimed that its activities of sorting, grading, clipping, stemming and fumigation (the latter performed by a contractor) amounted to "processing of goods" under the Finance Acts, making it an "industrial company" eligible for a co…

The appellant, an exporter of hides and skins, pledged goat skins to a bank and obtained an overdraft. The skins were damaged due to the bank's improper storage, leading the appellant to file a criminal complaint. A compromise was reached whereby the bank waived Rs 1,93,159 owed by the appellant, which the appellant tr…

G.R. Karthikeyan, an individual assessee, won Rs 22,000 as prize money in the All India Highway Motor Rally and the Income‑Tax Officer included it in his total income under the definition of "income" in Section 2(24) of the Income‑Tax Act, 1961. The Appellate Assistant Commissioner, the Tribunal and the Madras High Cou…

Shrimant Padmaraje R. Kadambande, a descendant of the former ruler of Kolhapur, received a monthly cash allowance that was discontinued after the State of Kolhapur merged with Bombay under the Bombay Merged Territories Miscellaneous Alienations Abolition Act, 1955. The Act abolished such alienations, but Section 15(1)(…

The Commissioner of Income‑Tax appealed against the Allahabad High Court’s decision in favour of Behari Lal Ram Charan Ltd, which allowed the company to set off a capital loss of Rs 3,17,500 incurred in assessment year (AY) 1957‑58 against capital gains of Rs 3,10,200 in AY 1965‑66. The Revenue argued that the loss was…

Smt. Padmavati Jaikrishna, an individual assessee, claimed a deduction of Rs.10,275 under section 57(iii) of the Income Tax Act, 1961 for interest paid on loans taken to meet personal obligations such as income‑tax, wealth‑tax and a statutory annuity deposit. The Income Tax Officer held that only a portion of the loan …

The Bar Council of Maharashtra, a body corporate under the Advocates Act, 1961, derived income from interest on securities and enrolment fees for the assessment years 1962-63 to 1964-65. The Revenue assessed this income, but the Council claimed exemption under section 10(23A) for enrolment fees and under section 11 for…

The Revenue initiated prosecution under Section 276C of the Income Tax Act, 1961 for alleged concealment of income for AY 1988‑89. The assessees filed a petition under Section 482 Cr.P.C. seeking quash of the prosecution, contending that applications for settlement under Section 245C were pending before the Settlement …

Garden Silk Weaving Factory, a registered partnership firm, challenged the Income‑Tax Officer’s addition of Rs 5,08,423 (unabsorbed depreciation and unabsorbed business loss) to its total income for AY 1968‑69. The firm argued that unabsorbed depreciation should be carried forward by the firm, while the Revenue contend…

Apex Laboratories, a pharmaceutical company, claimed a deduction under Section 37(1) of the Income Tax Act for expenses incurred in providing gifts, travel, hospitality and other "freebies" to doctors to promote its product Zincovit. The Assessing Officer, on the basis of a CBDT circular dated 01‑08‑2012 and the 2002 M…

The Commissioner of Income Tax appealed against an order of the Income Tax Settlement Commission that had treated a loan claimed by O.P. Mittal as an advance and refused to declare the settlement void. The revenue argued that the settlement was obtained by fraud and misrepresentation and that the Commission could be mo…

A Hindu male governed by the Dayabhaga school died intestate, leaving his widow and two daughters. The widow and daughters entered into an agreement to form a Hindu Undivided Family (HUF) and the widow contributed her share of the inherited property to the HUF, omitting the income from her tax returns for AY 1974-75 an…

M/s. Anis Ahmad & Sons, a commission agent for raw hides and skins, filed its 1984‑85 return as a commission agent but the Assessing Officer treated it as a trader and levied a higher tax. After a remand, the Assessing Officer summoned ten traders under s.131(1); five appeared and supported the commission‑agent claim, …

Kishan Lal, an assessee, was levied interest under section 220(2) of the Income‑Tax Act for delayed payment of tax. He filed an application under section 220(2A) seeking reduction or waiver of the interest, but the Central Board of Direct Taxes (CBDT) rejected the application without recording any reasons. A writ petit…

The Income Tax Officer had completed assessments for 1969-70 and 1971-72, accepting the assessee's claim of a long‑term capital loss on the sale of shares. Later, a letter from the Deputy Director of the Directorate of Inspection, supported by documentary evidence, indicated that the fair market value of those shares w…

The Supreme Court examined the approval of a resolution plan for ACIL Ltd., where the Committee of Creditors (CoC) had approved a plan with an 88.56% majority after multiple revisions. The National Company Law Tribunal (NCLT) had stayed the plan and ordered a re‑valuation of ACIL's assets by the Official Liquidator, a …

The Union of India sought to recover tax arrears owed by an assessee company and was informed that the amount could be recovered from a debt the appellant, Kalyan Mills Ltd., owed to the assessee. Notices under Sections 46(2) and 46(5A) of the Income Tax Act were issued to the appellant, and the Union filed a suit for …

The appellants filed settlement applications under Chapter XIX‑A of the Income Tax Act and disputed the levy of interest under sections 234A, 234B and 234C for default in advance tax. The Supreme Court was asked (i) whether these interest provisions apply to Settlement Commission proceedings, (ii) what the terminal poi…

The Commissioner of Income Tax, Ahmedabad appealed against the Gujarat High Court’s judgment in favour of Sarabhai Holdings Pvt. Ltd. concerning interest on a deferred sale consideration. The assessee had sold a business unit and agreed to pay interest at 11% on the unpaid balance, later modifying the payment terms by …

The Commissioner of Wealth Tax, Gujarat sought to assess Ellis Bridge Gymkhana, an unincorporated club, for wealth tax for assessment years 1970‑71 to 1977‑78, arguing that the club fell within the term “individual” in Section 3 of the Wealth Tax Act, 1957. The club contended that an association of persons is not an in…

The assessee, K.S.N. Bhatt, claimed deductions in his wealth‑tax returns for income‑tax, wealth‑tax and gift‑tax liabilities, arguing that these amounts were debts owed on the valuation dates for the assessment years 1964‑65 to 1967‑68. The Wealth Tax Officer allowed only part of the deductions; the Appellate Assistant…

The appellant, the legal representative of the late S.N. Wadiyar, challenged the valuation of vacant land appurtenant to Bangalore Palace for wealth tax purposes. The Wealth Tax Officer had valued the land at market rates, ignoring the restrictions imposed by the Urban Land (Ceiling and Regulation) Act, 1962, which lim…

The General Insurance Corporation of India, a wholly government‑owned insurer, set aside a sum for redemption of preference shares and debited it to its profit and loss account in accordance with Rule 2(2)(a) of the General Insurance Business (Nationalisation) Rules, 1973. The Income‑Tax Officer treated the amount as r…

The Delhi High Court entertained a suit for specific performance of an agreement dated 13‑9‑1988 and restrained the vendor from alienating the property. The vendor later sold the suit property to six companies (the appellants) who, in turn, sold it to Bhagwati Developers, all in violation of the injunction. The appella…

The Agricultural Produce Market Committee (AMC) of Narela claimed exemption from income tax under section 10(20) of the Income Tax Act, 1961, asserting it was a "local authority". The Finance Act, 2002 added an exhaustive Explanation to section 10(20) defining "local authority" as a Panchayat, Municipality, Municipal C…

The Supreme Court heard writ petitions filed as public‑interest litigation by two MPs alleging that former Bihar Chief Ministers Lalu Prasad Yadav and Rabri Devi had unduly influenced the transfer of an Income‑Tax Appellate Tribunal member, the appointment of a Special CBI Judge, and the change of public prosecutors in…

The appellant, a partnership firm, filed its 1986-87 return showing a total income of Rs.6,76,890, but the Assessing Officer added Rs.93,000 as unexplained investment after noting that certain rice purchase transactions were not entered in the books on the correct dates. The assessee explained that cash shortages force…

The Supreme Court clarified the scope of the term "transfer" under the Land Acquisition Act, 1894, holding that it includes development and collaboration agreements and licences issued during the suspect period (27‑08‑2004 to 29‑01‑2010). It examined numerous applications concerning projects such as Green Heights, Godr…

M/s Sri Mangayarkarasi Mills (P) Ltd., a cotton yarn manufacturer, claimed a deduction of Rs. 61,28,150 for machinery replacement as revenue expenditure under Section 37 of the Income Tax Act, 1961. The Assessing Officer disallowed the claim, treating it as capital expenditure, a view upheld by the Commissioner of Inco…

R.R. Holding Ltd filed its return for AY 1986-87 claiming a loss and later disclosed a commission income of Rs 1.61 crore, prompting a notice under section 148. The assessee sought interest on a tax refund under section 244(1A) and appealed to the Delhi High Court, which held that the matter was covered by the preceden…

The State of Maharashtra leased land to Mahila Vikas Mandal for a women's hostel, stipulating that any part used for remunerative purposes required prior approval and payment of 50% of the net profit. The Collector later alleged commercial use and demanded 50% of the net income (Rs 19,03,103) as recovery under Section …

The Supreme Court examined a batch of appeals concerning searches under the Narcotic Drugs and Psychotropic Substances Act, 1985. It held that an empowered officer must inform a suspect of his right to be searched before a Gazetted Officer or Magistrate, and that this duty is imperative, not merely directory. Failure t…

Arvind Mills Ltd., a textile mill, paid betterment charges under the Bombay Town Planning Act, 1954 as part of a town‑planning scheme and claimed a deduction under Section 37 of the Income Tax Act, 1961, arguing that the payment was a revenue expense. The Income Tax Officer disallowed the deduction; the Appellate Assis…

Elecon Engineering Co. Ltd., a public limited company, claimed a rebate under Section 84 of the Income‑Tax Act for the assessment year 1964‑65, the second year of its new industrial project. The Assessing Officer initially allowed a rebate of Rs 2,72,372 but on reassessment reduced it to Rs 2,51,222, prompting the comp…

Shantilal Private Ltd entered into a contract to sell folic acid but could not deliver due to a sharp price rise. The dispute was referred to arbitration, which awarded the buyer Rs 1,50,000 as compensation for breach of contract. The assessee claimed this payment as a business loss, but the Income‑Tax Officer treated …

The petitioners, a partnership firm, had a running account with B.R. Sons Ltd. The Income‑Tax Officer issued a notice under s.226(3)(i) of the Income‑Tax Act requiring the petitioners to pay any amount due from them to B.R. Sons Ltd., but the notice did not specify the exact sum. The petitioners filed a sworn affidavit…

Larsen & Toubro (L&T) and Puri Construction Ltd (PCL) entered into a Development Agreement for land development, later supplemented by a Supplementary Agreement and a Tripartite Agreement involving a bank. Disputes arose over alleged economic duress, non‑fulfilment of conditions precedent, and L&T's abandonment of the …

The respondent, Radheshyam, was assessed for the years 1960-61, 1961-62 and 1962-63 and was served notices under sections 147(a) and 148 of the Income‑Tax Act, 1961. The Income‑Tax Officer alleged that his wife had received valuable assets from him without adequate consideration and that the income and capital gains ar…

The partnership firm KwalitY Steel Suppliers Complex, consisting of a mother and son, was dissolved after the mother’s death, but the son continued the business. In its return, the firm valued closing stock at cost price, a method accepted by the Assessing Officer. The Commissioner of Income Tax, invoking Section 263 o…

Assam Company Ltd. and another were engaged in cultivation, manufacture and sale of tea, a composite income taxable under both the Central Income Tax Act, 1961 and the Assam Agricultural Income Tax Act, 1939. The State Agricultural Income Tax Officer refused to accept the agricultural income computation made by the Cen…

The non‑resident company Banque Nationale de‑Paris challenged a Super Profits Tax assessment that included interest received on Central and State Government securities. It argued that, under Clause X of Rule 1 of the First Schedule of the Super Profits Tax Act, 1963, such interest should be excluded from chargeable pro…

The appellants, who were the intended purchasers of a property, challenged an order of pre‑emptive purchase made by the Income Tax Department under Section 269UD of the Income Tax Act, 1961, on the ground that the order was unreasoned and they were denied a hearing. The property owner did not contest the order, and aft…

The appellant, A.L.A. Firm, a partnership engaged in money‑lending and property transactions, was dissolved on 13 March 1961 and reported a revaluation surplus of $1,01,248 (Rs.1,58,057) in its 1961‑62 return, treating it as neither revenue nor capital. The Income‑Tax Officer initially accepted this view but later, aft…

Dr. S.A. Johari, an honorary surgeon attached to Dr. Amonkar Hospital, occupied a small cabin within the hospital premises and paid a monthly compensation. The Amonkar family, owners of the premises, gave notice terminating his attachment and sought his eviction. Johari filed a suit claiming he was a "protected license…

Biswanath Bhatiacharya, who had been detained under COFEPOSA in the 1970s, was served a notice under Section 6(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA) to explain the source of his wealth, and later a forfeiture order was passed under Section 7. He challenged the…

The importers, including Stoneman Marble Industries, were found to have imported rough marble blocks without the required licence and with mis‑declarations, leading to confiscation of the goods under Section 111(d) of the Customs Act, 1962. The Customs, Excise and Gold (Control) Appellate Tribunal reduced the redemptio…

Express News Papers Ltd., a public limited company, resolved on 6 December 1962 to pay an interim dividend, payable on 16 January 1963. The Income Tax Officer reduced the rebate available under the Finance Act, 1964 for assessment year 1964‑65, treating the dividend as a reduction trigger. The company contended that, u…

The State of Orissa appealed against the High Court's order quashing the Commissioner of Sales Tax's revision of assessment orders for the assessment years 1969-70 and 1970-71 against Mis. Krishna Stores. The assessments had been reassessed under Sections 12(4) and 12(8) of the Orissa Sales Tax Act, and the firm’s appe…

M/s Orient Trading Co. held 14,500 shares of Asiatic Oxygen & Acetylene Co. as stock-in-trade, valued at Rs 1,45,000. It exchanged these for 55,100 shares of Asiatic Oxygen Ltd. at a ratio of 38:10. The Income Tax Officer valued the received shares at Rs 5,51,000 (based on market price of Rs 10 per share) and taxed the…

The appellants sought to set aside a second compulsory purchase order issued by the Central Government under Chapter XX‑C of the Income Tax Act, 1961, alleging that the order was beyond the statutory limitation period, concerned an undivided share contrary to the demarcated portions, and that the consideration was not …

Hero Exports, a trader exporter, earned export turnover from trading goods and additional income from export incentives, miscellaneous income and interest. It claimed that 10% of this other income should be treated as an expense attributable to the export turnover and therefore deducted from the indirect costs under se…

Waldies Ltd. was assessed to income tax for AY 1964‑65 and subsequently to surtax under the Companies (Profits) Surtax Act. The income‑tax assessment was later reopened under Section 147, increasing the tax liability, and the surtax assessment was rectified under Section 13 of the Surtax Act to allow a deduction for th…

ICE & GENERAL MILLS, a potato manufacturing and cold‑storage firm, was assessed for the year 1961‑62. The Income‑Tax Officer, under section 34(1) of the Income Tax Act, 1922, initiated reassessment proceedings and in 1965 ordered tax on Rs 1,00,000 of alleged benami income, but the order was annulled in 1967. The depar…

The Supreme Court examined the constitutionality of the Special Bearer Bonds (Immunities and Exemptions) Ordinance, 1981 and the subsequent Act, which granted anonymity and tax exemptions to holders of special bearer bonds intended to canalise black money. The petitioners argued that the President lacked authority unde…

The Union of India challenged the constitutional validity of Section 115‑0 of the Income Tax Act, 1961, which imposes an additional 10% tax on dividends declared by domestic companies. Tea companies argued that because up to 60% of their income is agricultural, the dividend is agricultural income and therefore only the…

Ravi Agrawal filed a writ petition seeking retrospective application of the Finance Act, 2022 amendment to section 80DD of the Income Tax Act, which allows a subscriber to discontinue payments to a Jeevan Adhar scheme upon attaining the age of 60 and to use the accumulated benefit. He argued that the amendment should a…

The appellants had taken term loans from Bank of India which later became non‑performing, prompting the bank to invoke sections 13(2) and 13(4) of the SARFAESI Act and take constructive possession of the mortgaged property. After a public auction on 19 December 2005, the highest bidder was issued a sale certificate on …

M/s. Classic Binding Industries set up a manufacturing unit in Himachal Pradesh and claimed a 100% deduction under Section 80‑IC of the Income Tax Act for the first five assessment years (2006‑07 to 2010‑11). After completing those years, it claimed another 100% deduction for subsequent years, invoking "substantial exp…

Ajmera Housing Corporation filed an application under section 245C(1) of the Income Tax Act seeking settlement of undisclosed income, initially disclosing Rs.1.94 crore and later revising the annexure to disclose an additional Rs.11.41 crore. The Commissioner of Income Tax objected, arguing that the application did not…

The Gujarat Industrial Development Corporation (GIDC), created under the Gujarat Industrial Development Act, 1962, sought exemption from income tax under Section 10(20A) of the Income Tax Act, 1961, claiming that its income arose from planning, development, or improvement of cities, towns, and villages. The Income Tax …

The appellant, a non‑resident company exporting manganese ore, was assessed for the assessment year 1953‑54. Customs authorities later found that the company had under‑invoiced its exports, resulting in a finding of under‑invoicing of about Rs 44‑45 lakh. On this basis, the Income‑Tax Officer issued a notice under Sect…

The Indian Financial Association of Seventh Day Adventists (the appellant) owned a 30‑cent property containing a church, school and other buildings. It passed a resolution to sell the land and, through a duly executed power of attorney, its representative (defendant No. 2) entered into two sale agreements with the plai…

The appellant, a pharmaceutical company, claimed deduction for the liability to pay surtax and for expenditure incurred on distributing free samples of prescription drugs to doctors. The Revenue argued that surtax liability is not deductible under section 37 and that the sample distribution is a form of advertisement, …

Thiru Arooran Sugars Ltd., a sugar manufacturer, cultivated sugarcane for its own factory and also bought large quantities of sugarcane from the market. Because part of its income was agricultural and part was business, the company sought to deduct the market value of the sugarcane it used as raw material under Rule 7 …

The petitioners, an employee of a private‑sector firm and a trade union, challenged the constitutional validity of clause 10‑C inserted by the Finance Act, 1987 into section 10 of the Income‑Tax Act, 1961, which grants tax exemption on voluntary‑retirement payments only to employees of public‑sector companies. They arg…

Shital Fibers Ltd. claimed deductions under Sections 80‑HHC, 80‑IA and 80‑IB for the assessment year 2002‑03 and the Revenue disallowed the deductions, leading to a series of appeals up to the Supreme Court. The central issue was the interpretation of sub‑section (9) of Section 80‑IA of the Income Tax Act, 1961, specif…

M/s Radha Krishan Industries challenged two orders of provisional attachment of its receivables issued by the Joint Commissioner under Section 83 of the Himachal Pradesh Goods and Service Tax Act, 2017, alleging that the orders were ultra vires, lacked a requisite opinion based on tangible material, and violated Rule 1…

The appeal concerned a corporate debtor, Tehri Iron and Steel Casting Ltd., whose resolution plan was approved by the NCLT on 21 May 2019. The plan listed certain statutory and contingent liabilities, but omitted income‑tax demands for assessment years 2012‑13 and 2013‑14. After the plan’s approval, the Income Tax Depa…

M/s Shaan Finance (P) Ltd., a finance company, purchased new machinery and hired it out to manufacturers under hire agreements. The company claimed a 25% investment allowance under Section 32A of the Income Tax Act, 1961, but the Revenue rejected the claim. The Karnataka High Court allowed the claim, holding that the c…

The Delhi Stock Exchange Association Ltd., a company limited by shares, claimed exemption from income tax under Section 11 read with Section 2(15) of the Income Tax Act, 1961, asserting that its income was derived from property held in trust for charitable purposes. The claim pertained to assessment years before Decemb…

M/s. Aarham Softronics and other assessees set up new manufacturing units in Himachal Pradesh and claimed a 100% deduction of profits under Section 80‑IC of the Income Tax Act for the first five assessment years, followed by a 25% deduction for the next five years. After the initial five‑year period they carried out su…

Progressive Financers, a partnership of five persons including a minor admitted to the benefits of the firm, applied for registration under Section 184 of the Income Tax Act, 1961 for AY 1967-68 and for renewal for AY 1969-70 and 1970-71. The Income Tax Officer rejected the application, treating the firm as an Associat…

The Supreme Court examined Vodafone International Holdings' acquisition of the entire share capital of CGP Investments (Holdings) Ltd., a Cayman Islands company that indirectly held a 52% stake in Hutchison Essar Ltd. (HEL). The Revenue argued that the sale of CGP, together with associated rights and entitlements, amou…

The appellant, C.I.T., Mumbai, challenged the assessment that the twisting and texturising of partially oriented yarn (POY) did not constitute "manufacture" under Section 80IA of the Income Tax Act, 1961. The Court examined expert testimony that POY is a semi‑finished yarn which, after undergoing a thermo‑mechanical pr…

Mis Hind Wire Industries Ltd. was originally assessed for income tax on 21 September 1979. The assessee obtained a rectification of that order on 12 July 1982 under Section 154 of the Income‑Tax Act. A second rectification application was filed on 4 July 1986, which the Income‑Tax Officer rejected as time‑barred; the a…

Ashok Leyland Ltd., a manufacturer of trucks and spare parts, imported certain spare parts and sold them to its truck buyers. The company claimed deductions under sections 80‑E and 80‑I of the Income Tax Act, 1961 for profits earned from these imports, arguing that the income was attributable to its "priority industry"…

The case involved a Hindu Undivided Family (HUF) that received Rs.2,49,874 as insurance proceeds after the death of the Karta's father. The income from this amount was initially taxed in the Karta's personal assessment, but the Income Tax Officer later treated it as HUF income, leading to assessments for assessment yea…

Mepco Industries Ltd. received a power subsidy for two years and initially treated it as a revenue receipt. The assessee argued that the subsidy was a capital receipt and sought revision of assessment orders, which were initially allowed by the Commissioner of Income Tax. After the Supreme Court’s decision in Sahney St…

The Supreme Court examined whether the Companies (Accounting Standards) Rules, 2006 – which made Accounting Standard 22 (deferred tax) mandatory – exceeded the Central Government’s rule‑making power under s. 642 of the Companies Act, 1956 and conflicted with the Act’s provisions on true‑and‑fair accounts, Schedule VI a…

Mis Hunsur Plywood Works Ltd., a public limited company, claimed a development rebate under Section 33 of the Income Tax Act for the assessment years 1972-73 to 1974-75, which was initially allowed. The assessing authority later observed that the company had transferred amounts from the development rebate reserve to it…

The Surat Art Silk Manufacturers Association, an incorporated company, was set up to promote commerce and trade in art silk yarn and cloth and to obtain import and export licences for its members. It earned income from member subscriptions, commissions on licences, and rent from a building it constructed. The Revenue r…

The Supreme Court examined a series of appeals concerning the Most‑Favoured‑Nation (MFN) clause in India’s DTAA’s with the Netherlands, France and Switzerland. The assessees argued that the MFN benefit should apply automatically when India later entered into a DTAA with another OECD member, even if that third country w…

The Supreme Court interpreted the proviso to Section 2(15) of the Income Tax Act, 1961, which defines 'charitable purpose' for entities advancing 'any other object of general public utility' (GPU). The Court held that a GPU charity cannot engage in trade, commerce, or business, or provide services in relation thereto, …

The Supreme Court examined whether societies and trusts claiming exemption under Section 10(23C)(vi) of the Income‑Tax Act must exist exclusively for educational purposes and not for profit. It held that “solely” means the institution’s objects must be limited to education; any surplus is permissible only if it arises …

The Union of India acquired a 1053.5 sq.m. property in Mumbai under Section 269UD(1) of the Income Tax Act, but successive auctions from 1994 to 2017 failed to attract a buyer. Sankalp Recreation Private Limited (appellant) offered Rs.32.11 crore, which was rejected, and later bid Rs.30.21 crore—above the Rs.30 crore r…

The Unit Trust of India (UTI), a statutory corporation, issued account‑payee cheques to its unit holders and sent them by registered post. Approximately 1,600 unit holders claimed non‑receipt of cheques worth about Rs 3.35 crore, alleging interception and fraud. The unit holders filed complaints before Consumer Forums,…

Mis. George Williamson (Assam) Ltd. acquired the Indian undertakings of twelve UK‑registered tea companies under a scheme of arrangement approved by the High Courts and the RBI, which required that the net assets of the acquired business not be depleted. The consideration paid (Rs 490 lakhs) was lower than the net asse…

Sahney Steel Press Works Ltd. set up a factory that began production in 1973 and, under an Andhra Pradesh Government notification, received a refund of sales tax and other incentives amounting to Rs 14,665.70 in the assessment year 1974‑75. The Income‑Tax Officer treated the amount as assessable income under section 41…

The case involved Malabar Fisheries Co., a partnership dissolved in 1963, which had claimed development rebate under section 33 of the Income‑Tax Act for machinery installed before dissolution. The Income‑Tax Officer withdrew the rebate under section 34(3)(b) and section 155(5), contending that the distribution of the …

Ukhara Estate Zamindaries (Pvt.) Ltd. was incorporated to take over a zamindari estate and issue shares to the lessors. It granted long‑term sub‑leases of coal‑bearing lands to collieries, receiving salami, premium and compensation for compulsory acquisitions. The Income‑Tax Officer treated these receipts as business i…

Alagappa Textile (Cochin) Ltd. entered into a five‑year financing and management agreement with Kamala Mills Ltd., under which Kamala Mills received remuneration for purchases, sales and management of the mill. The assessee claimed the remuneration as a deductible business expense under section 10(2)(xv) of the Income‑…

The employee, Nanda Kishore Roy, complained that his employer had wrongfully deducted Rs.1,640 per month as income tax and failed to deposit it, leading a magistrate to issue summons under sections 406/1208 IPC. The employer argued that the deductions were mandated by the Income Tax Act and that the complaint was essen…

SAP Labs India Private Limited and several other assessees challenged the Income Tax Officer's assessment on transfer pricing grounds, contending that the arm's length price (ALP) determined by the Income Tax Appellate Tribunal (ITAT) was not final and could be reviewed under Section 260A of the Income Tax Act, 1961. T…

Willowood Chemicals and another filed writ petitions alleging that the Union of India delayed refunds of integrated tax on exports for periods ranging from 94 to 290 days, violating Sections 16 and 20 of the IGST Act and Sections 54 and 56 of the CGST Act. The Gujarat High Court awarded simple interest at 9% per annum …

Mahaveer Kumar Jain, a resident of Rajasthan, won a Rs.20 lakh prize in the 1986 Sikkim State lottery. The prize was taxed at source under the Sikkim State Income Tax Rules, 1948, and Jain claimed a deduction under Section 80TT of the Income Tax Act, 1961. The Assessing Officer and subsequent authorities held that the …

The CBI filed a case alleging that R.C. Sabharwal, a former public servant, owned assets disproportionate to his known sources of income and that his son, Puneet Sabharwal, abetted him. The trial court framed charges under Section 13(1)(e) read with Section 13(2) of the Prevention of Corruption Act, 1988 and Section 10…

The Rajasthan State Electricity Board (a government company) filed its return for AY 1991‑92 on 30‑12‑1991 claiming 100% depreciation, although the Taxation Laws (Amendment) Act, 1991 had already restricted depreciation for companies to 75%. The Assessing Officer disallowed the excess 25% depreciation and levied additi…

The case concerned Kesaria Tea Co. Ltd., which had earlier claimed a deduction for a provision made towards purchase tax liability for the years 1978‑81. In the assessment year 1985‑86 the company wrote back the provision, believing that the liability had ceased following the rejection of a special leave petition in th…

Imperial Chit Funds Ltd., a company in liquidation, was served with a tax demand of Rs.1,027 by the Income Tax Officer after winding‑up proceedings had begun. The Official Liquidator argued that the tax claim could not be enforced until the claim was proved in the winding‑up process, invoking the Companies Act’s scheme…

The petitioner was caught with contraband gold worth Rs 20 lakhs, which was confiscated by customs. The assessing officer added the value of the gold to the petitioner’s income under Section 69‑A of the Income‑Tax Act, treating it as income from an undisclosed source. The Appellate Assistant Commissioner reduced the in…

The Supreme Court examined whether an unregistered partnership firm that became a registered firm could carry forward unabsorbed depreciation from the year it was unregistered (1949-50) and set it off against the partners' income in the subsequent year (1950-51). The Tribunal had denied the set‑off, holding that regist…

Niranjan & Co. Ltd. filed its 1962 return showing a profit of Rs 2,092 but later discovered that profit from construction work of Rs 10,718.46 had been omitted. The Income‑Tax Officer (ITO) assessed the year‑end tax on 27 Nov 1963, having taken the construction profit into account from the balance‑sheet filed with the …

The assessee, Orissa Corporation, claimed a cash credit of Rs 1,50,000 as loans from three individuals, producing confirmation letters and hundis but could not serve notices under s.131 to the alleged lenders. The Income‑Tax Officer deemed the lenders “name‑lenders”, added the amount as unproved cash credit under s.68 …

The Ananda Social and Educational Trust was formed on 30 May 2008 and applied for registration under section 12AA of the Income Tax Act on 10 July 2008, having not yet undertaken any charitable activities. The Commissioner of Income Tax rejected the application on the ground that, in the absence of actual activities, t…

The case concerned a disciplinary proceeding against Ch. Gandhi, a senior accountant, who was punished with reversion to junior accountant for two years and postponement of future increments. The question was whether this constituted two major penalties under Rule 9 of the Andhra Pradesh Civil Services (Classification,…

The Central Board of Income Tax, Jalandhar appealed against the order of the Punjab & Haryana High Court which had upheld the Income Tax Appellate Tribunal’s decision that surcharge could not be levied on tax assessed under a block assessment where the search was conducted before 1 June 2002. The case involved a search…

Munjal Sales Corporation appealed against disallowances of interest deductions claimed under Section 36(1)(iii) of the Income Tax Act, 1961. The Assessing Officer held that interest-free advances given to sister concerns were funded by interest‑bearing loans and thus barred by Section 40(b)(iv). The Tribunal initially …

The Supreme Court examined whether a licence fee paid to the Government for the right to carry on the liquor trade makes the licencee a "buyer" under the explanation to sub‑section (11) of Section 206‑C of the Income Tax Act, 1961. The Court held that the licence merely authorises the holder to conduct business and doe…

The Life Insurance Corporation of India (LIC) received a large income‑tax refund for the life‑insurance business in the assessment year 1963‑64, which it claimed should be treated as a profit and deducted under Rule 2(1)(b) of the Income‑Tax Act. The tax authorities argued that only the portion of the refund that had b…

Ballarpur Paper and Straw Board Mills Ltd. hired foreign personnel, including Emil Webber, to set up a plant in India. Under the contract, the salaries were to be paid free of Indian tax, and Ballarpur paid the tax on Webber’s salary to the tax authorities. The Income Tax Officer treated the tax amount paid by Ballarpu…

The assessee, a partnership firm engaged in manufacturing agarbattis, was dissolved in 1965 and its goodwill was valued at Rs.1,50,000. The goodwill was transferred to a newly formed partnership of the same name. The Income‑Tax Officer did not tax any gain on this transfer, but the Commissioner invoked revisional juris…

The Madhya Pradesh Co-operative Bank Ltd., an apex co-operative bank, claimed that all its income, including interest earned on government securities placed with the State Bank of India/Reserve Bank of India and interest on Provident Fund deposits, arose from its banking business and was therefore exempt under Section …

M/s Dalmia Power Ltd. and M/s Dalmia Cement (Bharat) Ltd. filed original income tax returns for AY 2016-17 and later entered into schemes of arrangement and amalgamation with nine other companies, which were approved by the NCLT only in April-May 2018. The companies filed revised returns on 27 November 2018, beyond the…

The appellant had deposited Rs.1,57,250 under the Annuity Deposit Scheme of the Income Tax Act, 1961, which was to be repaid in ten equal instalments of principal and interest under Section 280-D. After the depositor's death, the balance instalment of Rs.12,013 was paid to his son/executor, the legal representative. Th…

Bokaro Steel Ltd., a government‑owned corporation, was in the process of constructing its steel plant and had not yet commenced business. During the assessment years it received (i) rent for quarters provided to contractors’ workers, (ii) hire charges for plant and machinery supplied to contractors, (iii) interest on a…

The State Bank of Patiala discounted bills of exchange and, when the drawee defaulted, levied a daily overdue charge as compensation. The revenue argued that this charge constituted "interest" under Section 2(7) of the Interest Tax Act, 1974 and was therefore taxable, while the bank contended it was merely compensation…

The appellant, Rafat Ali, leased premises from the respondents, Sugni Bai and heirs, who later sought eviction under the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 on three grounds: rent default, waste causing damage, and nuisance. Both the Rent Control Court and the Appellate Authority found…

Prima Realty, a partnership firm, entered into a compulsory purchase agreement with the Union of India for a property in Chembur. The Central Government was required to tender the consideration within one month of the purchase order, but the cheque issued to Prima Realty was incorrectly made out to "Prime Realty Ltd" a…

The assessee concealed income of minor children and the Income‑Tax Officer referred the case to the Inspecting Assistant Commissioner (IAC) under Section 274(2) of the Income‑Tax Act because the minimum penalty exceeded Rs 1,000. The reference was made before the amendment of Section 274(2) which, from 1 April 1971, re…

The assessee filed its return for AY 2006-07 under the E‑Module scheme and the Assessing Officer issued a notice under section 143(2) of the Income Tax Act on 5 Oct 2007 to the address recorded in the PAN database. The assessee claimed that it had changed its registered address and that the notice was therefore not ser…

The partners of the dissolved partnership firm Mis. Mangalore Ganesh Beedi Works sold the firm's assets as a going concern to an Association of Persons (AOP-3) after winding‑up proceedings. The Assessing Officer treated the partners' share of the sale proceeds as capital gains in their individual hands, while the busin…

The Supreme Court examined whether the Income‑Tax Settlement Commission, created under Section 245B of the Income‑Tax Act, 1961, could waive or reduce the statutory interest payable under Sections 234A, 234B and 234C when passing settlement orders under Section 245D(4). The Court held that the term "terms" in Section 2…

The petitioner, Commissioner of Income Tax, Gujarat, challenged the claim of the respondent, Gujarat Fluoro Chemicals, that the Revenue should pay interest when the total of advance tax and TDS installments paid exceeds the assessed tax. The issue centered on whether the Revenue is liable to pay interest on the excess …

The petitioners, former officers of Indian Oil Corporation (Assam Oil Division) who retired before 1 December 1994, challenged a government notification dated 10 March 1995 that revised the pension formula only for officers retiring on or after that date. They argued that the cut‑off date was arbitrary and discriminato…

The Industrial Development Bank of India (IDBI), as a secured creditor, sought to enforce its charge over imported machinery that had been stored in a private bonded warehouse and remained unpaid of customs duty. The company was wound up on 1 December 2003, and the Official Liquidator applied for possession of the good…

M/s ABC Papers Ltd. challenged assessment orders for assessment years 2008-09 to 2013-14, which led to a series of appeals before the Commissioner of Income Tax (Appeals), the Income Tax Appellate Tribunal (ITAT) and two High Courts (Punjab & Haryana and Delhi). The core dispute was which High Court has jurisdiction un…

The Centre for Public Interest Litigation filed a writ petition seeking a fresh National Disaster Management Plan, specific minimum relief standards, and direction to use the National Disaster Response Fund (NDRF) for COVID-19, as well as to channel all contributions to the NDRF instead of the PM CARES Fund. The Court …

The assessee, Gold Coin Health Food Pvt. Ltd., filed a return showing a loss. The Income Tax Department levied a penalty under Section 271(1)(c) of the Income Tax Act, 1961, alleging concealment of income. The issues were whether the term “income” includes losses, whether the penalty can be imposed when the returned fi…

Shiela Kaushish, a taxpayer, constructed a warehouse in Delhi and let it out to the American Embassy under several leases, eventually receiving a total rent of Rs.34,797 per month from April 1968. For the assessment years 1969-70 and 1970-71, the Income‑Tax Officer treated the actual rent received as the "annual value"…

The Commissioner of Income Tax (Delhi-VI) appealed against Oriental Insurance Co. Ltd., contending that the Revenue must obtain clearance from the Committee of Disputes (COD) within one month before filing appeals against a public sector undertaking. The Delhi High Court dismissed the appeals for not securing such clea…

P.R. Prabhakar, who exported his own products and also procured export contracts for others on commission, earned a commission of Rs 56,693 and incurred a loss of Rs 6,372 on the export of goods in AY 1990‑91. He claimed a deduction under s.80HHC of the Income Tax Act, 1961. The Assessing Officer and the Commissioner d…

Mahabir Industries, a polythene manufacturer in Himachal Pradesh, claimed tax deductions under Section 80‑IA for two years, then under Section 80‑IB for five years, and after a substantial expansion in AY 2006‑07, under Section 80‑IC. The Assessing Officer allowed the 100% deduction for AY 2006‑07 and 2007‑08 but denie…

The Supreme Court examined whether Mis. Hyundai Heavy Industries Co. Ltd., a Korean non‑resident, had a Permanent Establishment (PE) in India for a turnkey contract to design, fabricate, install and commission an oil platform for ONGC. The assessee argued that the contract was divisible, that the design and fabrication…

The Commissioner of Income Tax, Udaipur assessed Hindustan Zinc Ltd. for the AY 1996-97, adding Rs 27.08 crore to income because the company wrote down its closing stock of zinc concentrate to the net realizable value based on the London Metal Exchange (LME) price, which was lower than the weighted average cost. The co…

The Commissioner of Income Tax appealed against Oriental Fire & General Insurance Co. Ltd, contending that the insurer could not claim deductions for a provision for taxation and a reserve for bad and doubtful debts. The Supreme Court examined the computation of income for insurance businesses under Section 44 of the I…

The appellant, a Hindu Undivided Family, reported a long‑term capital loss on the sale of its one‑fourth share in a property and relied on a valuation report prepared by a registered valuer. The Assessing Officer, after adopting a higher valuation by the District Valuation Officer, levied a penalty under Section 271(1)…

T. Ashok Pai, an individual taxpayer whose returns were prepared by a professional group at Syndicate Bank, filed revised returns after the tax department demanded better particulars. The department later initiated penalty proceedings under section 271(1)(c) of the Income Tax Act, alleging concealment of income. The In…

Ambica Industries, carrying on business in Lucknow, was assessed to central excise there and appealed to the Central Excise and Service Tax Appellate Tribunal (CESTAT) in Delhi, which has jurisdiction over Uttar Pradesh, Delhi and Maharashtra. The appellant filed a further appeal under Section 35G of the Central Excise…

Equinox Solution Pvt Ltd sold its entire running business, including assets and liabilities, in a single transaction on 31‑December‑1990 and claimed a deduction under Section 48(2) of the Income‑Tax Act, treating the sale as a slump sale of a long‑term capital asset. The Assessing Officer held that the transaction fell…

Sirpur Paper Mills made contributions to an approved superannuation fund amounting to Rs 2,70,911 for the current year and Rs 2,14,785 for the preceding five years. The assessing officer allowed a deduction of only 80% of the contributions and spread it over five years, relying on a Central Board of Direct Taxes notifi…

Stonecraft Enterprises, an exporter of granite, claimed a deduction under Section 80HHC of the Income Tax Act, 1961, which allows a deduction of up to 50% of profits from export of goods, but excludes "mineral oil, minerals and ores". The Tribunal held that granite is a mineral and therefore excluded, rejecting the ded…

Shivakami Co. Pvt. Ltd., a private company, sold unquoted shares of two other companies and claimed a loss. The Income‑Tax Officer, relying on the first proviso to section 12B(2) of the 1922 Income‑Tax Act (now section 52 of the 1961 Act), deemed the break‑up values of the shares and assessed capital gains. The Tribuna…

GVK Industries Ltd. and its director entered into an agreement with a Swiss non‑resident company (NRC) to act as a financial advisor for a power project, receiving a "success fee" of 0.75% of the debt on loan closure. The Income Tax Officer refused to issue a No‑Objection Certificate for remittance of the fee, directin…

The Commissioner of Income Tax, Dibrugarh appealed against judgments upholding the assessment of Doom Dooma India Ltd., a tea manufacturer, for assessment years 1988-89 to 1991-92. The core issues were the meaning of "depreciation actually allowed" under Section 43(6)(b) of the Income‑Tax Act, 1961 and the method of co…

Ram BAI's land was acquired under the Land Acquisition Act, 1894 and she received compensation which was later enhanced with solatium and interest by a civil court, a decision affirmed by the High Court. She disclosed the interest as income in a return filed under Section 139(4) of the Income Tax Act, 1961, but the Inc…

The assessee was assessed for AY 1960-61 and later a sum of Rs 32,58,500 was identified as a loan advanced for a paper‑mill project. The Income‑Tax Officer reopened the assessment and treated the amount as business income. The assessee’s appeals before the Appellate Assistant Commissioner and the Income‑Tax Appellate T…

National Travel Services, a partnership firm, obtained a loan from Jetair Private Ltd and subscribed to its equity in the names of two partners, who were registered shareholders holding 48.19% of the shares but held them for the benefit of the firm. The firm challenged whether Section 2(22)(e) of the Income Tax Act, as…

M/S Southern Motors, a registered dealer under the Karnataka Value Added Tax Act, 2003, issued tax invoices for vehicle sales and later granted post‑sale discounts through credit notes, retaining only the net amount. The Assessing Authority disallowed deduction of these discounts from total turnover, insisting that a d…