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1234 judgments · newest first · showing 401–600
The Citizen Co-operative Society Ltd., a multi‑state cooperative credit society, claimed deduction under Section 80P(2)(a)(i) of the Income Tax Act, 1961. The Assessing Officer, CIT(A) and ITAT held that the society’s activities amounted to a finance business involving "nominal members" and were not …
The assessees, Mis. Hindustan Petroleum Corporation Ltd., engaged in bottling liquefied petroleum gas (LPG) into cylinders for domestic use and claimed deductions under Sections 80HH, 80‑1 and 80‑IA of the Income Tax Act, 1961. The Assessing Officer disallowed the claim, holding that bottling did …
Hyundai Corporation entered into a contract with Oil and Natural Gas Corporation (ONGC) for offshore oil exploration, which contained Clause 13.2.8 (sub‑contractor liability) and Clause 17.3 (indemnity for costs arising from a change of law). A change in Indian tax law – Section 44BB/4488 of the …
The Supreme Court examined whether the lump‑sum technical fee and royalty paid by Honda Siel Cars India Ltd. under a Technical Collaboration Agreement with Honda Motors Company Ltd., Japan, should be treated as capital or revenue expenditure under the Income‑Tax Act. The joint venture was created to …
The petitioners, a group of public‑spirited individuals, challenged the constitutionality of Section 139AA of the Income Tax Act, 1961, which makes it mandatory for income‑tax assessees to quote their Aadhaar number while applying for a PAN or filing returns. They argued that the provision violated …
The appellant, a partnership firm, obtained lease‑hold rights to a stilt portion of a municipal market through auction and constructed a shopping centre, sub‑licensing shops to traders. The Assessing Officer re‑assessed the income from these sub‑licences under the head "Income from House Property" …
M/s. Lisie Medical Institutions, a charitable trust running a hospital, sought exemption from building tax under the Kerala Building Tax Act, 1975, claiming its premises were used for charitable purposes. The High Court, relying on S.H. Medical Centre Hospital v. State of Kerala, rejected the …
Godrej & Boyce Manufacturing Co. Ltd. claimed that interest expenditure incurred to earn dividend income (exempt under s.10(33) because tax is paid by the dividend‑paying company under s.115‑0) could not be disallowed under s.14A of the Income‑Tax Act. The Revenue argued that s.14A barred deduction …
Mis. Palam Gas Service, engaged in LPG cylinder business, received freight payments from Indian Oil and paid subcontractors but failed to deduct tax at source under Section 194C. The Assessing Officer disallowed the subcontractor payments as per Section 40(a)(ia) of the Income Tax Act, 1961. The …
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 …
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 Orissa Olympic Association (OOA) was granted a lease of 20.808 acres for a stadium but later constructed 23 shops and a Kalyan Mandap (Barabati Palace) on land the State claims lies outside the lease. The Supreme Court, after a committee measured the leasehold area, found that the shops and part …
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 …
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, …
McDowell & Co Ltd acquired the sick company Hindustan Polymers Ltd (HPL) by amalgamation effective 1 April 1977. HPL’s banks waived interest on loans, which under Section 41(1) of the Income‑Tax Act would normally be taxable income. The assessee claimed the benefit of Section 72A, allowing it to set …
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 …
The petitioners, Common Cause and others, sought a court‑ordered Special Investigation Team to probe alleged hawala transactions and cash seizures involving the Aditya Birla and Sahara groups, relying on documents seized in raids such as loose sheets, pen‑drives and laptop data. The respondents …
The appellant, a landlord, owned agricultural land that was acquired by the Kerala government under the Land Acquisition Act, 1894 for a techno‑park project. After the award fixed compensation, the appellant negotiated a higher amount with the acquiring authority and executed a sale deed, receiving …
The appellant, Gopal and Sons (a Hindu Undivided Family), had subscribed to shares of a fertilizer company, with the share certificates issued in the name of its Karta but the HUF shown as the beneficial and registered shareholder in the company's annual returns. The Assessing Officer added Rs. …
The Supreme Court examined the true nature of Section 1OA of the Income‑Tax Act, 1961, as amended by the Finance Acts of 2000 and 2003, to determine whether it confers an exemption or a deduction and at what stage the benefit should be applied. The Court considered whether the provision falls within …
Maharao Bhim Singh, the ruler of the former princely State of Kota, owned the Umed Bhawan residential palace, part of which was requisitioned and let out to the Ministry of Defence, generating rent. The issue before the Supreme Court was whether the exemption under Section 10(19A) of the Income‑Tax …
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 …
M/s Shasun Chemicals and Drugs Ltd., a pharmaceutical manufacturer, raised funds through a public issue of shares to finance expansion and R&D. It claimed amortisation of the share‑issue expenses under Section 35D (formerly Section 350) of the Income Tax Act, 1961, for ten years at one‑tenth each, …
The appellants, a husband‑wife duo, were searched under the Income Tax Act at their residences in Bhopal and Aurangabad. During the search they denied possessing a safe‑deposit locker, which was later discovered at Aurangabad, leading the Deputy Director of Income Tax (Investigation) Bhopal to lodge …
Gujarat Urja Vikas Nigam Ltd. (GUVNL) appealed against the Appellate Tribunal for Electricity’s order that Essar Power Ltd. (EPL) had no contractual duty to declare its generating capacity on a 300 MW : 215 MW (58 % : 42 %) basis. The Supreme Court examined the Power Purchase Agreement (PPA) and …
The Commissioner of Income Tax, Kochi appealed against Trans Asian Shipping Services (P) Ltd, which had elected to compute its income under the Tonnage Tax Scheme (TTS) of Chapter XIIG of the Income Tax Act, 1961. The dispute centered on whether income from slot‑charter arrangements, where the …
Mis GTC Industries Ltd., a sick company under the Sick Industrial Companies (Special Provisions) Act, 1985, was placed under a BIFR‑sanctioned rehabilitation scheme (SS‑02) that provided, among other reliefs, a provision to "consider" waiving interest and penalty. The scheme ran from 31 Mar 2003 to …
The Revenue (Commissioner of Income Tax, Mumbai) challenged the orders of the Income Tax Appellate Tribunal and the Bombay High Court that set aside a suo motu revision order passed by the Commissioner under section 263 of the Income Tax Act, 1961. The issues were whether a show‑cause notice is a …
The case concerned the assessment of M/s Saurashtra Cement for AY 1981-82. The Assessing Officer issued a draft assessment on 13‑03‑1984 and forwarded it to the Inspecting Assistant Commissioner (IAC) under Section 1448. The IAC gave directions on 31‑08‑1984, after which the final assessment order …
VLS Finance Ltd. and others challenged the Commissioner of Income Tax’s block assessment for the period up to 22 June 1998, arguing that the two‑year limitation under s.158BE(1) of the Income Tax Act had expired. The assessment was delayed because the assessing officer ordered a special audit under …
ITC Limited Gurgaon, a hotel operator, collected tips from customers and distributed them to its employees without deducting tax at source. The Assessing Officer treated the tips as salary, invoking Section 192 of the Income Tax Act and declared the assessee an assessee‑in‑default under Section 201. …
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 …
The appellant, the Commissioner of Income Tax, challenged the deduction claimed by M/s. Meghalaya Steels Ltd. of Rs.2,74,09,386 as subsidies (transport, interest, power, insurance) under Sections 80‑IB and 80‑IC of the Income Tax Act. The issue was whether such subsidies constitute "profits and …
Gujarat Urja Vikas Nigam Ltd (GUVNL) entered into a Power Purchase Agreement (PPA) with EMCO Ltd for a 5 MW solar project, the tariff being fixed by the Gujarat Electricity Regulatory Commission (GERC) in its first tariff order of 29 Jan 2010, which assumed the benefit of accelerated depreciation …
Mis Ganapathy & Co. claimed deductions for service charges paid to Mis Universal Trading Company, a loss incurred in its film business, and a donation to Aparna Ashram. The Assessing Officer disallowed all three claims, the Income Tax Appellate Tribunal (ITAT) reversed the disallowances, and the …
The case concerned Micro Labs Ltd., which claimed deductions under Sections 80‑IA/80‑IB (infrastructure development) and also under Section 80‑HHC (export profits). The Revenue argued that Section 80‑IA(9) bars any further deduction under heading "C" of Chapter VI‑A, which includes 80‑HHC, for the …
Sodexo Service India Private Ltd issues paper‑based meal vouchers to corporate customers, who distribute them to their employees for redemption at affiliated restaurants. The vouchers are redeemed for food, with Sodexo receiving a service fee and reimbursing affiliates for the face value. The issue …
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 …
Hero Cycles Ltd. claimed a deduction under Section 36(1)(iii) of the Income Tax Act for interest paid on bank loans in AY 1988‑89. The Assessing Officer disallowed the claim, holding that the borrowed money was used to give an interest‑free advance to its subsidiary, Hero Fibres Ltd., and a …
Vidarbha Engineering, a lessee of three plots of land, entered into a collaboration agreement with Unitech to develop a commercial complex, whereby Unitech would construct the building, retain 78% of the built‑up area and transfer 22% to Vidarbha. The parties filed a statement under Section 269UC …
The dispute involved the A.P. Power Coordination Committee and related entities (appellants) and M/s. LanCo Kondapalli Power Ltd. (respondent) over capacity‑charge bills and a claim for reimbursement of Minimum Alternate Tax (MAT) under their Power Purchase Agreement (PPA). The key questions were …
The Supreme Court examined the claims of M/s. Mangalore Ganesh Beedi Works (the assessee) for deductions under the Income‑Tax Act. It held that legal expenses incurred after the business was taken over by an Association of Persons were incurred for protecting the going‑concern and therefore …
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) …
The respondent, a public charitable trust, filed its 1994-95 return showing a gross income of Rs 99,41,221 and claimed a nil taxable income by deducting the amount actually spent on its objects (Rs 47,27,533) and an additional sum of Rs 32 lakh that it set apart for future charitable purposes. The …
M/s Fibre Boards (P) Ltd. sold its industrial undertaking in Thane (a notified urban area) and earned a capital gain of Rs 1,08,33,044. It paid advances of Rs 1,11,42,973 for purchase of land, plant, machinery and construction of a new factory in a non‑urban area and claimed exemption under s. 54G …
Japan Airlines (JAL) paid landing and parking fees to the Airports Authority of India (AAI) and deducted tax at source (TDS) at 2% under Section 194-C of the Income Tax Act, 1961. The Income Tax Department argued that the fees were "rent" under Section 194-1 and should attract TDS at 20%. The …
The case concerned a show‑cause notice issued under the Central Excises and Salt Act, 1944 for alleged short levy of excise duty by a sole proprietor who died in 1989. The legal heirs challenged the notice, arguing that the Act contains no provision to continue assessment against a dead person’s …
The appellant, Kapoor Chand (deceased), had two trusts created for his minor children, Priti Life Trust and Anuj Family Trust. The trustees, who were also partners in a partnership firm, received the firm's profits, but the trust deeds stipulated that the income could not be distributed to the …
The Oil & Natural Gas Corporation Ltd (ONGC) challenged the assessment of surtax on its agreements with foreign companies, contending that the exemption notification GSR 307(E) dated 31‑03‑1983 under Section 24AA of the Companies (Profits) Surtax Act, 1964, covered both categories of foreign …
Seshasayee Paper & Boards Ltd. filed its 1991-92 return showing nil income, claiming set‑off of unabsorbed investment allowance but not of unabsorbed depreciation from earlier years. The assessing officer, relying on Section 32 of the Income Tax Act, allowed the unabsorbed depreciation first, …
The Supreme Court considered whether the amendment inserting clause (d) into Section 80IB(10) of the Income Tax Act, effective from 1 April 2005, which limits the built‑up area of shops and commercial establishments in housing projects, applies to projects that were approved before 31 March 2005 but …
Joshi Technologies International Inc. entered into two Production Sharing Contracts (PSCs) with the Union of India in 1995 for oil fields, but the contracts omitted any clause providing for deductions under Section 42 of the Income Tax Act, 1961. The Income Tax Authorities initially allowed such …
The Revenue sought to levy block assessments for AY 2004-05 to 2009-10 after conducting a search of M/s Spacewood Furnishers Pvt. Ltd. under Section 132 of the Income Tax Act. The High Court of Delhi set aside the warrant of authorization, holding that the satisfaction notes were inadequate and …
The respondent, M/s Travancore Sugar & Chemicals Ltd., claimed a deduction for a vend fee of Rs 22,87,512 paid to the Kerala Government, which the assessing officer disallowed under Section 438 of the Income Tax Act because it was not paid before the expiry of the relevant previous year. The …
Chennai Properties & Investments Ltd., a company whose memorandum of association states that its main object is to acquire and let out properties, earned rental income from two properties and disclosed it as business income. The assessing officer treated the same income as "income from house …
JEYAR Consultant & Investment Pvt. Ltd., which exported marine products and also earned domestic income from dividends, interest, brokerage and share transactions, claimed a deduction under Section 80HHC of the Income Tax Act for profits from its export business. The Assessing Officer denied the …
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. …
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 …
The Queen's Educational Society, established solely to impart education, claimed exemption under Section 10(23C)(iiiad) of the Income Tax Act for assessment years 2000-01 and 2001-02 despite showing a surplus. The Assessing Officer denied the exemption, the ITAT allowed it, but the Uttarakhand High …
Premier Breweries Ltd., a manufacturer of alcoholic beverages, claimed deductions under Section 37 of the Income Tax Act for commissions paid to agents for securing supply orders from state marketing corporations. The Assessing Officer disallowed the claim, which was upheld by the Commissioner …
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 …
The Union of India challenged the Allahabad High Court's order quashing a search and seizure conducted under Section 132(1) of the Income Tax Act at the premises of M/s Agarwal Iron Industries. The High Court had held that the search warrant was issued mechanically without a reasonable basis. The …
The Madras Bar Association challenged the constitutional validity of the National Tax Tribunal Act, 2005, which sought to transfer appellate jurisdiction from High Courts to a newly created National Tax Tribunal (NTT) for deciding substantial questions of law in tax matters. The Supreme Court held …
The Bombay Stock Exchange (BSE) declared member Suresh D. Shah a defaulter and the Income Tax Department sought to attach the proceeds of his membership card and securities under s.226(3) of the Income Tax Act. BSE argued that a membership card is a personal, non‑transferable privilege and that its …
The case concerned a block assessment of undisclosed income for the period 01‑04‑1989 to 10‑02‑2000, where the Assessing Officer failed to levy surcharge under Section 113 of the Income‑Tax Act. The Commissioner of Income Tax sought to levy surcharge retrospectively, relying on a proviso inserted in …
The Oil & Natural Gas Corporation (ONGC) awarded a contract to Western Geco for modernising a seismic vessel, which was to be returned by 9 July 2001. The vessel was delayed until 6 May 2002 due to licensing issues for US‑origin hydrophones and subsequent substitution with Canadian ones, leading …
The appellants entered into an agreement to sell their residential house on 27 December 2002 and purchased another house on 30 April 2003. A court order later restrained them from dealing with the property, preventing execution of the sale deed until the order was vacated in May 2004; the deed was …
The Supreme Court examined petitions seeking to shift investigation of the multi‑state chit‑fund (Ponzi) scam, which defrauded lakhs of depositors of roughly Rs 10,000 crore, from the State Police to the Central Bureau of Investigation (CBI). The scam involved companies operating across West Bengal, …
The Commissioner of Income Tax appealed against the High Court’s order that Punjab Stainless Steel Industries should not include proceeds from the sale of steel scrap in its total turnover for calculating the deduction under Section 80‑HHC of the Income Tax Act, 1961. The assessee, a manufacturer …
Four Rajasthan co‑operative societies with substantial losses were amalgamated into Rajasthan R.S.S. & Ginning Mills Fed. Ltd. on 1 January 1993, after which the appellant sought to carry forward the accumulated losses of the amalgamated societies and set them off against its own profits under …
The late Maharaja Vikramsinhji of Gondal created several foreign trusts in the United States and the United Kingdom. After his death, the Income Tax and Wealth Tax authorities assessed tax on the income of the UK trusts, arguing that they were specific trusts whose income accrued to the settlor and …
The appellants, who were tenants of premises mortgaged to banks, challenged the seizure of those premises by the secured creditors under the SARFAESI Act. The Supreme Court examined whether a lease made by the mortgagor, either before or after the mortgage, remains valid and binding on the secured …
The case concerned a search under Section 132 of the Income Tax Act on two premises of the Bhatia Group, which led the assessing officer to record a satisfaction note under Section 15880 on 15 July 2005, after the block assessment of the searched person was completed on 30 March 2005. The …
The case concerned whether the Union of India, as the tax authority, must pay interest on a tax refund made to M/s Tata Chemicals Ltd, a resident deductor who had deducted tax at source under Section 195(2) and later obtained a refund under Section 240. The Assessing Officer and the first appellate …
The case concerned the sale of a mortgaged property by a bank under the SARFAESI Act. The Supreme Court examined whether the bank, as a secured creditor, had complied with Section 13(8) of the Act and Rules 8 and 9, which require a 30‑day individual notice and a public notice before any sale. It …
The Supreme Court considered appeals by a partnership firm, Sasi Enterprises, and its partners who were prosecuted under section 276CC of the Income Tax Act for willfully failing to file income‑tax returns for the assessment years 1991‑92, 1992‑93 and 1993‑94. The issues raised were whether a …
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 …
The appellant, Chironjilal Sharma HUF, had Rs 2,35,000 seized from his house during a search on 31 January 1990. An order under Section 132(5) of the Income Tax Act was passed on 31 May 1990, and the Assessing Officer appropriated the seized cash against the tax liability. The Income Tax Appellate …
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 …
Mak Data Ltd filed its income tax return and was selected for scrutiny. During assessment, the Assessing Officer (AO) discovered documents from a survey of a sister concern and issued a show‑cause notice. The company offered to surrender Rs 40.74 lakhs, claiming it was a voluntary disclosure to …
The Commissioner of Income Tax appealed against M/s Excel Industries Ltd., contending that the value of advance licence and duty‑entitlement pass‑book benefits under the import‑export policy should be taxed in the year they were received under s.28(iv) of the Income Tax Act. The assessee argued that …
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 …
The respondent, an Income Tax Inspector, was alleged to have demanded Rs.25,000 as illegal gratification to refrain from reopening a tax assessment. A trap was laid using chemically treated currency notes that turned pink on the respondent's hands, leading to his conviction by the trial court under …
The appellant, a Development Officer of Life Insurance Corporation of India, claimed a deduction of 40% of his incentive bonus in his income‑tax returns, arguing that the amount represented expenses incurred in canvassing business. The Income Tax authorities rejected the claim, holding that the …
The Supreme Court heard an appeal by the wife, daughter and mother of a 28‑year‑old Assistant Engineer who died in a motor accident caused by the negligent driver of a jeep. The Motor Accident Claims Tribunal had reduced the deceased's salary, deducted amounts for provident fund, pension, insurance …
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 …
The Bangalore Club, an unincorporated association of persons, claimed exemption from tax on interest earned from fixed deposits placed with its corporate member banks, invoking the doctrine of mutuality under s.2(24)(vii) of the Income‑Tax Act. The assessing officer treated the interest as taxable, …
The respondent, M/s A.R. Enterprises, was found during a search of another premises to have undisclosed income for AY 1995-96 and had not filed a return by the due date. The Assessing Officer initiated block assessment under Chapter XIV‑B, treating the income as undisclosed despite the assessee …
M/S I.C.D.S. Ltd., a non‑banking finance company, purchased trucks and leased them to third parties, registering the vehicles in the lessees' names. The company claimed depreciation under Section 32 of the Income Tax Act, 1961 at both the normal and higher rates, arguing it owned the trucks and used …
The appellants purchased a mortgaged property at a public auction conducted by a Recovery Officer under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDB Act). The auction was later set aside by the Debt Recovery Appellate Tribunal on the ground that the appellants were …
The Mandi Samiti, a market committee established under the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964, collects market fees and is statutorily required to transfer certain amounts to the Mandi Parishad. Both entities are registered under Section 12AA of the Income Tax Act, 1961. The Revenue …
Price Waterhouse Coopers Pvt. Ltd., a large consultancy firm, filed its 2000-01 return of income together with a tax audit report that clearly stated the provision for gratuity was not allowable under section 40A(7). However, the firm mistakenly claimed a deduction for that provision, resulting in …
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 …
Columbia Sportswear Co., a US company with liaison offices in India, sought an advance ruling from the Authority for Advance Rulings (Income Tax) on taxability and permanent establishment issues. The Authority issued a binding ruling, which the company challenged by filing a Special Leave Petition …
The petitioner, Nitin Gunwant Shah, claimed to be a monthly tenant of a flat in Mumbai based on a 1989 "Leave and Licence" agreement and sought a declaration to that effect. The Indian Bank, holding a mortgage over the same property, obtained a decree for recovery of dues and sought to sell the …
Catholic Syrian Bank Ltd. appealed against the Commissioner of Income Tax, Thrissur, challenging the denial of a deduction for bad debts under Section 36(1)(vii) of the Income Tax Act, 1961. The bank argued that deductions under Section 36(1)(vii) (write‑off of irrecoverable debts) are independent …
The Supreme Court examined whether the deduction under Explanation (baa) to Section 80HHC of the Income‑Tax Act, 1961 should be computed on the basis of gross receipts or the net amount of receipts such as interest and rent that are actually included in the profit‑and‑gain calculation. The Court …
The appellant, an exporter, claimed deductions under Section 80HHC for profits retained for export business, arguing that the face value of the Duty Entitlement Pass Book (DEPB) is "cash assistance" and should be excluded from profit under Section 28(iiib). The Assessing Officer treated the entire …
Mis Topman Exports sold its Duty Entitlement Pass Book (DEPB) and claimed a deduction under section 80HHC of the Income Tax Act for the assessment year 2002-03. The Assessing Officer treated the entire sale proceeds as profit on transfer under section 28(iiid), denying the deduction. The Tribunal …
The appellant, a member of Raia Village Panchayat in Goa, was disqualified by the State Election Commission under Section 10(f) of the Goa Panchayat Raj Act, 1994 because her husband secured a contract with the same Panchayat for collection of market fees. The appellant challenged the …
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 …
The Union of India advertised vacancies for members of the Income‑Tax Appellate Tribunal (ITAT) and a Selection Board placed 18 candidates on a main list, of which 16 were approved for appointment by the Appointments Committee. Three candidates were placed on a wait‑list. The Committee decided that …
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 …
The appellant complained to the Lokayukta that three government officials had caused a loss of Rs.4 crore to the State of Madhya Pradesh by purchasing land at inflated prices. The Lokayukta police investigated, exonerated the officials and filed a closure report under Section 169 of the Cr.P.C. …
Coromandel Indag Products Ltd. entered into a sale agreement with Garuda Chit & Trading Co. to purchase a property for Rs. 82 lakhs, paying an advance and subsequent installments while the vendor was to furnish title documents and an income‑tax clearance. The vendor supplied the tax clearance but …
The Income Tax Officer appealed the acquittal of a partnership firm and its partner, Hem Raj, who were convicted under Sections 276C(i), 277 and 278 of the Income Tax Act for filing false returns. The firm had filed a revised return for AY 1988-89, which the prosecution alleged was signed and …
During the assessment year 1997-98 Gufic Chem Ltd. received Rs. 50 lakh as a non‑competition fee under an agreement that prohibited it from carrying on its pharmaceutical business for 20 years. The Assessing Officer treated the amount as a capital receipt, a view upheld by the Commissioner of Income …
GVK Industries Ltd. challenged a tax order that invoked sections 9(1)(i) and 9(1)(vii)(b) of the Income Tax Act, 1961, arguing that the provisions were unconstitutional for lacking a nexus with India. The High Court upheld the tax provision, relying on the ECIL judgment, prompting a Supreme Court …
The State of Punjab appealed against an order of the Executing Court that allowed the respondents, whose land had been acquired, to claim the additional amount under Section 23(1A) of the Land Acquisition Act, 1894 on both the market value of the land and the solatium payable under Section 23(2). …
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 …
Rolta India Ltd. filed a return showing nil total income, but the Assessing Officer levied tax on book profits under Section 115JA and charged interest under Sections 2348 and 234C for default in advance tax. The assessee contended, relying on the Karnataka High Court's Kwality Biscuits decision, …
Indo Rama Synthetics (I) Ltd. revalued its fixed assets in FY 2000, creating a revaluation reserve of Rs 288.58 crore. In FY 2001 it transferred Rs 26.11 crore of differential depreciation from that reserve to its profit‑and‑loss account, thereby reducing depreciation expense and showing a profit. …
The Supreme Court examined whether Minimum Alternate Tax (MAT) credit under Section 115JAA of the Income Tax Act, 1961 must be set off against assessed tax before computing interest under Sections 234A, 234B and 234C. It held that the tax paid under Section 115JA is a "tax" within the meaning of the …
The appellants leased premises for nine years with a clause allowing the lessee to extend the lease for a further nine years, subject to conditions. The Income Tax Department treated the lease as exceeding twelve years, invoking Chapter XXC of the Income Tax Act and requiring filing of Form 37‑1. …
Vimal Kumar Surana, who had passed the Chartered Accountant examination but was not a member of the Institute, impersonated a chartered accountant, prepared audit reports and forged the Institute's seal before tax authorities. The Institute filed a criminal complaint alleging offences under the …
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) …
GE India Technology Centre Private Ltd. imported software and paid the foreign supplier for a licence. The Income Tax Officer held the payment to be a royalty deemed to accrue in India, requiring tax deduction at source (TDS) under Section 195 of the Income Tax Act, 1961. The Commissioner upheld …
Ajanta Pharma Ltd., a Minimum Alternate Tax (MAT) company, claimed a 100% reduction of export profits while computing "book profits" under Section 115JB of the Income Tax Act for AY 2001-02, invoking Section 80HHC. The Assessing Officer allowed only an 80% reduction based on Section 80HHC(1B). Both …
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, …
The State of Kerala issued a notification to declare certain lands as revenue forest, which the appellant's predecessor claimed title to. The Forest Settlement Officer rejected the claim, but the Additional District Judge allowed it on appeal under Section 11 of the Kerala Forest Act. The State …
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 …
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 …
The appellant, Sumitomo Heavy Industries, entered into a turn‑key offshore platform contract with the respondent, ONGC, which contained a clause (17.3) obligating the respondent to compensate the contractor for any necessary and reasonable extra cost caused by a change in Indian law after the bid …
M/s Saurashtra Cement Ltd., a cement manufacturer, entered into a contract to purchase a new cement plant. The supplier failed to deliver the plant on time, and under a liquidated damages clause the assessee received Rs.8,50,000 as compensation. The Revenue argued that the amount was a revenue …
Mis. Kanchanganga Sea Foods Ltd., an Indian exporter of seafood, chartered fishing vessels from a Hong Kong company and agreed to pay the charter fee as 85% of the gross earnings from fish sales. The catch was brought to Chennai, valued, and customs duties were paid before the non‑resident company …
The appellant, C.I.T., Mumbai, challenged the High Court’s order allowing a loss of Rs. 2,09,44,793 claimed by the respondent, a mutual fund unit trader, to be set off against taxable income. The respondent had bought mutual fund units before the record date, received a tax‑free dividend under …
The Commissioner of Income Tax, Surat appealed against the order of the Income Tax Appellate Tribunal which had set aside a penalty imposed on Saheli Leasing & Industries Ltd. for concealment of income. The assessee had filed a return showing NIL income and claimed excessive depreciation, resulting …
The first respondent filed a suit for specific performance which was settled by a decree that appointed a court‑appointed receiver to hold the balance sale consideration of Rs.6,00,000. The appellants instructed the receiver to pay Rs.3,00,000 to Park Services Pvt. Ltd. for statutory liabilities and …
Vijaya Bank claimed deductions under Section 36(1)(vii) of the Income Tax Act, 1961 for bad debts in the assessment years 1993‑94 and 1994‑95. The bank had created a provision, debited the profit and loss account and simultaneously reduced the Loans and Advances/ Debtors on the balance sheet, but it …
Reliance Petroproducts Pvt. Ltd. claimed a deduction of Rs.28,77,242 for interest on loans used to purchase IPL shares in its income‑tax return for AY 2001‑02. The assessing authority disallowed the claim and initiated penalty proceedings under s.271(1)(c) of the Income Tax Act, alleging concealment …
Oil and Natural Gas Corporation Ltd., a public sector undertaking, had borrowed foreign loans for revenue and capital purposes and revalued these loans in Indian rupees at each balance‑sheet date. It claimed the foreign‑exchange loss on revenue‑account loans as a deduction under Section 37(1) and …
The appellant, Assistant C.I.T., challenged the assessee Elecon Engineering's claim that roll‑over premium charges paid on foreign‑exchange forward contracts for a plant‑and‑machinery loan were deductible under Sections 36(1)(iii) or 37 of the Income‑Tax Act. The Tribunal and High Court had held the …
The appeal concerned whether depreciation for computing book profit under Section 115J of the Income Tax Act should be allowed as per Rule 5 of the Income Tax Rules, 1962, rather than Schedule XIV of the Companies Act, 1956. The assessee, a private limited company, had claimed depreciation under the …
The Totgars' Cooperative Sale Society Ltd., a cooperative credit society, invested surplus funds in short‑term bank deposits and government securities and earned interest. It claimed that this interest was business income eligible for deduction under Section 80P(2)(a)(i) of the Income Tax Act, 1961. …
The Supreme Court examined whether a notice under Section 143(2) of the Income Tax Act, 1961 must be served within the prescribed time before a block assessment can be framed under Chapter XIV‑B for undisclosed income discovered through a search under Section 132. The Court held that the special …
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 …
The Supreme Court examined whether the term "change of opinion" in Section 147 of the Income Tax Act, 1961 was eliminated after the 1 April 1989 amendment. The Court traced the evolution of Section 147 from its original wording, through the 1987 amendment that introduced "opinion", to the 1989 …
Oracle Software India Ltd. imported master media containing application software and commercially duplicated it onto blank compact discs (CDs) to sell as software kits. The Income Tax Department denied the company a deduction under Section 801A of the Income Tax Act, arguing that the duplication …
Navin Jindal, a shareholder of Jindal Iron and Steel Co., was entitled to subscribe to partly convertible debentures (PCDs) issued on a rights basis. He renounced this right for Rs 56,250, which caused a fall in the value of his original 1,500 equity shares by Rs 200 per share, resulting in a net …
The case concerned whether a Non‑Banking Financial Company (NBFC) could treat the "Provision for NPA" debited to its profit‑and‑loss account, as required by RBI Directions 1998, as income under s.2(24) of the Income Tax Act or claim a deduction under s.36(1)(vii). The Supreme Court held that the RBI …
National HydroElectric Power Corp. Ltd. (NHPC), a public sector electricity generator, sold power at tariff rates that included an Advance against Depreciation (AAD). In its profit and loss account NHPC reduced the sales figure by the AAD amount and did not debit the profit and loss account with it. …
The Income Tax Officer appealed against the deduction claimed by Arihant Tiles & Marbles (P) Ltd. under Section 801A of the Income Tax Act, 1961 for the assessment year 2001‑2002. The assessee converted raw marble blocks into polished slabs and tiles through a series of processes – sorting, sawing, …
The case concerned whether employers could claim a deduction under Section 43‑B of the Income Tax Act, 1961 for contributions to provident or welfare funds that were paid after the statutory due date but before filing the income‑tax return. The Finance Act, 2003 deleted the second proviso of Section …
The appellant, a computer engineer, travelled from Hyderabad to Chennai carrying Rs 65 lakhs in cash, disclosing the amount and a bank certificate to airport security. Although cleared at Hyderabad, he was intercepted at Chennai, detained for about 15 hours, and his cash was seized under the Income …
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 …
The Supreme Court examined whether sugar bags pledged by two cooperative sugar mills to Maharashtra State Co‑operative Bank Ltd. could be attached and sold to satisfy the employer's liabilities under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The Court held that Section …
Liberty India, a partnership firm operating a small‑scale industrial undertaking, claimed a deduction under s.80‑18 of the Income‑Tax Act for profits arising from Duty Entitlement Passbook (DEP8) and duty‑drawback credits that were posted to its profit and loss account. The Assessing Officer …
The assessee, Atul Mohan Bindal, filed his income tax return for AY 2002-03 and later the Assessing Officer added salary earned in Singapore, a retrenchment compensation, and interest income, imposing a penalty under Section 271(1)(c) of the Income Tax Act. The assessee contended that the additions …
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 …
The assessee (Ghanshyam HUF) received enhanced compensation and interest from the Haryana Urban Development Authority for land acquired under the Land Acquisition Act, 1894, but omitted these amounts from its 1999-2000 return, arguing that they were in dispute in a pending appeal by the State. The …
Udaipur Sahakari Upbhokta Thok Bhandar Ltd., a cooperative society dealing in both non‑controlled and government‑authorised controlled commodities, claimed a deduction under Section 80P(2)(e) of the Income‑Tax Act for commissions received for storing foodgrains under the Rajasthan Foodgrains Order. …
The Supreme Court examined whether the "balancing charge" provision of Section 41(2) of the Income Tax Act, 1961 could be read into Section 41(1) to tax profits from the sale of fully depreciated bottles and crates when Section 41(2) was deleted for assessment years 1988‑89 to 1998‑99. It held that …
Rotork Controls India (P) Ltd., a manufacturer of valve actuators, provided a standard warranty on its products and made a provision of 1.5% of turnover for anticipated warranty claims. The assessee claimed a deduction for the net provision under Section 37 of the Income Tax Act, 1961, which was …
The case involved McDowell & Co. Ltd. challenging the revenue's disallowance of deductions under Section 438 of the Income Tax Act, 1961, relating to unpaid bottling fees and interest secured by a bank guarantee, and other claims such as depreciation on R&D assets, transformer purchase, and …
The Supreme Court examined whether the assessment order against Mis. Greenworld Corporation was passed under the undue influence of the Commissioner of Income Tax, Shimla, thereby rendering it a nullity. It held that a revisional authority under Section 263 can intervene only when an order is …
The Commissioner of Income Tax appealed against the Delhi High Court’s order allowing M/s Woodward Governor India Ltd. to deduct unrealised foreign‑exchange losses on loans taken for revenue purposes. The Court examined whether such losses could be claimed under section 37(1) in the year the …
The Supreme Court examined whether the tax‑deduction‑at‑source (TDS) provisions in Chapter XVII‑B of the Income‑Tax Act are independent of the charging provisions that determine the assessability of salary income. It held that the TDS provisions are part of an integrated code and must be read with …
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 …
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 …
The assessee, a lessor of soft‑drink bottles, claimed depreciation under Section 32(1)(ii) of the Income‑Tax Act for two lease transactions dated 15‑Feb‑1991 and 15‑Mar‑1991. The Assessing Officer (AO) allowed depreciation only for 42,000 bottles out of 5,46,000 for the first transaction and …
Vijay Industries, a small‑scale supplier of castor oil, sued Natl Technologies for non‑payment of invoices and for interest on delayed payments, filing a winding‑up petition under Sections 433(e), 433(f) and 434 of the Companies Act, 1956. The respondent argued that interest was not a debt because …
The Vivekanand School challenged a tax demand made by the Zila Panchayat under Section 121 of the Uttar Pradesh and Uttaranchal (Kshetra Panchayat and Zila Panchayat) Adhiniyam, 1961, on the ground that the fees collected from students were being treated as taxable income. The school argued that it …
MIS. India Cine Agencies appealed against the Commissioner of Income Tax, Madras, contending that the conversion of jumbo rolls of photographic film into smaller rolls constituted manufacture/production under Sections 32AB, 80HH and 80I of the Income Tax Act, 1961, and therefore qualified for a …
The Commissioner of Income Tax (Central) Kanpur appealed against judgments of the Allahabad High Court that had favored J.K. Charitable Trust in several assessment years. The central issue was whether the Revenue could be barred from filing an appeal in certain assessment years when it had not …
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 Commissioner of Income Tax, Rajkot appealed against M/s Gujarat Siddhi Cement Ltd.'s claim of an investment allowance for additional costs incurred on plant and machinery due to foreign exchange rate fluctuations for the assessment year 1993-94. The assessing officer disallowed the claim, …
The Revenue appealed against the Bombay High Court's order upholding the Income Tax Appellate Tribunal's view that interest earned by Ratnakar Bank Ltd. on government securities was not chargeable to tax under Section 2(7) of the Interest Tax Act, 1974. The Supreme Court examined whether such …
The Revenue appealed against the Bombay High Court’s order upholding the Tribunal’s view that interest earned by ICICI Bank on government securities was not taxable under section 2(7) of the Interest Tax Act, 1974. The Supreme Court examined whether the interest in question fell within the …
The Commissioner of Income Tax appealed against the Bombay High Court's order upholding the Tribunal's view that interest earned by the Industrial Development Bank of India Ltd. on government securities was not assessable under Section 2(7) of the Interest Tax Act, 1974. The Supreme Court examined …
The Supreme Court examined an appeal by the Commissioner of Income Tax challenging the High Court's affirmation that interest earned by City Union Bank on government securities was not assessable under section 2(7) of the Interest Tax Act, 1974. The Tribunal and the High Court had held the interest …
B.M. Malani, a money‑lender who also traded in shares, had shares and a demand draft seized during a raid. He offered to pay his tax liability by selling the seized shares and requested the Income‑Tax Authority to dispose of them, but the request was ignored. The Department later levied interest …
The Supreme Court examined whether Section 11AC of the Central Excise Act, 1944 imposes a mandatory penalty for short levy or non‑levy of duty and whether mens rea is an essential element. The Court held that the provision creates a civil liability for breach of a statutory obligation and the …
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, …
The Supreme Court examined whether incentive subsidies received by Ponni Sugars & Chemicals Ltd. under various government schemes were capital or revenue receipts, whether the company could claim exemption under Section 80P(2)(a)(i) for interest earned from cooperative society members, and whether …
The Saurashtra Kutch Stock Exchange Ltd., a charitable institution, claimed exemption from income tax under Section 11 of the Income Tax Act, 1961, but its claim was rejected by the Assessing Officer, the Commissioner of Income Tax (Appeals), and the Income Tax Appellate Tribunal (ITAT). The ITAT …
The appellant, Commissioner of Income Tax, Chennai, challenged the Madras High Court’s order upholding a deduction claimed by M/s Modern Engineers Construction Cooperative Society Ltd. under section 80P(2)(a)(i) of the Income Tax Act, 1961. The assessing officer had rejected the deduction on the …
Enron Oil & Gas India Ltd (EOGIL), a foreign company and operator under a Production Sharing Contract (PSC) with the Government of India, claimed foreign exchange losses arising from currency translation of cash calls and expenses in its profit and loss account for AY 1999‑2000. The Assessing …
The Industrial Development Bank of India obtained a recovery order against M/s Arihant Threads Ltd. under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDB Act), leading to an auction of the company's assets which was won by KSL & Industries Ltd. The company later invoked …
Mis. Toyota Motor Corporation appealed against the Commissioner of Income Tax after the Assessing Officer dropped penalty proceedings under Section 263 of the Income Tax Act. The Tribunal had held that initiating the proceedings was impermissible given the materials the assessee had placed before …
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, …
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 …
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 …
The Supreme Court examined the forfeiture proceedings initiated against the relatives of Iqbal Mohammed Memon (alias Iqbal Mirchi) under Chapter VA of the Narcotic Drugs and Psychotropic Substances Act, 1985. The appellants challenged the validity of the show‑cause notices, contending that the …
Janatha Textiles, a partnership firm with four partners, was in arrears of income‑tax for several assessment years. The tax department attached agricultural land owned by the partners and sold it by public auction on 5 August 1996 under the procedures of the Second Schedule of the Income Tax Act, …
The petitioners, TDM Infrastructure Pvt. Ltd., sought appointment of a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, contending that the arbitration agreement was an international commercial arbitration because the company's central management and control were …
Oil and Natural Gas Corporation (ONGC) entered into a drilling contract with Atwood Oceanic International containing clauses on tax liability and changes in law. The Government of India issued a 1983 notification extending the Income Tax Act to offshore areas, causing Atwood to pay tax on its …
M/s. Seema Silk & Sarees, a partnership firm, and its partner were penalised under Sections 18(2) and 18(3) of the Foreign Exchange Regulation Act, 1973 for failing to repatriate export proceeds within the prescribed period. They challenged the constitutional validity of these provisions, arguing …
The American Hotel & Lodging Association Educational Institute (AH&L) – a US non‑profit educational institution – had enjoyed exemption under Section 10(22) of the Income‑Tax Act until 31‑Mar‑1998. After the Finance Act, 1998 omitted Section 10(22), AH&L applied on 7‑Apr‑1999 for initial approval …
The Supreme Court examined whether income from the sale of green tea leaves by Belgachi Tea Co. Ltd. should be taxed as business income under the Income Tax Act, 1961, or as agricultural income under the Bengal Agricultural Income Tax Act, 1944. The Court held that the mixed income from tea grown …
The appellant, the Commissioner of Income Tax, challenged the assessment of film producer Joseph Valakuzhy who claimed a carry‑forward of amortisation expenses under Rule 9A of the Income Tax Rules for a feature film that was not exhibited for 180 days and did not recover its production cost. The …
R & B Falcon (A) Pvt. Ltd., an Australian company supplying offshore drilling rigs and crew, provided free air and helicopter transport for its foreign‑resident employees from their home countries to the rig in India and back. The company sought an advance ruling which held that the transport …
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 …
The appellant, a marine engineer employed abroad, claimed "not ordinarily resident" status for AY 1982‑83 under s.6(6)(a) of the Income Tax Act, 1961 to exclude his foreign income under s.5(1)(c). The Assessing Officer rejected the claim, holding that the appellant had been resident in India for …
The Supreme Court examined whether a pre‑decisional hearing must be afforded before an Assessing Officer orders a special audit under Section 142(2A) of the Income Tax Act, 1961. The Court held that, although the provision is silent, the order has civil consequences and therefore the principles of …
The assessee, Sudarshan Silks & Sarees, was found to be maintaining double books and concealing income, leading to a search that uncovered undisclosed assets. The assessee subsequently filed revised returns disclosing additional income, after which the Assessing Officer levied the maximum penalty …
Malayala Manorama Co. Ltd. consistently claimed depreciation in its profit and loss account at the rates prescribed by the Income‑Tax Rules, not at the rates in Schedule XIV of the Companies Act. The Assessing Officer, invoking section 115J of the Income‑Tax Act, recomputed the company’s book profit …
Mis Synco Industries Ltd., a company with oil and chemical divisions, earned profits in 1990‑91 and 1991‑92 but had earlier losses in its oil division. It claimed deductions under Sections 80HH, 80I and 80‑1 of the Income‑Tax Act, arguing that each unit should be treated separately and that the …
The assessee, Kerala Road Lines, entered into an agreement to purchase land with buildings, demolished the structures and sold the scrap as business income. Because the purchase price was delayed, the assessee paid Rs 4 lakh interest under the contract and claimed it as a revenue expenditure under …
