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1234 judgments · newest first · showing 601–800
Moriroku UT India (P) Ltd., a manufacturer of plastic automobile components, received tools, dies and moulds free of cost from its customer Honda Siel Cars India Ltd. to produce components. The Uttar Pradesh Tax Department levied trade tax under Section 3 of the U.P. Trade Tax Act, 1948 on the …
The Commissioner of Income Tax appealed against the Madras High Court’s decision that the Completed Contract Method of accounting for chit discount, used by M/s Bilahari Investment (P) Ltd., was valid. The assessee companies, engaged in chit fund business, had historically applied the Completed …
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 …
M/s Kurian Abraham Pvt. Ltd. purchased raw field latex in Kerala, processed it into centrifuged latex in Tamil Nadu and sold the product. For assessment years 1997‑98 and 1998‑99 the assessee relied on Circular No. 16/98 issued by the Kerala Board of Revenue under s.3(1A)(c) of the Kerala General …
The Department appealed against the assessment of Arvind Polycot Ltd., contending that interest paid on borrowings for capital assets that were not put to use during the financial year could not be claimed as a deduction under Section 36(1)(iii) of the Income‑Tax Act, 1961. The Court examined the …
The Department of Income Tax appealed against a Gujarat High Court order favoring Ishwar Bhuvan Hotels Ltd. concerning the deductibility of interest on borrowings used to acquire capital assets that were not put to use in the relevant financial year. The central issue was whether such interest could …
Gujarat Alkalis & Chemicals Ltd borrowed Rs 30 crore from IDBI, which was refinanced by the foreign company COFACE. COFACE levied interest, commitment charges and insurance charges. The assessee claimed the commitment charges as a deduction under section 36(1)(iii) of the Income‑Tax Act, 1961, while …
The Supreme Court heard a civil appeal filed by the Commissioner of Income Tax, Gujarat against Mis United Phosphorous Ltd. concerning two tax issues: (1) whether interest paid on borrowings for capital assets that were not put to use in the relevant financial year could be allowed as a deduction …
Core Health Care Ltd., a manufacturer of intravenous solutions, borrowed money in 1991‑92 to install new machinery and claimed a deduction for the interest paid under Section 36(1)(iii) of the Income‑Tax Act. The assessing officer disallowed the deduction, relying on the Challapalli Sugars case, on …
The Income Tax authorities conducted a search and seizure at the premises of M/s K.C.C. Software Ltd., seizing jewellery, cash and fixed‑deposit receipts and restraining five bank accounts under sections 132(3) and 132(8) of the Income‑Tax Act, 1961. The appellants filed writ petitions seeking …
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 …
The appellant, a businessman, handed blank cheques to his former power‑of‑attorney partner and later disputed a loan of Rs 1.5 lakh allegedly advanced by the partner's brother‑in‑law, repaying it by an account‑payee cheque that later bounced. He was convicted under Section 138 of the Negotiable …
A search under Section 132 of the Income Tax Act was conducted on 17 January 2001 at the premises of Suresh N. Gupta, uncovering undisclosed income of Rs.1,62,427. The Assessing Officer levied tax at the 60% rate prescribed by Section 113 and imposed a 17% surcharge relying on the Finance Act, 2001. …
The Supreme Court examined whether Infosys Technologies Ltd. was required to deduct tax under Section 192 of the Income Tax Act on the benefit employees derived from an Employees Stock Option Scheme (ESOP) for the assessment years 1997-98, 1998-99 and 1999-2000. The Court held that, at that time, …
The Commissioner of Income Tax appealed against the High Court’s order upholding the Tribunal’s view that investment allowance under Section 32A of the Income Tax Act could be claimed in more than one assessment year, based on Section 43A(1). The assessing officer argued that the allowance should be …
The case concerned Williamson Financial Services, which earned composite income from growing, manufacturing and exporting tea. The assessee claimed a deduction under s.80HHC of the Income‑Tax Act on the entire tea income before applying the 60:40 apportionment mandated by Rule 8(1) of the Income‑Tax …
The Gujarat Maritime Board (GMB), a statutory authority created under the Gujarat Maritime Board Act, 1981 to develop minor ports, applied to be registered as a charitable institution under Section 12A of the Income‑Tax Act, 1961 to claim exemption under Section 11. The Commissioner of Income Tax …
The appellant, a firm of chartered accountants, constructed a residential building for its low‑paid employees and claimed an initial depreciation of 40% under Section 32(1)(iv) of the Income Tax Act, 1961. The Income Tax Officer rejected the claim on the ground that the provision applies only to …
The U.P. Forest Corporation sought exemption from income tax on the ground that it was a charitable institution under Section 11(1)(a) of the Income Tax Act, 1961. The corporation had not obtained registration under Section 12A, which is a prerequisite for invoking the charitable exemption. The …
Honda Siel Power Products Ltd, a manufacturer of generators, claimed enhanced depreciation under section 43A of the Income Tax Act for foreign‑exchange fluctuations in the cost of machinery. The Income Tax Appellate Tribunal rejected the claim, failing to consider a coordinate‑bench judgment (Samtel …
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 …
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 …
The assessee, a cashew processor and exporter, claimed export incentive under s.80HHC(3) for AY 1993-94 but omitted processing charges from the total turnover in the formula. The Supreme Court held that processing charges form part of gross total income and must be included in total turnover for …
B.M. Malani invested Rs 65 lakhs in a Unit Trust of India (UTI) monthly‑income scheme in 1998, seeking exemption under Sec. 54AE. The scheme stipulated a five‑year lock‑in and that units could be redeemed only at face value (Rs 10) after the lock‑in, with repurchase option exercisable by the …
The assessee purchased land for Rs 4.10 lakhs, but during a raid the tax department seized notes suggesting a higher consideration and recorded contradictory statements from the seller indicating amounts of Rs 34.35 lakhs, Rs 4.10 lakhs and Rs 4.85 lakhs. The Assessing Officer accepted the higher …
The Supreme Court considered an application under Section 11(6) of the Arbitration and Conciliation Act, 1996 for the appointment of an arbitrator to resolve a tax‑related dispute arising from a consultancy contract that had been completed. DHV BV, a foreign sub‑consultant, claimed that the client …
A.M. Moosa, an export house, claimed a deduction under Section 80‑HHC of the Income Tax Act, 1961 for the assessment year 1992‑93. The Assessing Officer disallowed the claim on the ground that the computed "profits of the business" were negative. The disallowance was upheld by the Commissioner of …
The Tax Recovery Officer (TRO) filed intervention applications in a Special Court seeking priority payment of income‑tax dues from Mis. Killick Nixon Pvt. Ltd. after its assets were auctioned in execution of a decree in favour of Mis. Dhanraj Mills Pvt. Ltd., the notified party. The Special Court …
Hindustan Coca Cola Beverage Pvt. Ltd. paid warehouse charges to Pradeep Oil Corporation (POC) on which tax was deducted at source under Section 194C at 2%. The Assessing Officer held the company an 'assessee in default' for short deduction of tax, levying interest under Section 201(1A). The …
Mis Saravana Spinning Mills, a textile mill, claimed deductions of Rs. 97.95 lakh and Rs. 77.84 lakh for "modernisation and replacement expenses" as "current repairs" under Section 31(i) of the Income Tax Act for the years ending 31‑03‑1993 and 31‑03‑1994. The Revenue challenged the claim, arguing …
The Income Tax Department discovered that directors of Century Building Industries Pvt Ltd had taken loans in their own names but routed the proceeds and repayments through the company. The company paid interest on these loans without deducting tax at source (TDS) as required under Section 194A(1) …
Mis. Alagendran Finance Ltd. filed income‑tax returns for assessment years 1994‑95, 1995‑96 and 1996‑97, claiming a deduction under the Lease Equalisation Fund (LEF). The assessment orders accepted the LEF claim. In 2004 the Assessing Officer initiated reassessment proceedings for three unrelated …
Mis. Swan Mills Ltd., a textile manufacturer, was served with show‑cause notices for differential excise duty and challenged the assessment before the Commissioner of Central Excise (Appeals). The appellant filed a declaration under Section 89 of the Finance Act, 1998 to avail the Kar Vivad Samadhan …
The case involved a firm, M/s V.V. Enterprises, purportedly engaged in prize ticket business and collecting public deposits. Police seized about Rs. 1.18 crore from its premises, and the Assessing Officer found the firm’s books incomplete and could not explain the source of the deposits, treating …
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 …
The Commissioner of Income Tax, Kerala appealed against the High Court’s order allowing Tara Agencies to claim a weighted deduction under Section 35B(IA) of the Income Tax Act for export‑related expenses. Tara Agencies purchased various grades of tea, blended them, and exported the blended product. …
Morgan Stanley & Co. (MSCo) sought an advance ruling on whether it had a permanent establishment (PE) in India through its Indian subsidiary, Morgan Stanley Advantage Services Pvt Ltd (MSAS), and on the appropriate transfer pricing method for the services rendered. The Authority for Advance Rulings …
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 …
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 …
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 …
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 …
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 …
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 …
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 …
The Commissioner of Income Tax, Pune appealed against a Bombay High Court judgment that had upheld the assessment of Shirke Construction Equipment Ltd. The issues were whether Section 80‑AB of the Income Tax Act applies to Section 80‑HHC and whether unabsorbed business losses under Section 72 can be …
The appellant, a partnership firm, made a voluntary disclosure under the Voluntary Disclosure of Income Scheme, 1997 and received a certificate of immunity. Later, a search and seizure operation on the firm’s partners uncovered undisclosed income that the firm had failed to reveal in its VDIS …
The assessees received large cash credits from a foreign donor and claimed them to be gifts. The Assessing Officer rejected this explanation, treating the amounts as income under Section 68 of the Income Tax Act, 1961. The Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal …
Saurashtra Chemicals Ltd imported two generator sets, one of which was received on 24 Oct 1998 but not installed until after 1 Apr 2000. At the time of receipt Rule 57Q(3) of the Central Excise Rules applied, allowing up to 75% credit, but the Rules were amended on 1 Apr 2000 by Rule 57AC which …
The respondents, K.B. Saha & Sons, purchased processed kendu leaves from the Orissa Forest Development Corporation under a tender, obtained lifting orders and transport permits, and moved the leaves to their factories in West Bengal. The State of Orissa levied sales tax under the Orissa Sales Tax …
Mis. Lakshmi Machine Works filed its return for AY 1993-94 claiming a deduction under Section 80HHC of the Income Tax Act, 1961, excluding sales tax and excise duty from its total turnover. The Assessing Officer demanded recomputation of total turnover by adding those taxes, but the appellate …
The Income Tax Department searched MKSEPL and seized a diary showing that Mukundra Y.K. Shah invested Rs.26.35 crore in RBI relief bonds. The Assessing Officer concluded that MKSEPL paid Rs.5.99 crore to two firms (MKF and MKI), which then routed the money to Shah, enabling the bond purchase; the …
The respondent, Mis Distillers Co. Ltd., a licensed arrack bottler under the Karnataka Excise Act, paid additional amounts to the Excise Department for bottling unmatured arrack and for non‑affixation of labels after failing to comply with a circular prescribing a 15‑day maturation period. It …
Mis Baby Marine Exports, a supporting manufacturer, sold marine products to export houses and received, in addition to the FOB value, a 2.25% export‑house premium. The assessee claimed the premium as part of its export turnover and sought a deduction under Section 80HHC(IA) of the Income‑Tax Act. …
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 …
The Regional Provident Fund Commissioner appealed against a Karnataka High Court order that had held Raj's Continental Exports (P) Ltd was not a branch of Mis. Continental Exporters, a proprietorship owned by the same individual who was also the Managing Director of the company. The respondent …
The petitioner filed a public interest litigation under Article 32 alleging that the Chief Minister of Uttar Pradesh, Mulayam Singh Yadav, and his family acquired assets disproportionate to their known sources of income, violating the Prevention of Corruption Act, 1988. The petition sought a writ of …
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 …
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 …
Virtual Soft Systems Ltd. filed a loss return for AY 1996-97 which was later reduced to a loss of Rs. 11,02,255 after disallowances and adjustments. The Assessing Officer levied a penalty of Rs. 31,71,692 under Section 271(1)(c)(iii) for concealment of income, despite the fact that no tax was …
Ishika Wajma‑Harima Heavy Industries Ltd., a Japanese company, entered into a turnkey LNG project contract with Petronet LNG Ltd. that involved offshore supply of equipment, offshore services, onshore supply, onshore services and construction. The company sought an advance ruling on whether the …
Ralson Industries Ltd filed its return for AY 1992‑93 reporting income of Rs.26,66,355. The assessing officer, under section 143(3), assessed income at Rs.35,40,414. The Commissioner invoked section 263, set aside the assessment and directed a fresh assessment, excluding transport receipts and …
S.A. Builders Ltd borrowed funds from banks and advanced a portion of those funds interest‑free to its subsidiary, M/s SAB Credits Ltd. The Assessing Officer disallowed the interest paid on the borrowed funds, holding that the advance to the sister concern was not for the assessee’s own business. …
S.A. Builders Ltd., a company engaged in civil construction, claimed a deduction under Section 32AB of the Income Tax Act, 1961. The Income Tax Appellate Tribunal rejected the claim on two grounds: the company was not carrying on any manufacturing activity and the deduction was subject to conditions …
Mis. Kachwala Gems, a dealer in precious stones, was assessed under the Income Tax Act after the Assessing Officer found serious deficiencies in its books of accounts, including lack of stock registers and unverified purchase entries amounting to about Rs. 42 lakh. The AO rejected the books, invoked …
The appellant, a medical practitioner, was arrested for manufacturing and selling heroin, and the seized heroin was claimed as a loss in his income‑tax return on the ground that it formed part of his stock in trade. The assessing officer disallowed the claim, treating the amount as income from …
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 …
The assessee, a Hindu Undivided Family, was searched under Section 132 of the Income‑Tax Act and unaccounted money, gold and documents were seized. The assessing officer made a provisional assessment under Section 132(5) and later the regular assessment incorporated additions based on a presumption …
The appellants, assessees under the Income Tax Act, were subjected to a raid that uncovered two separate sets of books of accounts, prompting the Deputy Commissioner to propose a special audit under Section 142(2A). The Commissioner approved the proposal without giving the appellants any notice or …
The assessee, a general insurance company, incurred Rs. 1,04,28,500 as stamp duty and registration fees in connection with the increase of its authorized share capital and the issuance of bonus shares. The Assessing Officer disallowed the amount as capital expenditure, but the Commissioner of Income …
The appellants, employees of Tata Iron & Steel Co., challenged the amendment to Rule 3 of the Income Tax Rules, 1962 which altered the method of valuing perquisites for rent‑free accommodation. They argued that the amendment was arbitrary, violated Article 14 of the Constitution and was inconsistent …
Amin Chand Payarelal filed income‑tax returns for assessment years 1959‑60 to 1965‑66 after the extended period allowed under Section 139(4) of the Income Tax Act, 1961, and paid interest on the delayed filing. The Assessing Authority, an Inspecting Assistant Commissioner, levied a penalty under …
The Bihar State Financial Corporation, a statutory body under the State Financial Corporations Act, 1951, approved a loan to a small‑scale industrial unit and later agreed to an additional term loan of Rs 15 lakhs conditioned on the submission of a DGTD registration certificate. The loan agreement …
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 …
The Supreme Court examined the constitutional validity of Section 4A of the Rajasthan Sales Tax Act, 1994, which levied tax on the first point sale of drugs, medicines and formulations by wholesalers to retailers based on the Maximum Retail Price (MRP) printed on the package rather than the actual …
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 …
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 …
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 …
The Development Credit Bank sought the Reserve Bank of India's (RBI) permission to write off Rs 120 crore of non‑performing assets (NPAs) from its reserves. The RBI approved the request, and a shareholder of the bank filed a writ petition alleging that the RBI acted ultra vires by not following the …
The Adityapur Industrial Area Development Authority (the Authority) challenged a notice issued by the Income Tax Department requiring the bank to deduct TDS on interest earned on its fixed deposits, arguing that its income was exempt under Article 289 of the Constitution and Section 10(20) of the …
The Supreme Court examined two questions arising from Mercantile Bank Ltd.'s assessment for AY 1978‑79. First, it held that interest on doubtful advances kept in a suspense account was not assessable income, as the 1952 Central Board of Direct Taxes circular exempted such interest when there was no …
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 …
Sandvik Asia Ltd. received refunds for assessment years 1977-78, 1978-79, 1981-82 and 1982-83 and was entitled to interest under Sections 214 and 244 of the Income Tax Act, 1961. The Income Tax Department delayed payment of that interest for periods ranging from 12 to 17 years. The appellant filed …
The appellant, an Assistant Engineer of Southern Railway, was found with Rs.2,94,615 in cash during a CBI raid and was charged under Sections 5(1)(e) and 5(2) of the Prevention of Corruption Act for possessing assets disproportionate to his known income. He claimed the cash represented loans of …
Induflex Products (P) Ltd, an export house, claimed a deduction under Section 80HHC of the Income Tax Act, 1961 despite declaring a loss on its export of trading goods. The Assessing Officer allowed the deduction, but the Commissioner ordered its withdrawal. The Income Tax Appellate Tribunal …
Mis. Sanjeev Woolen Mills, a manufacturer and exporter of woolen blankets, valued its closing stock of finished goods at market price (converted from US dollars) rather than at cost or the lower of cost/market. Due to a sharp rupee devaluation in AY 1992‑93, this method produced an inflated gross …
Sedco Forex International Drill Inc., a Panama‑incorporated company, supplied oil rigs and UK‑resident employees to ONGC under a wet‑lease arrangement. The employment contracts required alternating periods of work in India (≈35 days) and “field breaks” in the UK, during which employees received …
Britannia Industries Ltd. claimed a deduction of Rs 31,38,017 for rent, repairs, depreciation and maintenance of a guest house used in its business for AY 1994‑95. The Assessing Officer disallowed the amount under Section 37(4) of the Income‑Tax Act, 1961, and the High Court upheld the disallowance. …
The Supreme Court examined whether an amendment to the Air India Employees Self‑Contributory Superannuation Pension Scheme, made on 3 April 2002, could be applied retrospectively to retirees whose annuity rights had already crystallized. The Court held that the right to receive an annuity and its …
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 …
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 …
The respondent‑assessee, Shatrusail Ya Digvijay Singh Jadeja, had tax assessments for years 1984‑85 to 1991‑92 under the Income Tax Act and the Wealth Tax Act, which were appealed but dismissed in 1992‑93 for failure to pre‑deposit tax. After the Finance (No.2) Act, 1998 introduced the Kar Vivad …
Vikram Cement, a cement manufacturer, claimed CENVAT credit for duty paid on inputs (explosives, lubricating oil, welding electrodes) and capital goods (limestone crusher, mining equipment) used in its captive limestone mines adjacent to its factory. The department issued show‑cause notices …
The Commissioner of Customs ordered duty and penalties on Mis. Gujarat Perstorp Electronics Ltd. for importing drawings, designs and plans (FEEP) under a technical know‑how agreement, classifying them as manuals rather than "books" and denying exemption under Chapter 49.06. CEGAT set aside the …
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 …
The Supreme Court examined whether a company, being a juristic person, can be prosecuted under Section 56 of the Foreign Exchange Regulation Act, 1973 when the statute mandates both imprisonment and fine. The appellants argued that because a company cannot be imprisoned, the provision could not …
The Agasthy ar Trust, a charitable trust recognized under the Income Tax Act in 1977, sought exemption from urban land tax for land held between 1965 and 1976 under the Tamil Nadu Urban Land Tax Act, 1966. The trust relied on earlier Government Orders (1976) that granted total exemption to …
Rekha Mukherjee, the owner of a property, filed a title suit for eviction against Ashis Kumar Das and others. The respondents filed a suit for specific performance of three sale agreements, which the appellant later cancelled; the trial court dismissed the specific‑performance suit. The respondents …
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 …
Bhuna Co-operative Sugar Mills Ltd. filed income tax returns for AY 1992‑93 and 1993‑94 claiming a loss and seeking deduction of interest payable on loans to creditors. The Assessing Officer disallowed the deduction under Section 43B(d) and levied penal tax under Section 141(1)(A). The Commissioner …
The respondent, D.P. Sandhu Bros. Chembur (P) Ltd., entered into a 50‑year lease in 1959 and prematurely surrendered its tenancy rights in March 1986, receiving Rs 35 lakhs. The Assessing Officer treated the receipt as income from other sources under Sec. 10(3) read with Sec. 56, while the …
The appellants, former partners of a dissolved firm, challenged the taxability of proceeds from the sale of the firm's assets, arguing that the transaction did not constitute a slump sale and that no capital‑gain tax could be levied before the 1999 amendment. They filed appeals under Section 260A of …
Mangalore Ganesh Beedi Works appealed to the Supreme Court against a Karnataka High Court order that affirmed the Income‑Tax Appellate Tribunal’s findings without providing any discussion or reasons. The appeals were filed under section 260‑A of the Income Tax Act, 1961. The Supreme Court held that …
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 …
The Andhra Pradesh amendment of Section 73 of the Indian Stamp Act gave the Collector power to inspect, seize and impound any registers, books or documents, including those in banks, without any procedural safeguards. The High Court struck down this provision as unconstitutional, and the State …
Dipesh Chandak, an accused in the Bihar fodder scam, was granted a pardon by a Special CBI Judge under Section 306 of the Criminal Procedure Code on the condition that he make a full and complete disclosure of the misappropriation of funds. The Income Tax Department later issued a show‑cause notice …
The case concerned several Maharashtra sugar‑co‑operative societies that deducted amounts from the cane price payable to their farmer members as non‑refundable and refundable deposits and as contributions to various funds. The Income Tax Department treated these deductions as trading receipts and …
The appellants, Gopaldas Udhavdas Ahuja and his widow, were found to possess primary gold that had been seized by Income‑Tax authorities in August 1974 and subsequently taken over by a Gold Control Officer under the Gold (Control) Act, 1968. They claimed they were unaware of the gold hidden in a …
The assessee, a firm owning rubber estates in Malaysia, earned business income and short‑term capital gains from the Malaysian property. The Income Tax Officer in India taxed both incomes, but the Commissioner of Income Tax (Appeals) held, relying on Article VII(1) of the India‑Malaysia Double …
The Delhi High Court, on a public‑interest writ filed by a parents' federation, held that several unaided recognised schools in Delhi were commercialising education by charging excessive fees and transferring surplus funds to their managing societies. The schools appealed to the Supreme Court, …
The appellants, owners of fish seed farms engaged in pisciculture, claimed that the Tamil Nadu government’s 1990 notification granting free low‑tension electricity to "agriculture" also covered their fish‑farming activities. The respondents, Tamil Nadu Electricity Board, denied the claim, holding …
The Commissioner of Income Tax appealed against the order of the Income Tax Appellate Tribunal that set aside the acquisition of a plot by the competent authority, on the ground that notices under Section 269D(2) of the Income Tax Act, 1961 were served on the transferor and transferee before the …
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 …
IPCA Laboratory Ltd., an export house, exported self‑manufactured goods (earning a profit of Rs 3.78 crore) and trading goods (incurring a loss of Rs 6.86 crore). It claimed a deduction under Section 80HHC of the Income Tax Act for the profit, having issued disclaimer certificates to supporting …
The petitioners were retirees of Assam Oil Company Ltd., which was nationalised in 1981 and its assets, including a 1973 pension fund, were transferred to the successor Indian Oil Corporation (Assam Oil Division) under the Burmah Oil Company (Acquisition) Act. The corporation later introduced a …
Berger Paints India Ltd. claimed deductions under Section 43B of the Income Tax Act for customs and excise duties actually paid and for duties included in the valuation of its closing stock for the assessment years 1984-85, 1986-87 and 1987-88. While the Assessing Officer allowed the deduction for …
The Commissioner of Customs issued a show‑cause notice to Indian Oil Corporation alleging that the company had misdeclared the value of imported petroleum products by including demurrage charges paid to ship owners. The Revenue demanded additional customs duty and penalty, but the Customs Excise and …
The appellants, partners of a firm, filed their income‑tax return for AY 1988‑89 on 20‑Mar‑1991, well after the statutory due date of 31‑Jul‑1988, and were later prosecuted under Section 276‑CC of the Income Tax Act, 1961. They contended that filing the return under Section 139(4) before the …
K.C. Builders, a partnership engaged in construction, filed original income tax returns for AY 1983-84 to 1986-87 and later revised them based on an approved valuer's report. The Assessing Officer treated the difference as concealed income and levied penalties under Section 271(1)(c) and initiated …
The petition challenged a Ministry of Finance order that required the President of the Income Tax Appellate Tribunal (ITAT) to obtain prior approval for all postings and transfers of its judicial and accountant members. The Court examined whether the Central Government, under the Delegation of …
The Apex Co‑operative Bank of Urban Bank of Maharashtra and Goa Ltd. applied to the RBI for a licence to operate an apex bank covering Maharashtra and Goa. The RBI required the bank to be registered under the Multi‑State Co‑operative Societies Act, 1984, which the bank did, and the Maharashtra …
The Supreme Court examined whether the Central Board of Direct Taxes' Circular No. 789, issued under Section 119 of the Income‑Tax Act, was ultra vires the Act and whether the Indo‑Mauritius Double Taxation Avoidance Convention (DTAC), notified under Section 90, could override inconsistent …
The Commissioner of Income Tax sanctioned prosecution of Mis. Velliappa Textiles Ltd., a company, and its managing director under Sections 276C, 277 and 278B of the Income Tax Act for alleged false claims of depreciation. The company challenged the sanction on the ground that no opportunity of …
The New Delhi Municipal Committee (NDMC) assessed property tax on a basement owned by Satish Chand, who argued that the basement was unusable due to water ingress and therefore had no rateable value. Chand filed a civil suit seeking a permanent injunction against the tax demand. NDMC raised a …
Sm. Amiya Bala Paul constructed a house and disclosed investment amounts in the assessment years 1982-83 and 1983-84. The Assessing Officer rejected the second disclosure and, invoking Section 55A of the Income Tax Act, referred the valuation of the house's construction cost to a Valuation Officer …
The Supreme Court considered whether advance tax and self‑assessment tax paid by Shelly Products could be refunded merely because the earlier assessment was annulled and the revenue could not pass a fresh assessment. The Court held that the liability to pay advance tax and self‑assessment tax arises …
Delhi Farming and Construction (P) Ltd., an investment company, received compensation for compulsory acquisition of agricultural land in 1962. The directors transferred the entire amount to a capital reserve and did not declare any dividend for the assessment years 1974-75, 1975-76 and 1976-77, …
The appellants, a group of co‑operative societies, had been claiming deductions under Section 80P(2)(a)(iii) of the Income‑Tax Act for profits earned from marketing agricultural produce of their members. After the Supreme Court’s 1994 decision in Assam Co‑operative case interpreting "of its members" …
The appellants, two sisters who were shareholders of a company in liquidation, received agricultural land as part of the distribution of the company's assets. The Assessing Officer treated the market value of the land as a capital gain under Section 46(2) of the Income Tax Act, 1961, and levied tax. …
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 …
The appellants were assessed for AY 1992-93 and appealed, resulting in partial modifications and a waiver of interest. A demand was re‑computed on 31‑12‑1998 and remained unpaid when the appellants filed a declaration under Section 88 of the Kar Vivad Samadhan Scheme (Finance Act, 1998). The …
The dispute arose over the period for which interest under Section 234B (and related sections 234A, 234C) could be levied by the Income Tax Settlement Commission after an assessee disclosed previously undisclosed income under Section 245C. The revenue argued that interest should be limited to the …
The Revenue appealed against an order of the Income Tax Settlement Commission concerning Daman! Brothers' settlement application. The Supreme Court examined whether the Commission could waive or reduce interest under Section 220(2) while exercising powers under Section 245(4), whether assessment …
Sunil J. Kinariwala, a partner in a firm, created a trust and assigned fifty percent of his ten percent partnership share to the trust, claiming that the income was diverted at source and therefore not assessable in his total income. The Income Tax Officer held the assignment to be an application of …
The Bharat Diamond Bourse, a company limited by guarantee, claimed exemption under Section 11 of the Income Tax Act for AY 1989‑90 and 1990‑91, asserting it was a charitable institution. The Assessing Officer denied the exemption, holding that the Bourse’s objects were not charitable and that it had …
The Karnataka Small Scale Industries Development Corporation Ltd. and several other companies were assessed under Section 115‑J of the Income‑Tax Act, 1961, which imposes tax at 30 % of book profit when the normal taxable income is less than that threshold. The assessee‑companies claimed that …
The Supreme Court examined whether the three‑month payment period prescribed in Section 67(1) of the Voluntary Disclosure of Income Scheme, 1997 could be extended. The Court held that the word "shall" makes the deadline mandatory and that Section 67(2) expressly deems a declaration invalid if …
Killick Nixon Ltd. filed its return for AY 1992‑93 and, after a revised return, the Assessing Officer disallowed several claims. The Commissioner of Income Tax (Appeals) upheld some items but set aside four heads – bad debt, income from house property, capital gains and a disallowance under Rule 6D …
The appellant, GKN Driveshafts (India) Ltd., challenged the validity of notices issued under sections 148 and 143(2) of the Income Tax Act, 1961, before the Delhi High Court. The High Court dismissed the writ petition, holding it premature because the appellant could raise objections in its reply to …
The Supreme Court examined a public‑interest writ filed by Padma challenging CIDCO's bulk sale of developable land in Aurangabad. The High Court had held that the allotments to several private entities were made without Board approval, at prices below the reserve price, and in violation of Section …
M/s. Polyflex (India) Pvt. Ltd. paid excise duty in 1986, later obtained a refund in 1988 after the levy was held unconstitutional. The refund amount was brought to tax for AY 1989-90 under Section 41(1) of the Income Tax Act, 1961. The assessee argued that the provision did not apply because the …
The appellants, General Finance Co. and another, received deposits in 1985 and were prosecuted in March 1989 under Section 276DD of the Income Tax Act for violating Section 269SS. Section 276DD was omitted from the Act by the Direct Tax Law (Amendment) Act, 1987, effective 1 April 1989. The High …
The Revenue, represented by the Assistant Director of Inspection Investigation, challenged the constitutional validity of Sections 269SS, 271D (and the earlier 276DD) of the Income Tax Act, 1961, which penalise borrowers for taking loans or deposits in cash while exempting lenders. The High Court …
The Supreme Court examined whether the Election Commission could be directed to require candidates to disclose criminal cases, assets, liabilities and educational qualifications, as ordered by the Delhi High Court, despite the absence of a specific provision in the Representation of the People Act, …
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 …
K.M. Sharma received compensation and interest for land acquired under the Land Acquisition Act. The Income Tax Department issued reassessment notices under Section 148 for assessment years 1968-69 to 1971-72 and 1981-82, alleging tax on the interest received. Sharma contended that the reassessments …
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 …
The Supreme Court examined the constitutional validity of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended) after the Delhi High Court had struck it down as violative of Article 14 and as eroding judicial independence. The Court held that Parliament has the …
The case concerned a notification under Section 4(1) of the Land Acquisition Act, 1894 issued before the 1984 amendment, under which a declaration under Section 6(1) was made within the three‑year period but later quashed by the High Court. The State then issued a fresh declaration and the …
The appellant, widow of the original assessee, filed KVSS declarations for three assessment years and obtained a certificate under Section 90(1) of the Kar Vivad Samadhan Scheme determining tax arrears, followed by a Section 90(2) certificate granting immunity. After depositing the assessed amount, …
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 …
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 …
The appellant, M/s Aspinwall and Co. Ltd., claimed investment allowance under Section 32A of the Income Tax Act for machinery used in coffee curing plants for the assessment years 1980-81 and 1983-84. The Income Tax Officer rejected the claim, but the Commissioner of Income Tax (Appeals) allowed it, …
The British Bank of Middle East, a non‑resident banking company, provided free cars to its employees for the assessment years 1975‑76 and 1976‑77. The assessing officer disallowed the perquisite value of the cars under Section 40A(5) of the Income‑Tax Act, estimating it at 50% of the actual running …
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 …
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 …
The Union of India sought to acquire a Delhi property sold for Rs 1.75 crore by invoking Section 269UD of the Income Tax Act, 1961. The Appropriate Authority valued the fair market value at about 160% above the consideration and ordered acquisition without a prior show‑cause notice; a later notice …
The respondents entered into a sale agreement for a tenanted immovable property in Delhi for Rs. 79 lakhs and filed Form 37(1) under Chapter XX‑C of the Income Tax Act. The Appropriate Authority (AA) determined that the consideration was 24% below the fair market value (FMV) by comparing the subject …
The Union of India appealed against a Delhi High Court order that set aside an acquisition order made by the Appropriate Authority under Chapter XX‑C of the Income Tax Act, 1961. The Authority had held that the sale price of a property in East of Kailash was under‑valued by comparing it with another …
Sakthi Trading Co., a partnership firm, was dissolved on the death of one partner but was immediately reconstituted with the remaining partners, so the business continued without interruption. The Income‑Tax Officer had valued the closing stock on the dissolution date at the usual "cost or market, …
The appellant, a partnership firm, owned a house property that was attached and proclaimed for sale under tax recovery proceedings. The property was auctioned in 1980 and a bid was accepted, but the tax demands against the firm were later reduced to nil after successful appeals before the Income Tax …
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 …
The Revenue appealed a Gujarat High Court order that quashed a pre‑emptive purchase notice issued under Chapter XX‑C of the Income‑Tax Act. The respondents, co‑owners of an immovable property in Ahmedabad, had agreed to sell the whole property for Rs 47 lakhs, which exceeded the Rule 48‑K limit of …
The Ahmedabad Stock Exchange sought to dispose of the membership of its deceased member, Rajesh Shah, after his heirs declared they could not meet his liabilities. The Exchange declared him a deemed defaulter and exercised its right under the Exchange Rules to vest the membership in the Exchange and …
Birla Cement Works, a cement manufacturer, paid transport operators for carriage of its goods without deducting tax at source under Section 194C of the Income Tax Act, 1961. The Central Board of Direct Taxes (CBDT) issued a circular on 8 March 1994 extending the applicability of Section 194C to all …
Criminal proceedings under the Income‑Tax Act were instituted against the respondents while appeals against the income‑tax assessments were pending before the Income‑Tax Appellate Tribunal. The respondents sought a stay of the criminal case, which was granted by the Metropolitan Magistrate, affirmed …
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 …
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 …
The Thanthi Trust, created in 1954 to run a Tamil daily newspaper, claimed tax exemption under Section 11 of the Income Tax Act, 1961 for the newspaper's income, arguing that surplus earnings were used for charitable purposes such as education and relief of the poor. The Income Tax Officer …
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; …
Sea Pearl Industries, a processor of seafood, entered into an agreement with an eligible export house to export its processed products. The export house opened a Letter of Credit in its own name, which was later endorsed to Sea Pearl and the foreign exchange credited to its account. Sea Pearl …
M/s Tranvancore Titanium Products Ltd obtained a loan of Rs. 491 lakhs from the Kerala Government and created a "Loan Redemption Reserve" of Rs. 1 crore to meet the loan liability. The assessing authority treated the amount as a provision and excluded it from capital for the purpose of surtax under …
The appellants, assessors under the Income Tax Act, challenged the interpretation of Section 269UA(b) regarding the calculation of "apparent consideration" for immovable property transferred to the Central Government. They argued that the discount should be computed for the period between the …
The assessee, K. Govindan & Sons, filed a return for AY 1984‑85 in response to a notice under Section 148. The assessing officer levied interest under Section 139(8) and Section 217, which the assessee contested on the ground that the assessment was not a "regular assessment" within the meaning of …
The appellant, an individual processing cashew nuts in ten units (four in Kerala, two owned and two leased), declared a lock‑out of the Kerala units due to labour problems and later settled with trade unions by paying five days' wages per year of service, amounting to Rs 4,18,107. He claimed a …
The appellant, S.R. Kumar, sold agricultural lands situated within the municipal limits of Bina for the assessment years 1981-82 and 1983-84 and was assessed to capital gains tax. The Income Tax Officer levied tax, the Tribunal held that the profit was not capital gains, and the High Court dismissed …
The Supreme Court examined whether commissions payable to managing directors of Sarangpur Mills, which were used to purchase deferred annuity policies, should be treated as taxable salary under Section 17 of the Income Tax Act, 1961. The Board of Directors had passed resolutions directing that the …
K. Ramullan, an Indian-origin Malaysian citizen, owned a Non‑Resident (External) Account in an Indian bank and stayed in India with his wife for medical treatment from June 1982 to April 1985. He claimed exemption from tax on the interest earned under Section 10(4A) of the Income Tax Act, arguing …
Bharat Earth Movers created a fund to meet its liability for encashment of earned and vacation leave of its employees and claimed a deduction of Rs 62,25,483 under Section 37(1) of the Income‑Tax Act for AY 1978‑79. The Karnataka High Court held the provision to be a contingent liability and …
K.C.P. Ltd., a sugar manufacturer, challenged a government notification fixing the levy price of sugar and obtained an interim order allowing it to sell at the pre‑notification price. During the assessment year 1972‑73 it collected Rs 14,96,130 in excess of the levy price. The Income‑Tax Officer …
The petitioners – Indian Hotels Co. Ltd., Hotel & Allied Traders Pvt. Ltd. and Hotel Shashi Pvt. Ltd. – claimed that their hotel‑related activities, including a large‑scale flight kitchen, qualified as a "newly established industrial undertaking" and therefore entitled them to deductions under …
For the assessment years 1987-88 and 1988-89 the Assessing Officer added income to Mis. Durga Engineering and Foundry Works under Section 68, treating certain cash credits as unexplained. The Commissioner upheld the additions, but the Income Tax Appellate Tribunal set aside the assessments and …
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 …
The assessee, Mis Anand Theatres, claimed a 15% depreciation on its theatre building by treating it as "plant" under the Income Tax Act, 1961. The Assessing Officer allowed only the standard 5% rate for buildings, leading to an appeal that was initially allowed by the Commissioner of Income Tax …
Hindustan Aeronautics Ltd. filed its income‑tax return for AY 1970‑71, which was disallowed in part by the Assessing Officer. The company appealed to the Appellate Assistant Commissioner, whose order was partly favourable, and both parties filed second appeals before the Income Tax Appellate …
Two real‑estate developers (DLF Universal Ltd. and Ansal Properties) entered into agreements for the sale of flats that were still under construction and filed Form 37‑1 before the Income‑Tax Appropriate Authority seeking a no‑objection certificate for registration. The Authority issued notices …
The appellants, six purchasers of a flat, paid Rs 4,55,000 as earnest money under a sale agreement and later faced a compulsory purchase of the property by the Central Government under Chapter XX‑C of the Income‑Tax Act, 1961. The Appropriate Authority released the consideration to the vendor and …
The United Provinces Electric Supply Co. (assessee) had its electricity undertakings compulsorily acquired by the Uttar Pradesh Government under the Indian Electricity Act, 1910. The government paid Rs. 3,35,84,552 as compensation, which the assessee accepted under protest while pending arbitration …
The Supreme Court examined whether interest not charged by a company on loans advanced to its directors could be treated as a perquisite under Sections 17(2) and 40A(5) of the Income‑Tax Act. The Income‑Tax Officer had disallowed a sum equal to 15% of the directors' debit balances, but the Appellate …
Hindustan Elector Graphites Ltd filed its return for AY 1989‑90 on 29‑Dec‑1989 before the Finance Act 1990 amended Section 28 of the Income‑Tax Act to tax cash compensatory assistance received against exports, with retrospective effect from 1967. The company had received Rs 1,31,41,030 as such …
Mahendra Mills, a company, did not claim depreciation in its return for the assessment year 1974-75 and also failed to furnish the prescribed particulars under Section 34 of the Income‑Tax Act. The Income‑Tax Officer nevertheless allowed a depreciation deduction, which was set aside by the …
Travancore Rubber and Tea Co. entered into three agreements to sell old rubber trees, receiving Rs 75,000 as earnest money and Rs 3,56,300 as advance. The purchasers defaulted, the agreements were terminated and the amounts were forfeited. The assessee claimed the forfeited sums were capital …
The Supreme Court examined whether Dearness Allowance (DA), City Compensatory Allowance (CCA) and House Rent Allowance (HRA) paid to government employees fall within the definition of "salary" under Section 17 of the Income Tax Act, 1961 and are therefore taxable. The appellants argued that these …
The appellant, a joint Indian‑American venture, contributed technical know‑how valued at Rs.2,35,000 and received equity shares in return. It claimed the amount as revenue expenditure under the Income Tax Act, but the Assessing Officer treated it as capital expenditure and allowed only 1/14th under …
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 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 …
The Supreme Court examined whether the order of the Appropriate Authority under Sections 269‑UD, 269‑UC and 269‑UE of the Income Tax Act, 1961, for the pre‑emptive purchase of an immovable property was valid after the Court had set aside a High Court judgment. The petitioners argued that the Central …
The trustees of H.E.H. The Nizam's Supplemental Family Trust filed a return for AY 1962‑63 in 1964 together with a Section 237 refund claim for tax deducted at source. The Income‑Tax Officer neither granted the refund nor communicated any final decision, but later recorded a note on 10‑Nov‑1965 …
The Bombay Burmah Trading Corporation, an Indian resident company engaged in tea export, claimed a weighted deduction under Section 35‑B of the Income‑Tax Act for Rs 1,95,935 spent on exporting tea from East Africa to the United Kingdom. The Income‑Tax Officer disallowed the claim on the ground that …
The appellant, Malabar Industrial Co. Ltd., sold a rubber plantation estate and, after the purchaser defaulted on instalments, agreed to receive Rs. 3,66,649 as compensation for loss of agricultural income. The amount was recorded as such in the return and the Income‑Tax Officer gave a nil …
The respondents had executed a usufructuary mortgage in favour of the appellant and later claimed to be "debtors" under the Tamil Nadu Debt Relief Act, 1979. The dispute turned on the meaning of the expression "not less than Rs. 1200" in the proviso to Section 3(3) of the Act, which exempts persons …
