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1234 judgments · newest first · showing 801–1000
The case concerned the interpretation of Explanation (2) to Section 40(b) of the Income Tax Act, 1961, which came into force on 1 April 1985. The issue was whether the explanation operated prospectively or was merely declaratory of the law already in force. The Supreme Court examined earlier …
M/s Sundaram Spinning Mills, a manufacturer of cotton yarn, claimed a higher rate of initial depreciation on its plant and machinery under the Income Tax Act, 1961, arguing that yarn falls within Item No. 21 of the Ninth Schedule, which lists "textiles (including ... cotton yarn, hosiery and rope)". …
The deceased assessee, Sardar Arjun Singh Ahluwalia, entered into an agreement with Kalyanmal Mills Ltd. in 1946 for the sale of waste cotton. The Mills failed to pay amounts due for the periods corresponding to assessment years 1946-47 and 1947-48, leading to a suit and a final decree in December …
United Commercial Bank, a nationalised bank, valued its investments at cost in the statutory balance sheet but, for income‑tax returns, valued the same stock‑in‑trade at the lower of cost or market value, a practice it had followed consistently for over thirty years and which the tax department had …
The General Insurance Corporation of India, a wholly government‑owned insurer, set aside a sum for redemption of preference shares and debited it to its profit and loss account in accordance with Rule 2(2)(a) of the General Insurance Business (Nationalisation) Rules, 1973. The Income‑Tax Officer …
Aditya Minerals Pvt. Ltd. obtained a 15‑year mining lease with a monthly rent of Rs.35 per acre and was required to deposit an amount equal to the total rent for the lease term as a guarantee, which was adjustable against monthly rent and bore no interest. The assessee claimed this deposit as …
Mysore Minerals Ltd., a private limited company, purchased seven low‑income houses from the Karnataka Housing Board, made part payment, received allotment and possession, but the deed of conveyance was not executed. The company claimed depreciation under Section 32(1) of the Income‑Tax Act, 1961 for …
The deceased K.R. Patel and B.G. Amin were appointed executors and trustees under a 1962 will that directed payment of debts, conveyance of specific legacies, conversion of remaining assets into cash and donation to charitable purposes. The will created a public trust, which was registered in …
Bharat Carbon and Ribbon Manufacturing Co. manufactured carbon paper, which was later classified as coated paper under Item 17(2) of the Central Excise Tariff, leading to a demand for excise duty for the years 1976-77, 1978-79 and 1979-80. The company challenged the levy by filing a writ petition …
The Transmission Corporation of A.P. Ltd. (the assessee) paid large sums to non‑resident companies for purchase, erection and commissioning of plant equipment between 1966‑67 and 1972‑73 without deducting tax at source under Section 195 of the Income‑Tax Act, 1961. The Income‑Tax Officer levied tax …
The tenant J. Jermons stopped paying rent to his landlord after a Tax Recovery Officer issued a prohibitory order under the Income Tax Act, directing him to pay the rent to the tax authority instead. He later complied with a notice under Section 226(3) of the Income Tax Act and paid the rent for the …
Zunjarrao Bhikaji Nagarkar, then Collector of Central Excise, ordered confiscation of excisable goods and confirmed duty against Mis. Hari Vishnu Packaging Ltd. but did not impose a penalty under Rule 173Q of the Central Excise Rules. The Central Board of Excise directed him to appeal to the …
The respondent, a Hindu Undivided Family (HUF) that was a partner in a firm, effected a partial partition on 13‑April‑1979 and the Income Tax Officer (ITO) recognised it under Section 171(2) of the Income Tax Act, 1961. For AY 1980‑81 the HUF filed a return excluding income from the partitioned …
The respondent, Om Prakash, was a partner in two partnership firms in his capacity as Karta of a Hindu Undivided Family (HUF). The Income Tax Officer included the share of income earned by his minor children in his total income under Section 64(1)(i) and (ii) of the Income Tax Act, 1961. The …
The Supreme Court examined a batch of appeals concerning searches under the Narcotic Drugs and Psychotropic Substances Act, 1985. It held that an empowered officer must inform a suspect of his right to be searched before a Gazetted Officer or Magistrate, and that this duty is imperative, not merely …
Harendra Mehta and his family (appellants) and Mukesh Mehta and his family (respondents) were brothers who owned businesses and properties in India and the United States. They executed an arbitration agreement appointing their elder brother as arbitrator to divide the assets, and the arbitrator …
UCO Bank had credited interest on loans whose repayment was doubtful to a suspense account and, following CBDT Circular No. F 201/21/84 TTA‑11 dated 9 Oct 1984, excluded that interest from its total income for AY 1981‑82. The Commissioner of Income Tax re‑included the amount, but the ITAT and the …
A High Court judge filed an income‑tax return asserting that his constitutional salary was not taxable under the Income Tax Act, 1961. The tax authorities rejected his claim and the matter reached the Supreme Court on a special leave petition. The Court considered whether the salaries payable under …
Dalmia Cement Ltd., owner of two cement factories in Pakistan, entered into a sale agreement on 24 July 1962 and a supplemental agreement on 2 November 1962 that stipulated profits and losses from the factories after 30 September 1962 would be credited to the buyer, Mr. Maneckji. The actual transfer …
The appellant, Sterling Foods, a firm engaged in processing and exporting seafood, earned import entitlements under a government export promotion scheme and sold them, including the sale proceeds in its total income. It claimed a deduction under Section 80HH of the Income Tax Act, 1961, arguing that …
The Supreme Court considered whether the term "loss" in clause (b) of the proviso to Section 205(1) of the Companies Act, 1956, as incorporated into Section 115‑J of the Income‑Tax Act, 1961, includes depreciation. The assessees, including Mis. Surana Steels Pvt. Ltd. and V.V. Trans‑Investments (P) …
The Commissioner of Income Tax appealed against a judgment allowing Mis Cynamid India Ltd. to claim deductions under Sections 35B and 35C of the Income‑Tax Act for expenses incurred in distributing agricultural literature and for export promotion. The assessee uses rice husk, obtained by de‑husking …
The Orissa State Warehousing Corporation, a statutory body under the Warehousing Corporation Act, 1962, earned interest on fixed deposits placed with banks. The Income‑Tax Officer added this interest to its total income, holding that it was not covered by the exemption in section 10(29) of the …
The appellant, ArvinDA Paramila Works, a manufacturer of agarbathis, exported its products in AY 1981‑82 and paid commissions to agents located abroad for procuring export orders. It claimed a weighted deduction under Section 35B(l)(b)(iv) of the Income Tax Act, 1961, on the commission expenditure, …
The assessees operated large‑scale poultry hatcheries and claimed that they were industrial undertakings engaged in the manufacture or production of "articles or things" and therefore eligible for investment allowance under s.32A and deductions under ss.80HH, 80HHA, 80I and 80J of the Income Tax …
The Supreme Court considered two appeals – one by Universal Plast Ltd. (UPL) and another by Guntur Merchants Cotton Press Co. – challenging High Court rulings that licence fees and rent received from leasing out a factory, godowns and machinery were not business income under the Income Tax Act, …
Premier Cable Co. Ltd installed machinery in the previous year relevant to assessment year (AY) 1967‑68 and, under sections 33 and 80J of the Income‑Tax Act, was entitled to carry forward unabsorbed development rebate for eight assessment years and unabsorbed deduction for four assessment years. The …
Sirpur Paper Mills made contributions to an approved superannuation fund amounting to Rs 2,70,911 for the current year and Rs 2,14,785 for the preceding five years. The assessing officer allowed a deduction of only 80% of the contributions and spread it over five years, relying on a Central Board of …
Stonecraft Enterprises, an exporter of granite, claimed a deduction under Section 80HHC of the Income Tax Act, 1961, which allows a deduction of up to 50% of profits from export of goods, but excludes "mineral oil, minerals and ores". The Tribunal held that granite is a mineral and therefore …
Kasturi and Sons Ltd., a newspaper publisher, bought an aircraft for Rs.3,31,455 and insured it for Rs.4,00,000 with a clause allowing the insurer to replace the aircraft in case of loss. After the aircraft was destroyed, the insurer exercised the option and supplied a new aircraft costing …
Relish Goods bought raw shrimps, peeled and froze them, and claimed a deduction under Section 80HH of the Income‑Tax Act, 1961, asserting that its activity amounted to production by an industrial undertaking. The Income‑Tax Officer rejected the claim, but the Commissioner (Appeals) and the …
Oberoi Hotel Pvt. Ltd. managed several hotels for owners and, under its principal agreement, held an option to purchase the hotel if the owner chose to transfer it. A supplemental agreement in 1975 waived this purchase/right, entitling Oberoi to a fixed compensation upon the hotel's sale. The …
The appellant, a Hindu Undivided Family (HUF), was assessed for several years on the ground that remuneration and commission received by its Karta, K.S. Subbiah Pillai, were income of the HUF. The Madras High Court held the amounts were assessable to the HUF, while the Andhra Pradesh High Court had …
Eastern Chemical and Minerals exported ferro‑silicon under a barter arrangement and, in return, received import licences for pesticides which it later assigned to users for consideration. The company claimed exemption from additional tax under Section 104(1) of the Income‑Tax Act, 1961, relying on …
Ram BAI's land was acquired under the Land Acquisition Act, 1894 and she received compensation which was later enhanced with solatium and interest by a civil court, a decision affirmed by the High Court. She disclosed the interest as income in a return filed under Section 139(4) of the Income Tax …
The appellants purchased immovable property for Rs.2.45 lakh and were subjected to acquisition proceedings under Section 269‑D of the Income Tax Act. While the appeal was pending before the Income Tax Appellate Tribunal and subsequently the High Court, the Central Board of Direct Taxes issued …
Prem Dass was convicted under Sections 276C and 277 of the Income Tax Act for filing an incorrect return and allegedly withholding books of account. The Sessions Judge acquitted him, finding the prosecution evidence insufficient to prove the requisite mens rea and noting that the penalty imposed …
The appellants, R. Dalmia and others, challenged assessments and reassessments made by the Revenue under Section 147 of the Income Tax Act, arguing that Section 144‑B, which provides a procedural safeguard and an extended 180‑day limitation period under Explanation 1(iv) to Section 153, does not …
The Commissioner of Income Tax, Shillong appealed against the order of the Income Tax Officer (ITO) who had reopened the assessment of Tarajan Tea Co. (P) Ltd. under Section 147(a) of the Income Tax Act, 1961, on the ground that a decision in another tea company case—holding that the sale of …
SUGAULI SUGAR WORKS (P) Ltd., a private limited company, transferred Rs 3,45,000 from a suspense account to its capital reserve account for the assessment year 1965‑66. The Income Tax Officer included Rs 2,56,529 in the assessee's total income under Section 41 of the Income‑Tax Act, treating the …
The Supreme Court examined a private limited company's claim for deduction of interest on loans taken to purchase rubberised machinery for the assessment years 1972‑73 to 1974‑75. The machinery had not been put to use and no depreciation was claimed, prompting the Income Tax Officer to disallow the …
The appellant had deposited Rs.1,57,250 under the Annuity Deposit Scheme of the Income Tax Act, 1961, which was to be repaid in ten equal instalments of principal and interest under Section 280-D. After the depositor's death, the balance instalment of Rs.12,013 was paid to his son/executor, the …
Bokaro Steel Ltd., a government‑owned corporation, was in the process of constructing its steel plant and had not yet commenced business. During the assessment years it received (i) rent for quarters provided to contractors’ workers, (ii) hire charges for plant and machinery supplied to contractors, …
The assessee, a shareholder of Kasthuri Estates Pvt. Ltd., received cash and property when the company reduced its share capital from Rs 1,000 to Rs 210 per share. Earlier advances to shareholders had been treated as deemed dividends under Section 2(22)(e) of the Income‑Tax Act. The Tribunal held …
The Maharashtra State Electricity Board (MSEB) was challenged by two trade unions for allegedly failing to pay statutory bonus to their workmen for the accounting years 1965‑66 to 1969‑70 under the Payment of Bonus Act, 1965. The Industrial Tribunal held that after deducting certain items from gross …
The appellant, representing Income Tax Practitioners, challenged the constitutional validity of Section 44(AB) of the Income Tax Act, 1961, which mandates that the accounts of businesses with turnover exceeding Rs 40 lakh and professionals with receipts exceeding Rs 10 lakh be audited only by a …
The appellant, Rafat Ali, leased premises from the respondents, Sugni Bai and heirs, who later sought eviction under the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 on three grounds: rent default, waste causing damage, and nuisance. Both the Rent Control Court and the …
The Appropriate Authority, exercising powers under Section 269‑UD of the Income Tax Act, 1961, concluded that a property in Bangalore was undervalued by more than 15% in an agreement of sale and ordered its compulsory purchase by the Central Government for the consideration stated in the agreement. …
The respondent filed belated income‑tax returns for assessment years 1978‑79 to 1980‑81 after a search and seizure under Section 132 of the Income‑Tax Act, and the assessing officer made assessments higher than the returns. He was prosecuted under Section 276‑C for willful tax evasion. The …
Madras Auto Service (P) Ltd. obtained a 39‑year lease on premises and, under the lease terms, demolished the existing structure and constructed a new building at its own cost, which legally belonged to the lessor. The company claimed the construction costs (Rs 1,62,835 and Rs 50,937) as deductible …
The R.B. Shreeram Religious and Charitable Trust, a registered public trust, received voluntary contributions of Rs 4,55,000 during AY 1966‑67 and used the amount to repay a loan to a mining firm, rather than applying it solely to charitable or religious purposes. The Income‑Tax Officer added the …
The Supreme Court examined whether the State of Karnataka and its universities could increase the admission capacity of medical colleges despite the provisions of Sections I0A, I0B and I0C of the Indian Medical Council Act, 1956 (as amended in 1993). The Court held that the Medical Council of India, …
The ex‑Ruler of the former Holkar State sold two pieces of heirloom jewellery in the assessment year 1972‑73 and claimed that the proceeds were not taxable because the jewellery were "personal effects" within the meaning of Section 2(14) of the Income‑Tax Act, 1961. The Tribunal rejected this …
The Supreme Court examined the interpretation of Section 11 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, which governs the discharge of liabilities and distribution of attached property of notified persons such as Harshad Mehta. It held that only taxes …
The Kerala State Cooperative Marketing Federation Ltd., an apex cooperative society, claimed a deduction under Section 80‑P(2)(a)(iii) of the Income Tax Act, 1961 for profits earned from marketing cashew nuts purchased from its member societies. The Income Tax Officer rejected the claim, and the …
Hindustan Times Ltd purchased a residential building and later demolished it to erect a multi‑storeyed commercial building. The company paid Rs 36,96,516 as an additional premium for the commercial use of the extra built‑up area and added this amount to the cost of the new building, claiming …
The appellants, a firm, voluntarily disclosed undisclosed income for the years 1958-65 before any tax authority detection and filed a statement of affairs. The Assessing Officer initiated penalty proceedings under Section 271(1)(c) of the Income Tax Act, imposing a penalty of Rs. 4,90,365, which was …
The Competent Authority initiated forfeiture proceedings under SAFEMA against Amritlal Chandmal Jain, whose detention under COFEPOSA had earlier been challenged by several writs of habeas corpus. Although the High Court had quashed the detention order and the SAFEMA proceedings, the Competent …
Oberoi Hotels (India) Pvt. Ltd. entered into a comprehensive agreement with a Nepalese hotel enterprise to provide technical, professional and other services for operating the hotel. The company sought approval of the agreement under Section 80‑0 of the Income‑Tax Act, 1961, but the Central Board of …
Coca‑Cola Export Corp., a wholly‑owned non‑resident subsidiary of the Coca‑Cola Company, claimed deductions for pro‑rated home‑office expenses and service charges paid in US dollars. The Income‑Tax Officer (ITO) disallowed portions of these deductions and later issued notices under Section 148 of …
The assessee, a Hindu Undivided Family (HUF), was granted a development rebate under Sections 33 and 34 of the Income‑Tax Act for new machinery used in its business for assessment years 1960‑61 to 1965‑66. In 1967 a partial partition of the HUF allotted the machinery to two coparceners, who …
M/s Shaan Finance (P) Ltd., a finance company, purchased new machinery and hired it out to manufacturers under hire agreements. The company claimed a 25% investment allowance under Section 32A of the Income Tax Act, 1961, but the Revenue rejected the claim. The Karnataka High Court allowed the …
The Income Tax Department seized gold ornaments from the premises of Babula Agarwal under Section 132 of the Income‑Tax Act, 1961. Babula claimed the ornaments belonged to his step‑mother and ultimately to the plaintiff, Parmeshwari Devi Sultania, who filed a petition with the officer for their …
Bharat Commerce & Industries Ltd. appealed against the Commissioner of Income Tax, arguing that interest paid on delayed advance tax (under Sections 139 and 215) for AY 1972‑73 and interest paid on delayed tax under the Voluntary Disclosure of Income and Wealth Act, 1976 for AY 1977‑78 and 1978‑79 …
The Uttar Pradesh Forest Corporation claimed exemption from income tax on the ground that it was a "local authority" under Section 10(20) of the Income Tax Act, 1961, and alternatively that it was a charitable institution under Section 11(1). The assessing officer rejected the claim, the …
W.T. Suren & Co. Ltd transferred its distribution unit to Rallis India Ltd, terminating the employment of the unit's staff. Employees were offered similar jobs with continuity of service; those who did not join received gratuity directly, while the assessee paid the gratuity due to those who joined …
The assessee was assessed for AY 1960-61 and later a sum of Rs 32,58,500 was identified as a loan advanced for a paper‑mill project. The Income‑Tax Officer reopened the assessment and treated the amount as business income. The assessee’s appeals before the Appellate Assistant Commissioner and the …
The Supreme Court considered appeals by certificate from the Kerala High Court concerning the assessment year 1978-79. The issue was whether the statutory deduction under Section 36(1)(viii) of the Income Tax Act, 1961, should be calculated on the total income before allowing that deduction. The …
The S.R.M.M.CT.M. Tiruppani Trust, a charitable trust for temple repairs and related activities, resolved in 1963 to accumulate its income for ten years and filed Form 10 under Section 11(2) of the Income‑Tax Act. In the assessment year 1970‑71 it realised Rs 8 lakhs from an advance to a firm, which …
Continental Construction Ltd., a civil construction company with overseas projects, paid remuneration to its directors, some of whom were also employees posted outside India. The Income‑Tax Officer disallowed amounts exceeding the Rs 72,000 ceiling per director under sections 40(c) and 40A(5)(a) of …
The respondents, shareholders of a company in voluntary liquidation, received dividends from the liquidator after the sale of the company's assets. The sale proceeds exceeded the written‑down value of the assets but were less than the original purchase price, so the excess was taxed in the company …
Kishan Lal, an assessee, was levied interest under section 220(2) of the Income‑Tax Act for delayed payment of tax. He filed an application under section 220(2A) seeking reduction or waiver of the interest, but the Central Board of Direct Taxes (CBDT) rejected the application without recording any …
Express News Papers Ltd., a public limited company, resolved on 6 December 1962 to pay an interim dividend, payable on 16 January 1963. The Income Tax Officer reduced the rebate available under the Finance Act, 1964 for assessment year 1964‑65, treating the dividend as a reduction trigger. The …
P. Sarada, a substantial shareholder of Messrs Universal Radiators Pvt. Ltd., withdrew Rs 93,027 from the company between 3 July 1972 and 22 March 1973 while her running account was overdrawn and had no credit balance. The Income Tax Officer treated the excess withdrawals as deemed dividend under …
The Supreme Court examined whether a partnership firm could claim a tax deduction for a commission of Rs. 28,579 paid to Rashiklal, who was a partner in the firm but also the Karta of a Hindu Undivided Family (HUF). The firm argued that Rashiklal acted only as a nominee of the HUF, so the payment …
The assessee, Shree Man. Junathesware Packing Products and Camphor Works, constructed a cinema theatre and claimed a certain cost in its return for AY 1977‑78. The Income‑Tax Officer (ITO) passed an assessment based on the assessee’s figure because the Departmental Valuation Officer’s (DVO) report …
M. Venkatraman, a public limited company engaged in tobacco export, remitted part of its sale proceeds to a Singapore party in violation of the Foreign Exchange Regulation Act, 1947 (FERA) and was penalised Rs.35,000. The company claimed a deduction of Rs.2,95,000 as business expenditure/loss in its …
Mis Hunsur Plywood Works Ltd., a public limited company, claimed a development rebate under Section 33 of the Income Tax Act for the assessment years 1972-73 to 1974-75, which was initially allowed. The assessing authority later observed that the company had transferred amounts from the development …
The Commissioner of Wealth Tax, Gujarat sought to assess Ellis Bridge Gymkhana, an unincorporated club, for wealth tax for assessment years 1970‑71 to 1977‑78, arguing that the club fell within the term “individual” in Section 3 of the Wealth Tax Act, 1957. The club contended that an association of …
The Assistant Commissioner of Income Tax alleged that a partnership firm, Mahajan Borewell & Co., and its three partners had failed to deduct tax at source, violating Section 276‑B of the Income Tax Act, 1961. The Special Court discharged the respondents on procedural grounds, and the High Court …
Sahney Steel Press Works Ltd. set up a factory that began production in 1973 and, under an Andhra Pradesh Government notification, received a refund of sales tax and other incentives amounting to Rs 14,665.70 in the assessment year 1974‑75. The Income‑Tax Officer treated the amount as assessable …
The appellant bought 90 non‑cumulative preference shares of Rs 1,000 face value at Rs 420 each. The company reduced the share capital twice, first paying Rs 500 per share in 1965 and later reducing the face value to Rs 50 and paying Rs 450 per share in 1966. The Income Tax Officer treated the Rs 450 …
The Supreme Court examined the Commissioner of Income Tax (Control) Ludhiana's claim for weighted deduction under Section 35B(1)(b) of the Income Tax Act in favour of Mis Hero Cycles Pvt Ltd. The Court held that such deductions are permissible only when the expenditure is wholly and exclusively …
The Supreme Court examined a series of civil appeals concerning the claim of weighted deduction under Section 35B(1)(b) of the Income Tax Act, 1961. It held that the onus lies on the assessee to prove that any expenditure falls within the specific sub‑clauses of Section 35B(b); mere occurrence of …
The Gujarat Industrial Development Corporation (GIDC), created under the Gujarat Industrial Development Act, 1962, sought exemption from income tax under Section 10(20A) of the Income Tax Act, 1961, claiming that its income arose from planning, development, or improvement of cities, towns, and …
M/s RamBal Private Ltd., a manufacturer of nuts, bolts and screws for automobiles (item 20 of the Fifth Schedule), claimed a 35% development rebate under Section 33(1)(b)(i)(A) of the Income Tax Act, 1961 for machinery installed before 1‑April‑1970. The Income‑Tax Officer allowed only a 20% rebate, …
Upper Ganges Sugar Mills Ltd donated Rs 25,000 to the Vishwa Mangal Trust and claimed a deduction under Section 80G of the Income Tax Act, 1961. The Income‑Tax Officer initially allowed the deduction, but the assessment was later reopened under Section 147(b) and the claim was disallowed. The …
Commonwealth Trust Ltd., a company that had claimed depreciation on its factory buildings, sold those assets after 1 January 1954 and computed capital gains using the option under Section 55(2)(i) to take the fair market value as of that date as the cost of acquisition. The Income Tax Officer and …
Thiru Arooran Sugars Ltd., a sugar manufacturer, cultivated sugarcane for its own factory and also bought large quantities of sugarcane from the market. Because part of its income was agricultural and part was business, the company sought to deduct the market value of the sugarcane it used as raw …
R.M. Arunachalam inherited immovable properties from his adoptive mother, who had received them by will from her husband Ramanathan Chettiar. The assessee sold these properties during assessment years 1966-67 to 1972-73 and claimed that the estate duty paid under the Estate Duty Act, 1953, should be …
Mis Sundaram Spinning Mills appealed against a Madras High Court order that denied its claim for an extra shift allowance on machinery added in the previous year, on the basis that the entire concern worked double and triple shifts. The assessee argued that the additional shifts justified an extra …
South India Viscose Ltd., a public limited company engaged in rayon yarn and wood pulp manufacturing, claimed extra shift depreciation allowance for AY 1971-72 on the basis of the number of days the entire concern worked double or triple shift, rather than on a per‑machinery basis. The Income Tax …
M/s Tuticorin Alkali Chemicals and Fertilizers Ltd., a newly incorporated heavy‑chemical manufacturer, raised term loans for setting up its plant and invested surplus funds in short‑term bank deposits before commercial production began. The company earned interest on these deposits and claimed that, …
The assessee, a charitable trust created in 1942, amended its deed in 1971 to require that surplus funds be invested in a company in which the trustees had a substantial interest. It claimed exemption of the interest earned on those investments under Section 11 of the Income Tax Act, relying on the …
The Supreme Court examined a transfer of a partnership's business as a going concern to a limited company for Rs 8 lakhs. The Revenue had taxed the depreciation claimed by the firm under Section 41(2) of the Income‑Tax Act and also taxed capital gains. The High Court had held that Section 41(2) did …
The assessee partnership firm was granted registration under Section 184(7) of the Income Tax Act for the 1967-68 assessment year and was treated as registered for subsequent years. The Commissioner, invoking Section 263, cancelled the renewal of registration for 1972-73 and 1973-74, alleging …
The Vellore Electric Corporation Ltd., a licensee under the Electricity Supply Act, claimed deductions for amounts transferred to its Contingencies, Development and Tariffs‑and‑Dividend Control reserves for assessment years 1967‑68 to 1970‑71, and also sought relief under Section 80‑1 for interest …
The partnership firm Artex Manufacturing sold its entire business as a going concern to a newly formed private limited company for Rs 11,50,400, paid by allotment of shares. The issue was whether the surplus arising from the difference between the re‑valued value of plant, machinery and dead‑stock …
The Supreme Court examined whether a purchaser who has taken possession of flats after full payment, but without a registered deed, is the "owner" for tax purposes under Section 22 of the Income‑Tax Act, 1961. The assessee argued that the rental income should be taxed under Section 56 as "income …
The Supreme Court examined the implementation of welfare measures for Archakas and other temple employees under the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987. It upheld the constitutional validity of the Act and held that the abolition of hereditary rights …
The Supreme Court examined whether receipts received by several members' clubs, including Bankipur Club Ltd., for drinks, refreshments, rent, admission fees and subscriptions constitute taxable income under the Income‑Tax Act. The clubs, registered as non‑profit companies under Section 25 of the …
The Supreme Court examined whether Amalgamation Pvt. Ltd., a bulk shareholder holding investments in numerous subsidiaries, could claim a capital loss on the forced sale of shares to a subsidiary of a subsidiary, whether a loss incurred while guaranteeing a subsidiary's loan qualified as a business …
The Thiagarajar Charities Trust, created in 1962, carried on a business of buying and selling cotton yarn under a board resolution. The Trust claimed exemption from income tax under Section 11 of the Income‑Tax Act, arguing that the business was merely a means to achieve its charitable objects and …
M/s. Chillies Export House Ltd., a public limited company engaged in exporting chillies, claimed that its activities of sorting, grading, clipping, stemming and fumigation (the latter performed by a contractor) amounted to "processing of goods" under the Finance Acts, making it an "industrial …
The U.P. State Industrial Development Corporation, a state undertaking, underwrites shares of companies and, when the public does not subscribe, purchases the shares itself, receiving underwriting commission and brokerage. It adjusts the commission against the cost of those shares, treating it as a …
Madras Industrial Investment Corporation Ltd. issued debentures at a 2% discount, creating a liability of Rs. 3,00,000 payable over 12 years. For the assessment year 1968‑69 it wrote off Rs. 12,500 as the proportionate discount for six months. The Income‑Tax Appellate Tribunal allowed deduction of …
The appellants, a Hindu Undivided Family (HUF) of four members, filed a suit for partition in 1954, with a final decree in 1961. The Wealth Tax Officer assessed the family for assessment years 1958-59, 1959-60 and 1960-61, treating it as an undivided family of four members because no physical …
Godhra Electricity Co. Ltd., a licensee under the Electricity Act, raised electricity rates but could not recover the increased charges because of protracted consumer litigation, a government advisory to maintain status quo, and a takeover of its undertaking under the Defence of India Rules. The …
The appellants, non‑resident ship owners, had tax assessed on their shipping earnings under Section 172(4) of the Income Tax Act, 1961 and paid the tax. They later exercised their right under Section 172(7) to obtain a regular assessment, which showed that the tax previously paid was in excess. The …
The appeal filed by Sri Nandlal Tejmal Kothari before the Supreme Court challenged an order of compulsory purchase of his property made under the Income Tax Act, 1961. The appellant contended that the order was arbitrary and that the statutory period for payment of consideration under Section …
The non‑resident company Banque Nationale de‑Paris challenged a Super Profits Tax assessment that included interest received on Central and State Government securities. It argued that, under Clause X of Rule 1 of the First Schedule of the Super Profits Tax Act, 1963, such interest should be excluded …
The Delhi Stock Exchange Association Ltd., a company limited by shares, claimed exemption from income tax under Section 11 read with Section 2(15) of the Income Tax Act, 1961, asserting that its income was derived from property held in trust for charitable purposes. The claim pertained to assessment …
East India Pharmaceutical Works Ltd. had an overdraft facility and paid its income tax out of that overdraft, claiming the interest of Rs. 28,488 as a deduction under Section 37(1) of the Income Tax Act, 1961. The Assessing Officer disallowed the claim, the Tribunal upheld the disallowance, and the …
The deceased businessman Prem Narain's sole proprietorship, Mis Meera & Co., was continued after his death by his widow Krishna Gupta on behalf of herself and their three minor children. The Income Tax Officer treated the business as a "body of individuals" and assessed the income accordingly, which …
Allied Motors (P) Ltd. claimed a deduction for sales‑tax collected in the last quarter of its accounting year 1983‑84, which was paid to the treasury in the next year but before the filing deadline. The Income‑Tax Officer disallowed the deduction under Section 43B of the Income Tax Act, 1961. The …
The assessee firm, whose partners were Karta of their respective Hindu Undivided Families, advanced personal funds to the firm and received interest on those deposits. The firm claimed a deduction for this interest under Explanation 2 to Section 40(b) of the Income Tax Act, 1961, but the Income Tax …
The appellant, Managing Director of Karna Distillery Co., transferred Rs 1,74,639 to a partnership firm owned by his children, later showing the amount as returned and then as a loan to the children. The Assessing Officer added the interest on this amount to the appellant's income under Sec. 61 of …
The Kotagiri Industrial Co‑operative Tea Factory Ltd., a co‑operative society, earned Rs 85,150 in the assessment year 1972‑73 and had carried forward losses of Rs 1,82,744. It claimed a deduction of Rs 53,386 under section 80‑P(2) of the Income Tax Act. The Income Tax Officer first set off the …
The appellant, Brooke Bond India Ltd., a public limited company, issued ordinary shares at a premium to increase its share capital and incurred Rs 13,99,305 in expenses, which it claimed as a deductible revenue expense under Section 37(1) of the Income Tax Act, 1961. The Assessing Officer disallowed …
The appellant, a partnership firm, had claimed a development rebate under sections 33(1)(a) and 34(3)(a) of the Income Tax Act for several assessment years. One partner died, causing the firm to dissolve on 3 March 1968, before the eight‑year utilisation period prescribed by section 34(3)(a). A new …
Progressive Financers, a partnership of five persons including a minor admitted to the benefits of the firm, applied for registration under Section 184 of the Income Tax Act, 1961 for AY 1967-68 and for renewal for AY 1969-70 and 1970-71. The Income Tax Officer rejected the application, treating the …
Jonas Woodhead & Sons Ltd., a Indian automobile spring manufacturer, entered into a collaboration with a UK firm to obtain technical know‑how and plant set‑up services, agreeing to pay a royalty calculated as a percentage of gross turnover. The Income‑Tax Officer disallowed one‑quarter of the …
Maharani Raj Laxmi Devi, after adopting a minor son and the death of her husband, claimed HUF status and excluded the minor's one‑sixth share—acquired under Section 6 of the Hindu Succession Act—from the HUF's taxable income for AY 1966‑67 to 1970‑71. The Income Tax Officer held that, absent a …
The assessee, Alcock Ashdown & Co. Ltd., started a new industrial undertaking and purchased plant and machinery, some of which remained uninstalled at the end of the accounting year. It claimed a deduction under Section 84 of the Income‑Tax Act, 1961, on the basis that the cost of these assets …
The Aditanar Educational Institution, a society registered under the Societies Registration Act, 1960, was created to establish, run, manage or assist schools and colleges solely for educational purposes. It received substantial voluntary donations and filed nil returns, claiming exemption under …
The Supreme Court considered appeals by the Commissioner of Income‑Tax against shareholders of the liquidated Tinnevelly Motor Service Company who had received dividends from the liquidator. The revenue argued that amounts assessed under Section 41(2) of the Income‑Tax Act, 1961 – representing …
Anarkali Sarabhai held 297 redeemable preference shares of Universal Corporation Pvt Ltd, purchased for Rs 2,68,550. The company redeemed the shares, paying the face value of Rs 2,97,000, resulting in a surplus of Rs 30,450. The Income Tax Officer treated the surplus as a capital gain under Section …
The Income Tax Officer had completed assessments for 1969-70 and 1971-72, accepting the assessee's claim of a long‑term capital loss on the sale of shares. Later, a letter from the Deputy Director of the Directorate of Inspection, supported by documentary evidence, indicated that the fair market …
The State of Orissa appealed against the High Court's order quashing the Commissioner of Sales Tax's revision of assessment orders for the assessment years 1969-70 and 1970-71 against Mis. Krishna Stores. The assessments had been reassessed under Sections 12(4) and 12(8) of the Orissa Sales Tax Act, …
M/s Orient Trading Co. held 14,500 shares of Asiatic Oxygen & Acetylene Co. as stock-in-trade, valued at Rs 1,45,000. It exchanged these for 55,100 shares of Asiatic Oxygen Ltd. at a ratio of 38:10. The Income Tax Officer valued the received shares at Rs 5,51,000 (based on market price of Rs 10 per …
The appellant, who owned a cinema theatre converted from a former ginning factory, incurred large expenditures in 1960‑61 for new machinery, furniture, sanitary and electrical fittings, and extensive structural repairs. The assessee claimed a deduction under Section 10(2)(v) of the Income Tax Act, …
Ashok Leyland Ltd., a manufacturer of trucks and spare parts, imported certain spare parts and sold them to its truck buyers. The company claimed deductions under sections 80‑E and 80‑I of the Income Tax Act, 1961 for profits earned from these imports, arguing that the income was attributable to its …
The appellant, a partnership firm, paid interest to a partner who was also the Karta representing his Hindu Undivided Family (HUF) on deposits made in his individual capacity. The Income Tax Officer added this interest back to the firm's income under Section 40(b) of the Income Tax Act, 1961, …
Kuldeep Industrial Corporation, a partnership firm, claimed to be a manufacturer of stainless steel utensils and filed tax returns showing losses for AY 1977-78 and 1978-79 and a small profit for AY 1979-80. The Income Tax Officer (ITO) discovered that no manufacturing activity took place, issued …
Marshall Sons and Co. (India) Ltd. (the holding company) and Marshall Sons and Manufacturing Ltd. (the subsidiary) entered into a scheme of amalgamation that specified a transfer date of 1 January 1982, but the scheme was only sanctioned by the Madras and Calcutta High Courts in late 1983 and early …
Waldies Ltd. was assessed to income tax for AY 1964‑65 and subsequently to surtax under the Companies (Profits) Surtax Act. The income‑tax assessment was later reopened under Section 147, increasing the tax liability, and the surtax assessment was rectified under Section 13 of the Surtax Act to …
Prima Realty, a partnership firm, entered into a compulsory purchase agreement with the Union of India for a property in Chembur. The Central Government was required to tender the consideration within one month of the purchase order, but the cheque issued to Prima Realty was incorrectly made out to …
East India Hotels Ltd., an approved hotel, claimed both the extra depreciation allowance under clause (iii) and the extra shift depreciation allowance under clause (iv) of Item III of Appendix I to the Income Tax Rules for AY 1977-78. The Revenue argued that an approved hotel could claim only the …
The main partnership, Mis. Nizamabad Group Sendhi Contractors, was a licensed lessee under the Abkari Act and was registered under the Income Tax Act. One of its partners, B. Posetty, could not meet his capital contribution, so he and nine others formed a sub‑partnership, "B. Posetty and Co.," to …
The petitioners, a retired employee of Indian Oxygen Ltd. and a pensioners’ society, challenged the scheme of the company’s non‑contributory approved superannuation fund. They argued that improvements made to the fund in 1985 should have been extended to existing pensioners and that the denial of …
Mis J.B. Boda & Co. Pvt. Ltd., a reinsurance broker, received a commission in US dollars after deducting its fee from the gross reinsurance premium it remitted to foreign reinsurers with RBI approval. The company claimed that the retained commission constituted "income received in convertible …
The appellant, a rice exporter, was required to contribute to a State Welfare Fund in order to obtain export permits. It claimed the contribution as a business expense deductible under Section 37(1) of the Income‑Tax Act, 1961. The Income‑Tax Officer and the Appellate Assistant Commissioner …
The appellant, K. Basavarajappa, had entered into an agreement to purchase land from a tax defaulter, Y.S. Devendra Murthy, and filed a suit for specific performance. The land was attached and auctioned by the Tax Recovery Officer under the Income Tax Act. Within 30 days of the auction, the …
A. Kumar filed several writ petitions challenging a customs show‑cause notice under Section 124 of the Customs Act, a seizure order under Section 132‑A of the Income Tax Act, and the demurrage rates of the Madras Port Trust. The customs authorities had found that the imported stainless‑steel …
The deceased V. Madhava Raja left unpaid income tax, wealth tax and agricultural income tax. A partition suit was filed, and the State sought to recover the tax dues by attaching the estate, eventually ordering the sale of the property Devi Vilas Palace by public auction. The auction purchaser …
The assessee company had advanced a loan to a firm whose partners were also its shareholders and directors. Interest was charged on the loan in the 1966-67 and 1967-68 assessment years, establishing it as an interest‑bearing loan. For the 1968-69 assessment year the company passed a resolution …
Escorts Farms (Ramgarh) Ltd., a private limited company, sold shares it had purchased after 1954 and claimed capital gains by treating the actual purchase price of the original shares as the cost of acquisition, ignoring the effect of subsequently issued bonus shares. The Income‑Tax Officer, the …
Adair Dutta & Co. India Pvt. Ltd., a tenant in a Madras building, challenged an order under Section 269 UD of the Income Tax Act that required surrender of possession after the building was purchased by the Central Government under Section 269 UE, which stated the property would vest free from all …
The appellants, owners of land acquired compulsorily, received a notice demanding income‑tax on interest accrued due to delayed payment of compensation under the Land Acquisition Act, 1894. They challenged the notice through writ petitions, which the Punjab & Haryana High Court dismissed, holding …
M/s T.V. Sundaram Iyengar & Sons Ltd. received deposits from customers in the ordinary course of its trade. The deposits were initially recorded as capital receipts (security deposits). When a portion of these deposits remained unclaimed for a long period, the company wrote them off to its profit …
J.K. Synthetics Ltd filed a refund claim that was rejected, appealed and the appeal was allowed by the Collector (Customs). The Collector of Central Excise then appealed before the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT). At the hearing on 31 August 1987 the appellant was …
The assessee, Karam Chand Thapar & others, acted as a del credere agent for coal collieries and as an agent for coal purchasers. It claimed "under‑charges" from collieries for freight overcharges on under‑loaded wagons, received the amounts before any purchaser claim, and paid purchasers when they …
The appellants, owners of rubber estates, sold old, unyielding rubber trees during the assessment years 1968-69 to 1978-79. The Income Tax Officer treated the difference between the sale price and the notional price fixed under Section 55(2) of the Income Tax Act as capital gains and also taxed the …
Sri Krishna Pvt. Ltd. claimed large unsecured hundi loans in its return for AY 1959‑60. In the assessment of the subsequent year (AY 1960‑61) the Income Tax Officer discovered that many of those loans were bogus and that the alleged lenders were near relatives of the company’s directors. Relying on …
The respondent, Arunagiri Chettriar, retired from a partnership firm in 1963 and later the firm was dissolved. The Income Tax Officer issued a notice that the respondent was jointly and severally liable for tax arrears of the firm for assessment years 1962-63 and 1963-64, arguing that liability …
Sundaram Clayton Ltd. issued 20,40,000 worth of bonus shares by capitalising its general reserves in the assessment year 1971-72 and claimed that the bonus issue should be proportionately added to its share capital for the purpose of computing capital under Rule 3 of Schedule II of the Companies …
Veecumsees, a jeweller, also operated a cinema theatre (Safire Theatre) for which it obtained loans in 1961. The theatre was built in 1962 and ran until it was sold as a going concern on 31 July 1965. The Income Tax Officer disallowed interest on those loans as a deduction under Sec. 36(1)(iii) of …
The assessee filed returns for assessment years 1964-65 and 1965-66 under Section 139(4) of the Income Tax Act, having missed the regular filing deadline, and later filed what he called revised returns under Section 139(5). The Income Tax Officer assessed the returns after the four‑year limitation …
The appellant, an exporter of hides and skins, pledged goat skins to a bank and obtained an overdraft. The skins were damaged due to the bank's improper storage, leading the appellant to file a criminal complaint. A compromise was reached whereby the bank waived Rs 1,93,159 owed by the appellant, …
The assessees, Smith Kline and French (India) Ltd., claimed a deduction for a surtax liability of Rs. 76,777 under the Companies Profits (Surtax) Act, 1964 while computing their total income for AY 1976-77. The Income Tax Officer disallowed the deduction based on Section 40(a)(ii) of the Income‑Tax …
Waterfall Estates Ltd., a public limited company engaged in tea and coffee estates, incurred a managing agency commission. Until AY 1963-64 it allocated head‑office expenses, including the commission, proportionally among wholly taxable, partially taxable and wholly exempt income. From AY 1964-65 it …
L.M. Mahurkar, a sales tax practitioner with only a matriculation qualification, was denied enrollment as an advocate by the Bar Council of Maharashtra after the Advocates Act, 1961 came into force. He claimed that his prior right to appear before the Bombay Sales Tax Authority, exercised under the …
The Supreme Court entertained a public‑interest writ filed by Common Cause seeking enforcement of statutory provisions that require political parties to disclose their sources of funding and maintain audited accounts. The Court examined the obligations under Section 293A of the Companies Act, 1956, …
The case concerned penalty proceedings for the assessment year 1972-73 that had been referred to the Inspecting Assistant Commissioner (IAC) under Section 271(1)(c) and Section 274(2) of the Income Tax Act. The Taxation Laws (Amendment) Act, 1975 deleted sub‑section (2) of Section 274 with effect …
The Supreme Court examined whether a parcel of land situated on Mount Road, Madras, which had been used for raising bananas and vegetables, qualified as "agricultural land" under the Income Tax Act, 1961 and thus could be exempt from capital gains tax. The assessee argued that the land was …
Imperial Chit Funds Ltd., a company in liquidation, was served with a tax demand of Rs.1,027 by the Income Tax Officer after winding‑up proceedings had begun. The Official Liquidator argued that the tax claim could not be enforced until the claim was proved in the winding‑up process, invoking the …
The State Bank of Patiala had, in several assessment years, transferred sums to a "bad and doubtful debts" account and claimed that these amounts were "reserves" under the Companies (Profits) Surtax Act, 1964, thereby eligible for statutory deduction. The Income Tax Officer rejected the claim, but …
The deceased B.N. Singh had not filed income‑tax returns for three assessment years and died leaving ten legal representatives. His eldest son, Jai Prakash Singh, filed the returns and the Income Tax Officer issued notices under sections 142(1) and 143(2) only to him, not to the other nine …
The assessee, M/s Mafatlal Gangabhai & Co. (P) Ltd., paid cash amounts to its employees as house‑rent allowance, conveyance allowance and medical reimbursement and claimed these as deductions. The Income Tax Officer disallowed the deductions, treating the cash payments as perquisites under Section …
The Commissioner of Income Tax, Calcutta appealed against the Settlement Commission’s order that dropped penalty proceedings for assessment years 1970-71 to 1974-75. The assessee, Paharpar Cooling Towers Pvt. Ltd., had filed a settlement application under Section 245‑C of the Income Tax Act for …
Ahmedabad Manufacturing and Calico Printing Co. Ltd. set up two new industrial undertakings – a polyester fibre plant (1975‑76) and a Sulzer plant (1976‑77) – and claimed relief under Section 80K of the Income Tax Act, 1961, together with a certificate under Section 197(3) for dividend exemption in …
The appellant, owner of a plot in South Calcutta, entered into a sale agreement with the respondent for Rs 9 lakhs, requiring an initial payment of Rs 25,000 and a further Rs 4 lakhs within five months, the latter being essential for the appellant to obtain alternative accommodation. The respondent …
The Calcutta State Transport Corporation (CSTC), a statutory body created under the Road Transport Corporations Act to provide road transport services, claimed that its income was exempt from tax under Section 10(20) of the Income‑Tax Act, 1961, on the ground that it was a "local authority" as …
The assessee, Narang Dairy Products, was granted a development rebate under Section 33(1)(a) of the Income Tax Act for its entire machinery in AY 1965-66. Subsequently, part of the machinery was sold and the remaining plant was leased to Hindustan Lever Ltd for three years, within the eight‑year …
The Life Insurance Corporation of India (LIC) received a large income‑tax refund for the life‑insurance business in the assessment year 1963‑64, which it claimed should be treated as a profit and deducted under Rule 2(1)(b) of the Income‑Tax Act. The tax authorities argued that only the portion of …
Jyoti Ltd., a Baroda‑based company, claimed that its reserves for doubtful debts (Rs 85,000) and gratuity (Rs 5,60,000) should be treated as part of its capital base for computing statutory deduction under the Companies (Profits) Surtax Act, 1964. The Surtax Officer excluded the amounts; the …
The assessee, Duncan Brothers & Co. Ltd., claimed that provisions it made for income‑tax liability (Rs 16,48,888 for AY 1963‑64 and Rs 17,52,920 for AY 1964‑65) could either be treated as part of its capital or be deducted from the cost of excluded investments under the Super Profits Tax Act, 1963 …
The Supreme Court examined the validity of Sections 44AC and 206C of the Income‑Tax Act, 1961, which allow tax to be levied on a presumptive basis on traders of specified goods. Petitioners argued that the provisions were ultra‑violes, beyond Parliament’s competence under Schedule VII, Entry 82, …
The Commissioner of Income Tax, Kerala appealed against the Kerala High Court's decision in favor of Kilkottagiri Tea and Coffee Estate Co. Ltd., which allowed the company to claim a development allowance for unclaimed expenses incurred in clearing land and planting tea bushes during 1966-67 and …
The appellants, members of a Hindu Undivided Family (HUF), contended that no valid assessment order had been issued for the HUF for assessment year 1955-56 because the order was unsigned, and that they never received statutory notices. The Income Tax Officer proceeded under Section 147(a) and later …
City Mills Distributors Pvt. Ltd. was incorporated on 30 October 1972. Its promoters had earned Rs. 24,862 from business carried out between 1 and 20 October 1972, before the company existed, and the Income‑Tax Officer included this amount as pre‑incorporation profit in the company's assessment for …
The assessee, a partnership firm of three partners, lost one partner on 12 January 1974. The partnership deed did not contain a clause allowing the firm to continue after a partner's death, so under Section 42 of the Partnership Act the firm dissolved on that date. The surviving partners formed a …
The Madhya Pradesh Co-operative Bank Ltd., an apex co-operative bank, claimed that all its income, including interest earned on government securities placed with the State Bank of India/Reserve Bank of India and interest on Provident Fund deposits, arose from its banking business and was therefore …
Three income‑tax appeals before the Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) involved a common question of law under section 115‑J of the Income Tax Act. The President of the ITAT, exercising his power under section 255(3), constituted a Special Bench of three members to hear the …
The State of Karnataka and the Union of India issued a notification under Section 4(1) of the Land Acquisition Act, 1894 to acquire 114 acres for the Defence Research & Development Organisation, dispensing with the enquiry under Section 5A by invoking Section 17(4) and publishing a declaration under …
The Supreme Court considered applications filed by the revenue challenging certain observations made in its earlier judgment in the appeals of Kerala Financial Corporation and others. The contested observations (paras 9‑15) held that when advances are written off and become bad debts, the assessee …
The appellant, the Commissioner of Income Tax, challenged the Bombay High Court’s order quashing a notice issued under s.263 of the Income Tax Act against Chowgule & Co. Ltd., an exporter of iron ore whose export proceeds were credited in rupees by an Indian bank. The issue was whether Rule 115 of …
Kalinga Tubes Ltd., a steel tube manufacturer, was assessed for central sales tax for the year 1962-63. The Sales Tax Officer demanded Rs 11,02,698 in 1966, which the Sales Tax Tribunal reduced to Rs 2,22,161 in 1970. The assessee claimed this amount as a deduction under Section 37 of the Income‑Tax …
The assessee, Park Hotel Ltd., held leasehold interests in several premises and sub‑leased a portion to an associated company, Surrendra Overseas Ltd., under an unregistered deed. Rental income received by Surrendra was claimed to be taxable in its hands as income from house property, which it …
The Supreme Court entertained a public‑interest writ under Article 32 filed by Common Cause seeking remedial measures for the serious deficiencies in India’s blood‑banking system. A 1990 consultancy report highlighted widespread unlicensed banks, reliance on professional donors, inadequate testing, …
Indian Shaving Products Ltd., the parent of the sick subsidiary Sharp Edge Ltd., obtained BIFR approval for an amalgamation scheme under the Sick Industrial Companies (Special Provisions) Act, 1985, but BIFR refused to grant the tax benefit under Section 72A of the Income Tax Act. The appellant …
The respondents, Atchaiah and Kondal Reddy, bought land that was later acquired by the government and received compensation, part of which was treated as capital gain and taxed individually in assessment years 1965-66 and 1968-69. In 1972 the Income Tax Officer (ITO) issued a notice under s.148 …
Associated Power Co. Ltd., an electricity generation and distribution company, appropriated Rs 46,460 to a Contingency Reserve as required by the Electricity (Supply) Act, 1948 and claimed it as a deduction for the assessment year 1973‑74. The Income Tax Officer rejected the claim; the Appellate …
Bihari Lal Jaiswal obtained a retail liquor licence under the Madhya Pradesh Excise Rules and entered into a partnership with ten others to run the business. He applied for registration of the partnership under sections 184 and 185 of the Income Tax Act, but the Income Tax Officer rejected the …
The Supreme Court examined two tax disputes. In Commissioner of Income Tax, Kanpur v. Kamla Town Trust, a trust created in 1941 for workers’ housing was rectified in 1945 and 1955; the Court held that the 1945 deed did not create a public charitable trust, denying exemption for 1949‑55, but the 1955 …
The A.L.N. Rao Charitable Trust claimed exemption for a surplus of Rs.85,262 under Section 11(1)(a) and Section 11(2) of the Income Tax Act, 1961. The Assessing Authority initially allowed the exemption on the basis that the Trust had invested 75% of the surplus in approved securities, but the …
Virmani Industries Pvt. Ltd. manufactured soap and oil in AY 1956-57, incurred depreciation exceeding its profits and left a balance of unabsorbed depreciation. After a ten‑year hiatus during which it earned only property income, it resumed business in AY 1965-66 manufacturing steel pipes, using …
Smt. P. Srideramma gifted Rs 90,000 to her minor son in FY 1956‑57, which was immediately used to buy a house that she employed for her mica‑mining business. Eight years later the house was sold, yielding a capital gain of Rs 58,000. The Assessing Officer included the gain in Srideramma’s total …
The Andhra Bank Ltd. appealed against the Income Tax Commissioner challenging the disallowance of deductions for amounts transferred to its reserve fund exceeding the statutory 20% of profit. The bank argued that a direction from the Reserve Bank of India under Section 35A compelled it to transfer a …
