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1234 judgments · newest first · showing 1001–1200
Modi Industries Ltd. challenged the assessment officer’s order that interest on excess advance tax should be payable only up to the date of the original (first) assessment and only on the excess amount determined in that assessment. The Supreme Court examined the meaning of "regular assessment" in …
Mis Dalmia Cement, a public limited company, filed loss returns for assessment years 1952‑53 to 1954‑55 after the prescribed time. The Income Tax Officer refused to take cognizance of those returns, stating that no assessment could be made. For later years (1955‑56 to 1959‑60) losses were assessed, …
The Supreme Court examined whether land and buildings owned by the International Airport Authority of India (IAAI), leased to the Indian Tourism Development Corporation (ITDC) for a hotel, were exempt from municipal property tax under Article 285(1) of the Constitution. The Court held that the IAAI …
Patel Brothers & Co. Ltd. claimed kitchen expenses for providing ordinary meals to its employees and out‑station customers for the assessment years 1969‑70, 1970‑71 and 1971‑72. The Income‑Tax Officer disallowed the portion relating to customers, classifying it as "entertainment expenditure" under …
The Commissioner of Income Tax, Jullundur issued notices under Section 139(2) of the Income Tax Act, 1961 to Ajanta Electricals and its partners, requiring them to file returns within 30 days. The assessees filed their returns and applications for extension of time after the due dates, leading the …
The Gosar Family Trust was a private discretionary trust with two classes of beneficiaries: the first class could receive the trust's annual income, while the second class would receive the corpus and any accumulated income upon termination. The trustees had absolute discretion to distribute or …
The respondent owned an undivided one‑third share in a house occupied as his own residence along with his brother and other co‑owners. For assessment year 1962‑63 the Assessing Officer deducted the amount prescribed under Section 23(2) of the Income‑Tax Act from the total annual letting value of the …
Sumati Dayal, a dealer in art, claimed that large sums received in 1971‑72 and 1972‑73 were race winnings (Rs 3,11,831 and Rs 93,500). The Income‑Tax Officer treated the amounts as income from undisclosed sources under Section 68 of the Income‑Tax Act, 1961. The Settlement Commission, by majority, …
Larson & Toubro Ltd. established a polytechnic institute for the children of its employees, charging no fees and admitting students solely on merit with reservation as per government rules. After the Supreme Court's Unnikrishnan judgment, AICTE framed regulations governing admissions to technical …
The Board of Industrial and Financial Reconstruction (BIFR) approved a merger scheme to revive Flowmore Polyester Ltd., a sick company, by merging it with SRF Ltd. Garware Plastics and Polymers Ltd., which had earlier submitted a stand‑alone revival proposal that was rejected, claimed to be an …
The case concerned a main partnership engaged in abkari (liquor) business that had a partner, Ganga Goud, who held a 10% share. Ganga Goud and eleven other persons formed a sub‑partnership to provide the capital required for his share and to share the profits and losses arising from the main …
The Supreme Court examined whether Section 4(1) of the Benami Transactions (Prohibition) Act, 1988 could be applied to suits, claims or actions that were filed before the Act came into force, seeking to enforce rights over benami‑held property. The petitioners argued that the proceedings, initiated …
Mis Hind Wire Industries Ltd. was originally assessed for income tax on 21 September 1979. The assessee obtained a rectification of that order on 12 July 1982 under Section 154 of the Income‑Tax Act. A second rectification application was filed on 4 July 1986, which the Income‑Tax Officer rejected …
The Commissioner of Income‑Tax appealed against a High Court order that had directed the revenue to pay interest under Section 244(1) of the Income‑Tax Act to Chittor Electric Supply Corporation, which had received a refund after a fresh assessment was made in 1973. The original assessment of 1966 …
The Union of India filed disciplinary proceedings against IRS officer Upendra Singh alleging that, while handling income‑tax proceedings under sections 133A, 144A and 143(1) of the Income Tax Act, he acted illegally by ignoring incriminating evidence, acquiescing to a reduced disclosure by the …
G.P. Volkart Ltd. had obtained municipal approval to construct a 30‑storey building with an FSI of 2.45. After the Bombay Metropolitan Region Development Act, 1974 came into force, the Metropolitan Authority rejected the application within the statutory 60‑day period, prompting the company to appeal …
The Supreme Court examined whether a government cash subsidy, granted as a percentage of an industrial asset's capital cost, could be deducted from the "actual cost" of the asset under Section 43(1) of the Income‑Tax Act, 1961 for the purpose of computing depreciation under Section 32. The Court …
The Builders Associations of India filed a writ petition under Article 32 challenging the Supreme Court’s earlier decision in Commissioner of Income Tax v. N.C. Budharaja & Co., which held that the word “construction” in Section 32A(2)(b)(iii) of the Income‑Tax Act applies only to movable items such …
The Supreme Court examined whether the tax authorities could choose to assess tax on either the trustees or the beneficiaries of a discretionary trust when the trust's income was distributed and actually received by the beneficiaries during the accounting year. The respondent, a beneficiary of six …
The appellant, Burmah Shell Oil Storage and Distribution Co. (now Bharat Petroleum), purchased iron cylinders as returnable packages for LPG distribution, costing Rs 1,09,63,754, and claimed no depreciation. In 1961 it sold the cylinders to the refinery for Rs 82,19,947, incurring a loss of Rs …
The appellants challenged the disallowance of certain expenditures under Sections 40(a)(v) and 40A(5) of the Income Tax Act, 1961, arguing that the ceiling on such expenditures should not apply to assets used by an employee unless the employee also received a benefit under clause (i). The Supreme …
The Supreme Court examined the validity and mandatory nature of Rule 1‑D of the Wealth Tax Rules, which prescribes a break‑up formula for valuing unquoted equity shares of companies (excluding investment and managing‑agency companies). It held that the rule is a perfectly valid piece of delegated …
Express Newspaper Ltd. claimed large losses in its returns for AY 1985-86, which the Assessing Officer rejected as fabricated and assessed a huge income. While the appeal against this assessment was pending, the company filed an application under Section 245‑C of the Income‑Tax Act seeking …
The assessee, a partnership firm dealing in shares, bought all equity shares of a company in 1945 and treated those shares as stock-in-trade for tax purposes. When the company was liquidated, the liquidator distributed a surplus to the shareholders, and the assessee received Rs. 32,25,550. The …
The assessee earned long‑term capital gains in the accounting year relevant to AY 1970‑71 and had a carried‑forward long‑term capital loss from earlier years. He claimed a deduction under Section 80T of the Income‑Tax Act on the basis that the deduction should be computed on the gross capital gains …
The assessee, a cotton textile manufacturer, paid amounts to the Textile Commissioner under Clause 21‑C(1)(b) of the Cotton Textiles (Control) Order, 1948, in lieu of producing the minimum required cloth, and also paid a sum for non‑fulfilment of an export obligation under a bond. The assessee …
The appellants owned a 30,885‑sq‑yd plot registered as agricultural land but located within municipal limits. They obtained permission under Section 63 of the Bombay Tenancy and Agricultural Lands Act to sell the land for non‑agricultural use and sold it to a housing cooperative in May 1969. The …
Shriyans Prasad Jain, a former officer of Dalmia Cement & Paper Marketing Co., was paid Rs 7 lakhs on termination of his services and claimed the sum was compensation for loss of employment, exempt under section 7 of the Income‑Tax Act, 1922. The assessment tribunal, High Court and the Supreme Court …
The appellants, a partnership firm, were searched under section 132 of the Income‑Tax Act on 28 October 1975 and cash, jewellery, diamonds and books of account were seized. On 31 December 1975 they filed a declaration of concealed income under section 3(1) of the Voluntary Disclosure of Income and …
The Supreme Court examined whether the construction of a dam or the laying of foundations by pressure piling could be treated as "manufacture or production of articles" under Sections 80HH(2)(i) and 84(2)(iii) of the Income‑Tax Act, 1961, and whether machinery used for dam and canal construction …
Varkey filed his income‑tax return on 16 April 1970. The Income‑Tax Officer (ITO) made an assessment on 27 March 1972, finding concealment of income amounting to less than Rs 25,000 and, on the same day, initiated penalty proceedings and later imposed a Rs 10,000 penalty. The Appellate Assistant …
Sabarkantha Zilla Kharid Vechan Sangh Ltd., a cooperative society dealing in agricultural implements, seeds, livestock and other articles, claimed exemption from income‑tax on its profits and gains under Section 81(i)(d) of the Income Tax Act, 1961. The Income‑Tax Officer held that the exemption …
The assessee firm claimed a cash loan of Rs 50,000 from a Calcutta company and claimed interest deductions for several years. The Income‑Tax Officer (ITO) in Azamgarh, after receiving a specific letter from the ITO in Calcutta stating that the Calcutta company was merely a name‑lender and had not …
Bharat Beedi Works (P) Ltd., a private limited company, paid annual royalties to a partnership firm for the use of its brand name. The three partners of the firm were also directors of the company. The Income Tax Officer allowed the royalty deductions, but the Commissioner disallowed them under …
M.S.P. Nadar Sons, a registered firm, sold shares in several companies during FY 1972‑73, realizing a gross long‑term capital gain of Rs 5,61,508 and a long‑term capital loss of Rs 96,583. The assessee computed assessable capital gains by first applying the standard deduction of Rs 5,000 and the 50% …
G.R. Karthikeyan, an individual assessee, won Rs 22,000 as prize money in the All India Highway Motor Rally and the Income‑Tax Officer included it in his total income under the definition of "income" in Section 2(24) of the Income‑Tax Act, 1961. The Appellate Assistant Commissioner, the Tribunal and …
The assessee, a private limited company, paid cash commissions on sales to its directors in addition to their salaries. The Income Tax Officer treated these commissions as perquisites and disallowed them under section 40(a)(v) of the Income‑Tax Act for AY 1971‑72 and under section 40(A)(5) for AY …
Minerals and Metals Trading Corporation (M.M.T.C.) acted as the intermediary in a private barter scheme through which Ferro Alloys Corporation exported manganese and chrome concentrates. The parties executed contracts whereby title to the goods passed to M.M.T.C., which issued letters of credit, …
Brakes India Ltd paid a foreign technical director a total remuneration of Rs 66,000, of which Rs 28,576 were perquisites. The Assessing Officer disallowed the portion of perquisites exceeding one‑fifth of the salary under Section 40(c)(iii) of the Income‑Tax Act, 1961. The Appellate Assistant …
Salem Cooperative Central Bank, a cooperative society engaged in banking, received Rs. 19 as interest on a security deposit with an electricity distribution company. The Income Tax Officer treated the amount as income from other sources and levied an additional surcharge under the Finance Act. The …
The appellant's father created three U.S. and two U.K. settlement trusts for family members and reported the trusts' income in his Indian tax returns from 1964‑65 to 1969‑70. After his death in 1969, the appellant filed returns for 1970‑71 including the same income and later contended that the …
The Commissioner of Income Tax challenged Amritsar Transport Company Private Limited for including amounts collected as "Dharmada" in a separate account in its business income. The company argued that the levy, collected at Rs.1 per bilty, was a customary charitable contribution distributed among …
Universal Radiators, a manufacturer of automobile radiators, purchased copper ingots from the United States to be rolled in Bombay and used as raw material. While the ingots were at sea, the vessel was seized during hostilities between India and Pakistan and the loss was compensated by the insurer, …
The Associated Cement Company (ACC) entered into a contract with a contractor for loading cement bags and reimbursing certain wage components. ACC paid the contractor as per the contract but did not deduct tax under Section 194C(1) of the Income Tax Act, 1961. The Income Tax Officer issued notices …
The assessees Chhathu Ram and others were assessed under the Indian Income Tax Act, 1922 for the year 1942-43, which included cash credits that were also taxed under the Excess Profits Tax Act. While appeals against the inclusion of these cash credits were pending, the assessees applied for and …
Standard Triumph Motor Co. Ltd., a UK non‑resident, entered a 1939 collaboration agreement with an Indian company to receive a 5% royalty on sales. The Indian company credited the royalty in its books each year, but the royalty was only remitted to the UK in sterling. The assessee claimed that, …
Ballarpur Paper and Straw Board Mills Ltd. hired foreign personnel, including Emil Webber, to set up a plant in India. Under the contract, the salaries were to be paid free of Indian tax, and Ballarpur paid the tax on Webber’s salary to the tax authorities. The Income Tax Officer treated the tax …
The assessee concealed income of minor children and the Income‑Tax Officer referred the case to the Inspecting Assistant Commissioner (IAC) under Section 274(2) of the Income‑Tax Act because the minimum penalty exceeded Rs 1,000. The reference was made before the amendment of Section 274(2) which, …
The petitioner C.B. Gautam sought to purchase a lease‑hold plot in Delhi, but the Income Tax authority ordered its compulsory purchase by the Central Government under Section 269UD of the Income‑Tax Act, 1961, without giving any reasons or a chance to be heard. The Supreme Court examined whether …
The appellants, tenants of a three‑storeyed building, continued to occupy the premises after the owner sold it to the respondents. The Central Government, under Chapter XX‑A of the Income Tax Act, 1961, initiated acquisition proceedings, issued notices to the tenants, and eventually ordered …
Escorts Ltd. and other assessees challenged the Finance (No.2) Act, 1980 amendment that gave retrospective effect to clause (iv) of Section 35(2) of the Income‑Tax Act, 1961, arguing it allowed a double deduction for scientific‑research expenditure and violated Articles 14, 19(1)(g) and 300A of the …
Sun Engineering Works filed loss returns for assessment years 1960-61 and 1961-62 after the statutory time limit; the Income Tax Officer treated the returns as "no demand" and did not allow the losses. The assessee later disclosed Hundi loans, which the Officer treated as escaped income and, under …
The Supreme Court examined whether the income of Ganga Bai Charities, a trust that owned a building let out as a marriage hall and operated a printing press, qualified for exemption under Section 11(l)(a) of the Income Tax Act, 1961. The trust argued that its income was wholly applied to religious, …
Arvind Mills Ltd., a textile mill, paid betterment charges under the Bombay Town Planning Act, 1954 as part of a town‑planning scheme and claimed a deduction under Section 37 of the Income Tax Act, 1961, arguing that the payment was a revenue expense. The Income Tax Officer disallowed the deduction; …
The assessee, Gwalior Rayon Silk Manufacturing Co., claimed depreciation on the written‑down value of roads and drains constructed within its factory premises, arguing that they form part of the factory building under Section 32 of the Income‑Tax Act, 1961. The Income‑Tax Officer disallowed the …
M.R. Pratap, the Managing Director of Rayala Corporation Private Ltd., signed and verified the company's income‑tax return for AY 1965‑66, which was later found to be false. He was prosecuted under section 277 of the Income‑Tax Act for wilfully making a false verification. The appellant contended …
The Enforcement Directorate seized Rs.4,28,713 in 1966 and recorded statements from appellants K.T.S. Mohammed and M. Jamal Mohammed under Section 39 of the Foreign Exchange Regulation Act (FERA). Both appellants later retracted those statements, claiming they were obtained under duress, and the …
The assessee filed income‑tax returns for the assessment years 1964‑65, 1965‑66 and 1966‑67 well after the statutory due dates, resulting in penalties under section 271(1)(a) of the Income‑Tax Act, 1961. The Assessing Officer and the Appellate Assistant Commissioner upheld the penalties, but the …
Shrimant Padmaraje R. Kadambande, a descendant of the former ruler of Kolhapur, received a monthly cash allowance that was discontinued after the State of Kolhapur merged with Bombay under the Bombay Merged Territories Miscellaneous Alienations Abolition Act, 1955. The Act abolished such …
The respondents, Tiwari and Passi, were prosecuted under Section 276‑B of the Income‑Tax Act for failing to deposit TDS. They applied to the Commissioner for compounding of the offences under Section 279(2). The Central Board of Direct Taxes had issued Instruction No. 1317 under Section 119(1) …
The Hindu Undivided Family Onkar Saran & Sons filed returns for assessment years 1961-62 and 1962-63 that omitted capital gains from land sales. The Income‑Tax Officer, after discovering the omission, issued notices under s.148 in 1965 and the assessee filed revised returns in 1969, still concealing …
The plaintiff sought recovery of a sum and, during trial, obtained court summons for the Income Tax Department to produce assessment records of the defendants for years 1964-65 to 1971-72. The Department produced the records in sealed covers, claiming privilege under the then‑applicable Section 137 …
The Supreme Court considered whether, for assessment year 1962-63 and later, the actual cost of service line assets acquired before the previous year must be recomputed under Section 43(6) of the Income‑Tax Act, 1961. The appellants, several electric supply companies, argued that the actual cost …
Somasundram Chetir & Co., a cloth merchant, incurred losses of Rs.2,04,746 and Rs.17,000 in the assessment years 1960-61 and 1961-62 which the Assessing Officer treated as losses from speculative transactions, allowing set‑off only against speculative profits. The Tribunal held that the losses arose …
Continental Construction Ltd., a civil engineering firm, entered into several overseas construction contracts, notably the Karkh Water Supply project in Iraq, and sought deductions under Section 80‑0 of the Income‑Tax Act for payments received as royalties, fees or similar. The Central Board of …
Indian Tube Co. transferred Rs 90 lakh to a dividend reserve in 1963, of which Rs 76 lakh was paid out as dividend and Rs 14 lakh remained. The issue was whether the transferred amount, or any part of it, should be treated as a reserve for computing the company's capital under the Companies …
Arvind Mills Ltd. imported plant and machinery from abroad and financed the purchase with a foreign loan. After the 1966 devaluation of the rupee, the rupee liability on the loan increased. The assessee claimed a development rebate under Section 33 of the Income‑Tax Act on the revised (higher) cost …
The Radhasoami Satsang, a religious institution, had its income assessed as taxable for several years after an earlier period of exemption, prompting the assessee to challenge the assessments before the Income‑Tax Tribunal, which held that the income was exempt under sections 11 and 12 of the …
The respondents, steel rolling mills manufacturing mild steel rods, bars and rounds, claimed a higher development rebate under s.33(1)(b)(B)(i)(a) and relief under s.80‑I of the Income‑Tax Act, 1961, arguing that their products fell within item 1 of the Fifth Schedule (“Iron and steel (metal)”). The …
The appellant Navnitlal Sakarlal was bequeathed half of his grandfather's estate under a 1956 will that named no executor. The deceased's son, Sakarlal Balabhai, acted as legal representative and filed tax returns for the estate, being assessed on the estate's income until 1967-68. The Income Tax …
Mahadeo Prasad Bais, as Karta of a Hindu Undivided Family, was assessed as a HUF up to AY 1948‑49 and thereafter filed individual returns claiming total or partial partition. The Tribunal and the High Court later accepted a partial partition, making certain family income assessable to him …
Cellulose Products of India Ltd, a chemical manufacturer, claimed exemption under Section 84 of the Income Tax Act for the assessment year 1966-67, arguing that its new industrial undertaking began producing "articles" only when it started manufacturing Carboxy Methyl Cellulose (CMC) in June 1961. …
The appellant, a non‑resident company exporting manganese ore, was assessed for the assessment year 1953‑54. Customs authorities later found that the company had under‑invoiced its exports, resulting in a finding of under‑invoicing of about Rs 44‑45 lakh. On this basis, the Income‑Tax Officer issued …
Vania Silk Mills Ltd. purchased machinery in 1957 and hired it to Jasmine Mills, which insured the machinery. A fire in 1966 destroyed the machinery; the insurer paid the lendee, which in turn paid the appellant Rs 6,32,533 as insurance claim. The assessee treated the excess of the claim over the …
The assessees, Attar Singh and Gurmukh Singh, made cash payments exceeding Rs.10,000 for purchases of stock-in-trade, which the assessing authority disallowed as deductions under Section 40A(3) of the Income Tax Act, 1961 read with Rule 6DD of the Income Tax Rules, 1962. The assessees challenged the …
The appellant, a company in liquidation, sold its assets and invested the proceeds in fixed deposits, earning interest income. The liquidator incurred various expenses (salaries, legal fees, etc.) which the company sought to deduct from the interest under section 57(iii) of the Income Tax Act. The …
The Hindu Undivided Family (M.C. Jain) leased its premises to Jain Glass Works Ltd for an annual rent of Rs 21,000, of which Rs 10,000 was contractually payable directly to a college run by a charitable trust. The Court held that this arrangement is merely a self‑imposed application of income and …
Burn Standard Company Ltd., a Government undertaking, entered into a technical collaboration agreement with McDermott International Inc. to obtain foreign technical know‑how, requiring RBI permission under Section 28(1)(b) of the Foreign Exchange Regulation Act, 1973 (FERA). The agreement received …
Garden Silk Weaving Factory, a registered partnership firm, challenged the Income‑Tax Officer’s addition of Rs 5,08,423 (unabsorbed depreciation and unabsorbed business loss) to its total income for AY 1968‑69. The firm argued that unabsorbed depreciation should be carried forward by the firm, while …
The appellant, A.L.A. Firm, a partnership engaged in money‑lending and property transactions, was dissolved on 13 March 1961 and reported a revaluation surplus of $1,01,248 (Rs.1,58,057) in its 1961‑62 return, treating it as neither revenue nor capital. The Income‑Tax Officer initially accepted this …
Wesman Engineering Co. (P) Ltd., a licensee, sought a certificate under s.195(2) of the Income Tax Act to remit payments to its foreign collaborators for royalties and cost of working drawings. The Income Tax Officer held the entire remittance taxable and directed 65% TDS. The assessee appealed, …
British Paints India Ltd. valued its stock‑in‑trade at the cost of raw materials only, excluding overheads, claiming that paints have a short shelf‑life. The Assessing Officer added the overheads to the stock value under section 145 of the Income‑Tax Act, increasing tax for 1963‑64 and allowing a …
Mahabir Cold Storage, a partnership firm newly constituted after the original firm Prayagchand & Hanumanmal took on Periwal & Co. as a partner, claimed a development rebate for machinery installed by the original firm in 1959‑60. The claim was made in the 1962‑63 assessment year. The issue was …
The respondent, Biju Patnaik, was assessed for the year 1957-58 but allegedly failed to disclose a Rs.15 lakh capital gain from the sale of his mining business. The Income Tax Officer, after obtaining approval, issued a notice under sections 147(a) and 148 of the Income Tax Act, 1961 to reopen the …
The Union of India, as the revenue authority, demanded advance tax from the U.P. State Ware Housing Corporation for the assessment year 1974-75, contending that the corporation's rental income from its godowns and warehouses was not exempt under Section 10(29) of the Income Tax Act, 1961. The …
Bikaner Gypsums Ltd., a mining company, held a lease for gypsum extraction but the railway had encroached on the leased land, obstructing mining. The parties negotiated a cost‑sharing arrangement for shifting the railway, and the company paid Rs 3 lakh of the total Rs 12 lakh expense. The company …
The assessee, Poonjabhai Varmalidas, had written off certain debts as bad under Section 10(2)(xi) of the Income Tax Act, 1922 in 1959‑60. His business ceased before the amounts were later recovered in the assessment years 1964‑65, 1965‑66 and 1967‑68, after the 1961 Act had repealed the 1922 Act. …
The respondent, a member of a Hindu Undivided Family (HUF), claimed that a partition agreement dated 3 July 1958 and a subsequent civil court decree had dissolved the HUF, so that the family could not be taxed as a HUF for assessment years 1967-68, 1968-69 and 1969-70. The Income Tax Officer …
Saraswati Industrial Syndicate Ltd. (the appellant) claimed exemption from tax on Rs.58,735, a trading liability that had been allowed to the Indian Sugar Company before it was amalgamated into Saraswati in 1962. The Income Tax Officer and the Appellate Assistant Commissioner disallowed the claim, …
The Jute Corporation of India Ltd. was assessed for income tax for AY 1974-75 and later claimed a deduction of Rs.11,54,995 for its liability to Purchase Tax, an issue not raised before the Income Tax Officer. While hearing its appeal before the Appellate Assistant Commissioner, the corporation was …
The respondent, a bus conductor of the U.P. State Road Transport Corporation, was dismissed for allegedly erasing way‑bills and reselling tickets. He contended that carbon copies of crucial documents were withheld during the disciplinary enquiry, causing prejudice. The trial court and first …
Northern Corporation imported MSCR defective sheets in 1984 and stored them in a customs warehouse. The Income Tax Department imposed a ban under Section 132(1) of the Income Tax Act, 1961, preventing the goods from being cleared. After the ban was lifted in 1988, customs demanded payment of duty at …
The petitioners, an employee of a private‑sector firm and a trade union, challenged the constitutional validity of clause 10‑C inserted by the Finance Act, 1987 into section 10 of the Income‑Tax Act, 1961, which grants tax exemption on voluntary‑retirement payments only to employees of public‑sector …
Smt. Kusum Lata Singhal, a tobacco stockist, challenged the seizure of her books and jewellery after a search under Section 132 of the Income Tax Act was deemed unauthorized. Her husband, R.K. Singhal, was simultaneously prosecuted under Section 132(5) and claimed the jewellery belonged to him as …
K.R. Sadayappan, a film distributor, purchased a plot of land in his son's name for a total consideration of Rs.1,40,000, but his wealth statement omitted this investment and his return showed only Rs.80,000. The Income Tax Officer treated the unaccounted Rs.18,750 as undisclosed income and imposed …
The petitioners purchased immovable property at auction sales conducted by the Tax Recovery Officer (TRO) for recovery of income‑tax and were issued certificates of sale. They approached the Sub‑Registrar to register the certificates, but the Sub‑Registrar and the Collector of Stamps refused unless …
The petitioner was caught with contraband gold worth Rs 20 lakhs, which was confiscated by customs. The assessing officer added the value of the gold to the petitioner’s income under Section 69‑A of the Income‑Tax Act, treating it as income from an undisclosed source. The Appellate Assistant …
The petitioners, Group‑A Income‑Tax officers promoted from Group‑B, challenged the 1973 Seniority Rules and the accompanying seniority list, alleging that the rules were based on a mistaken finding that promotions exceeded the statutory quota and that the classification of officers into Group‑A and …
The partnership firm Keshavji Ravji & Co. paid interest to its partners on their capital credits and also received interest from the same partners on borrowings during the assessment year 1975-76. The Assessing Officer disallowed the interest paid to partners without setting off the interest …
Devi Cinema and other firms challenged the disallowance of interest paid to their partners under Section 40(b) of the Income Tax Act, 1961. The Income Tax Appellate Tribunal had held that the entire interest paid by the firm to a partner was disallowable, ignoring any interest the partner paid back …
The case concerned four life‑insurance policies taken by G.V. Ranade and assigned in 1969 to his wife, Kamalabai Ranade. The Income‑Tax Officer issued a notice under Section 226(3) of the Income Tax Act directing the LIC to pay the policy proceeds to satisfy Ranade’s tax arrears. The LIC delayed …
Gujarat Travancore Agency, a registered firm, failed to file its income‑tax returns for assessment years 1965‑66 and 1966‑67 within the statutory time limits. After notices under section 139(2) were served, the firm filed the returns and the Income‑Tax Officer imposed penalties under section …
Elel Hotels and Investments Ltd. and other hoteliers challenged the Hotel Receipts Tax Act, 1980, which imposed a 15% tax on the gross receipts of hotels whose room charges were Rs.75 or more per day per individual. The petitioners argued that the Act was beyond Union legislative competence, falling …
The deceased A.G. Merchant died in 1959 and the accountable persons filed estate duty returns, resulting in an assessment on 26 February 1960 under the Estate Duty Act, 1953. The Estate Duty (Amendment) Act, 1958 repealed sections 56‑65 and introduced a new Section 59, effective 1 July 1960, to …
Electronics Corporation of India Ltd entered into an agreement with a Norwegian firm for technical services and sought a No Objection Certificate under s.195(2) of the Income Tax Act, 1961 to remit payments without tax deduction. The Commissioner rejected the application, holding that s.9(1)(vii) …
The Bazpur Co-operative Sugar Factory Ltd., a cooperative society, required its producer‑shareholders to deposit amounts into a 'Loss Equalisation & Capital Redemption Reserve Fund' under a bye‑law. The deposits were used for the society’s business, including converting partly paid shares to fully …
The Straw Board Manufacturing Co. claimed concessional tax rates, a development rebate under section 33 and a deduction under section 80‑E of the Income Tax Act for the assessment years 1965‑66 to 1967‑68, asserting that strawboard manufacturing is a priority industry listed in the schedules. The …
Vibhuti Glass Works, a public limited company, mortgaged its glass factory and obtained a loan from the Industrial Finance Corporation on the condition that the Uttar Pradesh Government manage the factory for 20 years and receive a share of profits if they exceeded a prescribed limit. During the …
The Cotton Sales Co-operative Society, a cooperative engaged in ginning, pressing and marketing of raw cotton supplied by its members, claimed exemption of the receipts from these activities under Section 81(i)(c) of the Income‑Tax Act, 1961 (as it stood before the 1968 amendment). The Assessing …
Claggett Branch Ltd., a non‑resident company dealing in tobacco, had its income for assessment years 1959‑60 and 1960‑61 originally assessed on the basis of returns filed by its Indian agents under s.23(3) of the Income‑Tax Act, 1922. While assessing the later year 1962‑63 the Income‑Tax Officer …
The assessee, a partner in a firm, gifted Rs.51,000 to his wife who then contributed the amount as capital to a newly formed partnership and became a partner. The Income Tax Officer included the wife’s share of the partnership profit in the assessee’s total income under section 64(1)(iii) of the …
Alembic Chemical Works Ltd., a penicillin manufacturer, paid Rs 2,39,625 to Japanese firm Meiji for sub‑cultures, technical know‑how, designs and training to improve yields in its existing plant. The assessee claimed the payment as a revenue expense deductible under Section 37 of the Income‑Tax Act, …
Shubhlaxmi Mills Ltd., a textile mill, claimed a development rebate of Rs.1,26,233 for AY 1962-63 under s.33 of the Income Tax Act, 1961. The Income‑Tax Officer rejected the claim because the company had not created a reserve fund as required by s.34(3)(a). The claim was upheld by the Appellate …
Mrs. Arundhati Balkrishna, a beneficiary of the Shrimati Arundhati Balkrishna Trust, claimed deductions for interest paid by the trust on amounts withdrawn from an estate account. The Income Tax Officer disallowed part of the interest, holding that some withdrawals were for personal expenses. The …
The assessee, K.C. Thapar & Bros. (P) Ltd., claimed deductions for losses incurred on the sale of shares of Bharat Starch & Chemicals Ltd. and Greaves Cotton & Co. Ltd. for AY 1959-60, which the Income‑Tax Officer disallowed on the ground that the transactions were at undervalued prices and were …
The U.P. Cooperative Federation Ltd., an apex cooperative society, received interest of Rs.9,000 on a cash security of Rs.2 lakh furnished to a cooperative sugar factory under an agency agreement, and interest of Rs.51,295 on loans advanced to its member societies for sugar distribution. The Revenue …
The appellants, a body of individuals, bought two parcels of land in 1966 and in 1970 granted a ten‑year mining lease to an allied private company for a premium of Rs.5 lakh. The Income‑Tax Officer treated the lease‑hold interest as a transfer of a capital asset and levied long‑term capital gains on …
The Income‑Tax Officer issued a notice under section 148 of the Income‑Tax Act, 1961, alleging that three cash‑credit entries totalling Rs 1 lakh had escaped assessment for the year 1965‑66. The assessee challenged the notice, arguing that it was issued more than seven years after the original …
The appellant filed a composite settlement application under section 245C of the Income Tax Act for assessment years 1948-49 to 1975-76. The Commissioner objected to settlement for the years 1948-49 to 1959-60 and the Settlement Commission rejected those years on 24 August 1977 without affording the …
Petron Engineering Construction Pvt. Ltd. entered into agreements with Toyo Engineering India Ltd. to provide technical services for a project of a Japanese firm in Iraq and sought approval under section 80‑0 of the Income‑Tax Act, 1961 for a deduction on royalties received. The Central Board of …
The State of Maharashtra appointed Justice B. Lentin as a one‑man Commission of Inquiry to investigate the death of 14 patients at J.J. Hospital. The Commission found the appellant, Dr. Baliram Waman Hiray, gave contradictory evidence and issued a show‑cause notice for perjury under s.193 IPC read …
The assessee, Italindia Cotton Co. Ltd., incurred a loss in the assessment year 1960‑61 and sought to set off that loss against income in the assessment year 1963‑64. A change in shareholding occurred in 1963, and the Income‑Tax Officer denied the set‑off under Section 79 of the Income‑Tax Act, …
The Supreme Court examined a garnishee order issued under section 226(3)(x) of the Income Tax Act, 1961, which sought payment of Rs.8,56,377.55 despite the notice specifying only Rs.2,86,450. The Court held that because the amount in the order was not mentioned in the notice, the garnishee order was …
The Supreme Court examined writ petitions filed by Tata Tea Ltd. and other tea companies challenging amendments made by the West Bengal and Kerala legislatures that sought to tax the entire income from the sale of tea grown and manufactured by the assessees. The petitioners argued that only 60% of …
The petitioner, Chuharmal, filed an income‑tax return for AY 1974‑75 showing a total income of Rs 3,113. During a customs search in May 1973, 565 foreign watches valued at Rs 87,455 were seized from his bedroom. The Income‑Tax Officer issued notices under s.69A of the Income Tax Act to treat the …
Aditya V. Birla, a technician, entered into a three‑year agreement with Thai Rayon Company to provide services in Bangkok and sought approval from the Indian Government to claim a deduction under Section 80RRA of the Income Tax Act, 1961. The Government refused, contending that the provision applied …
Sir Shadi Lal and Sons, a Hindu undivided family, leased a house and the lease required the tenant to keep the premises in good repair, while the lessor would handle major structural repairs. The Assessing Officer initially allowed a deduction for repairs under s.24(1)(i)(a) of the Income Tax Act, …
The case concerned two registered partnership firms in which a partner died during the previous year. In the first firm, the partnership deed expressly provided that the firm would not dissolve on a partner's death, and the deceased partner's son was admitted as a new partner without executing a …
The appellants, registered firms, filed income‑tax returns after the prescribed time but within the four‑year period allowed under sub‑section (4) of section 139 of the Income‑Tax Act, 1961. The Assessing Officer, invoking that provision and the proviso to sub‑section (1), levied interest on the tax …
Shad! Lal Sugar Mills Ltd. was assessed for the year 1958-59 with additions of Rs 48,500 for cane cost, Rs 67,500 for shortage and Rs 21,700 for out‑station staff salary. The assessee did not contest the assessment but later faced a penalty under s.274 read with s.271 of the Income‑Tax Act, 1961, …
Elecon Engineering Co. Ltd., a public limited company, claimed a rebate under Section 84 of the Income‑Tax Act for the assessment year 1964‑65, the second year of its new industrial project. The Assessing Officer initially allowed a rebate of Rs 2,72,372 but on reassessment reduced it to Rs …
The respondent challenged a notice of reassessment issued under section 147(b) of the Income‑Tax Act, 1961 for the assessment year 1965‑66, arguing that the notice was barred by the statutory limitation. The Gujarat High Court quashed the notice, relying on the earlier Banarsi Debi decision which …
The Commissioner of Income‑Tax appealed against the Allahabad High Court’s decision in favour of Behari Lal Ram Charan Ltd, which allowed the company to set off a capital loss of Rs 3,17,500 incurred in assessment year (AY) 1957‑58 against capital gains of Rs 3,10,200 in AY 1965‑66. The Revenue …
Smt. Padmavati Jaikrishna, an individual assessee, claimed a deduction of Rs.10,275 under section 57(iii) of the Income Tax Act, 1961 for interest paid on loans taken to meet personal obligations such as income‑tax, wealth‑tax and a statutory annuity deposit. The Income Tax Officer held that only a …
The respondent, Radheshyam, was assessed for the years 1960-61, 1961-62 and 1962-63 and was served notices under sections 147(a) and 148 of the Income‑Tax Act, 1961. The Income‑Tax Officer alleged that his wife had received valuable assets from him without adequate consideration and that the income …
Shah Sadiq & Sons, a partnership firm registered under the Income Tax Act, incurred speculation losses of Rs 60,054 in AY 1960‑61 and Rs 6,839 in AY 1961‑62 and claimed to set them off against a profit of Rs 58,102 in AY 1962‑63. The Income‑Tax Officer rejected the claim, holding that, for a …
The assessee, T.I. & M. Sales Ltd., was assessed as a representative assessee for ten non‑resident companies and the Revenue claimed a "business connection" under Section 9 of the Income‑Tax Act, 1961, making the Indian company an agent under Section 163(1)(b). The assessee contended that no such …
The assessee, a liquor‑vendor firm, filed its return of income based on its own books, which the Income‑Tax Officer rejected and recomputed using an 8% net‑profit rate, resulting in a total income that was less than 80% of the correct income. A penalty under section 271(1)(c) of the Income‑Tax Act …
The appellant, Yudhishter, had been in possession of a residential premises since 1962. The respondent landlord, Ashok Kumar, purchased the premises in 1971 and later filed an eviction petition in 1974 under the Haryana Urban (Control of Rent and Eviction) Act, 1973, claiming a bona‑fide requirement …
The Union of India sought to recover tax arrears owed by an assessee company and was informed that the amount could be recovered from a debt the appellant, Kalyan Mills Ltd., owed to the assessee. Notices under Sections 46(2) and 46(5A) of the Income Tax Act were issued to the appellant, and the …
The Nizam of Hyderabad created a family trust in 1950, dividing the corpus into a Reserve Fund and a Family Trust Expenses Account, each with distinct purposes. The income of these two funds was assessed separately for 1960‑61 and 1961‑62, but the Income‑Tax Officer later reopened the assessments …
O.P. Bhandari, a manager of a hotel under the Indian Tourism Development Corporation (ITDC), was terminated by a notice‑pay order under Rule 31(v) of the ITDC Conduct, Discipline and Appeal Rules, 1978. He challenged the constitutional validity of the rule, arguing that termination by mere notice or …
Hindustan Wires Products Ltd., a manufacturer of insulated copper wires, claimed that its winding wires qualified as "cables" under item 7 of the Fifth/Sixth Schedule of the Income Tax Act, 1961, and therefore entitled it to development rebate and priority‑industry deductions under sections 33 and …
The Supreme Court examined whether various reserves created by Saran Engineering Co. Ltd. could be treated as "standard deductions" under the Super Profits Tax Act, 1963, and thus be included in the computation of capital for the Companies (Profit) Surtax Act, 1964. The reserves in question included …
Hindustan Housing & Land Development Trust Ltd. owned land requisitioned and later acquired by the Government of West Bengal. The initial compensation award of Rs.24,97,249 was appealed, and an arbitrator enhanced it to Rs.30,10,873 with interest and recurring payments. While the State appealed the …
Tarsem Kumar was intercepted by Customs in 1970, and Rs.93,500 in cash, gold sovereigns and his car were seized and placed under the custody of the Customs department. After the Customs seizure was quashed, the Income Tax Department issued a warrant under section 132 of the Income‑Tax Act to seize …
The firm Amar Singh Gowamal & Sons, originally registered under the Income Tax Act, 1922 up to assessment year 1961‑62, altered its partnership constitution on 8 November 1961. It applied for registration under the Income Tax Act, 1961 on 29 September 1962 (Form UA). The Income‑Tax Officer rejected …
Patnaik & Co., an automobile dealer, claimed a loss of Rs.53,650 on the sale of its subscription to the Orissa Government Loan 1972, arguing it was a revenue loss deductible against future profits. The Income Tax Officer treated it as a capital loss, but the Income Tax Appellate Tribunal held it was …
Madnani Development Corp., a contractor, bought two parcels of land to obtain earth for a railway construction contract and later sold the land at a loss of Rs.45,241. The company treated the loss as a revenue expense (cost of earth) and claimed a deduction of Rs.30,045 for the assessment year …
Anchor Pressings Ltd. was assessed to income‑tax for AY 1963‑64 without claiming the rebate under s.84 of the Income‑Tax Act. After the assessment, the company applied under s.154 for rectification of the order to obtain the s.84 relief, but the Income‑Tax Officer and the Commissioner rejected the …
Rangi Lal and his son Chander Sen formed a Hindu undivided family (HUF) that later underwent a partial partition, after which Rangi Lal died leaving a credit balance in the firm’s books. Chander Sen, who had his own HUF with his sons, claimed that the balance and its interest were his individual …
The assessees, Kerala Estate Mooriad Chalapuram, claimed a deduction of Rs.33,747.09 as interest on a loan under section 5 of the Kerala Agricultural Income Tax Act, 1950, which was allowed. In the subsequent year, the creditor waived the interest, and the amount was credited to the assessees' …
Canara Workshops Ltd., a company engaged in automobile ancillaries, also commenced an alloy‑steel manufacturing unit, both of which are listed as priority industries under the Fifth Schedule of the Income Tax Act, 1961. The company claimed an 8% deduction under section 80E (then s. SOE) on the …
The assessee, Biju Patnaik, claimed deductions for interest on loans from the Kalinga Foundation Trust and dividends from shares of Kalinga Tubes Ltd. The Income‑Tax Officer treated the cash credits and dividends as income from undisclosed sources, concluding that the trust was a camouflage for the …
The Indian Oil Corporation, a UK‑incorporated company with its principal place of business in India, claimed large deductions for London management expenses incurred by its parent company, Burmah Oil Co. Ltd., in its income‑tax returns for the years 1957‑58 to 1959‑60. The Assessing Officer, relying …
Vanaz Engineering (P) Ltd. introduced a gratuity scheme in mid‑1970 and, based on an actuarial report, provisioned Rs 2,11,305 as a liability as of 31 December 1970. The Income‑Tax Officer allowed only Rs 27,249, the difference between the provision and the liability for 1969, but the Appellate …
K. George Thomas, an individual who owned a printing press and a daily newspaper, received Rs.5,85,637 from the United States in his capacity as Vice‑President of the India Gospel Mission. The funds were credited to a bank account in the name of the Mission but were largely used for the newspaper’s …
The Supreme Court examined whether the surplus lands owned by Shree Sitaram Mills formed part of the "assets in relation to the textile undertaking" under sub‑section (2) of section 3 of the Textile Undertakings (Taking Over of Management) Act, 1983. The mill, a sick textile undertaking, had been …
The Supreme Court examined whether an unregistered partnership firm that became a registered firm could carry forward unabsorbed depreciation from the year it was unregistered (1949-50) and set it off against the partners' income in the subsequent year (1950-51). The Tribunal had denied the set‑off, …
Niranjan & Co. Ltd. filed its 1962 return showing a profit of Rs 2,092 but later discovered that profit from construction work of Rs 10,718.46 had been omitted. The Income‑Tax Officer (ITO) assessed the year‑end tax on 27 Nov 1963, having taken the construction profit into account from the …
The assessee, Orissa Corporation, claimed a cash credit of Rs 1,50,000 as loans from three individuals, producing confirmation letters and hundis but could not serve notices under s.131 to the alleged lenders. The Income‑Tax Officer deemed the lenders “name‑lenders”, added the amount as unproved …
Shivakami Co. Pvt. Ltd., a private company, sold unquoted shares of two other companies and claimed a loss. The Income‑Tax Officer, relying on the first proviso to section 12B(2) of the 1922 Income‑Tax Act (now section 52 of the 1961 Act), deemed the break‑up values of the shares and assessed …
Indo‑Aden Salt Manufacturing & Trading Co. Ltd. had taken over a partnership business and claimed depreciation on assets assuming they were masonry works. Later it was discovered that the majority of the assets were earth works, making the claimed 6% depreciation inappropriate. The Income Tax …
The Andhra Pradesh State Road Transport Corporation (APSRTC), a statutory corporation created under the Road Transport Corporation Act, 1950, claimed exemption from income tax for the assessment years 1960-61, 1961-62 and 1962-63 under section 4(3)(i) of the Income‑Tax Act, 1922 and section 11 of …
The petitioner, Ashok Kumar Mittal, applied for an allotment of a Maruti 800 car but due to a computer error his application was recorded for a Maruti truck; the company agreed to consider his case under the manufacturer's discretionary 5% quota. In the course of correspondence, Maruti Udyog …
The appellant, S.P. Gramophone Co., sought registration of its partnership under Section 26A of the Income Tax Act, 1922 for AY 1961‑62 after a fresh partnership deed added four new partners to the original two, who were disabled. The Income Tax Officer rejected the application, alleging that the …
The State Bank of Travancore, a subsidiary of SBI, maintained its books on a mercantile basis and charged interest on advances it deemed "sticky" (highly doubtful of recovery) by debiting borrowers but crediting the amounts to an "Interest Suspense Account" instead of its profit‑and‑loss account. It …
The case involved a Hindu Undivided Family (HUF) that received Rs.2,49,874 as insurance proceeds after the death of the Karta's father. The income from this amount was initially taxed in the Karta's personal assessment, but the Income Tax Officer later treated it as HUF income, leading to …
Maya Rani, the assessee for assessment year 1961-62, failed to file her income‑tax return by the due date of 28 September 1961 and eventually filed it on 3 May 1962, after the Income Tax Act, 1961 had come into force on 1 April 1962. The Income Tax Officer imposed a penalty of Rs 4,060 under section …
Scientific Engineering House (P) Ltd. entered into two 1961 collaboration agreements with Metrimpex Hungarian Trading Company to obtain technical know‑how for manufacturing microscopes and theodolites. The foreign collaborator supplied a complete set of drawings, designs, charts, plans and related …
The appellant, formerly Bank of Cochin Ltd., purchased foreign‑currency negotiable instruments as part of its banking business and later realised the proceeds in foreign banks. When the Indian rupee was devalued on 6 June 1966, the rupee value of these foreign‑exchange assets increased by Rs …
Sajjian Mills Ltd, a public limited company, incurred a statutory liability to pay gratuity under the Payment of Gratuity Act, 1972 and actuarially determined its total liability of Rs 48,59,431 for the assessment year 1973‑74. It made a provision of Rs 20 lakhs in its books, added it back in its …
The appellant, Saroj Aggarwal, was the widow of a partner who died in 1959. After his death a new partnership deed was executed, admitting her and an adopted son as partners. The deceased had unabsorbed speculation losses from earlier years. In the assessment year 1962‑63, the appellant claimed to …
The appellant, a partner in two different partnership firms, contributed shares of limited companies to the firms as capital. The Revenue argued that the contribution constituted a transfer of a capital asset under section 45 of the Income Tax Act, 1961 and that a capital gain arose because the …
The assessee, an oil‑mill owner, gifted part of his machinery to his wife and three minor children and a firm was formed by his wife and another person. The firm leased the mill premises and machinery and the assessee rendered management services, receiving commission. The assessee had large losses …
The Commissioner of Income Tax appealed against a High Court order that allowed M/s Mother India Refrigeration Industries to set off unabsorbed business losses before deducting the current year's depreciation for the assessment years 1951-52 and 1952-53. The issue was whether, under the Income Tax …
The appellant, the Commissioner of Income Tax, challenged the deduction claimed by the assessee, a partnership that had taken over the business, assets and liabilities of a predecessor firm, including a debt of Rs.23,577. The assessee had paid tax on interest earned on that debt in AY 1963-64, later …
Distributors (Baroda) Ltd., an investment company, claimed a deduction under Section 80M of the Income Tax Act for inter‑corporate dividends based on the full amount of dividends received, contrary to the Revenue’s view that the deduction should be calculated on dividend income as computed under the …
Dr. Partap Singh and his wife challenged the validity of a search warrant issued by an Assistant Director of Enforcement under Section 37 of the Foreign Exchange Regulation Act, 1973, alleging that the officer had no material to form a reasonable belief and failed to record the grounds in writing. …
K.C. Joshi was appointed as Store Keeper in the Oil and Natural Gas Commission (ONGC) and, after completing his probation, was placed on the regular establishment. He was an active trade‑union worker and, following union actions, his services were terminated on 29 December 1967 with one month’s pay …
Murari Mohan Deb, a Class IV forester of the Tripura Government, was compulsorily retired in 1962 by the Chief Forest Officer. He challenged the order, alleging denial of a fair hearing and violation of natural‑justice principles. The respondents contended that compulsory retirement is not a …
Two loaders, Sant Raj and Itwari Lal Sherya, were terminated by their employer, a foreign air‑transport company. The Labour Court held the termination to be retrenchment and illegal because the employer had not complied with Section 25F of the Industrial Disputes Act, 1947, and awarded them one …
The appellant, a civil servant in the Cooperative Societies department, claimed that Government Order No. 559 (May 4, 1961) entitled him to a promotion to Deputy Registrar in 1965 under the principle of reservation extended to all cadres. He filed a representation petition in 1977, which the …
Associated Cement Co. Ltd. applied for a Tax Credit Certificate under the 1965 Scheme framed under s.280ZD of the Income Tax Act, seeking credit for both the regular central excise duty (under the Central Excise and Salt Act, 1944) and the special excise duty imposed by s.80 of the Finance Act, …
The petitioners, industrial undertakings, challenged the validity of Rule 19A of the Income‑Tax Rules, 1962, which excluded borrowed capital and fixed the computation of "capital employed" on the first day of the previous year for the purpose of the tax exemption under Section 80J of the Income‑Tax …
The Supreme Court examined the dismissal of an assistant of Hindustan Steel Ltd. who was removed from service under Standing Order 32 on the ground that his continued employment was "inexpedient". The employer dispensed with the disciplinary enquiry prescribed in Standing Order 31 and did not record …
The assessee filed voluntary income‑tax returns after the statutory deadline prescribed under s.139(1) of the Income Tax Act, 1961. The Income Tax Officer levied interest under clause (iii) of the proviso to s.139(1) and treated the assessee as in default, imposing penalties under s.271(1)(a). The …
The Palai Central Bank Ltd went into liquidation on 8 August 1960. The Income‑Tax Officer assessed its taxable income for AY 1963‑64 at Rs 5,79,678 and held that super profits tax was also payable, directing the bank to file a return under the Super Profits Tax Act, 1963. The bank filed a return …
Dalhousie Properties Ltd, assessed for the year 1966-67, claimed a deduction of Rs.1,78,784 for municipal taxes under the proviso to section 23(1) of the Income‑Tax Act, 1961, arguing that the deduction should be allowed on the basis of the tax liability even though the amount was not fully paid and …
The petitioner, a proprietor of a food business, filed income‑tax returns that were later found to contain false statements and suppressed transactions after a search of his premises. Complaints were lodged against him under sections 276C and 277 of the Income‑Tax Act and sections 193 and 196 of the …
The Supreme Court examined whether tax liabilities arising from settlements under the Taxation on Income (Investigation Commission) Act, 1947, which remained unpaid at the valuation dates, could be deducted as debts owed in computing net wealth under the Wealth‑Tax Act, 1957. The assessee companies …
Dr. S.A. Johari, an honorary surgeon attached to Dr. Amonkar Hospital, occupied a small cabin within the hospital premises and paid a monthly compensation. The Amonkar family, owners of the premises, gave notice terminating his attachment and sought his eviction. Johari filed a suit claiming he was …
The appellants were a partnership firm (Juggi Lal Kamlapat Bankers) and a partner who was also the Karta of a Hindu Undivided Family (HUF). The HUF was assessed to wealth tax, and the assessment included the HUF's interest in the partnership firm. The Wealth‑Tax Officer, believing the book values of …
The Income Tax Department seized the books of account and documents of Oriental Rubber Works under section 132(1) of the Income Tax Act, 1961 and retained them beyond the statutory period of 180 days. The assessee contended that the Revenue failed to communicate the Commissioner’s approval and the …
The assessee, K.S.N. Bhatt, claimed deductions in his wealth‑tax returns for income‑tax, wealth‑tax and gift‑tax liabilities, arguing that these amounts were debts owed on the valuation dates for the assessment years 1964‑65 to 1967‑68. The Wealth Tax Officer allowed only part of the deductions; the …
Mahindra & Mahindra Ltd. (M&M) sought a declaration under Section 72A of the Income‑Tax Act, 1961, to carry forward the accumulated loss and unabsorbed depreciation of International Tractor Company of India Ltd. (ITCI) after their amalgamation. The Specified Authority, after a screening committee, …
Shantilal Private Ltd entered into a contract to sell folic acid but could not deliver due to a sharp price rise. The dispute was referred to arbitration, which awarded the buyer Rs 1,50,000 as compensation for breach of contract. The assessee claimed this payment as a business loss, but the …
