Taxation Laws (Amendment) Act, 1984

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 new partnership deed t…

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, treating it as a disallowe…

The Supreme Court examined whether interest not charged by a company on loans advanced to its directors could be treated as a perquisite under Sections 17(2) and 40A(5) of the Income‑Tax Act. The Income‑Tax Officer had disallowed a sum equal to 15% of the directors' debit balances, but the Appellate Tribunal held that …

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 was not available at …