S H KAPADIA

ICICI Bank assigned a portfolio of non‑performing assets (NPAs) worth Rs 52.45 crore to Kotak Mahindra Bank under a deed of assignment. One of the borrowers, APS Star Industries Ltd., entered liquidation and Kotak sought to be substituted as the secured creditor in the winding‑up proceedings. The Company Court and the …

Columbia Sportswear Co., a US company with liaison offices in India, sought an advance ruling from the Authority for Advance Rulings (Income Tax) on taxability and permanent establishment issues. The Authority issued a binding ruling, which the company challenged by filing a Special Leave Petition (SLP) under Article 1…

The Supreme Court, hearing a civil appeal filed by the Mineral Area Development Authority against the Steel Authority of India, noted a conflict between two earlier decisions—one by a five‑Judge Bench in State of West Bengal v. Kesoram Industries Ltd. and another by a seven‑Judge Bench in India Cement Ltd. v. State of …

BSNL alleged that Reliance Communications had routed international calls as local calls, thereby evading higher Interconnect Usage Charges (IUC) and Access Deficit Charges (ADC). BSNL invoked clause 6.4.6 of their inter‑connect agreement to levy a large sum as a "penalty". The Telecom Disputes Settlement and Appellate …

Chloro Controls (India) Pvt. Ltd. filed a suit seeking declaration and injunction against Severn Trent Water Purification Inc. and related entities over a joint‑venture arrangement involving multiple agreements, some of which contained arbitration clauses. The respondents moved under Section 45 of the Arbitration and C…

The Mandi Samiti, a market committee established under the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964, collects market fees and is statutorily required to transfer certain amounts to the Mandi Parishad. Both entities are registered under Section 12AA of the Income Tax Act, 1961. The Revenue argued that these tr…

The President of India made a reference under Article 143(1) of the Constitution seeking the Supreme Court's opinion on whether auction is the only permissible method for disposal of all natural resources, following the Court's judgment in the 2G case which had quashed spectrum licenses and directed auction. The Court …

The petitioner, a public‑spirited citizen, filed a writ petition under Article 32 seeking a direction that all motor vehicles in India be fitted only with safety glass having 100% visual light transmission (VLT) and that the use of black films on vehicle windshields and side windows be prohibited. The petition also dem…

The petitioners, led by Avishek Goenka, raised a public‑interest writ alleging that prepaid SIM cards were being sold without proper identity verification, posing security risks and violating Department of Telecommunications (DoT) notifications. The petitioner sought strict enforcement of verification norms, physical r…

The Supreme Court entertained a public‑interest writ petition seeking directions to the Union and several State governments to nationalise rivers and inter‑link them for flood control and drought mitigation. The petitioners relied on the National Water Policy, the 1980 National Perspective Plan and various feasibility …

The Association of Leasing and Financial Service Companies challenged the levy of service tax under Section 66 of the Finance Act, 1994 (as amended) on financial leasing, equipment leasing and hire‑purchase services, arguing that Parliament lacked competence under Entry 97 of List I because Article 366(29A) treated suc…

The appellant, a Customs House Agent, signed the statutory declaration required under West Bengal Sales Tax Rules 211A before taking delivery of imported goods destined for Mumbai, transiting West Bengal. He failed to produce the endorsed counter‑signed copy of the declaration at the exit checkpost, leading the tax aut…

The appellant, Assistant C.I.T., challenged the assessee Elecon Engineering's claim that roll‑over premium charges paid on foreign‑exchange forward contracts for a plant‑and‑machinery loan were deductible under Sections 36(1)(iii) or 37 of the Income‑Tax Act. The Tribunal and High Court had held the charges were revenu…

The respondents, manufacturers of notified chemicals, were granted Recognition Certificates under Section 4‑B of the Uttar Pradesh Trade Tax Act, 1948, allowing them to purchase high‑speed diesel oil (HSD) at a concessional tax rate. In 2000 the State issued a circular and show‑cause notices directing the deletion of H…

Price Waterhouse Coopers Pvt. Ltd., a large consultancy firm, filed its 2000-01 return of income together with a tax audit report that clearly stated the provision for gratuity was not allowable under section 40A(7). However, the firm mistakenly claimed a deduction for that provision, resulting in an under‑assessment o…

The Commissioner of Central Excise, Goa appealed the classification of 34 board‑game items manufactured by M/s Funskool (India) Ltd. The Supreme Court, relying on its earlier decision in Mis. Pleasantime Products, held that three of the items—"Snake and Ladder", "Monopoly" and "Scrabble/Upwords"—fall under Chapter 95.0…

K.B. Nagur, an Ayurvedic doctor, filed a public‑interest writ petition alleging that elections to the Central Council of Indian Medicine had not been held for two decades and that Section 7 of the Indian Medicine Central Council Act, 1970 – specifically the clause "or until his successor shall have been duly elected or…

The appellant, IBA Health (India) Ltd., challenged a winding‑up petition filed by the respondent, Info‑Drive Systems Bhd., which alleged non‑payment of commission fees under a deed of settlement. The petition relied on Sections 433(e) and 434 of the Companies Act, 1956, claiming the appellant had neglected to pay a deb…

The appellants filed settlement applications under Chapter XIX‑A of the Income Tax Act and disputed the levy of interest under sections 234A, 234B and 234C for default in advance tax. The Supreme Court was asked (i) whether these interest provisions apply to Settlement Commission proceedings, (ii) what the terminal poi…

The appellant workmen sought priority over the sale proceeds of unsecured assets of UMI Special Steels Ltd., arguing that under Sections 529 and 529A of the Companies Act, 1956, workmen's dues should rank ahead of secured creditors on those assets. The respondents, representing the secured creditors, contended that the…

The NGO Kalyaneshwari filed a writ petition under Article 32 seeking a mandamus to ban all mining and manufacturing of asbestos in India and to set up a committee for victim identification. The Court examined whether it could legislate a ban, whether the petition was a bona fide public‑interest litigation, and whether …

The case concerned a rice mill that consumed electricity beyond its contracted load, leading the Executive Engineer to issue a provisional assessment under Section 126 of the Electricity Act, 2003. The mill challenged the assessment and the accompanying notice of "unauthorised use" before the High Court, arguing lack o…

The Supreme Court examined Vodafone International Holdings' acquisition of the entire share capital of CGP Investments (Holdings) Ltd., a Cayman Islands company that indirectly held a 52% stake in Hutchison Essar Ltd. (HEL). The Revenue argued that the sale of CGP, together with associated rights and entitlements, amou…

The appellant, C.I.T., Mumbai, challenged the assessment that the twisting and texturising of partially oriented yarn (POY) did not constitute "manufacture" under Section 80IA of the Income Tax Act, 1961. The Court examined expert testimony that POY is a semi‑finished yarn which, after undergoing a thermo‑mechanical pr…

The Supreme Court examined whether manufacturers of excisable final products could claim exemption from excise duty on specified intermediate goods under Notification 121/94‑CE by relying on "intended use" and the doctrine of "substantial compliance" of Chapter X of the Central Excise Rules, despite not fulfilling the …

The Supreme Court examined whether Section 11A of the Land Acquisition Act, which provides for lapse of acquisition proceedings after two years, applies to acquisitions made under the Bangalore Development Authority Act (BDA Act). The appellant argued that the acquisition had lapsed, rendering the land de‑notified, whi…

The Supreme Court examined whether the term "change of opinion" in Section 147 of the Income Tax Act, 1961 was eliminated after the 1 April 1989 amendment. The Court traced the evolution of Section 147 from its original wording, through the 1987 amendment that introduced "opinion", to the 1989 amendment that reinstated…

Catholic Syrian Bank Ltd. appealed against the Commissioner of Income Tax, Thrissur, challenging the denial of a deduction for bad debts under Section 36(1)(vii) of the Income Tax Act, 1961. The bank argued that deductions under Section 36(1)(vii) (write‑off of irrecoverable debts) are independent of those under Sectio…

Electronics Corporation of India Ltd (ECIL), a central government PSU, challenged show‑cause notices issued by the Ministry of Finance that sought reversal of Modvat/Cenvat credit on inputs that had been written off. The adjudicating authority rejected ECIL’s claim that the write‑off complied with AS‑2, and the matter …

The Supreme Court examined whether Minimum Alternate Tax (MAT) credit under Section 115JAA of the Income Tax Act, 1961 must be set off against assessed tax before computing interest under Sections 234A, 234B and 234C. It held that the tax paid under Section 115JA is a "tax" within the meaning of the Act and the credit …

The petitioners, including M/s. Jindal Stainless Ltd., challenged the validity of various State entry tax statutes on the ground that they violated Articles 301, 302, 303 and 304 of the Constitution. The Division Bench observed that several High Courts had treated Article 304(a) and 304(b) as independent, concluding th…

During the assessment year 1997-98 Gufic Chem Ltd. received Rs. 50 lakh as a non‑competition fee under an agreement that prohibited it from carrying on its pharmaceutical business for 20 years. The Assessing Officer treated the amount as a capital receipt, a view upheld by the Commissioner of Income Tax (Appeals) and t…

The appeal concerned whether depreciation for computing book profit under Section 115J of the Income Tax Act should be allowed as per Rule 5 of the Income Tax Rules, 1962, rather than Schedule XIV of the Companies Act, 1956. The assessee, a private limited company, had claimed depreciation under the Rules, but the Asse…

The importer, N.I. Systems, brought various computer‑based instrumentation items—PXI controllers, I/O modules, signal converters and chassis—into India and classified them under Chapter 84 (8471) as automatic data processing machines. The Customs authorities classified them under Chapter 90 as parts and accessories of …

The Assistant Commissioner, Commercial Tax Department appealed to the Supreme Court after the Rajasthan High Court dismissed a tax revision petition in a cryptic order that contained no reasons. The appellant argued that the lack of reasons violated principles of natural justice, legitimate expectation, and procedural …

The Department intercepted a vehicle carrying paint buckets whose ST‑18A declaration form was left completely blank, and imposed a penalty under s.78(5) of the Rajasthan Sales Tax Act, 1994 for an alleged intent to evade tax. The penalty was set aside by the appellate authority and the State Tax Board, which the Depart…

The Rajasthan Commercial Tax Department assessed a higher sales tax rate of 12% on "ballies" sold by M/s Rijhumal Jeevandas, treating them as timber, while the normal rate for goods was 8%. The assessee appealed and the Deputy Commissioner (Appeals) and the Rajasthan Tax Board held that ballies are not timber and set a…

Vijaya Bank claimed deductions under Section 36(1)(vii) of the Income Tax Act, 1961 for bad debts in the assessment years 1993‑94 and 1994‑95. The bank had created a provision, debited the profit and loss account and simultaneously reduced the Loans and Advances/ Debtors on the balance sheet, but it did not close each …

The National Campaign Committee filed a writ petition under Article 32 seeking full implementation of the Building and Other Construction Workers (Regulations of Employment and Conditions of Service) Act, 1996 and the Welfare Cess Act, 1996, including the constitution of State Welfare Boards, registration of workers an…

Azad Coach Builders was contracted by an exporter to fabricate bus bodies according to a foreign buyer’s specifications, after which the bodies were mounted on chassis and exported as complete buses. The assessee claimed exemption from State sales tax under Section 5(3) of the Central Sales Tax Act, arguing that the sa…

Oracle Software India Ltd. imported master media containing application software and commercially duplicated it onto blank compact discs (CDs) to sell as software kits. The Income Tax Department denied the company a deduction under Section 801A of the Income Tax Act, arguing that the duplication process did not amount …

The President of India referred the conduct of the Haryana Public Service Commission Chairman Mehar Singh Saini and three members to the Supreme Court under Article 317(1) for alleged misbehaviour, including irregular selections, use of bogus certificates, and refusal to cooperate with vigilance investigations. The Cou…

The Centre for Environment and Food Security filed a public‑interest writ petition seeking directions to ensure proper implementation of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) and its schemes, alleging fund diversion and irregularities, particularly in Orissa. The Supreme Court, afte…

The NGO Kalyaneswari and its Secretary B.K. Sharma filed a writ petition in the Gujarat High Court seeking the closure of an asbestos manufacturing unit, which the High Court dismissed as being filed at the behest of rival industrial groups and lacking bona fides. Undeterred, they approached the Supreme Court with a fr…

The Supreme Court examined the constitutional validity of the Right of Children to Free and Compulsory Education Act, 2009, particularly sections 3, 12(1)(b) and 12(1)(c), which impose admission and fee‑reimbursement obligations on schools. The petitioners argued that these provisions infringed the fundamental rights o…

The Supreme Court was approached after a television channel disclosed confidential settlement proposals between Sahara India Real Estate Corp. Ltd. and SEBI during pending litigation, raising concerns about media reporting of sub‑judice matters. The Court examined whether it could issue guidelines or orders restricting…

The Supreme Court examined a writ petition filed by Samaj Parivartan Samuday alleging continued illegal mining of iron ore in Karnataka and Andhra Pradesh, despite earlier orders and a CBI charge‑sheet. The Court considered reports of a Central Empowered Committee (CEC) that identified irregularities, including land de…

The case stems from the 1984 Bhopal gas tragedy, where the CBI filed charge sheets alleging offences under Sections 304, 324, 326, 429 and 35 IPC. The Sessions Court framed those charges, but the Supreme Court, in Keshub Mahindra v. State of M.P. (1996), quashed them and directed that only Section 304A IPC could be fra…

The case concerned a parcel of land in Jalgaon reserved for a development plan under the Maharashtra Regional and Town Planning (MRTP) Act, 1966. The appellant claimed that the State Government and Municipal Council failed to acquire the land within the time limits prescribed by the MRTP Act and sought relief under the…

Navin Jindal, a shareholder of Jindal Iron and Steel Co., was entitled to subscribe to partly convertible debentures (PCDs) issued on a rights basis. He renounced this right for Rs 56,250, which caused a fall in the value of his original 1,500 equity shares by Rs 200 per share, resulting in a net loss of Rs 2,43,750. J…

The case concerned whether a Non‑Banking Financial Company (NBFC) could treat the "Provision for NPA" debited to its profit‑and‑loss account, as required by RBI Directions 1998, as income under s.2(24) of the Income Tax Act or claim a deduction under s.36(1)(vii). The Supreme Court held that the RBI Directions are mere…

The petitioners filed a public‑interest litigation under Article 32 seeking a complete ban on the release of genetically modified organisms (GMOs) and a biosafety protocol. Earlier Supreme Court orders had required GEAC approval for field trials and later lifted the moratorium with specific conditions. Persistent contr…

GE India Technology Centre Private Ltd. imported software and paid the foreign supplier for a licence. The Income Tax Officer held the payment to be a royalty deemed to accrue in India, requiring tax deduction at source (TDS) under Section 195 of the Income Tax Act, 1961. The Commissioner upheld this view, but the Inco…

The Competition Commission of India (CCI) received a complaint that Steel Authority of India Ltd (SAIL) had abused its dominant position by entering an exclusive supply agreement with Indian Railways. The CCI formed a prima facie view and directed the Director General to investigate under s.26(1) of the Competition Act…

Ajanta Pharma Ltd., a Minimum Alternate Tax (MAT) company, claimed a 100% reduction of export profits while computing "book profits" under Section 115JB of the Income Tax Act for AY 2001-02, invoking Section 80HHC. The Assessing Officer allowed only an 80% reduction based on Section 80HHC(1B). Both the Commissioner of …

The appellants, Nagbhai Najbai Khackar, challenged the inclusion of their "bid lands"—uncultivable waste lands used for grazing—within the ceiling limits of the Gujarat Agricultural Lands Ceiling Act, 1960 as amended by Act 2 of 1974. They argued that the amendment unintentionally omitted the word "includes" in the def…

M/s. Techno Shares & Stocks Ltd. claimed depreciation on the cost of its Bombay Stock Exchange (BSE) membership card for assessment years 1999-2003, invoking Section 32(1)(ii) of the Income Tax Act, 1961. The Assessing Officer rejected the claim, holding that the membership card was a personal, non‑transferable privile…

The petitioners, Glanrock Estate Ltd., challenged the validity of the Gudalur Janmam Estates (Abolition and Conversion into Ryotwari) Act, 1969 (the Janmam Act) after it was placed in the Ninth Schedule by the Constitution (Thirty‑fourth Amendment) Act, 1974. They argued that the Act violated Articles 14, 19 and 300A, …

The Supreme Court heard a public‑interest writ filed by Bhopal Gas Peedith Mahila Udyog Sangathan on behalf of the victims of the 1984 Bhopal gas disaster, seeking free medical care, implementation of research studies, and proper administration of the Bhopal Memorial Hospital Trust (BMHT). The Court examined whether it…

The case concerned lands in the Roerich estate that were exempted from Karnataka's Land Reforms Act, 1961 under Section 107 for linaloe cultivation. The State Government withdrew this exemption by issuing a notification under Section 110 of the Act in 1994, and later enacted the Roerich and Devika Rani Roerich Estate (…

The appellants, heirs of a zamindar, challenged a Gazette notification under Section 4‑A of the Kumaun and Uttarakhand Zamindari Abolition and Land Reforms Act, 1960 (KUZALR Act) that vested their 1,600 acres of forest land in the State on 1 January 1978. They argued that the vesting was unconstitutional, repugnant to …

Eight persons were tried by a Sessions Court in Madhya Pradesh for murder and related offences under the Indian Penal Code. The High Court set aside their convictions, and the State appealed, but only four of the accused were impleaded as respondents in the appeal. The Supreme Court, in a 2008 judgment, reversed the ac…

The appellants Rakesh Kumar Goel and others purchased two government plots in Ghaziabad through an auction purportedly held under the Uttar Pradesh Zamindari Abolition and Land Reforms Rules, 1952. The High Court set aside the auction on the ground that the appellants failed to deposit the required 25% of the bid immed…

Daiichi Sankyo acquired a controlling stake in Ranbaxy, which had earlier bought shares of Zenotech at Rs.160 per share. When Daiichi made a public offer to acquire Zenotech shares, it offered Rs.113.62 per share, citing the market price as the highest of the methods prescribed under Regulation 20(4)(c). The respondent…

The State of Kerala amended its Chitties Act, 1975 to bring chitties registered outside the state but with substantial Kerala subscribers within its regulatory ambit. Private chit firms challenged the amendment as repugnant to the Central Chit Funds Act, 1982 under Article 254(1). The Supreme Court was asked whether re…

The Supreme Court examined whether the deduction under Explanation (baa) to Section 80HHC of the Income‑Tax Act, 1961 should be computed on the basis of gross receipts or the net amount of receipts such as interest and rent that are actually included in the profit‑and‑gain calculation. The Court held that only ninety p…

The appellant, an exporter, claimed deductions under Section 80HHC for profits retained for export business, arguing that the face value of the Duty Entitlement Pass Book (DEPB) is "cash assistance" and should be excluded from profit under Section 28(iiib). The Assessing Officer treated the entire sale value of the DEP…

Mis Topman Exports sold its Duty Entitlement Pass Book (DEPB) and claimed a deduction under section 80HHC of the Income Tax Act for the assessment year 2002-03. The Assessing Officer treated the entire sale proceeds as profit on transfer under section 28(iiid), denying the deduction. The Tribunal held that DEPB is cash…

The Totgars' Cooperative Sale Society Ltd., a cooperative credit society, invested surplus funds in short‑term bank deposits and government securities and earned interest. It claimed that this interest was business income eligible for deduction under Section 80P(2)(a)(i) of the Income Tax Act, 1961. The Assessing Offic…

The Commissioner of Central Excise sought interest under Section 11AB of the Central Excise Act, 1944 on differential duty that International Auto Ltd. paid after the date of clearance of goods because the selling price was later revised upward. The assessee contended that the purchase order prices were final, there wa…

The Supreme Court examined the implementation of the High Security Registration Plates (HSRP) scheme introduced under the Motor Vehicles Act, 1988 and the Motor Vehicles Rules, 1989. While earlier judgments upheld the Central Government's power to issue the scheme, many states failed to comply, either by delaying tende…

The Supreme Court examined the persistent failure of several State Governments and Union Territories to implement the High Security Registration Plates (HSRP) scheme mandated under the Motor Vehicles Act, 1988. The petitioners sought enforcement of the statutory provisions and earlier Supreme Court directions, while th…

NRC Ltd, a sick industrial company, entered into a memorandum of understanding and subsequent agreements with K. Raheja Universal Ltd for the sale of 344 acres of land to raise funds for restructuring. The sale was only partially paid and the company later sought a corporate debt restructuring (CDR) scheme, which was a…

Rolta India Ltd. filed a return showing nil total income, but the Assessing Officer levied tax on book profits under Section 115JA and charged interest under Sections 2348 and 234C for default in advance tax. The assessee contended, relying on the Karnataka High Court's Kwality Biscuits decision, that interest could no…

The dispute arose from a contract between Bharat Aluminium Co. and Kaiser Aluminium Technical Service, Inc. that provided for arbitration in London under English law, but governed the contract by Indian law. After two awards were rendered in England, the appellant sought to set aside the awards under Section 34 of the …

The Supreme Court examined Lafarge Umiam Mining Pvt. Ltd.'s limestone mining project in East Khasi Hills, Meghalaya, where the company had obtained environmental clearance in 2001 based on a certificate stating the land was not forest. Subsequent inspections by forest officials in 2006‑2007 identified forest cover, lea…

The appellant, C.I.T., Mumbai, challenged the High Court’s order allowing a loss of Rs. 2,09,44,793 claimed by the respondent, a mutual fund unit trader, to be set off against taxable income. The respondent had bought mutual fund units before the record date, received a tax‑free dividend under section 10(33), and sold …

Indo Rama Synthetics (I) Ltd. revalued its fixed assets in FY 2000, creating a revaluation reserve of Rs 288.58 crore. In FY 2001 it transferred Rs 26.11 crore of differential depreciation from that reserve to its profit‑and‑loss account, thereby reducing depreciation expense and showing a profit. The Assessing Officer…

National HydroElectric Power Corp. Ltd. (NHPC), a public sector electricity generator, sold power at tariff rates that included an Advance against Depreciation (AAD). In its profit and loss account NHPC reduced the sales figure by the AAD amount and did not debit the profit and loss account with it. The Authority for A…

The petitioners challenged the construction of a large memorial park in Noida, alleging that the 33.43‑hectare site was forest land and that the project proceeded without the required prior environmental clearance under the 2006 EIA Notification, thereby threatening the nearby Okhla Bird Sanctuary. The Court examined r…

The Supreme Court examined the legality of Shri P.J. Thomas's appointment as Central Vigilance Commissioner under Section 4(1) of the Central Vigilance Commission Act, 2003, which was based on a recommendation by the High Powered Committee (HPC). The Court found that the HPC failed to consider material indicating pendi…

The petitioner, Joydeep Mukharjee, filed a public interest litigation challenging the allotment of government lands in Salt Lake City, Kolkata, alleging that the Chief Minister's use of a discretionary quota was arbitrary, illegal, and violated the Master Plan as well as Articles 14 and 21 of the Constitution. The matt…

The Supreme Court examined whether a notice under Section 143(2) of the Income Tax Act, 1961 must be served within the prescribed time before a block assessment can be framed under Chapter XIV‑B for undisclosed income discovered through a search under Section 132. The Court held that the special provisions of Chapter X…

GVK Industries Ltd. challenged a tax order that invoked sections 9(1)(i) and 9(1)(vii)(b) of the Income Tax Act, 1961, arguing that the provisions were unconstitutional for lacking a nexus with India. The High Court upheld the tax provision, relying on the ECIL judgment, prompting a Supreme Court reference to a Constit…