S H KAPADIA

Liberty India, a partnership firm operating a small‑scale industrial undertaking, claimed a deduction under s.80‑18 of the Income‑Tax Act for profits arising from Duty Entitlement Passbook (DEP8) and duty‑drawback credits that were posted to its profit and loss account. The Assessing Officer rejected the claim, holding…

Mis Aurohill Global Commodities Ltd., a Cyprus‑based exporter, entered into a draft purchase order with Mis M.S.T.C. Ltd. for the sale of steel billets. The purchase order contained an arbitration clause mandating disputes be resolved in London under the rules of Great Britain and a jurisdiction clause conferring exclu…

The petition challenged the discontinuation of the Fast Track Courts Scheme after 31 March 2005, arguing that the State’s failure to maintain the scheme would violate the constitutional right to speedy justice under Article 21. The respondents, Union of India and several states, contended that financial constraints and…

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 …

The appellant, Commissioner of Central Excise, challenged the assessment of duty on pulp transferred by the respondent, Mis. Ballarpur Industries Ltd., to its sister unit for captive use in making paper, an exempted final product. The assessee had claimed MODVAT credit on inputs and paid duty on the cost price of pulp,…

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 examined Reliance Infocomm Ltd.'s challenge to BSNL's demand for Access Deficit Charges (ADC) on its "Unlimited Cordless" service, arguing that the service should be classified as Fixed Wireless Local Loop (WLL(F)) and thus exempt from ADC. The Court considered the definitions in the Telecommunication…

The appellant, Punjab Aromatics, purchased "red oil" from unregistered dealers and purified it by removing water and impurities to obtain "sandalwood oil". The Department argued that this purification constituted consumption of red oil in the manufacture of sandalwood oil, attracting purchase tax under Section 5A of th…

BSNL demanded Access Deficit Charges (ADC) from Tata Teleservices for its 'Walky' service for the period 14‑Nov‑2004 to 26‑Aug‑2005, alleging that the service should be classified as Wireless Local Loop Mobile (WLL(M)) and thus liable to ADC. Tata contended that 'Walky' was a fixed wireless (WLL(F)) portable device and…

The State of Punjab appealed a High Court order that granted Mis. Atul Fasteners Ltd. a refund of Rs.42,62,807 paid as sales tax between April 1997 and September 2001, together with 18% per annum interest from December 21, 2001. The refund arose under the Punjab General Sales Tax (Deferment and Exemption) Rules, 1991, …

The appellant‑assessee, Mis. Span Diagnostics Ltd., manufactures monoclonal antibodies (MABs), pregnancy test kits, and other diagnostic reagents. The Department classified these products under Chapter 30.05 or Chapter 38.22 of the Central Excise Tariff Act, 1985, while the assessee claimed classification under Chapter…

The appellant, Sree Durga Distributors, sold dog feed and cat feed and claimed a Nil rate of duty under Entry 5 of the First Schedule of the Karnataka Value Added Tax Act, 2003. The issue was whether these products fell within the category of "animal feed and feed supplements" listed in Entry 5, which provides a Nil ra…

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 …

Mis Clariant (India) Ltd, a manufacturer of leather chemical products, entered into a Technical Collaboration Agreement with Sandoz Quinn for the import of raw material. The Customs Department demanded that a technical know‑how fee of Rs 5,00,000 be added to the assessable value of the raw material under Customs Valuat…

The Government of Andhra Pradesh issued a demand notice under Section 5 of the Andhra Pradesh General Sales Tax Act, 1957 for tax on the turnover of an auction sale of jewellery held on 19‑08‑1987 by Corporation Bank, invoking Explanation IV to Section 2(1)(e) inserted by Act No. 27 of 1996. The Bank challenged the not…

Essar Steel Ltd imported goods under the Project Imports Regulations, 1986 and paid duty based on a declared assessable value of DM 46.75 million. The Customs Department increased the assessable value to DM 84.15 million, leading the importer to pay an additional Rs 6.02 crore under protest. The Customs Tribunal ordere…

The appellant, Kemrock Industries & Exports Ltd., manufactured glass fibre reinforced plastics and sought classification of the product under Heading 70.14 of the Central Excise Tariff Act, 1985, arguing that the essential character remained that of glass fibre. The Revenue contended that the product should be classifi…

Zuari Industries Ltd, a fertilizer manufacturer, sought to import a 6 MW captive power plant as part of a substantial expansion of its NPK plant under Project Import Regulations. The Ministry of Chemicals & Fertilisers issued an Essentiality Certificate stating that the power plant was essential for the fertilizer proj…

Rajasthan Spinning and Weaving Mills Ltd. (RSWML) set up a process house for fabric processing and later leased it to other firms. The Central Excise Department alleged that the lease was a sham intended to shift valuation from the comparable‑goods method to the cost method and demanded differential duty. The Customs, …

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…

M/S. Prachi Industries, a small‑scale unit, purchased duty‑paid mild steel (MS) tubes classified under heading 73.06 and processed them by cutting to length and then subjecting them to swaging on a rotary machine fitted with various dies. The Revenue argued that the swaged product remained the same entry and therefore …

The Supreme Court examined the methodology for compensating diversion of forest land for non‑forest developmental projects under the Environment Protection Act, 1986. It accepted the recommendations of the Central Empowered Committee (CEC) that the user agency must pay a Net Present Value (NPV) based on ecological clas…

M/s. Goa Carbon Ltd., a leasing company, supplied plant and machinery to Kesar Enterprises Ltd. on lease and received lease rent. The Uttar Pradesh tax authorities issued notices under s.3F of the Uttar Pradesh Trade Tax Act, 1948, assessing tax on the lease rent, treating the transaction as a transfer of the right to …

An eight‑year‑old girl belonging to a Scheduled Caste was allegedly raped by Dinesh @ Buddha on the night of 5 February 1998. The trial court convicted him under IPC Section 376(2)(f) (rape of a child under 12) and under Section 3(2)(v) of the SC/ST (Prevention of Atrocities) Act, sentencing him to life imprisonment an…

The State of Kerala appealed a Kerala High Court order that quashed charges under Sections 3(i) and 3(xi) of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989, on the ground that the victim’s family had converted to Christianity two centuries earlier and therefore ceased to be members of a …

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 …

M/s DCM Ltd sold chemicals to three purchasing dealers in Delhi under contracts that assigned each dealer an exclusive territory outside Delhi and obliged them to move the goods to those territories for sale. The Assessing Authority treated the transactions as local sales, but the Sales Tax Tribunal and the Delhi High …

The Commissioner of Income Tax appealed against the Madras High Court’s decision that the Completed Contract Method of accounting for chit discount, used by M/s Bilahari Investment (P) Ltd., was valid. The assessee companies, engaged in chit fund business, had historically applied the Completed Contract Method, which t…

The Maharashtra State Road Transport Corporation (MSRTC) and a trade union entered into an industrial settlement in 1956 (Clause 49) granting any employee who worked continuously for 180 days the benefits of a time‑scale worker. A later settlement in 1985 (Clause 19) provided for the absorption of daily‑rated workers a…

The appellant, Rabindra Chandra Paul, imported two consignments of refined soybean oil from Bangladesh at a C&F price of Rs 24.50 per kg. The Customs Department, doubting the declared value, asked for a cost break‑up and later invoked Rule 7A of the Customs Valuation Rules, 1988, rejecting the raw‑material cost but acc…

Honda Siel Power Products Ltd, a manufacturer of generators, claimed enhanced depreciation under section 43A of the Income Tax Act for foreign‑exchange fluctuations in the cost of machinery. The Income Tax Appellate Tribunal rejected the claim, failing to consider a coordinate‑bench judgment (Samtel Color Ltd) that was…

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…

Larsen & Toubro Ltd. (L&T) executed works contracts in Andhra Pradesh and subcontracted portions to registered VAT dealers. The State of Andhra Pradesh assessed tax on L&T by adding the turnover of the subcontractors, treating the arrangement as two deemed sales – one from the subcontractor to L&T and another from L&T …

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…

V.G. Saraf, a 50% partner in Saraf Trading Corporation, a tea‑exporting partnership, died in 1984. The Controller of Estate Duty sought to value the firm's goodwill for estate duty using the super‑profit method with a three‑year purchase multiplier, while the respondent argued this was excessive. The Income Tax Appella…

The case concerned whether employers could claim a deduction under Section 43‑B of the Income Tax Act, 1961 for contributions to provident or welfare funds that were paid after the statutory due date but before filing the income‑tax return. The Finance Act, 2003 deleted the second proviso of Section 43‑B and amended th…

Mis Modipon Fibre Company, a manufacturer of nylon and polyester yarn, cleared its yarn to depots including Surat in Gujarat. A Gujarat notification of 19‑Oct‑1993 exempted yarn sold to special manufacturers in backward areas, allowing a turnover tax (TOT) rate of 0.5% instead of the normal 2%. The assessee claimed a 2…

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 Supreme Court examined whether the Kerala High Court correctly disposed of three second appeals without first formulating any substantial question of law, as required by Section 100 of the Code of Civil Procedure, 1908. The respondents argued that the proviso to sub‑section (5) of Section 100 allowed the High Court…

The appellants Asharam and four others were alleged to have ambushed Nandan, Tikaram and Koshabai in a field, assaulting them with a spear (ballam) and lathis, causing multiple serious injuries. The trial court acquitted them, citing contradictions in the eye‑witness statements and questioning the timing of the FIR. Th…

Mis. Lakshmi Machine Works filed its return for AY 1993-94 claiming a deduction under Section 80HHC of the Income Tax Act, 1961, excluding sales tax and excise duty from its total turnover. The Assessing Officer demanded recomputation of total turnover by adding those taxes, but the appellate authority held they were l…

The Supreme Court examined whether the tax‑deduction‑at‑source (TDS) provisions in Chapter XVII‑B of the Income‑Tax Act are independent of the charging provisions that determine the assessability of salary income. It held that the TDS provisions are part of an integrated code and must be read with Section 9(1)(ii) (and…

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…

The respondents, Anil Chanana and another, were intercepted at Delhi airport with two pairs of diamond earrings and $1,900, leading to their arrest for false declaration and evasion of customs duty under the Customs Act, 1962. They applied for compounding of the offences under Sections 132 and 135(1)(a) and for settlem…

Vikram Cement, a cement manufacturer, claimed CENVAT credit for duty paid on inputs (explosives, lubricating oil, welding electrodes) and capital goods (limestone crusher, mining equipment) used in its captive limestone mines adjacent to its factory. The department issued show‑cause notices rejecting the credit, arguin…

The case involved a firm, M/s V.V. Enterprises, purportedly engaged in prize ticket business and collecting public deposits. Police seized about Rs. 1.18 crore from its premises, and the Assessing Officer found the firm’s books incomplete and could not explain the source of the deposits, treating the amount as undisclo…

The case concerned whether Mis. Solaris Chemtech Ltd. could claim MODVAT credit under Rule 57A for Low Sulphur Heavy Stock (LSHS) and furnace oil used to generate electricity that was captively consumed in the manufacture of cement and caustic soda. The Revenue argued that electricity generation is a separate, non‑exci…

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 imported second‑hand photocopier machines in January 2005 under the "general imports" category of the Foreign Trade Policy (FTP) 2004‑09. The Customs authority treated the machines as "restricted" under para 2.17 of the FTP, relying on DGFT circulars and seized them. The Supreme Court held that the machin…

Vedanta Aluminium Ltd (formerly Vedanta Alumina Ltd) sought judicial clearance to divert 58.943 hectares of reserve forest land in the ecologically sensitive Niyamgiri Hills of Orissa for a one‑million‑tonne alumina refinery. The project required mining of bauxite from the hills, which are a wildlife corridor, a water …

Ratnabali Capital Markets Ltd. (RCML) sought to claim fee‑continuity under a SEBI circular dated 30 September 2002, arguing that its merger with Ratnabali Securities Ltd. (RSL) was compelled by law because SEBI’s Gupta Committee required a net‑worth of Rs 3 crore to trade in derivatives. The merger was effected under t…

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 assessee, M/s HCL Com Net Systems & Services Ltd, for Assessment Year 1997-98, debited Rs 92,15,187 as bad debts in its profit and loss account. The Assessing Officer (AO) added this amount back to the book profit under clause (c) of the Explanation to section 115JA(2) of the Income‑Tax Act, treating it as a provis…

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act alleging that four cheques issued by the managing director of the respondent company were dishonoured. The magistrate recorded a rubber‑seal order stating that cognizance was taken and later issued process against the respondents. The r…

The police, acting on a tip, stopped Daulat Ram who was carrying a bag on his head and offered him a choice under Section 50 of the NDPS Act to be searched before a magistrate, a gazetted officer, or the SHO; he chose the SHO. The bag was opened and contraband opium was found, leading to his conviction under Sections 8…

The Confederation of Ex‑Servicemen Associations filed a writ petition under Article 32 seeking free and full medical aid for ex‑defence personnel, their families and dependents, arguing that such aid is a fundamental right under Articles 14 and 21. The Union of India responded that the Ex‑Servicemen Contributory Health…

The High Court ordered the winding up of a company on 2 December 1983 and appointed an Official Liquidator. The Liquidator filed misfeasance proceedings on 1 December 1989 under s.543(1) of the Companies Act, 1956, although the five‑year limitation prescribed in s.543(2) had expired on 1 December 1988. The appellant ar…

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 Commissioner of Central Excise issued a show‑cause notice alleging that Mis Frick India Ltd. had undervalued compressors and overvalued the accessories supplied separately, thereby evading excise duty. The assessee argued that the fly‑wheel, safety valve and filter were separate goods classifiable under their own t…

The Agricultural Produce Market Committee (AMC) of Narela claimed exemption from income tax under section 10(20) of the Income Tax Act, 1961, asserting it was a "local authority". The Finance Act, 2002 added an exhaustive Explanation to section 10(20) defining "local authority" as a Panchayat, Municipality, Municipal C…

J. Mitra & Co. Pvt. Ltd. applied for a patent which was opposed by Span Diagnostics Ltd. (respondent No.3). The opposition was initially a pre‑grant opposition under Section 25(1) of the Patents Act, 1970. The Controller rejected the pre‑grant opposition on 23‑Aug‑2006 and the respondent filed appeals (FAO Nos. 292/06 …

The All India Federation of Tax Practitioners challenged the levy of service tax on chartered accountants, cost accountants and architects under the Finance Acts of 1994 and 1998, arguing that such tax fell within State List Entry 60 (taxes on professions) and was barred by Article 276. The Supreme Court examined the c…

Federal Bank Ltd. and other banks challenged notices issued by the Kerala tax department demanding sales tax on the auction sale of gold and other valuables pledged as security for loans. The banks argued that such sales were not "sales" within the meaning of the Kerala General Sales Tax Act, 1963 and that they did not…

The Supreme Court entertained an interlocutory application concerning the constitution of a Central Empowered Committee (CEC) under Section 3(3) of the Environment Protection Act, 1986. After considering submissions of the Solicitor General and an Amicus Curiae, the Court specified the composition of the CEC, naming a …

M/s WEP Peripherals Ltd imported shuttles used in printers and paid a royalty/licence fee to the foreign supplier. The Customs adjudicating authority added the royalty fee to the customs value of the shuttles by using the peak price, ignoring that the importer had received a bulk order and had offered a price discount.…

The appellant, Commissioner of Customs, appealed against the Tribunal’s order that the royalty and licence fees payable under a technical assistance and trademark agreement (TAA) between M/s Ferodo India Pvt. Ltd. (the respondent) and its foreign licensor should be added to the customs value of imported raw materials. …

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 appellants, including Karnataka Bank Ltd., Shaw Wallace & Co., and a partnership firm, challenged notices requiring each of their branches in Andhra Pradesh to pay profession tax of Rs.2500 per annum, arguing that the explanation to the definition of "person" in the Andhra Pradesh Tax on Professions, Trades, Callin…

Hero Exports, a trader exporter, earned export turnover from trading goods and additional income from export incentives, miscellaneous income and interest. It claimed that 10% of this other income should be treated as an expense attributable to the export turnover and therefore deducted from the indirect costs under se…

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 Commissioner of Customs alleged that Mis. Phoenix International Ltd (PIL) and its subsidiary Mis. Phoenix Industries Ltd (PIND) split the import of synthetic shoe components—uppers by PIL and soles, insoles and sock liners by PIND—to evade customs duty and obtain a concessional rate under Notification No. 45/94-Cus…

The landlords sought eviction of Oriental Insurance Company Ltd. (OIC) from premises in Thane, arguing that OIC, a Government company under Section 617 of the Companies Act, 1956, was exempt from protection under Section 3(1)(b) of the Maharashtra Rent Control Act, 1999. The High Court held that Government companies we…

Adhunick Food Products Ltd. manufactures cereal‑based "puffs" that it supplies to the Integrated Child Development Scheme (ICDS) and sells under the brand "Bonton". The Central Excise Department issued a show‑cause notice alleging mis‑declaration of the product as "prasad/prasadam" and demanded Rs 2.31 crore in duty, a…

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…

Mepco Industries Ltd. received a power subsidy for two years and initially treated it as a revenue receipt. The assessee argued that the subsidy was a capital receipt and sought revision of assessment orders, which were initially allowed by the Commissioner of Income Tax. After the Supreme Court’s decision in Sahney St…

The Supreme Court examined whether the Companies (Accounting Standards) Rules, 2006 – which made Accounting Standard 22 (deferred tax) mandatory – exceeded the Central Government’s rule‑making power under s. 642 of the Companies Act, 1956 and conflicted with the Act’s provisions on true‑and‑fair accounts, Schedule VI a…

Gurpreet Singh appealed against the Union of India challenging the applicability of the rule of appropriation in execution of award decrees under the Land Acquisition Act, 1894 (as amended by Act 68 of 1984) and the entitlement to interest on solatium. The Court examined whether the normal CPC rule of appropriation (Or…

The case arose from two suits filed in the Delhi High Court seeking specific performance of a 1983 agreement for the sale of flats and a refund of a loan allegedly advanced by the plaintiffs to the developers. The trial judge framed ten issues in each suit, found in favour of the plaintiffs, and held that a conveyance …

The Commissioner of Central Excise issued show‑cause notices to Chennai Petroleum Corporation Ltd (CPC) demanding excise duty on Refinery Fuel Oil (RFO) used to produce naptha, sulphur and electricity. CPC, a government‑owned refinery declared a "deemed warehouse", argued that naptha and sulphur are petroleum products …

Amrit Agro Industries Ltd., a manufacturer of various namkeens, claimed that roasted peanuts and moongfali masala mazedar fell under Heading 21.08 and were therefore exempt from excise duty under Notification No. 4/97-C.E. The Central Excise Department accepted the exemption for aloo bhujia and chholey masala but class…

The case concerns the murder of Asha, who was found strangled and allegedly raped in a maize field. The prosecution relied on eyewitness testimony, medical evidence of rape and strangulation, and an extra‑judicial confession made by co‑accused Babu to a witness in the presence of the appellant Akhlaq. The trial court a…

Sterlite Industries imported a Fully Automated Sequential X‑ray Spectrometer and claimed classification under sub‑heading 9027.30 of the Customs Tariff Act, 1975, seeking a lower duty rate and a partial exemption under Notification 46/96. The Customs Department classified the equipment under sub‑heading 9022.19, imposi…

The appellant, Commissioner of Central Excise, challenged Home Ashok Leyland Ltd's claim of MODVAT credit for differential duty paid on inputs received in 1986‑87 and utilized in August‑December 1987. The revenue department argued that an amendment to Rule 57E, effective 15‑April‑1987, operated prospectively and thus b…

Munjal Sales Corporation appealed against disallowances of interest deductions claimed under Section 36(1)(iii) of the Income Tax Act, 1961. The Assessing Officer held that interest-free advances given to sister concerns were funded by interest‑bearing loans and thus barred by Section 40(b)(iv). The Tribunal initially …

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 respondent, a wholesale biscuit dealer, was stopped while unloading goods when a vigilance officer detected irregularities and the Sales Tax Officer (Vigilance) levied tax of Rs.32,592 and a penalty of Rs.54,320 under Section 16‑D of the Orissa Sales Tax Act. The dealer challenged the officer's authority, arguing t…

The Supreme Court examined whether Mis. Hyundai Heavy Industries Co. Ltd., a Korean non‑resident, had a Permanent Establishment (PE) in India for a turnkey contract to design, fabricate, install and commission an oil platform for ONGC. The assessee argued that the contract was divisible, that the design and fabrication…

The Commissioner of Income Tax, Udaipur assessed Hindustan Zinc Ltd. for the AY 1996-97, adding Rs 27.08 crore to income because the company wrote down its closing stock of zinc concentrate to the net realizable value based on the London Metal Exchange (LME) price, which was lower than the weighted average cost. The co…

The appellant, an aircraft engineer, claimed seniority for promotion to Deputy Chief Aircraft Engineer, arguing that he obtained the required approval qualification on 15‑Dec‑1993 while respondents 3‑17 had not. The respondents had been given conditional promotions in 1994 based on a policy decision to avoid stagnation…

The Commissioner of Income Tax, Dibrugarh appealed against judgments upholding the assessment of Doom Dooma India Ltd., a tea manufacturer, for assessment years 1988-89 to 1991-92. The core issues were the meaning of "depreciation actually allowed" under Section 43(6)(b) of the Income‑Tax Act, 1961 and the method of co…

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…

The Municipal Corporation of Delhi (MCD) sought to hold Shashnak Steel Industries liable for property tax under Section 120(1)(c) of the Delhi Municipal Corporation Act, 1957, alleging that a perpetual sub‑lease dated 20‑Feb‑1981 operated as a conveyance transferring leasehold rights to the sub‑lessee. The sub‑lease wa…

M/s. Rahee Industries Ltd., the exporter, had a Specific Shipments (Political Risks) policy with the Export Credit Guarantee Corporation (ECGC) covering 90% of the loss on a shipment to Egypt. Due to a political embargo, the exporter did not receive the balance payment and claimed the insured amount from ECGC, which wa…

The State of Madhya Pradesh issued a Liquor Policy for 2005‑06 containing clauses that required retailers to pay the annual licence fee in 24 fortnightly instalments and allowed revocation of the licence for default. A circular clarified that liquor would only be supplied against such deposits. The High Court struck do…

The Commissioner of Central Excise appealed against Gujarat Narmada Valley Fertilizers Ltd. for disallowing CENVAT credit on Low Sulphur Heavy Stock (LSHS) used as fuel in producing steam and electricity that was employed in the manufacture of exempted fertilizers. The key question was whether Rule 6(1) of the CENVAT C…

Mis. Maruti Suzuki Ltd., a motor‑vehicle manufacturer, generated electricity in its plant using naphtha and diesel and sold a portion of the surplus to its joint ventures, vendors and the grid for a price. The company claimed CENVAT credit on the duty paid on the fuel used for electricity generation, arguing that elect…

Mis. Virlon Textile Mills Ltd., a 100% export‑oriented unit manufacturing polyester yarn, sold its products against foreign exchange in the Domestic Tariff Area (DTA) under permission granted by para 9.10(b) of the Export‑Import Policy (1997‑2002). The Revenue issued a show‑cause notice demanding differential duty, arg…

M/s Liberty Enterprises, a shoe manufacturer in Haryana, was granted a sales‑tax exemption certificate (Rs 533 lakhs) under Section 138 of the Haryana General Sales Tax Act, 1973 and Rule 28A of the 1975 Rules, effective 15 Mar 1995‑14 Mar 2002. The exemption was used until 31 Dec 1996, after which the firm switched to…

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 Supreme Court examined whether incentive subsidies received by Ponni Sugars & Chemicals Ltd. under various government schemes were capital or revenue receipts, whether the company could claim exemption under Section 80P(2)(a)(i) for interest earned from cooperative society members, and whether area development fund…

Hindustan Coca Cola Beverage Pvt. Ltd. paid warehouse charges to Pradeep Oil Corporation (POC) on which tax was deducted at source under Section 194C at 2%. The Assessing Officer held the company an 'assessee in default' for short deduction of tax, levying interest under Section 201(1A). The Tribunal and High Court uph…

The assessee (Ghanshyam HUF) received enhanced compensation and interest from the Haryana Urban Development Authority for land acquired under the Land Acquisition Act, 1894, but omitted these amounts from its 1999-2000 return, arguing that they were in dispute in a pending appeal by the State. The Assessing Officer, CI…

The Supreme Court considered an appeal by the State of Punjab against a High Court order that directed the health department to grant Dr. Sanjay Kumar Bansal a five‑year special leave for self‑employment on the ground that he had been discriminated against. The Court examined whether special leave is a statutory right …

Udaipur Sahakari Upbhokta Thok Bhandar Ltd., a cooperative society dealing in both non‑controlled and government‑authorised controlled commodities, claimed a deduction under Section 80P(2)(e) of the Income‑Tax Act for commissions received for storing foodgrains under the Rajasthan Foodgrains Order. The Assessing Office…

The State of Orissa appealed against the judgment that over‑retention charges collected by M/s Asiatic Gases Ltd. for gas cylinders were not part of the sale price under the Orissa Sales Tax Act, 1947. The assessee supplied medical oxygen and industrial gases in cylinders and allowed customers to use the cylinders on a…

The appellant, a manufacturer of agarabathis, challenged an assessment order that taxed packing material as raw material. The First Appellate Authority excluded the packing material on 28‑03‑1992, but the Additional Commissioner later called for the case records on 16‑03‑1996, found the order erroneous, issued a show‑c…

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 Orissa High Court had issued interim orders restraining the Orissa Electricity Regulatory Commission (ERC) from fixing tariffs for 2002-03 and 2003-04, later modifying the orders to permit the ERC to act but keeping the writ petitions pending for monitoring. The ERC proceeded to fix the tariffs and levies were bein…

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 …

M/s Karnataka Agro Chemicals manufactured "multi micronutrient" compounds, registered as fertilizers, and the Central Excise Commissioner alleged that the company misdeclared the products as containing nitrogen to attract classification under "other fertilizers" (CHS 3105.00) and evade duty. The Tribunal held that even…

The assessees received large cash credits from a foreign donor and claimed them to be gifts. The Assessing Officer rejected this explanation, treating the amounts as income under Section 68 of the Income Tax Act, 1961. The Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal upheld this assessment…

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 Supreme Court entertained Transfer Petition (C) No. 29 of 2005 arising out of a matrimonial suit between Ashwani Kumar and Seema. The Court ordered an interim stay of the pending suit and directed issuance of notice. While hearing, the Court observed that the absence of official records of marriage dates and partie…

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…

The State of Karnataka challenged the claim of exemption under Section 5(3) of the Central Sales Tax Act by Azad Coach Builders, a bus‑body manufacturer that supplied completed bus bodies to exporters (TATA/Ashok Leyland) for subsequent export of whole buses. The department argued that the sale was only of bus‑bodies, …

Khoday Distilleries Ltd issued a rights issue; twenty of its twenty‑seven shareholders did not subscribe and the unissued shares were allotted to seven existing investment‑company shareholders. The company also issued fully paid bonus shares in a 1:23 ratio. The Assessing Officer treated both the rights‑issue allotment…

The petitioners, City and Industrial Development Corporation (CIDCO), were directed by the Bombay High Court to acquire a 19‑acre tract of land claimed by the respondent, Dosu Aardeshir Bhiwandiwala, who alleged he was a trustee of the Bhiwandiwala Trust and that the land was private property. The High Court relied on …

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…

Mis Elgi Equipments Ltd., a manufacturer of service‑station equipment, claimed a uniform 20% trade discount on its sales to distributors, while giving an 8% discount to sub‑dealers and a 12% commission to the distributors. The Central Excise Department issued a show‑cause notice alleging a differential discount and dem…

Shankar Jaiswara was convicted of murder under Section 302 IPC for stabbing his brother's younger sibling, Tarak Jaiswara, with a knife. The prosecution presented consistent eyewitness testimony, forensic medical reports describing multiple fatal injuries, and the recovery of the weapon from a friend’s house, which was…

The appellants' land, originally earmarked for residential use in a draft development plan prepared by the Surat Urban Development Authority, was later reserved for South Gujarat University. After the university failed to acquire the land, the State Government re‑reserved the land for the same educational purpose, a re…

Meghraj Biscuits Industries Ltd. manufactured biscuits and sold them under the brand name “Meghraj” from 1991. The brand name was a registered trademark of Kay Aar Biscuits (P) Ltd., which also used it for biscuits. The Central Excise Department held that the appellant was not eligible for the Small Scale Industry (SSI…

The Supreme Court, hearing a transfer petition concerning a matrimonial suit, observed that the lack of official marriage records in many States enables unscrupulous persons to deny the existence of marriages, adversely affecting women and children. It noted that while several States have rules for voluntary registrati…

The assessee, a cashew processor and exporter, claimed export incentive under s.80HHC(3) for AY 1993-94 but omitted processing charges from the total turnover in the formula. The Supreme Court held that processing charges form part of gross total income and must be included in total turnover for computing the export in…

The Commissioner of Central Excise appealed against the order of the Customs, Excise & Gold (Control) Appellate Tribunal which had held that the advances received by Hero Honda Motors and the interest earned thereon did not affect the assessable value of its motorcycles. The Tribunal had found that the advances were in…

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 petitioner filed a Special Leave Petition (SLP) 568 days after the Madras High Court judgment of 18 September 2006, claiming the delay was caused by the pendency of a review application filed within the prescribed period. The central issue was whether the prosecution of a review proceeding could be considered a "su…

The case concerned Williamson Financial Services, which earned composite income from growing, manufacturing and exporting tea. The assessee claimed a deduction under s.80HHC of the Income‑Tax Act on the entire tea income before applying the 60:40 apportionment mandated by Rule 8(1) of the Income‑Tax Rules, 1962. The As…

Mis Supreme Fabrics Ltd claimed that loading charges incurred while clearing goods from its factory gate should be treated as cum‑duty price, allowing an abatement of excise duty payable on those charges. The Assessing Officer held the charges were includible in assessable value and denied the deduction. The Commission…

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…

Pleasantime Products manufactured the branded word game "Scrabble" and claimed it fell under sub‑heading 9503.00 (puzzles) of Chapter 95 of the Central Excise and Tariff Act, 1985, seeking exemption from excise duty. The Central Excise Department classified it as a board game under heading 95.04, levied duty and invoke…

The Commissioner of Central Excise appealed against the CESTAT order that had classified three board games – Snake and Ladder, Monopoly and Scrabble/Upwards – as not falling under Heading 95.04 of the Central Excise and Tariff Act, 1985. The Supreme Court examined the criteria for distinguishing toys, puzzles and games…

The appellant Union of India challenged a Delhi High Court order that granted a permanent commission to R. Bhusal, an Air Force officer who had served on a Short Service Commission. Bhusal's request for permanent commission was denied by the service board on the grounds that he failed to meet the required performance a…

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…

Rotork Controls India (P) Ltd., a manufacturer of valve actuators, provided a standard warranty on its products and made a provision of 1.5% of turnover for anticipated warranty claims. The assessee claimed a deduction for the net provision under Section 37 of the Income Tax Act, 1961, which was disallowed by the Asses…

The Supreme Court examined two appeals where the Central Excise Tribunal had set aside penalties imposed under Section 11AC of the Central Excise Act because the assessee had paid the short‑paid duty before a show‑cause notice was issued. The Court held that Section 11AC imposes a penalty only when the escaped duty res…

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…

Matsushita Television & Audio (I) Ltd. entered into a technical know‑how agreement with Matsushita Electric Industrial Co. Ltd. (MEI) under which it paid a royalty of 3% on the net ex‑factory sale price of colour TV sets. The net price included the cost of imported components used in the TVs. The Customs authorities, r…

The assessee, a lessor of soft‑drink bottles, claimed depreciation under Section 32(1)(ii) of the Income‑Tax Act for two lease transactions dated 15‑Feb‑1991 and 15‑Mar‑1991. The Assessing Officer (AO) allowed depreciation only for 42,000 bottles out of 5,46,000 for the first transaction and disallowed depreciation for…

T.N. Alloy Foundry Co. Ltd., a company incorporated under the Indian Companies Act, sued the Tamil Nadu Electricity Board and others for damages arising from non‑supply of electricity between 28 March 1983 and 16 October 1992. The suit was filed in March 1993, and in July 1998 the company sought to amend the plaint to …

In a motor accident, Sanjiv Kumar Jha died and his heirs obtained a compensation award of Rs. 3,91,500 from the Motor Accident Claims Tribunal, Bhagalpur. The insurer, New India Assurance Co., appealed, first to a Single Judge of the Patna High Court, which dismissed the appeal as non‑maintainable, and then via a lette…

M/s. A & G Projects & Technologies Ltd., a dealer registered under the Central Sales Tax Act, 1956, entered into three contracts for supplying capacitor banks to Karnataka Power Transmission Corporation Ltd. (KPTCL). The goods were procured from a manufacturer in Tamil Nadu via an EPC contractor outside Karnataka, with…

The Karnataka State Industrial Investment & Development Corporation Ltd. (the appellant) sought enforcement of a surety under Section 31(1) of the State Financial Corporations Act, 1951, filing the application before the VI Additional City Civil Judge, Bangalore. The industrial concern whose assets were pledged was loc…

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 appellant Pappu was convicted for the death of Mal Singh, who died after a lathi blow to the head during a sudden quarrel at a marriage function. The appellant argued that the incident fell within Exception 4 of Section 300 IPC, which would reduce the offence to culpable homicide not amounting to murder (Section 30…

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 assessee, T.T.K. Health Care Ltd, sold packaged "fryums" and claimed they fell under Entry 2, Part I of Schedule II of the Madhya Pradesh Commercial Tax Act, 1994, which defines "cooked food" and attracts a 4% tax. The Commercial Tax Department argued that fryums required further frying and were not directly consum…

A female remand prisoner alleged sexual exploitation by the head of Divine Retreat Centre and complained of police bias. The High Court, acting suo motu on a petition addressed to a single judge and an anonymous letter, ordered the withdrawal of the police investigation of the rape case and constituted a Special Invest…

The applicant, a seed‑cloning business, entered into a Supply Agreement with the respondent that contained a clause stating that any dispute would be resolved by "institutional arbitration" under the Arbitration and Conciliation Act, 1996. The respondent argued that the clause was vague because it did not name a specif…

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…

Mis Saravana Spinning Mills, a textile mill, claimed deductions of Rs. 97.95 lakh and Rs. 77.84 lakh for "modernisation and replacement expenses" as "current repairs" under Section 31(i) of the Income Tax Act for the years ending 31‑03‑1993 and 31‑03‑1994. The Revenue challenged the claim, arguing that the expenditure …

The Income Tax Department discovered that directors of Century Building Industries Pvt Ltd had taken loans in their own names but routed the proceeds and repayments through the company. The company paid interest on these loans without deducting tax at source (TDS) as required under Section 194A(1) of the Income Tax Act…

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…

The appellant was convicted by the trial court and the Rajasthan High Court for raping the prosecutrix three times and for robbery, under Sections 376 and 392 of the Indian Penal Code. On appeal, the Supreme Court examined the prosecutrix’s testimony and found it riddled with contradictions – differing accounts of the …

The Income Tax Department searched MKSEPL and seized a diary showing that Mukundra Y.K. Shah invested Rs.26.35 crore in RBI relief bonds. The Assessing Officer concluded that MKSEPL paid Rs.5.99 crore to two firms (MKF and MKI), which then routed the money to Shah, enabling the bond purchase; the payment was treated as…

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 …

The importer South India Television Ltd. imported ceramic capacitors and diodes from Hong Kong and declared low invoice prices. The Customs Department issued a show‑cause notice alleging under‑invoicing and invoked Rule 8 of the Customs Valuation Rules to enhance the assessable value based on export declarations from t…

The American Hotel & Lodging Association Educational Institute (AH&L) – a US non‑profit educational institution – had enjoyed exemption under Section 10(22) of the Income‑Tax Act until 31‑Mar‑1998. After the Finance Act, 1998 omitted Section 10(22), AH&L applied on 7‑Apr‑1999 for initial approval under the newly insert…

The Supreme Court, hearing T.N. Godavarman Thirumulpad v. Union of India (Writ Petition No. 202 of 1955), corrected typographical errors in its earlier order dated 28 March 2008 concerning exemptions from payment of Net Present Value (NPV) under s.3(3) of the Environment Protection Act, 1986. The Court clarified the ca…

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 Supreme Court considered an interlocutory application filed by Sterlite Industries (Siil) seeking clarification on the rehabilitation package and the proposed transfer of the Niyamgiri bauxite mining lease to a Special Purpose Vehicle (SPV) as suggested by the Central Empowered Committee (CEC). The Court held that …

Bombay Dyeing & Manufacturing Co. operated a composite mill where yarn was spun and grey fabrics were woven but not further processed. Under Notification No. 14/2002‑CE, such grey fabrics are exempt from excise duty (nil rate) provided (i) duty on the yarn input is paid before claiming the exemption and (ii) no CENVAT …

The appellant State of Uttar Pradesh challenged a show‑cause notice that sought to revoke a recognition certificate granted to M/s P.N.C. Construction Ltd. under Section 4‑8 of the U.P. Trade Tax Act, 1948. The assessee, engaged in a works contract to widen roads for the National Highway Authority, purchased raw materi…

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 Commissioner of Customs, Maharashtra, alleged that Galaxy Entertainment (I) Pvt. Ltd. undervalued a 20‑lane bowling alley imported from the USA by declaring a CIF price of US$15,000 per lane, whereas comparable imports were priced at US$30,000 per lane. The Department further claimed that a technical and installati…

The Commissioner of Income Tax appealed against the Delhi High Court’s order allowing M/s Woodward Governor India Ltd. to deduct unrealised foreign‑exchange losses on loans taken for revenue purposes. The Court examined whether such losses could be claimed under section 37(1) in the year the exchange rate fluctuated or…

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…