Income Tax Act, 1961

The Union of India challenged the Allahabad High Court's order quashing a search and seizure conducted under Section 132(1) of the Income Tax Act at the premises of M/s Agarwal Iron Industries. The High Court had held that the search warrant was issued mechanically without a reasonable basis. The Supreme Court examined…

The appellants, including Checkmate Services Pvt. Ltd., deposited employees' EPF and ESI contributions after the statutory due dates and claimed deductions under s.36(1)(va) of the Income Tax Act, 1961. The Assessing Officer disallowed the deduction, holding that the amounts constituted "income" under s.2(24)(x) and we…

The Urban Improvement Trust (UIT) of Kota, created under the Rajasthan Urban Improvement Act, 1959, claimed exemption from income tax under Section 10(20) of the Income Tax Act, 1961, asserting that it qualified as a "local authority" within the meaning of clause (iii) of the explanation – i.e., a Municipal Committee. …

The respondent, an Income Tax Inspector, was alleged to have demanded Rs.25,000 as illegal gratification to refrain from reopening a tax assessment. A trap was laid using chemically treated currency notes that turned pink on the respondent's hands, leading to his conviction by the trial court under Sections 7, 13(1)(d)…

Uttar Pradesh Power Transmission Corporation Ltd (UPPTCL) entered into four separate contracts with CG Power and Industrial Solutions Ltd for the construction of 765/400 KV substations, the first being a pure supply contract. After a CAG audit, UPPTCL issued letters demanding a 1% labour cess on the supply contract, wi…

Mis GTC Industries Ltd., a sick company under the Sick Industrial Companies (Special Provisions) Act, 1985, was placed under a BIFR‑sanctioned rehabilitation scheme (SS‑02) that provided, among other reliefs, a provision to "consider" waiving interest and penalty. The scheme ran from 31 Mar 2003 to 31 Mar 2011, but the…

Wipro Finance Ltd. borrowed a foreign‑currency loan to finance its leasing and hire‑purchase business and incurred a loss due to exchange‑rate fluctuations while repaying the loan. The company claimed a deduction for this loss under section 37 of the Income Tax Act, 1961, and also sought to treat a sum previously capit…

The Income Tax Department appealed an assessment order, but the Rajasthan High Court dismissed the appeal as infructuous after learning that the assessee company, Gopal Shri Scrips Pvt. Ltd., had been struck off the register under Section 560(5) of the Companies Act, 1956. The question before the Supreme Court was whet…

The Supreme Court examined whether receipts such as non‑occupancy charges, transfer charges and common‑amenity‑fund contributions received by a premises cooperative society from its members are taxable as business income or exempt under the doctrine of mutuality. The Court held that the doctrine of mutuality, based on …

The case concerned a search under Section 132 of the Income Tax Act on two premises of the Bhatia Group, which led the assessing officer to record a satisfaction note under Section 15880 on 15 July 2005, after the block assessment of the searched person was completed on 30 March 2005. The respondent, M/s Calcutta Knitw…

The appellant, K. Krishnamurthy, was searched under Section 132 of the Income Tax Act in November 2010, during which he disclosed an income of Rs.2,27,65,580 for AY 2011-12 and later, during assessment proceedings, disclosed an additional Rs.2,49,90,000 arising from land transactions. The Assessing Officer levied a pen…

The Delhi Development Authority (DDA) auctioned a lease‑hold residential plot that had been acquired by the Income Tax Department under Section 269UD of the Income Tax Act, which had already paid the unearned increase to DDA. M/s. Karamdeep Finance & Investment (I) Pvt. Ltd. purchased the plot at auction, later applied…

The Supreme Court examined whether interest expenditure incurred by Maxopp Investment Ltd. on shares held to acquire controlling interest, or held as stock‑in‑trade, could be deducted when the dividend income from those shares is exempt under Section 10. The Court held that the dominant‑purpose test is irrelevant; Sect…

The Supreme Court examined whether cooperative societies registered as primary agricultural credit societies under the Kerala Co‑operative Societies Act could claim deduction under section 80P(2)(a)(i) of the Income‑Tax Act after the insertion of section 80P(4) by the Finance Act, 2006. The Court held that the deductio…

The National Co‑operative Development Corporation (NCDC) earned interest on surplus funds held in its statutory fund and used that interest to make non‑refundable grants to state and national cooperative societies. The Assessing Officer disallowed the grants as capital expenditure, but the Commissioner of Income Tax (A…

M.M. Aqua Technologies Ltd., unable to meet interest obligations on loans, entered a rehabilitation plan and issued convertible debentures to financial institutions in lieu of the interest due. The company claimed a deduction under Section 43B(d) of the Income Tax Act, 1961, arguing that the issuance of debentures cons…

M/s Fibre Boards (P) Ltd. sold its industrial undertaking in Thane (a notified urban area) and earned a capital gain of Rs 1,08,33,044. It paid advances of Rs 1,11,42,973 for purchase of land, plant, machinery and construction of a new factory in a non‑urban area and claimed exemption under s. 54G of the Income‑Tax Act…

The assessee, Wipro Ltd., filed its original return for AY 2001-02 claiming exemption under Section 10B of the Income Tax Act and stating that no loss would be carried forward. Later it submitted a declaration to the Assessing Officer opting out of the Section 10B benefit and filed a revised return claiming carry‑forwa…

The dispute arose from an auction sale of two immovable properties attached under a recovery certificate issued by IndusInd Bank. The judgment debtor (borrower) filed an application under Rule 60 of the Second Schedule of the Income Tax Act, 1961, depositing the amount specified in the sale proclamation along with pena…

The Revenue (Commissioner of Income Tax, Mumbai) challenged the orders of the Income Tax Appellate Tribunal and the Bombay High Court that set aside a suo motu revision order passed by the Commissioner under section 263 of the Income Tax Act, 1961. The issues were whether a show‑cause notice is a condition precedent to…

The Supreme Court had earlier declared the Electoral Bond Scheme unconstitutional and directed the State Bank of India (SBI), as the authorized bank, to furnish the Election Commission of India (ECI) with details of each bond purchased and redeemed between 12 April 2019 and 15 February 2024. SBI filed a Miscellaneous A…

The petitioners, Common Cause and others, sought a court‑ordered Special Investigation Team to probe alleged hawala transactions and cash seizures involving the Aditya Birla and Sahara groups, relying on documents seized in raids such as loose sheets, pen‑drives and laptop data. The respondents opposed, contending that…

The appellant, a landlord, owned agricultural land that was acquired by the Kerala government under the Land Acquisition Act, 1894 for a techno‑park project. After the award fixed compensation, the appellant negotiated a higher amount with the acquiring authority and executed a sale deed, receiving the agreed sum. 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 case concerned Micro Labs Ltd., which claimed deductions under Sections 80‑IA/80‑IB (infrastructure development) and also under Section 80‑HHC (export profits). The Revenue argued that Section 80‑IA(9) bars any further deduction under heading "C" of Chapter VI‑A, which includes 80‑HHC, for the same profits, while t…

The petitioners challenged the demand for court fees on appeals filed under Section 260A of the Income Tax Act, 1961, arguing that the right of appeal vested on the date of assessment (or the date the demand was negatived) and that the amendment inserting Section 52A in the Kerala Court Fees and Suits Valuation Act, 19…

The petitioner, Nitin Gunwant Shah, claimed to be a monthly tenant of a flat in Mumbai based on a 1989 "Leave and Licence" agreement and sought a declaration to that effect. The Indian Bank, holding a mortgage over the same property, obtained a decree for recovery of dues and sought to sell the flat, also asking the co…

M/S. Saraf Exports, a partnership engaged in manufacturing and exporting wooden handicrafts, claimed deductions under s.80‑IB of the Income Tax Act, 1961 for amounts received under the Duty Entitlement Pass Book (DEPB) and Duty Drawback schemes for AY 2008‑09. The Deputy Commissioner disallowed the deductions, a decisi…

The appellant, M/s US Technologies International Pvt. Ltd., had deducted tax at source (TDS) but remitted it to the government after a delay of up to ten months. The Revenue levied a penalty equal to the amount of TDS under Section 271C of the Income Tax Act, 1961, which the High Court upheld. The appellant contended t…

The appellants, five companies incorporated under the Sikkim Companies Act, claimed to be residents of Sikkim and argued that their income from cardamom commissions for assessment years 1987-88 to 1989-90 was taxable only under the Sikkim State Income‑Tax Manual, 1948, as the Income Tax Act, 1961 had not yet been exten…

Premier Breweries Ltd., a manufacturer of alcoholic beverages, claimed deductions under Section 37 of the Income Tax Act for commissions paid to agents for securing supply orders from state marketing corporations. The Assessing Officer disallowed the claim, which was upheld by the Commissioner (Appeals) but reversed by…

The case concerned the sale of a mortgaged property by a bank under the SARFAESI Act. The Supreme Court examined whether the bank, as a secured creditor, had complied with Section 13(8) of the Act and Rules 8 and 9, which require a 30‑day individual notice and a public notice before any sale. It held that the sale effe…

The Institute of Chartered Accountants of India (ICAI) filed transfer petitions under Article 139-A(1) seeking to move nine writ petitions from the Kerala, Madras and Calcutta High Courts to the Supreme Court. The writ petitions challenge Chapter VI of ICAI's Guidelines dated 08‑08‑2008, which caps the number of tax au…

Sodexo Service India Private Ltd issues paper‑based meal vouchers to corporate customers, who distribute them to their employees for redemption at affiliated restaurants. The vouchers are redeemed for food, with Sodexo receiving a service fee and reimbursing affiliates for the face value. The issue before the Supreme C…

Plastiblends India Ltd., an industrial undertaking, claimed a 100% deduction under Section 80‑IA of the Income Tax Act for assessment years 1997‑98 to 2000‑01, having elected not to claim depreciation under Section 32. The Assessing Officer reduced the profits by depreciation when computing the deduction, leading to a …

South Indian Bank Ltd. and other scheduled banks earned tax‑free income from bonds, securities and shares. The Assessing Officer, unable to identify the exact funds used for these investments, proportionately disallowed interest expense under Section 14A of the Income Tax Act. The banks argued that they had sufficient …

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…

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 …

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…

Gujarat Urja Vikas Nigam Ltd. (GUVNL) appealed against the Appellate Tribunal for Electricity’s order that Essar Power Ltd. (EPL) had no contractual duty to declare its generating capacity on a 300 MW : 215 MW (58 % : 42 %) basis. The Supreme Court examined the Power Purchase Agreement (PPA) and held that the agreement…

Peerless General Finance and Investment Co. Ltd. floated collective investment schemes where subscribers deposited money that was to be repaid with interest and could be forfeited under certain clauses. For assessment years 1985-86 and 1986-87 no forfeiture occurred, yet the company recorded the subscription receipts a…

The Supreme Court examined whether the Government of NCT of Delhi could impose a condition requiring private charitable hospitals that received land at concessional rates to provide free treatment to economically weaker sections. The Court held that such a condition is a valid exercise of executive power under Article …

M/s Saurashtra Cement Ltd., a cement manufacturer, entered into a contract to purchase a new cement plant. The supplier failed to deliver the plant on time, and under a liquidated damages clause the assessee received Rs.8,50,000 as compensation. The Revenue argued that the amount was a revenue receipt and should be tax…

The Supreme Court examined whether the lump‑sum technical fee and royalty paid by Honda Siel Cars India Ltd. under a Technical Collaboration Agreement with Honda Motors Company Ltd., Japan, should be treated as capital or revenue expenditure under the Income‑Tax Act. The joint venture was created to set up a new automo…

The petitioners, a group of public‑spirited individuals, challenged the constitutionality of Section 139AA of the Income Tax Act, 1961, which makes it mandatory for income‑tax assessees to quote their Aadhaar number while applying for a PAN or filing returns. They argued that the provision violated Articles 14 and 19(1…

The appellant, a male descendant of the original founder trustee, sought declaration that he was entitled to the office of founder trustee of M/s. P.S. Govindaswamy Naidu & Sons’ Charities, asserting that he satisfied the residence requirement under the Scheme of Administration. The respondents contended that his U.S. …

The appellant, a partnership firm, obtained lease‑hold rights to a stilt portion of a municipal market through auction and constructed a shopping centre, sub‑licensing shops to traders. The Assessing Officer re‑assessed the income from these sub‑licences under the head "Income from House Property" on the basis that the…

M/s. Lisie Medical Institutions, a charitable trust running a hospital, sought exemption from building tax under the Kerala Building Tax Act, 1975, claiming its premises were used for charitable purposes. The High Court, relying on S.H. Medical Centre Hospital v. State of Kerala, rejected the exemption, holding that "c…

The Supreme Court examined petitions seeking to shift investigation of the multi‑state chit‑fund (Ponzi) scam, which defrauded lakhs of depositors of roughly Rs 10,000 crore, from the State Police to the Central Bureau of Investigation (CBI). The scam involved companies operating across West Bengal, Tripura, Assam and …

Chennai Properties & Investments Ltd., a company whose memorandum of association states that its main object is to acquire and let out properties, earned rental income from two properties and disclosed it as business income. The assessing officer treated the same income as "income from house property" and taxed it acco…

McDowell & Co Ltd acquired the sick company Hindustan Polymers Ltd (HPL) by amalgamation effective 1 April 1977. HPL’s banks waived interest on loans, which under Section 41(1) of the Income‑Tax Act would normally be taxable income. The assessee claimed the benefit of Section 72A, allowing it to set off HPL’s accumulat…

The appellant, the Commissioner of Income Tax, challenged the deduction claimed by M/s. Meghalaya Steels Ltd. of Rs.2,74,09,386 as subsidies (transport, interest, power, insurance) under Sections 80‑IB and 80‑IC of the Income Tax Act. The issue was whether such subsidies constitute "profits and gains derived from busin…

The appellants, investment companies of the Jindal Group, held shares of Jindal Ferro Alloys Ltd (JFAL) as stock-in-trade and, following a court‑sanctioned scheme of amalgamation, were allotted shares of Jindal Strips Ltd (JSL) in exchange. The Assessing Officer treated the JSL shares as taxable business income under s…

The appellants purchased a mortgaged property at a public auction conducted by a Recovery Officer under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDB Act). The auction was later set aside by the Debt Recovery Appellate Tribunal on the ground that the appellants were not bona‑fide purchas…

The Commissioner of Income Tax appealed against M/s Excel Industries Ltd., contending that the value of advance licence and duty‑entitlement pass‑book benefits under the import‑export policy should be taxed in the year they were received under s.28(iv) of the Income Tax Act. The assessee argued that such benefits are o…

The Bangalore Club, a social club, challenged an assessment that it was liable to wealth tax under Section 21AA of the Wealth Tax Act, 1957. The Assessing Officer and the CIT (Appeals) held the club liable, but the Appellate Tribunal set aside those orders. The Supreme Court examined the meaning of "association of pers…

The Supreme Court examined the interplay between Section 144C, which provides a special dispute‑resolution procedure for eligible assessees, and Section 153(3) of the Income Tax Act, which prescribes a twelve‑month limitation for fresh assessments. The Court held that the limitation under Section 153 applies only to th…

The Citizen Co-operative Society Ltd., a multi‑state cooperative credit society, claimed deduction under Section 80P(2)(a)(i) of the Income Tax Act, 1961. The Assessing Officer, CIT(A) and ITAT held that the society’s activities amounted to a finance business involving "nominal members" and were not confined to its mem…

Mysore Sales International Ltd., a Karnataka government undertaking that manufactures and bottles arrack, was directed by the Income Tax Deputy Commissioner to collect TDS from liquor vendors (excise contractors) under Section 206C of the Income Tax Act, treating the vendors as "buyers". The vendors obtained retail ven…

Godrej & Boyce Manufacturing Co. Ltd. claimed that interest expenditure incurred to earn dividend income (exempt under s.10(33) because tax is paid by the dividend‑paying company under s.115‑0) could not be disallowed under s.14A of the Income‑Tax Act. The Revenue argued that s.14A barred deduction of any expenditure i…

The petitioners challenged a complaint filed by the Directorate of Enforcement under Section 44(1)(b) of the Prevention of Money Laundering Act, 2002 (PMLA), arguing that the offences alleged, except for IPC Section 120B, were not "scheduled offences" as required by clause (y) of Section 2(1) of the PMLA. The Supreme C…

The Assessing Officer issued a notice under section 148 of the Income Tax Act for the assessment year 1999-2000, which the assessee (Nokia India) contested on the ground that it was based merely on a change of opinion. The ITAT upheld the assessee's objections, declaring the notice bad in law, and the Revenue appealed …

The Supreme Court entertained miscellaneous applications seeking correction of certain phrases in paragraphs 10(a) and 77 of Justice B.V. Nagarathna's judgment in W.P. (C) No.59/2013, filed by the Association of Old Settlers of Sikkim. The Court observed that substantial amendments to the original writ petition had not…

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 State of Punjab appealed against an order of the Executing Court that allowed the respondents, whose land had been acquired, to claim the additional amount under Section 23(1A) of the Land Acquisition Act, 1894 on both the market value of the land and the solatium payable under Section 23(2). The respondents sought…

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 appellants leased premises for nine years with a clause allowing the lessee to extend the lease for a further nine years, subject to conditions. The Income Tax Department treated the lease as exceeding twelve years, invoking Chapter XXC of the Income Tax Act and requiring filing of Form 37‑1. The appellants contend…

The State of Odisha issued an auction notice for a five‑year sand‑quarry lease; Shanti Construction Pvt. Ltd., the highest‑price bidder, was declared non‑responsive for not submitting an Income Tax Return for FY 2021‑22, while a lower‑priced bidder was declared successful. The dispute centered on the meaning of “previo…

The Commissioner of Income Tax issued a revision order under Section 263 of the Income Tax Act on 26 March 2012, revising an assessment order for AY 2008‑09 that had been passed on 30 December 2010. The assessee argued that the revision order was barred by the two‑year limitation because it was received by him on 29 No…

The Supreme Court granted the petitioner absolute interim anticipatory bail on 8 December 2023, ordering his release on bail if arrested. Despite this, the police remanded him to custody on 13 December 2023, and the magistrate failed to release him after the remand period, resulting in an illegal detention of about 48 …

Mis. Kanchanganga Sea Foods Ltd., an Indian exporter of seafood, chartered fishing vessels from a Hong Kong company and agreed to pay the charter fee as 85% of the gross earnings from fish sales. The catch was brought to Chennai, valued, and customs duties were paid before the non‑resident company received its share. T…

L.K. Trust borrowed Rs.3.80 crore from Corporation Bank to purchase shares of Shaw Wallace and transferred the amount to its subsidiary, which in turn advanced it to a third party for the same purpose. The Trust paid Rs.21,74,234 as interest on the loan and claimed a deduction under section 36(1)(iii) of the Income Tax…

The All India Bank Officers’ Confederation and other bank staff unions challenged Section 17(2)(viii) of the Income Tax Act, 1961 and Rule 3(7)(i) of the Income Tax Rules, 1962, alleging that they amounted to an excessive delegation of the essential legislative function to the Central Board of Direct Taxes and that the…

The respondent, M/s Travancore Sugar & Chemicals Ltd., claimed a deduction for a vend fee of Rs 22,87,512 paid to the Kerala Government, which the assessing officer disallowed under Section 438 of the Income Tax Act because it was not paid before the expiry of the relevant previous year. The Commissioner of Income Tax …

The Commissioner of Income Tax, Surat appealed against the order of the Income Tax Appellate Tribunal which had set aside a penalty imposed on Saheli Leasing & Industries Ltd. for concealment of income. The assessee had filed a return showing NIL income and claimed excessive depreciation, resulting in a loss, but the a…

During the COVID-19 pandemic, the petitioner conducted three crowdfunding campaigns on the Ketto platform. The Enforcement Directorate (ED) opened investigations under FEMA and later filed a complaint under the Prevention of Money‑Laundering Act (PMLA), attaching the petitioner’s bank account in Navi Mumbai. The Specia…

Maruti Suzuki India Ltd., a manufacturer of automobiles liable to excise duty, claimed deductions under Section 43B of the Income Tax Act for a large unutilised MODVAT credit of Rs 69.93 crore and for sales tax recoverable amounting to Rs 3.08 crore for AY 1999‑2000. The Assessing Officer, the Commissioner and the ITAT…

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 case involved M/s Jindal Steel & Power Ltd., which operated captive power plants to supply electricity to its own industrial units at Rs 3.72 per unit while selling surplus power to the State Electricity Board at Rs 2.32 per unit. The assessing officer reduced the deduction claimed under Section 80‑IA, treating Rs …

The appellant, a sandalwood oil manufacturer, was convicted under Section 27(1)(d) of the Kerala Forest Act for allegedly possessing forest produce illicitly removed from a reserved forest. The High Court upheld the conviction, treating the presumption under Section 69 as creating a reverse burden of proof on the accus…

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 …

The case concerned whether the amendment to Section 153C of the Income Tax Act, 1961 introduced by the Finance Act, 2015 applies to searches under Section 132 that were initiated before the amendment’s effective date of 1 June 2015. A search was conducted on 4 September 2013, and material relating to third parties was …

M/s Paville Projects Pvt. Ltd. sold its building for Rs 33 crore in AY 2007‑08 and claimed a deduction of Rs 31.05 crore as "cost of improvement" to discharge encumbrances arising from a family settlement of shareholders. The Assessing Officer accepted this claim and passed an assessment under section 143(3). The Commi…

The Supreme Court examined the third proviso to Section 254(2A) of the Income Tax Act, 1961, which mandates automatic vacation of a stay after 365 days irrespective of who caused the delay. The Court held that the provision treats assessees who delay the appeal the same as those who do not, thereby violating the equali…

The appellant, an individual with salary and partnership income, filed his income‑tax returns for AY 2011‑12 and AY 2013‑14 well after the statutory due dates, attracting show‑cause notices under section 276CC of the Income Tax Act. He sought compounding of the offences under the 2014 Guidelines; the first application …

Basudev Dutta, an Ophthalmic Assistant employed by the West Bengal Government since 1985, was terminated in 2011 after a police verification report, filed 25 years later, labeled him ‘unsuitable’ for the post. He challenged the termination, asserting Indian citizenship based on his father’s migration certificate and ar…

The assessee, ACE Multi Axes Systems Ltd., claimed a deduction under Section 80IB(3) of the Income Tax Act for ten consecutive assessment years, asserting it qualified as a small‑scale industrial undertaking in the initial year. The Revenue disallowed the deduction for the assessment year 2005‑06 onward because the val…

Maharao Bhim Singh, the ruler of the former princely State of Kota, owned the Umed Bhawan residential palace, part of which was requisitioned and let out to the Ministry of Defence, generating rent. The issue before the Supreme Court was whether the exemption under Section 10(19A) of the Income‑Tax Act, 1961 and Paragr…

Hero Cycles Ltd. claimed a deduction under Section 36(1)(iii) of the Income Tax Act for interest paid on bank loans in AY 1988‑89. The Assessing Officer disallowed the claim, holding that the borrowed money was used to give an interest‑free advance to its subsidiary, Hero Fibres Ltd., and a low‑interest loan to its dir…

The Commissioner of Income Tax, Kochi appealed against Trans Asian Shipping Services (P) Ltd, which had elected to compute its income under the Tonnage Tax Scheme (TTS) of Chapter XIIG of the Income Tax Act, 1961. The dispute centered on whether income from slot‑charter arrangements, where the company did not own or fu…

The appellants, engaged as agents procuring frozen seafood for foreign buyers, claimed a 50% deduction under Section 80‑O of the Income Tax Act for service fees received in foreign exchange. The Assessing Officer held the services were rendered in India, not "from India", and disallowed the deduction. The Income Tax Ap…

The Commissioner of Income Tax appealed against the High Court’s order that Punjab Stainless Steel Industries should not include proceeds from the sale of steel scrap in its total turnover for calculating the deduction under Section 80‑HHC of the Income Tax Act, 1961. The assessee, a manufacturer and exporter of stainl…

The Income Tax Officer appealed the acquittal of a partnership firm and its partner, Hem Raj, who were convicted under Sections 276C(i), 277 and 278 of the Income Tax Act for filing false returns. The firm had filed a revised return for AY 1988-89, which the prosecution alleged was signed and verified by Hem Raj, leadi…

Mahagun Realtors Private Ltd. (MRPL) merged with Mahagun India Private Ltd. (MIPL) by a court‑sanctioned scheme effective 1 April 2006. The Income Tax Department issued assessment notices and later an assessment order in the name of MRPL, which had ceased to exist after the amalgamation. The revenue argued that the ass…

The partnership firm Chetak Enterprises entered into an agreement with the Government of Rajasthan to construct a road and collect tolls. The road was completed on 27‑03‑2000 and the firm was converted into a private limited company on 28‑03‑2000 under Part IX of the Companies Act, 1956. The company claimed a deduction…

The Income Tax Department conducted a search and seizure operation under s.132(1) at the residence of a director of M/s Super Malls (P) Ltd., seizing a pen‑drive and documents showing cash receipts of the company. The Assessing Officer, who was also the Assessing Officer of the director, issued a notice to the company …

The appellant, the Commissioner of Income Tax, Bombay, challenged the deduction claimed by Tasgaon Taluka Sahakari Sakhar Karkhana Ltd., a cooperative sugarcane processor, for the price paid to cane growers that exceeded the Statutory Minimum Price (SMP) fixed under Clause 3 of the Sugar Cane (Control) Order, 1966. The…

The assessee, NRA Iron & Steel Pvt. Ltd., claimed receipt of Rs 17.6 crore as share capital/premium from various companies in AY 2009‑10. The Assessing Officer questioned the genuineness of the transaction and issued notices, but the investor companies did not appear and field enquiries revealed many were non‑existent …

Kakadia Builders Pvt. Ltd. and its promoter filed settlement applications before the Income Tax Settlement Commission while assessment proceedings were pending. The Commission, on 11 August 2000, added tax and waived interest under Sections 234A, 234B and 234C, but both the assessee and the Revenue filed rectification …

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 respondents, co‑owners of a 42‑room residential building in Bangalore, leased the property to a company which sub‑let it as a hostel for students and working professionals. The respondents sought an advance ruling that the rent received was exempt from GST under Entry 13 of Notification 9/2017, which provides exemp…

M/s Seshasayee Steels Ltd entered into an agreement to sell land to Vijay Santhi Builders Ltd and granted a licence to commence construction, later executing a Power of Attorney and a compromise deed that reduced the consideration and stipulated payment by post‑dated cheques, all of which were encashed. The Assessing O…

The appellants, tenants of shops in a Gurudwara, challenged the Punjab Religious Premises and Land (Eviction and Rent Recovery) Act, 1997 on the ground that it withdrew the protection afforded to them under the East Punjab Urban Rent Restrictions Act, 1949 and violated Article 14. The Supreme Court held that the State …

The State Bank of India (SBI) paid Leave Travel Concession (LTC) to its employees for trips that included foreign legs and circuitous routes, and did not deduct tax at source (TDS). The Income Tax Department held SBI liable as an assessee in default under Section 201 of the Income Tax Act for failing to deduct TDS, a v…

The petitioners OCL India Ltd., SAIL and Hindalco challenged the levy of entry tax under the Orissa Entry Tax Act, 1999 (and similar statutes in Uttar Pradesh) on the ground that industrial townships, which had been excluded from municipal limits by notifications under the proviso to Article 243Q, were not "local areas…

Vidarbha Engineering, a lessee of three plots of land, entered into a collaboration agreement with Unitech to develop a commercial complex, whereby Unitech would construct the building, retain 78% of the built‑up area and transfer 22% to Vidarbha. The parties filed a statement under Section 269UC stating a consideratio…

The respondents, members of a cooperative housing society, entered into a Joint Development Agreement (JDA) with developers to develop 21.2 acres of land. Only two instalments were paid and 7.7 acres were conveyed, for which capital gains tax was paid. The Assessing Officer and the ITAT treated the unreceived considera…

The petitioners, Dushyant N. Dalal and his wife, were ordered by SEBI to disgorge unlawful gains of Rs.4.05 crore and pay a penalty of Rs.6 crore, with a debarment of seven years if unpaid. They challenged the SEBI order, arguing that interest could not be levied retrospectively under Section 28A of the SEBI Act and th…

The Oil & Natural Gas Corporation (ONGC) awarded a contract to Western Geco for modernising a seismic vessel, which was to be returned by 9 July 2001. The vessel was delayed until 6 May 2002 due to licensing issues for US‑origin hydrophones and subsequent substitution with Canadian ones, leading ONGC to deduct amounts …

Japan Airlines (JAL) paid landing and parking fees to the Airports Authority of India (AAI) and deducted tax at source (TDS) at 2% under Section 194-C of the Income Tax Act, 1961. The Income Tax Department argued that the fees were "rent" under Section 194-1 and should attract TDS at 20%. The Supreme Court examined whe…

The appellant, Commissioner of Income Tax, challenged the High Court’s order upholding the ITAT’s finding that a sale of development rights by Glowshine Builders was a transaction in stock-in-trade. The Assessing Officer had originally treated the receipt of Rs 15,94,06,500 as short‑term capital gains, but the ITAT rev…

The Union of India appealed against the High Courts' orders quashing reassessment notices issued under section 148 of the Income Tax Act after 1 April 2021. The Finance Act, 2021 had substituted sections 147‑151, introducing section 148A as a condition precedent for issuing a notice under section 148. The Supreme Court…

The appellants, who are relatives of the complainant, filed a petition under Section 482 of the CrPC seeking to quash FIR No. 21 of 2019 alleging offences under IPC sections 420, 342, 294(b) and 506(1). The complainant claimed he had invested Rs. 1.5 crore in a Nissan car dealership run by the appellants, was denied pa…

The appellant, Gopal and Sons (a Hindu Undivided Family), had subscribed to shares of a fertilizer company, with the share certificates issued in the name of its Karta but the HUF shown as the beneficial and registered shareholder in the company's annual returns. The Assessing Officer added Rs. 1,20,10,988 as deemed di…

The Commissioner of Income Tax (IT‑4) Mumbai challenged an order of the Income Tax Appellate Tribunal (ITAT) that, under Section 254(2) of the Income Tax Act, recalled its earlier 2013 order favoring the Revenue in a dispute with M/s Reliance Telecom Ltd over the taxability of software payments. The Supreme Court held …

The Revenue sought clarification of the Supreme Court’s earlier judgment (19 Oct 2022) in Civil Appeal No. 21762/2017, which interpreted Section 2(15) of the Income‑Tax Act, 1961 with respect to charitable trusts engaged in activities of public utility. The clarification was requested on the ground that paragraphs 253 …

The respondents, manufacturers of textile fabrics, were found to have cleared goods without paying excise duty and were served a show‑cause notice on 6 January 1999. They sought relief under the Kar Vivad Samadhan Scheme, 1998, which allowed settlement of tax arrears quantified or notified on or before 31 March 1998, b…

The Supreme Court examined a batch of appeals concerning reassessment notices issued by the Revenue after the Finance Act 2021 amended Sections 147‑151 of the Income Tax Act, 1961. The Court considered whether the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) and its notifica…

The Calcutta Club, a Section 25 company operating as a members' club, was served with a notice for non‑payment of sales tax on food and drinks supplied to its permanent members. The Club argued that, under the doctrine of mutuality, no sale occurred because the supplier and the buyer were the same persons, a view uphel…

The Mumbai Metropolitan Region Development Authority (MMRDA) entered into a monorail contract with a consortium comprising Larsen & Toubro (India) and Scomi Engineering Bhd (Malaysia). Disputes over interim claims led the consortium to file a petition under Section 11 of the Arbitration and Conciliation Act, 1996, asse…

The respondent, a public charitable trust, filed its 1994-95 return showing a gross income of Rs 99,41,221 and claimed a nil taxable income by deducting the amount actually spent on its objects (Rs 47,27,533) and an additional sum of Rs 32 lakh that it set apart for future charitable purposes. The Assessing Officer all…

Gujarat Urja Vikas Nigam Limited (GUVNL) entered into power purchase agreements (PPAs) with four wind‑energy companies, fixing a tariff of Rs 3.56 per kWh that was applicable only to projects availing accelerated depreciation under the Income‑Tax Act. The respondents later approached the Gujarat Electricity Regulatory …

The assessees, Mis. Hindustan Petroleum Corporation Ltd., engaged in bottling liquefied petroleum gas (LPG) into cylinders for domestic use and claimed deductions under Sections 80HH, 80‑1 and 80‑IA of the Income Tax Act, 1961. The Assessing Officer disallowed the claim, holding that bottling did not amount to ‘manufac…

Hyundai Corporation entered into a contract with Oil and Natural Gas Corporation (ONGC) for offshore oil exploration, which contained Clause 13.2.8 (sub‑contractor liability) and Clause 17.3 (indemnity for costs arising from a change of law). A change in Indian tax law – Section 44BB/4488 of the Income Tax Act, 1961 – …

Mis. Palam Gas Service, engaged in LPG cylinder business, received freight payments from Indian Oil and paid subcontractors but failed to deduct tax at source under Section 194C. The Assessing Officer disallowed the subcontractor payments as per Section 40(a)(ia) of the Income Tax Act, 1961. The appellant challenged th…

The Supreme Court heard an appeal by the wife, daughter and mother of a 28‑year‑old Assistant Engineer who died in a motor accident caused by the negligent driver of a jeep. The Motor Accident Claims Tribunal had reduced the deceased's salary, deducted amounts for provident fund, pension, insurance and income tax, and …

The appellant New Delhi Television Ltd. challenged a notice issued under section 147 of the Income Tax Act alleging that undisclosed income had escaped assessment. The Court examined whether the revenue had a prima facie reason to believe such escapement, whether the assessee had fully disclosed all material facts, and…

The Director, Prasar Bharati (Doordarshan) entered into agreements with several advertising agencies, paying them a 15% commission on advertising revenue for the assessment years 2002‑03 and 2003‑04. The Assessing Officer held that the payments fell within the definition of "commission" under Section 194H of the Income…

The Orissa Olympic Association (OOA) was granted a lease of 20.808 acres for a stadium but later constructed 23 shops and a Kalyan Mandap (Barabati Palace) on land the State claims lies outside the lease. The Supreme Court, after a committee measured the leasehold area, found that the shops and part of the Mandap are o…

The appellants, who were tenants of premises mortgaged to banks, challenged the seizure of those premises by the secured creditors under the SARFAESI Act. The Supreme Court examined whether a lease made by the mortgagor, either before or after the mortgage, remains valid and binding on the secured creditor, and whether…

The appellant, a member of Raia Village Panchayat in Goa, was disqualified by the State Election Commission under Section 10(f) of the Goa Panchayat Raj Act, 1994 because her husband secured a contract with the same Panchayat for collection of market fees. The appellant challenged the disqualification, arguing that mer…

Muthoot Leasing and Finance Ltd and another, classified as credit institutions, challenged the levy of interest tax on the interest component embedded in hire‑purchase instalments under the Interest‑Tax Act, 1974. The Income Tax Appellate Tribunal (ITAT) held that hire‑purchase agreements are composite transactions wit…

The Kerala State Beverages Manufacturing & Marketing Corporation Ltd (KSBC), a state‑owned liquor undertaking, challenged the disallowance of various levies under Section 40(a)(iib) of the Income‑Tax Act, 1961. The issues were whether the gallonage fee, licence fee and shop‑rental (kist) for FL‑9 and FL‑1 licences are …

Ravi Agrawal, a differently‑abled petitioner, filed a public‑interest writ under Article 32 seeking to compel the Union of India and LIC to allow annuity or lump‑sum payments from the Jeevan Aadhar insurance scheme to disabled dependents even while the parent/guardian is alive. The petitioner relied on a 2008 CBDT circ…

The appellant complained to the Lokayukta that three government officials had caused a loss of Rs.4 crore to the State of Madhya Pradesh by purchasing land at inflated prices. The Lokayukta police investigated, exonerated the officials and filed a closure report under Section 169 of the Cr.P.C. before the Special Judge…

The Supreme Court examined the cancellation of registration of Batanagar Education and Research Trust under section 12AA(3) of the Income Tax Act after the Trust admitted that many of its corpus donations were fictitious and were returned to donors through intermediaries, amounting to bogus donations and hawala transac…

The dispute concerned a Delhi property that had been sold at a public auction by the Income Tax Department in 1964 to V.N. Vasudeva. The respondents, grandchildren of the original owner, challenged the sale through a civil suit and a writ petition, while the appellants, heirs of the lawyer who bought the property, defe…

In Sundar Gupta & Ors. v. Sunil Vasudeva & Ors., a contempt petition (C) No. 1721 of 2017 was filed alleging contempt of the Supreme Court under Section 293 of the Income Tax Act, 1961. The petition arose from proceedings in I.A. No. 4 of 2017 and Civil Appeal No. 5140 of 2019, which were also the subject of Special Le…

The petitioners, including Common Cause, challenged the appointments of K.V. Chowdary as Central Vigilance Commissioner (CVC) and T.M. Bhasin as Vigilance Commissioner (VC) on the ground that the selections violated the constitutional principles of impeccable and institutional integrity. They alleged that Chowdary had …

The New Okhla Industrial Development Authority (NOIDA), created under the U.P. Industrial Area Development Act, 1976, challenged income‑tax notices on the ground that it qualified as a "local authority" and was therefore exempt under section 10(20) of the Income Tax Act, 1961 as amended by the Finance Act, 2002. The ce…

Canara Bank paid interest on fixed deposits to the New Okhla Industrial Development Authority (NOIDA) without deducting tax at source under Section 194A of the Income Tax Act, 1961. The Assessing Officer treated the bank as a defaulter and issued a demand notice, which the bank appealed, relying on Notification dated 2…

Rajesh Projects entered a 90‑year lease with the Greater Noida Industrial Development Authority (GNIDA) and paid an upfront lease premium plus annual lease rent. The Income‑Tax Department issued notices for non‑deduction of tax at source (TDS) under Section 194‑I on the lease rent, the company contending that GNIDA, be…

The Revenue (Commissioner of Income Tax, Chennai) conducted a search of the assessee S. Ajit Kumar’s premises on 17 July 2002 and, on the same day, a survey of the builder, Elegant Constructions and Interiors Ltd., whose premises revealed a cash payment of Rs 95.16 lakhs that had not been accounted for. The Assessing O…

The case concerned the assessment of M/s Saurashtra Cement for AY 1981-82. The Assessing Officer issued a draft assessment on 13‑03‑1984 and forwarded it to the Inspecting Assistant Commissioner (IAC) under Section 1448. The IAC gave directions on 31‑08‑1984, after which the final assessment order was passed on 01‑09‑1…

The Supreme Court considered appeals concerning whether payments made by Indian residents to non-resident foreign software suppliers for computer software, under End User Licence Agreements (EULAs) and distribution agreements, constitute 'royalty' under the Income Tax Act, 1961 and Double Taxation Avoidance Agreements …

The Supreme Court examined whether employees who retired under the State Bank of India Voluntary Retirement Scheme (VRS) of 2000 and had completed fifteen years of service were entitled to a proportionate pension under the SBI Employees' Pension Fund Rules. The Court held that the Central Board of Directors' approval o…

Gujarat Urja Vikas Nigam Ltd (GUVNL) entered into a Power Purchase Agreement (PPA) with EMCO Ltd for a 5 MW solar project, the tariff being fixed by the Gujarat Electricity Regulatory Commission (GERC) in its first tariff order of 29 Jan 2010, which assumed the benefit of accelerated depreciation under Section 32 of th…

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…

Vimal Kumar Surana, who had passed the Chartered Accountant examination but was not a member of the Institute, impersonated a chartered accountant, prepared audit reports and forged the Institute's seal before tax authorities. The Institute filed a criminal complaint alleging offences under the Chartered Accountants Ac…

Mis. K. Lakshmanya & Co., a partnership, paid interest under Sections 234(A)-(C) for assessment years 1993-94 and 1994-95 and applied to the Settlement Commission to have that interest waived. The Commission, relying on a CBDT circular, partially waived the interest, after which the Assessing Officer refused to grant i…

The appellant, a Development Officer of Life Insurance Corporation of India, claimed a deduction of 40% of his incentive bonus in his income‑tax returns, arguing that the amount represented expenses incurred in canvassing business. The Income Tax authorities rejected the claim, holding that the bonus formed part of his…

The Oil & Natural Gas Corporation Ltd (ONGC) challenged the assessment of surtax on its agreements with foreign companies, contending that the exemption notification GSR 307(E) dated 31‑03‑1983 under Section 24AA of the Companies (Profits) Surtax Act, 1964, covered both categories of foreign companies – those with dire…

The appellants entered into an agreement to sell their residential house on 27 December 2002 and purchased another house on 30 April 2003. A court order later restrained them from dealing with the property, preventing execution of the sale deed until the order was vacated in May 2004; the deed was finally registered on…

The appellant, a licensed stamp vendor, was caught in a sting operation after demanding Rs 12 for a Rs 10 stamp paper and was convicted under Sections 7, 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988. The key issue was whether a licensed stamp vendor qualifies as a “public servant” under Section 2(c)(i) …

The assessees Ryatar Sahakari Sakkarre Karkhane Niyamit filed several appeals under Section 260-A of the Income Tax Act, which were dismissed by the Karnataka High Court without framing any substantial question of law as mandated by Section 260-A(3). The Supreme Court examined whether the High Court complied with the s…

JEYAR Consultant & Investment Pvt. Ltd., which exported marine products and also earned domestic income from dividends, interest, brokerage and share transactions, claimed a deduction under Section 80HHC of the Income Tax Act for profits from its export business. The Assessing Officer denied the deduction because the e…

M/s. Vijay Industries appealed against the Commissioner of Income Tax seeking a 20% deduction under Section 80HH for the assessment years 1979‑80 and 1980‑81. The dispute centered on whether the deduction should be calculated on gross profits and gains (before depreciation, unabsorbed depreciation and investment allowa…

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…

M/s Jupiter Capital Pvt. Ltd. held a 99.88% share in Asianet News Network Pvt. Ltd. which reduced its share capital from 15,35,05,750 to 10,000 shares, proportionately reducing Jupiter's holding to 9,988 shares and receiving Rs. 3,17,83,474 as consideration. The Revenue argued that this reduction did not constitute a "…