S H KAPADIA

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…

M/s Kurian Abraham Pvt. Ltd. purchased raw field latex in Kerala, processed it into centrifuged latex in Tamil Nadu and sold the product. For assessment years 1997‑98 and 1998‑99 the assessee relied on Circular No. 16/98 issued by the Kerala Board of Revenue under s.3(1A)(c) of the Kerala General Sales Tax Act, 1963, w…

M/s Padinjarekara Agencies Ltd., a dealer under the Kerala General Sales Tax Act and the Central Sales Tax Act, manufactures centrifuged latex from field latex (raw rubber) and claimed exemption under Government Notification SRO No. 1003/91 (later replaced by SRO No. 1727/93), which exempts "goods" made from rubber. Th…

The Department appealed against the assessment of Arvind Polycot Ltd., contending that interest paid on borrowings for capital assets that were not put to use during the financial year could not be claimed as a deduction under Section 36(1)(iii) of the Income‑Tax Act, 1961. The Court examined the statutory language and…

The Department of Income Tax appealed against a Gujarat High Court order favoring Ishwar Bhuvan Hotels Ltd. concerning the deductibility of interest on borrowings used to acquire capital assets that were not put to use in the relevant financial year. The central issue was whether such interest could be allowed as a ded…

Gujarat Alkalis & Chemicals Ltd borrowed Rs 30 crore from IDBI, which was refinanced by the foreign company COFACE. COFACE levied interest, commitment charges and insurance charges. The assessee claimed the commitment charges as a deduction under section 36(1)(iii) of the Income‑Tax Act, 1961, while the tax department …

The Supreme Court heard a civil appeal filed by the Commissioner of Income Tax, Gujarat against Mis United Phosphorous Ltd. concerning two tax issues: (1) whether interest paid on borrowings for capital assets that were not put to use in the relevant financial year could be allowed as a deduction under section 36(1)(ii…

Core Health Care Ltd., a manufacturer of intravenous solutions, borrowed money in 1991‑92 to install new machinery and claimed a deduction for the interest paid under Section 36(1)(iii) of the Income‑Tax Act. The assessing officer disallowed the deduction, relying on the Challapalli Sugars case, on the ground that the …

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

The case concerned an election conducted under the Punjab Municipal (President and Vice‑President) Election Rules, 1994, where voting was by show of hands. One member, Sher Singh, voted for the respondent and his vote was recorded and counted. The presiding officer later ordered a re‑poll, claiming it was a recount of …

The landlord filed eviction suits against tenants occupying a go‑down, a shop and a kothari. The lower authority dismissed all three suits; on appeal the go‑down was ordered to be evicted while the shop and kothari were retained by the tenants. The landlord then filed writ petitions in the Allahabad High Court challeng…

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

The State of Punjab appealed against the judgment of the Punjab and Haryana High Court which had allowed M/s Perfect Synthetics to deduct the purchase value of raw material from its taxable turnover under Rule 29(xii) of the Punjab General Sales Tax Rules, 1949. The assessee bought raw material from units that were exe…

The appeal concerned the interpretation of Rule 29 (xii) of the Punjab General Sales Tax Rules, 1949, which deals with deduction from taxable turnover. The State of Punjab contended that such a deduction was impermissible, while Mis. Sankeshwar Hosiery Industry argued for its permissibility. The Court examined the lang…

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

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

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

A search under Section 132 of the Income Tax Act was conducted on 17 January 2001 at the premises of Suresh N. Gupta, uncovering undisclosed income of Rs.1,62,427. The Assessing Officer levied tax at the 60% rate prescribed by Section 113 and imposed a 17% surcharge relying on the Finance Act, 2001. The assessee challe…

The Department (Assistant Commercial Taxes Officer) appealed against a High Court order that set aside a penalty imposed on M/s. Bajaj Electricals Ltd for transporting goods with a blank but signed Declaration Form ST 18A/18C. The vehicle was intercepted on 30‑03‑1999; the form lacked material particulars despite being…

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

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

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

Mahesh Chandra Gupta filed a writ petition challenging the appointment of respondent No.3 as an Additional Judge of the Allahabad High Court, alleging that he lacked the ten‑year practice requirement under Article 217(2)(b) of the Constitution. The Court examined whether "actual practice" or merely the "right to practi…

The Supreme Court examined whether the "balancing charge" provision of Section 41(2) of the Income Tax Act, 1961 could be read into Section 41(1) to tax profits from the sale of fully depreciated bottles and crates when Section 41(2) was deleted for assessment years 1988‑89 to 1998‑99. It held that each sub‑section of …

The Gujarat Maritime Board (GMB), a statutory authority created under the Gujarat Maritime Board Act, 1981 to develop minor ports, applied to be registered as a charitable institution under Section 12A of the Income‑Tax Act, 1961 to claim exemption under Section 11. The Commissioner of Income Tax rejected the applicati…

The Union of India appealed against a Central Administrative Tribunal order that had upgraded the pay scales of certain semi‑skilled workers recruited in 1985 to the skilled‑worker scale, based on a Ministry of Defence letter dated 15 October 1984. The 1984 letter, issued following recommendations of various expert com…

Uptron India Ltd entered into a contract with the Union of India to maintain community viewing sets in seven North‑Eastern states, but the government failed to make the agreed payments, leading to arbitration. The arbitrator issued an award on 18 June 1990, which Uptron sought to have declared a rule of court before th…

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 appellants, Chembra Orchard Produce Ltd. and others, filed applications under Section 391(1) of the Companies Act, 1956 seeking a court order to convene meetings of creditors and members for a proposed amalgamation scheme. The Karnataka High Court held that such applications must be heard with the parties present b…

The Supreme Court examined whether Infosys Technologies Ltd. was required to deduct tax under Section 192 of the Income Tax Act on the benefit employees derived from an Employees Stock Option Scheme (ESOP) for the assessment years 1997-98, 1998-99 and 1999-2000. The Court held that, at that time, there was no provision…

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

The appellants, owners of land acquired for a public project, obtained a compensation award which was later enhanced by a Reference Court. The State Government communicated its decision to acquiesce in the enhanced award to the beneficiary (respondent No.1), who nevertheless failed to file an appeal within the prescrib…

The Bank of Rajasthan alleged that the Bangur group siphoned its funds, prompting a CBI inquiry and the registration of sixteen FIRs. Concurrently, the Alipore Police registered FIR No.138/2001 against the Bangurs, which was later closed because the investigation was transferred to the CBI. The respondents filed revisi…

The case concerned several civil appeals arising from the imposition of penalty under Section 78(5) of the Rajasthan Sales Tax Act, 1994 (in pari materia with Section 22A(7) of the Rajasthan Sales Tax Act, 1954) for carrying goods in movement with blank Form ST‑18A/18C that had been signed but left incomplete. The Supr…

The appellant Raju @ Raj Kumar was convicted under Section 148 of the Indian Penal Code for rioting with a deadly weapon after allegedly stabbing his father during a violent incident. The trial court also convicted him under Section 302 for murder, but the State did not appeal that conviction, and the High Court upheld…

Abdul Aziz was tried and convicted under Section 460 of the Indian Penal Code for house‑trespass resulting in death and sentenced to ten years' rigorous imprisonment. The State did not file any appeal for enhancement or for conviction under Section 302. In the appellant's own appeal, the Rajasthan High Court substitute…

The Supreme Court examined whether the Kerala State Government could, under Article 162 of the Constitution, issue a comprehensive Government Order (G.O.) dated 26‑27 November 1993 withdrawing tax exemption granted under the Kerala General Sales Tax Act, 1963, due to an acute power shortage. The Court held that the Sta…

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

Moriroku UT India (P) Ltd., a manufacturer of plastic automobile components, received tools, dies and moulds free of cost from its customer Honda Siel Cars India Ltd. to produce components. The Uttar Pradesh Tax Department levied trade tax under Section 3 of the U.P. Trade Tax Act, 1948 on the amortisation cost of thes…

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

The landlord filed an eviction suit on 5 September 1994 under Section 11(1)(d) of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1982, alleging the tenant’s default in rent for months that fell more than three years before the suit. The tenant contended that the suit was barred because the limitation perio…

The Income Tax Officer appealed against the deduction claimed by Arihant Tiles & Marbles (P) Ltd. under Section 801A of the Income Tax Act, 1961 for the assessment year 2001‑2002. The assessee converted raw marble blocks into polished slabs and tiles through a series of processes – sorting, sawing, cutting, crack‑filli…

Sandip Agarwal, director of a company that enjoyed duty‑free import benefits under the DEEC scheme, was found to have diverted the imported goods to the domestic market, constituting smuggling. He was detained under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (C…

Enron Oil & Gas India Ltd (EOGIL), a foreign company and operator under a Production Sharing Contract (PSC) with the Government of India, claimed foreign exchange losses arising from currency translation of cash calls and expenses in its profit and loss account for AY 1999‑2000. The Assessing Officer disallowed the ded…

The appellant Jatinder Nath entered into a development agreement with Chopra Land Developers for construction of a housing complex in Delhi, agreeing that any dispute would be arbitrated by a sole arbitrator in Faridabad and that the Faridabad courts alone would have jurisdiction. When a dispute arose, the arbitrator e…

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…

The appellants' property was requisitioned in 1987 and acquired under the Requisition and Acquisition of Immovable Property Act, 1952. Although a 1975 agreement fixed a price of Rs 18,98,000, the claimants received this amount in 1993 under protest and later sought higher compensation, leading the State Government to a…

The Supreme Court examined whether the Punjab Municipal Act, 1911 (as amended by the 1994 Punjab Amending Act) could levy house tax at different rates for self‑occupied and tenanted premises and whether the definition of "market value" under Section 3(8aa) was unconstitutional for lacking guidelines. The Court held tha…

The Supreme Court considered two products of Dabur Ltd., ‘Janam Ghunti’ and ‘Lal Tail’, for classification under the Central Excise Tariff Act, 1985. The Tribunal had remitted the classification of ‘Janam Ghunti’ to the original authority, noting that its nature as an aqueous distillate, solution or extraction required…

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…

Mis Mil India Ltd, a manufacturer of plant and equipment for soaps and detergents, entered into composite contracts with Godrej Soaps Ltd and Galaxy Surfactants Ltd to supply both its own equipment and duty‑paid bought‑out items such as motor‑pumps and heat exchangers directly to the sites. The Central Excise Departmen…