Supreme Court Rulings

Upholds HC-order, denies depreciation claim on ‘sham’- sale and lease back transaction

SC upholds HC order, rejects assessee’s depreciation claim on machinery purchased from Andhra Pradesh State Electricity Board (APSEB) and then leased back to APSEB; HC had noted findings by...View More

Upholds wealth-tax on 'urban land'; Exclusion u/s 2(ea) inapplicable to building under construction 

SC rules in favour of Revenue, upholds wealth tax levy on “urban land”, denies exemption benefit under Explanation 1(b)(ii) to Sec 2(ea) of the Wealth Tax Act (which excludes ‘land o...View More

Dismisses taxpayer's SLP against HC-ruling holding property leasing as house property income

SC dismisses assessee’s SLP against Madras HC judgement, HC had held that rental income derived from leasing of commercial property was taxable as 'income from house property'; Revenue had asses...View More

Upholds HC order, interest on share application not taxable in pre-allotment period

SC upholds HC order, interest earned on share-application money by assessee-company taxable only post allotment of shares (in AY 1993-94) and not on receipt of application money (in AY 1992-93); HC ha...View More

Upholds HC order; Deferred sales-tax pre-payment not taxable u/s 41 absent cessation benefit 

SC upholds Bombay HC judgement denying taxability u/s 41(1) (which provides for taxability of any benefit arising on account of remission/cessation of trading liability) in case of assessee making pre...View More

Larger Bench to decide simultaneous deductions availability u/s 80HHC, Sec 80IA; J. Dave, J. Misra differ

SC division bench refers matter to larger bench to rule on whether assessee is entitled to simultaneous deduction under Sec 80IA (for infrastructure development) and Sec 80HHC (for export business) on...View More

Dismisses SLP; HC allowed deduction for share buy-back expenses absent funds inflow 

SC dismisses Revenue’s SLP against Karnataka HC judgement allowing deduction to assessee company for expenses incurred on buy-back of shares; HC had rejected Revenue’s stand that the expen...View More

Reverses HC order, allows interest deduction; Subsidiary loans satisfy 'commercial expediency' test 

SC sets aside HC order, allows deduction for interest paid on funds borrowed from bank u/s 36(1)(iii)for AY 1988-1989; HC had upheld Revenue's disallowance of interest expense deduction on t...View More

Dismisses SLP, HC held deduction claim unaffected by 'window dressing' of balance-sheet 

SC dismisses Revenue's SLP against Karnataka HC ruling allowing deduction for deferred revenue expenditure (towards advertisement and sales promotion) while computing ‘book profits’ u/s 11...View More

Draws contrast between 'interest' definition under Interest Tax Act & Income tax Act

SC rules in favour of assessee-banks in a bunch of appeals, holds interest received by assessee-banks for delay by parties to fulfil their payment obligations on discounted bills of exchange, not char...View More