Supreme Court of India Judgements

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Category: Income Tax Act

Direct Taxation Income Tax Act

Income Tax Act, 1961 – Section 17(2)(viii) – Income Tax Rules, 1962 – Rule 3(7)(i) – The appeals involve challenges to the vires of Section 17(2)(viii) of the Income Tax Act and Rule 3(7)(i) of the Income Tax Rules, concerning the taxation of perquisites in the form of interest-free/concessional loans to bank employees – The primary issues are whether these provisions result in excessive delegation of legislative function to the Central Board of Direct Taxes (CBDT) and if Rule 3(7)(i) is arbitrary or violative of Article 14 of the Constitution by using the State Bank of India’s Prime Lending Rate as a benchmark – The Court reasoned that the legislative policy and standards are sufficiently clear in the primary legislation, and the rule-making authority’s actions fall within the permissible parameters of delegation – The Court found that the provisions align with the common understanding of ‘perquisites’ and ‘fringe benefits’ and that the use of SBI’s rate promotes tax efficiency and certainty – The Supreme Court concluded that Section 17(2)(viii) and Rule 3(7)(i) are intra vires and do not lead to excessive delegation or violate constitutional principles – The judgment emphasizes the importance of clarity, consistency, and fairness in tax legislation.

May 12, 2024 sclaw

2024 INSC 389 SUPREME COURT OF INDIA DIVISION BENCH ALL INDIA BANK OFFICERS’ CONFEDERATION — Appellant Vs. THE REGIONAL MANAGER, CENTRAL BANK OF INDIA, AND OTHERS ( Before : Sanjiv…

Direct Taxation Income Tax Act

Income Tax Act, 1961 – Section 32(1) – Income Tax Rules, 1962 – Rule 5(1A) – There is no requirement under the second proviso to sub-rule (1A) of Rule 5 of the Rules that any particular mode of computing the claim of depreciation has to be opted for before the due date of filing of the return

Dec 10, 2023 sclaw

SUPREME COURT OF INDIA DIVISION BENCH COMMISSIONER OF INCOME TAX — Appellant Vs. M/S JINDAL STEEL AND POWER LIMITED THROUGH ITS MANAGING DIRECTOR — Respondent ( Before : B. V.…

Direct Taxation Income Tax Act

Income Tax Act, 1961 – Section 80HHC – Claim for deduction -The assessee’s attempt to broaden the deduction sources is considered impermissible, as strict interpretation aligns with specific terms in Section 80HHC – Sub-sections (2) and (3) of Section 80HHC emphasize that deductions are intended exclusively for profits derived from exporting goods and merchandise outside India, and including other income contradicts the section’s intended scope and purpose – Appeal Dismissed

Nov 25, 2023 sclaw

SUPREME COURT OF INDIA DIVISION BENCH SHAH ORIGINALS — Appellant Vs. COMMISSIONER OF INCOME TAX-24, MUMBAI — Respondent ( Before : B.V. Nagarathna and S.V.N. Bhatti, JJ. ) Civil Appeal…

Direct Taxation Income Tax Act

Income Tax Act, 1961 – Section 90 – A notification under Section 90(1) is necessary and a mandatory condition for a court, authority, or tribunal to give effect to a Double Tax Avoidance Agreement (DTAA), or any protocol changing its terms or conditions, which has the effect of altering the existing provisions of law – The interpretation of the expression “is” has present signification. Therefore, for a party to claim benefit of a “same treatment” clause, based on entry of DTAA between India and another state which is member of OECD, the relevant date is entering into treaty with India, and not a later date, when, after entering into DTAA with India, such country becomes an OECD member, in terms of India’s practice.

Oct 24, 2023 sclaw

SUPREME COURT OF INDIA DIVISION BENCH ASSESSING OFFICER CIRCLE (INTERNATIONAL TAXATION) 2(2)(2) NEW DELHI — Appellant Vs. M/S NESTLE SA — Respondent ( Before : S. Ravindra Bhat and Dipankar…

Direct Taxation Income Tax Act

Income Tax Act, 1961 – Section 35ABB – Expenditure for obtaining licence to operate telecommunication services – Payment of entry fee as well as the variable annual licence fee paid by the respondents-assessees to the DoT under the Policy of 1999 are capital in nature and may be amortised in accordance with Section 35ABB of the Act – Consequence of non-payment would result in ouster of the licensee from the trade – Thus, this is a payment which is intrinsic to the existence of the licence as well as trade itself. Such a payment has to be treated or characterized as capital only.

Oct 18, 2023 sclaw

SUPREME COURT OF INDIA DIVISION BENCH C.I.T., DELHI — Appellant Vs. BHARTI HEXACOM LTD. — Respondent ( Before : B.V. Nagarathna and Ujjal Bhuyan, JJ. ) Civil Appeal No(S). 11128,…

Direct Taxation Income Tax Act

“…gold would not be precious if we all had gold to spare………..” HELD held that bitumen is not a valuable article in the context of Section 69A and the assessee here was not the owner of the concerned bitumen for the purpose of section 69A of the Income Tax Act,1961.

May 23, 2023 sclaw

SUPREME COURT OF INDIA DIVISION BENCH M/S.D.N. SINGH — Appellant Vs. COMMISSIONER OF INCOME TAX, CENTRAL, PATNA AND ANOTHER — Respondent ( Before : K.M. Joseph and Hrishikesh Roy, JJ.…

Direct Taxation Income Tax Act Limitation

Income Tax Act, 1961 – Section 150(2) – Clarification regarding waiver of limitation – Revenue to file an appropriate review application for the relief sought in the present application and as and when such review application is filed the same can be heard in the open court.

May 14, 2023 sclaw

SUPREME COURT OF INDIA DIVISION BENCH PRINCIPAL COMMISSONER OF INCOME TAX, CENTRAL-3 — Appellant Vs. ABHISAR BUILDWELL P. LTD. — Respondent ( Before : M.R. Shah and Sudhanshu Dhulia, JJ.…

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Tenders & Contracts

E-auction — Typographical error — e-auction for a manganese and iron ore block submitted a bid of 140.10% instead of its intended bid of 104.10% due to a typographical error — The court allowed the company’s appeal and ordered a fresh e-auction for the block — The company was also ordered to pay Rs 3 crore ($400,000) to the state as compensation for the delay caused by its error.

Jul 20, 2024 sclaw
Corporate

Drugs (Price Control) Order, 1995 — Paragraph 13 — Recovery of overcharged amount of drugs — Demand made by the National Pharmaceutical Pricing Authority (NPPA) to recover an overcharged amount for a Cloxacillin-based drug formulation called Roscilox — The Court found that the appellant’s admission of purchasing the drug directly from the manufacturer made it liable under Paragraph 13 of the Drugs (Price Control) Order, 1995 (DPCO) — The Court also rejected the appellant’s claim that it was only a ‘dealer’ and not a ‘distributor’ under the DPCO, as the definitions of these terms under the DPCO are not mutually exclusive — The Court further noted that the objective of the DPCO is to control the prices of medicinal drug formulations and ensure they are made available to the common man, and thus, the provision should not be subjected to a restricted or hidebound interpretation — Appeal Dismissed.

Jul 20, 2024 sclaw
I P C Matrimonial

Penal Code, 1860 (IPC) — Sections 498A, 323 and 504 — Dowry Prohibition Act, 1961 — Sections 3 and 4 — Irretrievable breakdown of marriage as a ground for divorce — The court recognized that irretrievable breakdown of marriage, where the parties have been living separately for a significant period and all efforts at reconciliation have failed, can be a valid ground for divorce — This expands the grounds for divorce beyond the traditional grounds mentioned in the Hindu Marriage Act, 1955.— One-time settlement as a mode of permanent alimony — The court allowed the parties to opt for a one-time settlement as a mode of permanent alimony, instead of periodic payments — This provides flexibility to the parties in resolving their financial obligations towards each other.

Jul 20, 2024 sclaw
Service

Bihar City Manager Cadre (Appointment and Service Conditions) Rules, 2014 — Rules 5 and 11 — The Supreme Court has dismissed appeals challenging the validity of a judgment by the Patna High Court, which allowed a candidate to be considered for appointment as a City Manager in Bihar — The candidate had scored to meet up the minimum qualifying marks of 32% — The court found that the minimum qualifying marks were only for the written test and not for the overall selection process — The court also rejected the appellants’ reliance on an executive order issued in 2007, stating that it was not applicable to the rules issued in 2014 — The court concluded that the candidate was eligible and qualified to be considered for appointment as she had met the minimum qualifying marks in the written test.

Jul 20, 2024 sclaw