Income Tax – Deduction of Interest Converted to Debentures – The issue was whether the issuance of debentures in lieu of interest accrued and payable constitutes "actual payment" under Section 43B. The Assessing Officer disallowed the deduction, but the CIT(A) and ITAT allowed it, holding that the issuance of debentures amounted to actual payment. [Paras 3-6]
Explanation 3...
Payment of Gratuity – Effective Date of Amendment – The appellants challenged the date of commencement of the Payment of Gratuity (Amendment) Act, 2010, which was set as 24.5.2010, asserting it should be effective from 1.1.2007. The Court upheld the executive's decision to fix the commencement date, noting that the benefit of higher gratuity is a one-time payment available only aft...
Wakf Act – Sections 6 and 7 – Jurisdiction of Wakf Tribunal – The Supreme Court held that the Wakf Tribunal has the jurisdiction to determine whether a property is a Wakf property when this is disputed in an eviction suit. The Tribunal can adjudicate on such matters, even if the tenant disputes the Wakf nature of the property [Paras 1-24].
Wakf Property – Eviction Suit &...
Income Tax Act – Section 12AA – Registration of Trust – The Supreme Court held that the Tribunal and the Commissioner of Income Tax (Exemptions) were correct in canceling the registration of the Trust under Section 12AA on the grounds of receiving bogus donations. The Trust misused the benefits conferred by the registration, warranting cancellation [Paras 1-13].
Bogus Donation...
Income Tax Act – Deduction under Section 80 IA – Market value of electricity – Distinction between market value and contracted price – Assessee’s right to claim higher deduction based on market value as against contracted sale rate to State Electricity Board – Tribunal and High Court’s view upheld. [Para 15-34]
Depreciation on Assets – Written Dow...
Value Added Tax – Input Tax Credit – Entitlement to full Input Tax Credit (ITC) by the assessee on goods purchased for manufacturing final products – Whether the assessee is entitled to claim full ITC on raw Rice Bran used for manufacturing Rice Bran Oil (RBO), a taxable product, and De-Oiled Rice Bran (DORB), an exempted by-product – Supreme Court allows full ITC. [Para 3-...
Tax Exemption – Religious, Charitable, and Educational Purposes – Section 3(1)(b) Kerala Building Tax Act- Buildings used principally for religious, charitable, or educational purposes are exempt from building tax under Section 3(1)(b) of the Kerala Building Tax Act, 1975. The Supreme Court held that residential accommodations for nuns and hostels for students attached to educational i...
Taxation – UP VAT Act – Classification of Goods – Embroidered ladies suits considered as "textile made ups" – Respondent's process includes cutting, embroidery, and partial stitching – Product does not remain 'textile' under Entry 21 of Schedule I, nor does it qualify as 'other textile made ups' under Entry 16 of Schedule II – Produ...
Goods and Services Tax – Provisional Attachment – Delegation of Power – The Joint Commissioner, while ordering a provisional attachment under Section 83, acted as a delegate of the Commissioner under Section 5(3) of the HPGST Act. The appeal against the order of provisional attachment was not available under Section 107(1) of the Act. The power to order provisional attachment is ...
Income Tax – Section 80-IA(5) – Deduction – The scope of sub-section (5) of Section 80-IA is limited to the determination of the quantum of deduction under sub-section (1) by treating the eligible business as the only source of income. Sub-section (5) cannot be interpreted to limit the deduction to business income alone. The deduction is computed on the basis of net income from t...