SC: 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 lower authorities

Jan 14,2016

SC: 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

Jan 08,2016

SC: 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 assessed

Dec 29,2015

SC: Penalty proceedings based on set-aside assessment order unsustainable, deletes penalty levied u/s271E 

SC upholds HC order, when original assessment order itself was set aside satisfaction recorded therein for the purpose of initiating penalty proceeding u/s 271E would also not survive; Section 269SS/T

Dec 25,2015

SC: 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);

Dec 15,2015

SC: 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-mature

Dec 14,2015

SC: 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)

Dec 11,2015

SC: Dismisses SLP, HC upheld undisclosed income addition based on assessee’s sworn admission 

SC dismisses assessee’s SLP, HC had upheld addition of undisclosed income based on admission of assessee in the sworn statements; HC had held that where there was clear and categoric

Dec 04,2015

SC: 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 expenditure was capital

Nov 26,2015

SC: 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 two grounds namely,

Nov 26,2015