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

SC: 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 115JB; HC had noted that though

Nov 20,2015

SC: 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,

Nov 19,2015

SC: Lays down law on possessory rights transfer u/s 269UA under land collaboration agreement 

SC holds that collaboration agreement for land development would be covered under the ambit of transfer u/s 269UA, however sets-aside HC ruling upholding order passed by the appropriate authority u/s

Nov 07,2015

SC: Dismisses SLP; Booking confirmation letter irrelevant for determining Apartment “Booking Rights” acquisition

SC dismisses assessee’s SLP against Delhi HC judgement; HC had held that “Booking rights” in flat / apartment shall be treated as acquired upon execution of buyer’s agreement with builder

Nov 03,2015