Supreme Court of India

Provision for warranty is allowable if in past defects were there in products: SC

Rotork Controls India (P) Ltd. Vs CIT (Supreme Court of India)

10. What is a provision? This is the question which needs to be answered. A provision is a liability which can be measured only by using a substantial degree of estimation. A provision is recognized when: (a) an enterprise has a present obligation as a result of a past event; (b) it is probable that an outflow of resources will be require...

Read More

Estimated expenditure towards warranty is allowable

Rotork Controls vs. CIT (Supreme Court)

The assessee sold valve actuators. At the time of sale, the assessee provided standard warranty that if the product was defective within the stated period, the product would be rectified or replaced free of charge. For AY 1991-92, the assessee made a provision for warranty at Rs.10,18,800 at the rate of 1.5% of the turnover. As the actual...

Read More

Estimated expenditure towards warranty is allowable u/s 37 (1): SC

Rotork Controls vs. CIT (Supreme Court)

The assessee sold valve actuators. At the time of sale, the assessee provided standard warranty that if the product was defective within the stated period, the product would be rectified or replaced free of charge. For AY 1991-92, the assessee made a provision for warranty at Rs.10,18,800 at the rate of 1.5% of the turnover. As the actual...

Read More

If any payment of income chargeable under the head ‘Salaries’ falls within Section 9(1)(ii) then TDS provisions would stand attracted – SC

Commissioner of Income-tax, New Delhi Vs M/s Eli Lilly & Company (India) Pvt. Ltd. [Supreme Court of India]

The TDS provisions in Chapter XVII-B relating to payment of income chargeable under the head Salaries, which are in the nature of machinery provisions to enable collection and recovery of tax forms an integrated Code with the charging and computation provisions under the 1961 Act, which determines the assessability/taxability of salaries ...

Read More

TDS on foreign salary is reqd to be deducted even though assessee is not the payer

CIT Vs. Eli Lilly (Supreme Court of India)

Where the assessee-employer obtained expatriate-employees from a foreign company and the said employees, continuing to be employees of the foreign company, received salary and allowance in their home country in foreign currency and the question arose whether the assessee was obliged to deduct tax thereon at source u/s 192 and the High Cou...

Read More

Sony India Pvt. Ltd. Versus Commercial Tax Officer & Anr (Supreme Court)

M/s Sony India Pvt. Ltd Vs Commercial Tax Officer & Anr (Supreme Court of India)

Similar goods manufactured in India and sold by other dealer like Samsung, LG etc. in Tamil Nadu are being taxed at 12% after 27.03.2002. However, the petitioners (assessee) herein alone are now required to pay tax at 20%. Presently, the Act imposes a higher rate of 20% on sales tax whereas other similar goods suffer sales tax at 12% -Lia...

Read More

Allotment of shares is “creation” of shares and not “transfer” of shares

Khoday Distilleries vs. CIT (Supreme Court)

An allotment of shares is a “creation” of shares and not a transfer of shares. There is a vital difference between the two. An allotment is the creation of shares by appropriation out of the unappropriated share capital to a particular person....

Read More

Computation of depreciation in cases covered by Rule 8 of Income Tax Rules, 1962

CIT Vs Doom Dooma India Ltd. (Supreme Court of India)

10. In the case of Commr. of Income-tax, Madhya Pradesh, Nagpur and Bhandara v. Nandlal Bhandari Mills Ltd. - (1966) 60 ITR 173, which judgment was in the context of composite income, the question inter alia arose whether depreciation "actually allowed" would mean depreciation deducted in arriving at the taxable income or the depreciation...

Read More

“Sham” lease transactions cannot be given relief as “financial arrangements”.

M Corp Global Pvt. Ltd. Vs Commissioner of Income-tax, Ghaziabad (Supreme Court of India)

2. This civil appeal filed by the assessee is directed against judgment and order dated 22.9.2006 in ITA No. 164/04 by the Delhi High Court. By the impugned judgment, confirming the decision of the Tribunal, the High Court has held that the appellant (assessee) is not entitled to claim depreciation under Section 32(1)(ii) of the Income-ta...

Read More

Effect of retraction of statement of confession

Vinod Solanki Vs. UOI (Supreme Court of India)01/01/1970

With a view to arrive at a finding as regards the voluntary nature of statement or otherwise of a confession which has since been retracted, the Court must bear in mind the attending circumstances which would include the time of retraction, the nature thereof, the manner in which such retraction has been made and other relevant factors. L...

Read More

Browse All Categories

CA, CS, CMA (6,104)
Company Law (8,419)
Corporate Law (10,377)
Custom Duty (9,341)
DGFT (4,825)
Excise Duty (4,785)
Fema / RBI (5,252)
Finance (5,636)
Income Tax (41,974)
SEBI (4,531)
Service Tax (4,002)

Search Posts by Date

August 2022
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031