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Supreme Court Allows Deduction Under Section 80HH on Gross Profits Without Deducting Depreciation and Investment Allowance. The Court Overruled Motilal Pesticides and Held That Section 80HH Deduction Is Computed on 'Profits and Gains' Not 'Income'.

The Supreme Court considered a batch of civil appeals concerning the interpretation of Section 80HH of the Income Tax Act, 1961, for the Assessment Ye...

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Bombay High Court Allows Revenue's Appeal in Income Tax Case Regarding Redemption Fine as Business Expenditure. Redemption fine of Rs. 75,00,000 paid for unauthorized import of almonds held allowable as business expenditure under Section 37 of the Income Tax Act, 1961.

The appeal was filed by the Principal Commissioner of Income Tax against the order of the Income Tax Appellate Tribunal (ITAT) which allowed the asses...

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Supreme Court Upholds Constitutional Validity of Section 43B(f) of Income Tax Act — Leave Encashment Deduction Allowed Only on Actual Payment. Clause (f) is not arbitrary or violative of Article 14 as it serves a legitimate purpose of preventing abuse and ensuring employee welfare.

The Supreme Court in this appeal considered the constitutional validity of clause (f) of Section 43B of the Income Tax Act, 1961, which was inserted b...

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Bombay High Court Dismisses Revenue's Appeal in Film Production Expenditure Disallowance Case. Expenditure on Positive Prints and Advertisement for Film 'KAAL' Held Allowable Under Section 37 of Income Tax Act, 1961 as Rule 9A Does Not Exclude General Deduction Provision.

The case involves two appeals filed by the Revenue against the common order of the Income Tax Appellate Tribunal (ITAT) relating to the assessment yea...

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Bombay High Court Dismisses Revenue's Appeal in Income Tax Case, Allows Additional Deduction Claim Without Revised Return. Assessee's claim for deduction under Section 43B of Income Tax Act, 1961, though not made in original return, is admissible before appellate authorities.

The case involves an appeal by the Commissioner of Income Tax against an order of the Income Tax Appellate Tribunal (ITAT) which upheld the assessee's...

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Supreme Court Dismisses Assessee's Appeal in MODVAT Credit Deduction Case Under Section 43B of Income Tax Act. Unutilised MODVAT Credit and Sales Tax Recoverable Account Not Allowable as Deduction Without Actual Payment of Excise Duty Liability.

The Supreme Court dismissed appeals by Maruti Suzuki India Ltd. against the Delhi High Court judgment dated 07.12.2017, which upheld the disallowance ...

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Supreme Court Dismisses Assessee's Appeal in Income Tax Deduction Case Under Section 43B Explanation 3C. Interest Converted into Debentures Not Deemed Actually Paid as Per Retrospective Amendment, Disallowing Deduction Under Income Tax Act, 1961.

The dispute arose from an appeal by M.M. Aqua Technologies Ltd. against the Commissioner of Income Tax, Delhi-III, concerning the interpretation of Se...

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Supreme Court Allows NCDC's Appeal in Income Tax Dispute Over Deduction of Grants as Revenue Expenditure. Grants disbursed by a statutory corporation as part of its business are deductible under Section 37 of the Income Tax Act, 1961, regardless of the capital nature of the source funds.

The National Co-operative Development Corporation (NCDC), established under the National Co-operative Development Corporation Act, 1962, is a statutor...