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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...

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Supreme Court Disposes of Appeals by Authority for Advance Rulings Against High Court Judgment Quashing AAR's Rejection of Treaty Benefits. Questions Raised on Taxation of Capital Gains Under India-Mauritius DTAA and Scope of Section 245R(2) Proviso (iii) of Income Tax Act, 1961.

The disputes arose from applications for advance ruling filed by three Mauritius-incorporated companies—Tiger Global International II Holdings, Tige...

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Gujarat High Court Reduces Compensation in Motor Accident Claim Due to Contributory Negligence and Income Calculation Error. Tribunal's award of Rs.1,19,95,033/- modified to Rs.1,02,55,000/- with 9% interest under Section 166 of Motor Vehicles Act, 1988.

The case arises from a motor accident claim under Section 166 of the Motor Vehicles Act, 1988. The accident occurred on 01.09.2013 when the deceased, ...

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High Court of Karnataka Dismisses Telecom Companies' Appeals on Section 194H TDS Liability Against Distributors. Discounts to Channel Partners Held as Commission, Mandating Tax Deduction Under Agency Relationship.

The High Court of Karnataka heard a batch of appeals by telecom companies challenging Income Tax Appellate Tribunal orders confirming their liability ...

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High Court of Bombay Dismisses Petition Challenging Arbitral Award in Insurance Dispute — Loss of Profit Claim Rejected Due to Flood Exclusion Clause. The court upheld the arbitrator's finding that 'inundation' was excluded under the Loss of Profit (Fire) Policy, and the claim was not maintainable.

The petitioner, Agrocel Industries Pvt. Ltd., was engaged in the production of Marine Chemical Bromine and had availed a 'Loss of Profit (Fire) Policy...

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Supreme Court Dismisses Revenue’s Appeal, Holding Compensation for Partial Termination of Agency is Capital Receipt. Termination of Agency for Territory Outside Hyderabad State Results in Sterilisation of Capital Asset, Not Taxable as Business Income Under Indian Income-tax Act, 1922.

The dispute arose from the income tax assessment of Messrs. Vazir Sultan & Sons, a registered firm, for the assessment year 1951-52. The firm was appo...

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Supreme Court Allows State's Appeal in Sales Tax Reimbursement Dispute — Clarifies That Sales Tax on Works Contracts Is Levied on Goods Component, Not on Completed Items of Work. Clause 45.2 of GCC Does Not Apply When Tax Is on Transfer of Property in Goods Involved in Works Contract.

The Supreme Court allowed the appeal filed by the State of Orissa against the judgment of the Orissa High Court. The dispute arose from works contract...