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Bombay High Court Rules in Favor of Insurance Corporation on Deduction of Bad Debt Reserve. Held That Crediting Reserve for Doubtful Debts Constitutes Write-Off Under Section 36(1)(vii) of Income Tax Act, 1961, and Rule 5(a) of First Schedule Does Not Apply.

In this appeal before the Bombay High Court, the assessee, a general insurance corporation, challenged the Income Tax Appellate Tribunal's decision re...

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Supreme Court Allows Revenue Appeal in Income Tax Matter, Holding Bonus Shares Converted into Stock-in-Trade are Taxable as Business Profits. Bonus Shares Initially Received as Capital Held Converted by Assessee Dealer into Stock-in-Trade, Making Sale Proceeds Taxable Under Income-tax Act, 1922.

The dispute concerned the tax treatment of sale proceeds of bonus shares received by a dealer in shares and securities. The assessee, a firm dealing i...

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Supreme Court Allows Appeal in Motor Accident Compensation Case — Future Prospects Awardable in Permanent Disablement Cases. Loss of earning capacity must consider functional disability and actual income, not merely physical disability percentage.

The appellant, Pappu Deo Yadav, was a 20-year-old data entry operator earning ₹12,000 per month when he suffered a serious motor accident on 18.05.2...

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Bombay High Court Discharges Respondents in Suo Motu Criminal Contempt for Alleged Willful Disobedience of Court Orders. Court holds that mere breach of undertaking does not constitute criminal contempt unless it scandalizes or lowers authority of court.

The High Court of Bombay initiated suo motu criminal contempt proceedings against respondent no.1 (M.N. Navale, President of Sinhgad Technical Educati...

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Bombay High Court Quashes Reassessment Notice Under Section 148 of Income Tax Act, 1961 for Lack of Fresh Material. Reassessment based on mere change of opinion on share premium addition under Section 68 is invalid as all material was disclosed during original assessment.

The petitioner, Rajshree Realtors Private Limited, a real estate company, filed its return of income for Assessment Year 2012-2013 declaring income of...

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Supreme Court Allows Revenue's Appeal in Income Tax Case on Bonus Shares - Averaging Original Cost Over All Shares. When Bonus Shares Rank Pari Passu, the Correct Method to Compute Profit or Loss is to Spread the Cost of Original Shares Over Both Original and Bonus Shares.

This case involved the method of computing profit or loss on the sale of bonus shares in the hands of a dealer in shares. The respondent, Gold Mohore ...