Category: Supreme Court

Archive for the ‘Supreme Court’ Category


Council of ICAI vs. Gurvinder Singh (Supreme Court)

COURT:
CORAM: ,
SECTION(S):
GENRE:
CATCH WORDS:
COUNSEL:
DATE: November 16, 2018 (Date of pronouncement)
DATE: November 24, 2018 (Date of publication)
AY: -
FILE: Click here to view full post with file download link
CITATION:
Professional Misconduct of CAs: A Chartered Accountant can be held guilty of professional misconduct even when he is acting as an individual in commercial dealings and is not acting as a CA nor discharging any function in relation to his practice as a Chartered Accountant. Under the CA Act, any action which brings disrepute to the profession or the Institute is misconduct whether or not related to professional work

The Disciplinary Committee has, on facts, found the Chartered Accountant guilty of a practice which was not in the Chartered Accountant’s professional capacity. This, it was entitled to do under Schedule I Part-IV subclause (2) if, in the opinion of the Council, such act brings disrepute to the profession whether or not related to his professional work

Sushila N. Rungta vs. TRO (Supreme Court)

COURT:
CORAM: ,
SECTION(S): ,
GENRE: ,
CATCH WORDS:
COUNSEL:
DATE: October 30, 2018 (Date of pronouncement)
DATE: November 6, 2018 (Date of publication)
AY: -
FILE: Click here to view full post with file download link
CITATION:
Interpretation of statutes: Effect of repeal of a statute u/s 6 of the General Clauses Act on pending proceedings explained in the context of the Gold Control Act and in view of law laid down in State of Punjab vs. Mohar Singh [1955] 1 SCR 893, New India Assurance Co. Ltd. vs. C. Padma (2003) 7 SCC 713 etc

The statement of objects and reasons makes it clear that over 22 years, the results achieved under the Act have not been encouraging and the desired objectives for which the Act has been introduced have failed. Following the advice of experts, who have examined issues related to the Act, the objects and reasons goes on further to state that this Act has proved to be a regressive measure which has caused considerable dissatisfaction in the minds of the public and hardship and harassment to artisans and small self-employed goldsmiths. This being the case, we are of the opinion that the repeal simpliciter, in the present case, does not attract the provisions of Section 6 of the General Clauses Act as a contrary intention is very clearly expressed in the statement of objects and reasons to the 1990 repeal Act

CIT vs. Reliance Industries Ltd (Supreme Court)

COURT:
CORAM: ,
SECTION(S): ,
GENRE:
CATCH WORDS:
COUNSEL:
DATE: October 26, 2018 (Date of pronouncement)
DATE: November 2, 2018 (Date of publication)
AY: -
FILE: Click here to view full post with file download link
CITATION:
Condonation of abnormal delay of 1371 days in removing office objections: High Court refused to condone delay and held that Dept must "set its own house in order by sacking and removing the delinquent and negligent officials or penalising them otherwise so as to subserve larger public interest". The Supreme Court reversed this holding High Court ought to have condoned the delay and not dismissed the appeal. Dept to pay costs of Rs. 1 lakh (from taxpayers' funds) for condonation of delay

No doubt, there is a long delay in removing the objections, we are of the opinion that in a case like this the High Court should have condoned the delay in removing the office objections and heard the2matter on merits

ITO vs. Urban Improvement Trust (Supreme Court)

COURT:
CORAM: ,
SECTION(S):
GENRE:
CATCH WORDS: , , ,
COUNSEL:
DATE: October 12, 2018 (Date of pronouncement)
DATE: October 15, 2018 (Date of publication)
AY: -
FILE: Click here to view full post with file download link
CITATION:
S. 10(20) Interpretation of statutes: Law on whether "functional test" as laid down in UOI vs. R.C. Jain, (1981) 2 SCC 308 is still good law explained in the context of whether the statutory functions conducted by a municipal committee enables it to qualify as a 'local authority'

The High Court based its decision on the fact that functions carried out by the assessee are statutory functions and it is carrying on the functions for the benefit of the State Government for urban development. The said reasoning cannot lead to the conclusion that it is a Municipal Committee within the meaning of Section 10(20) Explanation Clause (iii). The High Court has not adverted to the relevant facts and circumstances and without considering the relevant aspects has arrived at erroneous conclusions. Judgments of the High Court are unsustainable

CIT vs. Hapur Pilkhuwa Development Authority (Supreme Court)

COURT:
CORAM: , ,
SECTION(S):
GENRE:
CATCH WORDS: ,
COUNSEL:
DATE: August 27, 2018 (Date of pronouncement)
DATE: September 1, 2018 (Date of publication)
AY: -
FILE: Click here to view full post with file download link
CITATION:
We are shocked that the UOI through the CIT has taken the matter so casually. The petitioners have given a totally misleading statement before this Court. Petition dismissed with costs of Rs.10 lacs to be paid (by the exchequer)

First of all this petition has been filed after a delay of 596 days. There is an inadequate and unconvincing explanation given for the delay in filing the petition. Secondly, it is mentioned in the proforma for first listing that a similar matter being C.A. No. 7096/2012 is pending in this Court. However, the office has given a report stating that C.A. No. 7096/2012 was decided by this Court as far back as on 27.09.2012. In other words, the petitioners have given a totally misleading statement before this Court. We are shocked that the Union of India through the Commissioner of Income Tax has taken the matter so casually

CIT vs. Classic Binding Industries (Supreme Court)

COURT:
CORAM: ,
SECTION(S):
GENRE:
CATCH WORDS: , ,
COUNSEL:
DATE: August 20, 2018 (Date of pronouncement)
DATE: August 23, 2018 (Date of publication)
AY: -
FILE: Click here to view full post with file download link
CITATION:
S. 80-IC: An assessee who avails of deduction for a period of 5 years @ 100% of profits and gains is entitled to deduction on 'substantial expansion' for remaining 5 Assessment Years @ 25% (or 30% where the assessee is a company) and not @ 100% (Mahabir Industries v. PCIT 256 TM 201 (SC) distinguished)

As pointed out above, once the assessees had started claiming deduction under Section 80-IC and the initial Assessment Year has commenced within the aforesaid period of 10 years, there cannot be another initial Assessment Year thereby allowing 100% deduction for the next 5 years also when sub-section (3), in no uncertain terms, provides for deduction @ 25% only for the next 5 years. It may be asserted again that the assessees accept the legal position that they cannot claim deduction of more than 10 years in all under Section 80-IC

PCIT vs. Monnet Ispat And Energy Ltd (Supreme Court)

COURT:
CORAM: ,
SECTION(S):
GENRE: ,
CATCH WORDS:
COUNSEL: ,
DATE: August 10, 2018 (Date of pronouncement)
DATE: August 23, 2018 (Date of publication)
AY: -
FILE: Click here to view full post with file download link
CITATION:
Income-tax dues, being in the nature of Crown debts, do not take precedence even over secured creditors, who are private persons. Given s. 238 of the Insolvency and Bankruptcy Code, 2016, the Code will override anything inconsistent contained in any other enactment, including the Income-tax Act

Given Section 238 of the Insolvency and Bankruptcy Code, 2016, it is obvious that the Code will override anything inconsistent contained in any other enactment, including the Income-Tax Act. We may also refer in this Connection to Dena Bank vs. Bhikhabhai Prabhudas Parekh and Co. & Ors. (2000) 5 SCC 694 and its progeny, making it clear that income-tax dues, being in the nature of Crown debts, do not take precedence even over secured creditors, who are private persons

Commissioner of Customs vs. Dilip Kumar (Supreme Court) (Constitution Bench)

COURT: ,
CORAM: , , , ,
SECTION(S): ,
GENRE: ,
CATCH WORDS:
COUNSEL: ,
DATE: July 30, 2018 (Date of pronouncement)
DATE: July 31, 2018 (Date of publication)
AY: -
FILE: Click here to view full post with file download link
CITATION:
Entire law on interpretation of statues relating to 'purposive interpretation', 'strict interpretation', 'literal interpretation', etc explained. Difference in interpretation of statutes vs. exemption notifications explained. Q whether there is doubt or ambiguity in interpretation of a statute or notification benefit of doubt should go to the taxpayer or to the revenue explained. Law on Doctrine of substantial compliance and “intended use” also explained

Literally exemption is freedom from liability, tax or duty. Fiscally, it may assume varying shapes, specially, in a growing economy. For instance tax holiday to new units, concessional rate of tax to goods or persons for limited period or with the specific objective etc. That is why its construction, unlike charging provision, has to be tested on different touchstone. In fact, an exemption provision is like an exception and on normal principle of construction or interpretation of statutes it is construed strictly either because of legislative intention or on economic justification of inequitable burden or progressive approach of fiscal provisions intended to augment State revenue. But once exception or exemption becomes applicable no rule or principles requires it to be construed strictly. Truly speaking liberal and strict construction of an exemption provision are to be invoked at different stages of interpreting it. When the question is whether a subject falls in the notification or in the exemption clause then it being in nature of exception is to be construed strictly and against the subject, but once ambiguity or doubt about applicability is lifted and the subject falls in the notification then full play should be given to it and it calls for a wider and liberal construction

PCIT vs. LG Electronics India Pvt Ltd (Supreme Court)

COURT:
CORAM: ,
SECTION(S):
GENRE:
CATCH WORDS: ,
COUNSEL:
DATE: July 20, 2018 (Date of pronouncement)
DATE: July 28, 2018 (Date of publication)
AY: 2007-08
FILE: Click here to view full post with file download link
CITATION:
S. 220(6): CBDT's OMs dated 29.02.2016 & 31.07.2017 by which AO's have been directed to grant stay of disputed demand on payment of 20%/ 15% does not fetter the power of the AO & CIT to grant stay on payment of amounts lesser than 15%/ 20%. The AO/ CIT have to deal with the prima facie merits and give reasons for rejection of the stay application

Having heard Shri Vikramjit Banerjee, learned ASG appearing on behalf of the appellant, and giving credence to the fact that he has argued before us that the administrative Circular will not operate as a fetter on the Commissioner since it is a quasi judicial authority, we only need to clarify that in all cases like the present, it will be open to the authorities, on the facts of individual cases, to grant deposit orders of a lesser amount than 20%, pending appeal

Kudrat Sandhu vs. UOI (Supreme Court)

COURT:
CORAM: , ,
SECTION(S): ,
GENRE:
CATCH WORDS:
COUNSEL:
DATE: July 16, 2018 (Date of pronouncement)
DATE: July 18, 2018 (Date of publication)
AY: -
FILE: Click here to view full post with file download link
CITATION:
ITAT Appointment Rules: Persons selected as Member of the ITAT will continue till the age of 62 years and the person holding the post of President, shall continue till the age of 65 years

At this juncture, we may note that there is some confusion with regard to the Income Tax Appellate Tribunal (ITAT) as regards the age of superannuation. We make it clear that the person selected as Member of the ITAT will continue till the age of 62 years and the person holding the post of President, shall continue till the age of 65 years

Top