Supreme Court of India
National Co-operative Development Corporation v. Commissioner of Income Tax, Delhi-v
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What the Court ordered
In view of the aforesaid finding the crucial issue would be whether the amounts advanced as grants from this income generated could be adjusted against the income to reduce the impact of taxation as a revenue expense.
Judgment, page 23
From the headnote
Income Tax Act, 1961 – s.37(1)– Taxable income of appellant- Corporation– Interest earned on funds received u/s.13(1), 1962 Act and disbursed by way of grants to national/state level co- operative societies – If eligible for deduction – Not allowed by Assessing Officer (AO) – CIT(Appeals) held the Corporation entitled to deduction – Order set aside by ITAT – High Court decided in favour of revenue – On appeal, held: If an assessee carries on business, all that is required to be seen is whether any outlay constitutes an expenditure ‘for the purpose of business’ as used in s.37(1)…
Authorities it was built on
- 1953 Atherton West & Co. Ltd v. Suti Mill Mazdoor Union and Others
- 1960 The Commissioner of Income-tax, Bombay City Ii v. Shri Sitaldas Tirathdas
- 2012 Columbia Sportswear Company v. Director of Income Tax, Bangalore
- 1975 Sole Trustee Loka Shikshana Trust v. Commissioner of Income Tax, Mysore
- 1971 Commissioner of Income Tax, Gujarat v. M/s. S. C. Kothari
- 1980 Empire Jute Co. Lid. v. Commissioner of Income Tax
- 1965 Poona Electric Supply Co. Ltd. v. Commissioner of Income-tax, Bombay
- 1972 Commissioner of Income-tax, Kerala, Ernakulam v. Travancore Sugar & Chemicals Ltd.
- 1988 Commissioner of Income-tax, Bombay City-i, Bombay v. Associated Cement Companies Ltd., Bombay
- 2018 Union of India & Ors. v. Pirthwi Singh & Ors.
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