Supreme Court of India

National Co-operative Development Corporation v. Commissioner of Income Tax, Delhi-v

Neutral citation
Bench Sanjay Kishan Kaul and Indu Malhotra JJ.
Decided 11 September 2020

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

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)…

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