Supreme Court of India

Mercantile Bank Ltd., Bombay v. The Commissioner of Income-tax, Bombay City-iii

Neutral citation
Reported as [2006] SUPP. 1 S.C.R. 628
Bench Ruma Pal and Dal Veer Bhandari JJ.
Decided 1 May 2006

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

We are of the opinion that the opinion expressed by the Bombay High E Court is correct.

Judgment, page 8

From the headnote

Income Tax Act, 1961: Section 36(/)(vii) read with Section 36(2)-AY 1978-79-/nterest on doubtful advances-Liability to tax-Held: Interest on doubtfal loans entered in suspense account could not be brought to tax-Central Board of Direct Taxes Circular, 1952. Section 40- (5)-AY 1978-79-Expenses or payments-Payment of salary to serving and retired employees-limits of deduction---Held: Section 40- (5){cJ(ii) of the Act speaks of ··an amount"'.-This would indicate that the employer is only entitled to deduction of one amount-Therefore, only one limit is prescribed for deduction on account of

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