Supreme Court of India
Taparia Tools Limited v. Joint Commissioner of Income Tax Special, Range -1, Nasik
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 discussion, we are of the D opinion that the judgment and the orders of the High Court and the authorities below do not lay down correct position in law.
Judgment, page 19
From the headnote
Income Tax Act, 1961: s.36(i)(iii) - Deduction - Interest paid upfront to the debenture holder whether allowable in the first year itself or to be spread over a period of five years being the life of the debentures - In the instant case, in the debenture issue, two options as regards the payment of 0 interest were given to the debenture holders - Payment of interest every half yearly@ 18% .p.a. over a period of 5 years or else, one time upfront payment of~ 55 per debenture - Assessee having followed the mercantile system of accounting showed the upfront payment of interest on debentures as
Authorities it was built on
- 2000 Bharat Earth Movers v. Commissioner of Income Tax, Karnataka
- 1997 M/s Tuticorin Alkali Chemicals and Fertilizers Ltd., Madras v. Commissioner of Income Tax, Madras
- 1997 Madras Industrial Investment Corporation Ltd. v. Commissioner of Income Tax, Tamil,nadu I, Madras
- 1971 Kedarnath Jute Mfg. Co. Ltd. v. Commissioner of Income Tax, Central Calcutta
- 1978 Sutlej Cotton Mills Ltd v. Commr. of Income Tax, West Bengal, Calcutta
- 1999 United Commercial Bank, Calcutta v. Commissioner of Income Tax, West Bengal-iii Calcutta.
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