Supreme Court of India
National Co-operative Development Corporation v. Commissioner of Income Tax, Delhi-v
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 w ould be whether the amounts advanced as grants from this income generat ed 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/stat e level co- operative societies – If eligible for deduction – N ot allowed by Assessing Officer (AO) – CIT(Appeals) held the Corporati on 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 whethe r any outlay constitutes an expenditure ‘for the purpose of busin ess’ 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
- 1971 Commissioner of Income Tax, Gujarat v. M/s. S. C. Kothari
- 1980 Empire Jute Co. Lid. v. Commissioner of Income Tax
- 1975 Sole Trustee Loka Shikshana Trust v. Commissioner of Income Tax, Mysore
- 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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