Supreme Court of India
M.M. Aqua Technologies Ltd. v. Commissioner of Income Tax, Delhi-iii
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 view that this approach is erroneous and overlooks the definitions of “provision” and “reserve” given in the Companies Act.
Judgment, page 19
From the headnote
Income Tax Act, 1961: s. 43B explanation 3C – Certa in deductions to be only on actual payment – Funding o f interest amount by way of a term debenture, if amounts to actual payment – Appellant-assessee company had obtained loan from f inancial institutions for business operations on which is intere st is payable – Assessee unable to discharge interest liability due to its financial hardship – It approached financial institution for a rehabilitation plan – In terms of the Plan, assessee issued convertible de bentures in lieu of interest payment and then claimed a deduction u/s. 43B –
Authorities it was built on
- 1981 K.P. Varghese v. The Income-tax Officer, Ernakulam, and Another
- 2012 Vodafone International Holdings B.V. v. Union of India & Anr.
- 2005 Sedco Forex International Drill. Inc. and Ors. v. Commissioner of Income Tax, Dehradun and Anr.
- 1997 National Rayon Corporation Ltd. v. The Commissioner of Income Tax, Madras
- 2005 M/s. Gujarat Cypromet Ltd. v. Union of India and Ors.
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