Income Tax Act - Loss Suffered Due To Exchange Fluctuation While Repaying Loan Can Be Regarded As Revenue Expenditure : Supreme Court

Allowing the appeal filed by Wipro Finance Ltd., the Supreme Court observed that the loss suffered owing to exchange fluctuation can be regarded as revenue expenditure and thus an allowable deduction.The bench comprising Justices allowed the appeal against High Court judgment which had reversed the above view taken by Income Tax Appellate Tribunal. Wipro entered into a loan agreement with one Commonwealth Development Corporation for borrowing amount to carry on its...

Immunity Under Income Declaration Scheme Available Only To The Declarant; Can't Be Extended To Another Assessee : Supreme Court

The Supreme Court has found fault with a Gujarat High Court judgment for extending the immunity under the "Income Declaration Scheme" (IDS) to an assessee who was not the declarant under the scheme.The High Court had quashed the reassessment notice issued under Sections 147/148 of the Income Tax Act, 1961, against a company M/s MR Shah Logistics Private Ltd. One of the grounds for the re-opening of the assessment was contended to have been a declaration by another company, Garg Logistics Private...

Supreme Court Remits Tax Appeal Back To Rajasthan High Court, Says High Court Cannot Dispose Of Appeal With A One Paragraph Order

The Supreme Court has ruled that a High Court is not justified in disposing of a tax appeal with a one paragraph order without discussing the issues arising for consideration. The Bench, consisting of Justices U.U. Lalit and S. Ravindra Bhat, has remitted a matter back to the Rajasthan High Court for fresh consideration of a tax appeal filed by the revenue department against the order of the Jaipur bench of ITAT. The Assessing Officer (AO) had made additions to Assessee Motisons...

Banks Exempted From Deducting Tax At Source While Paying Interest To Statutory Corporations : Supreme Court Reiterates

The Supreme Court has reiterated that Banks are exempted from the mandate of Section 194A of the Income Tax Act, 1961, to deduct tax at the source (TDS), on payment of interest to corporations established by a statute. In the facts of the present case, the Apex Court held that in terms of the notification dated 22.10.2022 issued by the Central Government, the Union Bank of India (appellant) was exempted from the requirement under Section 194A, Income Tax Act, 1961, to deduct tax at ...

Supreme Court Allows Adjustment Of Installments Made Under Income Declaration Scheme For Computing Tax Liability

A Bench of Supreme Court, consisting of Justices U.U. Lalit and P.S. Narasimha, allowed the adjustment of installments made under the "Income Declaration Scheme, 2016" in computing the tax liability of the Assessee for the relevant assessment years. The Assessee, having made a declaration under the "Income Declaration Scheme, 2016", had made two installments of tax with respect to the income disclosed under the Scheme, but defaulted in the payment of the final installment. The...

TDS On MACT Awards: Supreme Court Asks Centre To Look Into Unclaimed Refunds Of Claimants Who Are Not IT Assessees

The Supreme Court on Thursday directed the Central Government to look into the issue of money deduced from motor accident compensation awards as Tax Deducted at Source (TDS) lying as unclaimed refunds with respect to claimants who may not come within the bracket of Income Tax assesses. A bench comprising Justice Sanjay Kishan Kaul and Justice MM Sundresh was hearing the case Bajaj Allianz General Insurance Company Private Ltd. vs. Union of India in which it is considering guidelines to...

Income Deduction For State Govt Undertakings - 'Exclusivity' Under S. 40(a)(iib) of Income Tax Act Not Based On Number Of Undertakings : Supreme Court

The Supreme Court has rejected the argument raised by the Kerala State Beverages Corporation that it is entitled to deduct the levies made by the state government on it from income. The Beverages Corporation's claim was on the premise that the license given to by the State Government to trade in liquor was not 'exclusive'. Section 40(a)(iib) of the Income Tax Act, which refers to charges paid to the government that are not deductible from income, uses the word "exclusively". The Supreme Court...

ITAT Cannot Recall Its Order By Invoking Power U/Sec 254(2) Income Tax Act : Supreme Court

The Supreme Court observed that the Income Tax Appellate Tribunal cannot recall orders passed by it invoking power under Section 254(2) of the Income Tax Act.Section 254(2) power is only to correct and/or rectify the mistake apparent from the record and not beyond that, the bench comprising Justices MR Shah and BV Nagarathna said.In this case, the ITAT allowed the Revenue's appeal and held that payments made for purchase of software are in the nature of royalty. The Assessee filed miscellaneous...