| Case ID |
39b7caf0-0c85-472c-ac96-5611e233f5f5 |
| Body |
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| Case Number |
Civil Appeal No.545 of 2002 |
| Decision Date |
Jan 18, 2002 |
| Hearing Date |
|
| Decision |
The Supreme Court of India granted leave to appeal in Civil Appeal No.545 of 2002, thereby allowing the appeal against the judgment of the Allahabad High Court dated October 15, 1999. The central issue revolved around whether the incentive bonus paid by the assessee is allowable under section 37 of the Income Tax Act, 1961, despite not being admissible under the specific provision of section 36(1)(ii). The Court analyzed previous judgments, including Civil Appeal No.3507 of 1998 and Special Leave Petition (C) Nos.15305 to 15307 of 1987, determining that the question presented was a referable question of law. Consequently, the Supreme Court directed the Appellate Tribunal to state the case to the High Court, affirming that the incentive bonus issue warrants further judicial consideration. The appeal was allowed with no costs imposed. |
| Summary |
In the pivotal case of Commissioner of Income Tax vs. Kisan Sehkari Chini Mill Ltd., referenced as Civil Appeal No.545 of 2002, the Supreme Court of India addressed critical questions under the Indian Income Tax Act, 1961. The crux of the appeal centered on the deductibility of incentive bonuses paid by the assessee. Specifically, the dispute was whether such bonuses are allowable under Section 37 when they are not admissible under the more specific Section 36(1)(ii). The Supreme Court meticulously reviewed previous judgments, including Civil Appeal No.3507 of 1998 and Special Leave Petition (C) Nos.15305 to 15307 of 1987, to ascertain the legal standing of the issue. The Court concluded that the matter constitutes a referable question of law, necessitating a thorough examination by the High Court. Consequently, the appeal was allowed, and no costs were imposed. This decision underscores the judiciary's role in interpreting tax laws and ensuring that provisions like Sections 36 and 37 are applied consistently and justly. Legal practitioners and tax professionals closely monitor such judgments, as they have significant implications for corporate tax strategies and compliance. The case highlights the importance of understanding the interplay between specific and general provisions within tax legislation, emphasizing the need for clarity and precision in legal interpretations. Furthermore, the involvement of prominent legal figures, including Additional Solicitor General Altaf Ahmad and Senior Advocate Rakesh Dwivedi, illustrates the high stakes and complexity often associated with income tax litigation. Overall, this landmark decision reinforces the judiciary's commitment to resolving legal ambiguities and ensuring equitable application of tax laws, making it a key reference point for future cases in the realm of income taxation. |
| Court |
Supreme Court of India
|
| Entities Involved |
Commissioner of Income Tax,
KISAN SEHKARI CHINI MILL LTD.
|
| Judges |
SYED SHAH MOHAMMED QUADRI,
S. N. VARIAVA
|
| Lawyers |
Altaf Ahmad,
Rajiv Tyagi,
B.V. Balaram Das,
Rakesh Dwivedi,
Vishwajit Singh,
Ravi Kumar Verma
|
| Petitioners |
COMMISSIONER OF INCOME TAX
|
| Respondents |
KISAN SEHKARI CHINI MILL LTD.
|
| Citations |
2004 SLD 92,
2004 PTD 2150,
(2002) 253 ITR 782
|
| Other Citations |
Civil Appeal No.3507 of 1998,
Special Leave Petition (C) Nos.15305 to 15307 of 1987
|
| Laws Involved |
Indian Income Tax Act, 1961
|
| Sections |
S.36(1)(ii),
S.37,
256
|