| Case ID |
e18f39c4-ddcf-4995-bf0c-8d700e7d958f |
| Body |
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| Case Number |
Civil Appeal No.1325 of 1979 |
| Decision Date |
Apr 06, 1994 |
| Hearing Date |
|
| Decision |
The Supreme Court of India upheld the decision of the High Court, affirming that the shortfall amount of Rs.27,43,807 claimed by the appellant as a deduction was not allowable under Rule 5 of the Income-tax Rules, 1962, as the iron cylinders used as returnable packages were not 'actually used up'. Furthermore, the Court ruled that the appellant's claim for balancing allowance under section 32(1)(iii) of the Income Tax Act was also inadmissible since the amount had not been written off in the appellant's books of account. The Court also confirmed the High Court's decision regarding the development rebate, stating that the company could not claim the full amount of Rs.24,15,622 due to a shortfall in the statutory reserve requirements. Overall, the judgment emphasized the importance of compliance with specific rules and regulations in the Income Tax Act and the necessity of proper accounting practices for claiming deductions. |
| Summary |
In the landmark case of Burmah Shell Oil Storage and Distribution Co. of India Ltd v. Commissioner of Income Tax, the Supreme Court of India addressed critical issues regarding deductions under the Income Tax Act, 1961. The case focused on the appellant's claim for a shortfall in the sale of iron cylinders used as returnable packages during the distribution of liquid petroleum gas. The Supreme Court affirmed the High Court's ruling that the shortfall was not deductible as the cylinders were not 'actually used up' under the relevant provisions. Additionally, the Court upheld the High Court's stance on the development rebate, stating that the appellant failed to meet the statutory reserve requirements. This case highlights the importance of adherence to tax laws and the necessity for companies to maintain accurate financial records to substantiate claims for deductions and rebates. Keywords related to this case include 'Income Tax Act', 'deductions', 'development rebate', and 'Supreme Court of India'. |
| Court |
Supreme Court of India
|
| Entities Involved |
Burmah Shell Oil Storage and Distribution Co. of India Ltd,
Bharat Petroleum Corporation Ltd,
Burmah Shell Refineries Limited
|
| Judges |
MAY. VENKATACHALIAH, C.J.,
G.N. RAY, J
|
| Lawyers |
S. Rajappa,
T.N. Banerjee,
RA. Perumal,
D.N. Gupta,
J. Ramamoorthy,
R. Sutish,
D.S. Mahra
|
| Petitioners |
Burmah Shell Oil Storage and Distributing Co. of India Ltd
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1995 SLD 104,
1995 PTD 1333,
(1995) 211 ITR 218
|
| Other Citations |
CIT v. Burmah Shell Oil Storage and Distribution Co. of India Ltd. (1978) 115 ITR 891 affirmed,
CIT v. National Syndicate (1961) 41 ITR 225 (SC),
Indian Overseas Bank Ltd. v. CIT (1970) 77 TTR 512 (SC),
Rajagopala Vandayar (S.) v. CIT (1990) 184 ITR 450 (Mad.)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
32(1)(iii),
34(3)(a)
|