NDLI: National Co-operative Development Corporation Vs. Commissioner of Income Tax, Delhi-v

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Income Tax Act s.37(1) 1961 Taxable income of appellant- Corporation Interest earned on funds received u/s.13(1)
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Income Tax Act, 1961 (43 of 1961)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Income Tax Act, 1961 – s.37(1)– Taxable income of appellant-Corporation– Interest earned on funds received u/s.13(1), 1962Act and disbursed by way of grants to national/state level co-operative societies – If eligible for deduction – Not allowed byAssessing Officer (AO) – CIT(Appeals) held the Corporation entitledto deduction – Order set aside by ITAT – High Court decided infavour of revenue – On appeal, held: If an assessee carries onbusiness, all that is required to be seen is whether any outlayconstitutes an expenditure ‘for the purpose of business’ as used ins.37(1) – Disbursement of grants is the core business of theappellant-Corporation – Once that requirement is satisfied, theexpenditure incurred in the course of business and for the ‘purposeof business’, would naturally be an allowable deduction u/s.37(1)– Source of funds from which the expenditure is made is not relevant– It is also not relevant as to whether the expenditure is incurredout of the corpus funds or from the interest income earned by theappellant – Findings arrived at by the AO, ITAT and the High Courtnot agreed with –View taken by the CIT(A)concurred with – NationalCooperative Development Corporation Act, 1962 – ss.9, 12,13(1),(2)– Finance Act, 2003 – s.36(1)(xii)– Finance Act, 2001 –Finance Act, 2002.Income Tax Act, 1961 – ss.14, 28, 56, 57 – Held: s.56 is inthe nature of a residuary clause, i.e., if the income of every kindwhich is not to be excluded from total income under the IT Act wouldbe chargeable under this head if it is not chargeable u/s.14 heads‘A’ to ‘E’.Doctrines/Principles – Principle of diversion by overridingtitle – When not applicable – Discussed –Income Tax Act, 1961 –National Cooperative Development Corporation Act, 1962.Income Tax Act, 1961 – Determination of income – Held:Scheme of the IT Act requires the determination of ‘real income’ onthe basis of ordinary commercial principles of accountancy – Todetermine the ‘real income’, permissible expenses are required tobe set off – Income tax is a tax on real income.Government Litigation:Increase in, inter se government and its bodies – Impedimentsand resolution – Discussed.Taxation matters –Pertaining to Central Public SectorEnterprises (CPSE) and government authorities –Advance tax rulingsystem –Indian scenarios vis-à-vis international scenario –Discussed.
Judge	Hon'ble Mr. Justice Sanjay Kishan Kaul
Neutral Citation	2020 INSC 544
Petitioner	National Co-operative Development Corporation
Respondent	Commissioner Of Income Tax, Delhi-v
SCR	[2020] 13 S.C.R. 517
Judgement Date	2020-09-11
Case Number	5105

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

National Co-operative Development Corporation Vs. Commissioner of Income Tax, Delhi-v

Please Log-in to view this content

Commissioner of Income Tax, Delhi-1 Vs. M/s Container Corporation of India Ltd.

The Bihar State Co-operative Bank Ltd Vs. The Commissioner of Income-tax

Madras Industrial Investment Corporation Ltd. Vs. Commissioner of Income Tax, Tamil,nadu I, Madras

Commissioner of Income Tax (central)-1, New Delhi Vs. Vatika Township Private Limited

Kerala State Beverages Manufacturing & Marketing Corporation Ltd. Vs. The Assistant Commissioner of Income Tax Circle 1(1)

Commissioner of Income Tax Vs. M/s. Alcock Ashdown and Co. Ltd. Etc

M/s. R.r. Holding P. Ltd. Vs. Commissioner of Income Tax, Delhi and Anr.

The National Co-operative Development Corporation Act, 1962

Commissioner of Income-tax, Lucknow Vs. Bazpur Co-operative Sugar Factory Ltd.

National Co-operative Development Corporation Vs. Commissioner of Income Tax, Delhi-v

National Co-operative Development Corporation Vs. Commissioner of Income Tax, Delhi-v

Please Log-in to view this content

Similar Documents

Commissioner of Income Tax, Delhi-1 Vs. M/s Container Corporation of India Ltd.

The Bihar State Co-operative Bank Ltd Vs. The Commissioner of Income-tax

Madras Industrial Investment Corporation Ltd. Vs. Commissioner of Income Tax, Tamil,nadu I, Madras

Commissioner of Income Tax (central)-1, New Delhi Vs. Vatika Township Private Limited

Kerala State Beverages Manufacturing & Marketing Corporation Ltd. Vs. The Assistant Commissioner of Income Tax Circle 1(1)

Commissioner of Income Tax Vs. M/s. Alcock Ashdown and Co. Ltd. Etc

M/s. R.r. Holding P. Ltd. Vs. Commissioner of Income Tax, Delhi and Anr.

The National Co-operative Development Corporation Act, 1962

Commissioner of Income-tax, Lucknow Vs. Bazpur Co-operative Sugar Factory Ltd.

National Co-operative Development Corporation Vs. Commissioner of Income Tax, Delhi-v