The year 2018 has been a very significant one to the taxation regime due to some important reforms in the laws and procedures. The contribution of the judiciary including the Supreme Court and various High Courts and Tribunals cannot be ignored. Some of the significant tax judgments delivered by the Indian judiciary in this year have been enlisted below.
Quoting Aadhaar Mandatory for Filing Income Tax Returns and PAN Application: Supreme Court [Read Judgment] The Constitution bench of the Supreme Court has upheld the Constitutional Validity of Section 139AA of the Income Tax Act, 1961 which mandated quoting of Aadhaar or enrolment ID of Aadhaar application form for filing of income tax returns and making application for allotment of PAN.
Transfer Charges, Non-Occupancy Charges etc collected by Co-operative Societies from Its Members are Exempt from Income Tax: Supreme Court [Read Judgment] A two-judge bench of the Supreme Court, held that the transfer charges, non-occupancy charges and common amenity fund charges and certain other charges, collected by Co-operative Societies from Its members are not subject to income tax since the principle of mutuality applies to all these cases.
Interest Income on NPAs received by NBFCs not Taxable on Accrual Basis: Supreme Court [Read Judgment]
While dismissing a departmental appeal in CIT v. Vasisth Chay Vyapar Ltd, a two-judge bench of the Supreme Court of India held that the interest income earned by Non-Banking Financial Companies (NBFCs) on non-performing assets (NPAs) should not be taxed on the accrual basis.
Interest from Share Application Money can be Set Off against Public Issue Expenses: Supreme Court [Read Judgment]
In the Commissioner of Income Tax vs. M/s. Shree Rama Multi-Tech Ltd. the Supreme Court held that the interest income earned out of the share application money is liable to be set off against the public issue expenses.
Benefit Received in the Nature of Cash or Money from Waiver of Loan is Non-Taxable under Section 28(iv) of IT Act: Supreme Court [Read Judgment]
In The Commissioner vs. Mahindra and Mahindra Ltd. the Supreme Court held that perquisite received in the form of waiver of loan cannot be taxed under Section 28(iv) of the Income Tax Act,1961, if the receipts are in the nature of cash or money. No TDS
on Premium paid for a limited period for Acquisition of Leasehold Rights: SC [Read Judgment]
The Supreme Court last week held that the amounts paid as part of the lease premium or biannual or annual payments for a limited/specific period towards the acquisition of leasehold rights are not subject to TDS, as the same amount to capital payments.