Top 5  Tax Judgments given by the Supreme Court of India in 2019.

(1) P. Leelavathi (D) vs V. Shankaranarayana Rao

(Intention of the father to give financial assistance was for the purpose of welfare of his sons and not for ‘benami transactions’.)

In this case, The Supreme Court held that the intention of the father to give financial assistance was for the purpose of welfare of his sons and not for ‘benami transactions’.

The Hon’ble Court held that the plaintiff had failed to prove that the purchase of the suit properties was benami in nature. Further, such financial assistance was also given to the plaintiff and her husband to purchase the residential house.

The intention of Late G. Venkata Rao to give the financial assistance to purchase the properties in the names of defendants was looked through and held to be not purchased for himself and hence not benami in nature.

 

The Peerless General Finance and Investment Company Ltd vs. Commissioner of Income Tax A two-judge bench of the Supreme Court comprising Justice R F Nariman and Justice Sanjiv Khanna held that the deposits collected by a finance company are capital receipts and not revenue receipts.


(2) State of West Bengal & Ors vs. Calcutta Club Ltd

(services rendered by incorporated clubs to members are exempted from service tax.)

The Supreme Court of India has ruled that services rendered by incorporated clubs to members are exempted from service tax.


(3) The Great Eastern Shipping Co. Ltd vs. State of Karnataka & Ors

(Transfer of Right to use the Vessel would amount to a ‘Deemed Sale’ and hence liable to be taxed under Karnataka Sales Tax Act)

The Supreme Court of India has ruled that, agreement to Transfer of Right to use the Vessel would amount to a ‘Deemed Sale’ and hence liable to be taxed under Karnataka Sales Tax Act.

The Court held that the Charter Party Agreement amount to a deemed sale as there was a transfer of right to use the vessel as provided in Article 366(29A)(d) read with section 5C or section 2(j) of the Karnataka Sales Tax Act. Thus, the transaction is liable to be taxed by the concerned authorities in the State of Karnataka.


(4) S Ramachandra Rao vs. Commissioner of Income Tax, Bangalore & Anr

(Receiving amount on behalf holding the post of Secretary of a Trust is revenue receipt)

The Supreme Court of India on the basis of statement-admission by the appellant that he was holding the impugned post in the Trust until 1996 by virtue of which the amount was received, it to be treated as revenue receipt.


M/s TVS Motor Company Ltd vs. The State of Tamil Nadu and Others

(Dealer makes sales exclusively to the other State Government(s), benefit of ITC would be allowed without insisting on the furnishing of Form ‘C’)

The Court held that in those cases where a dealer makes sales exclusively to the other State Government(s), benefit of ITC would be allowed without insisting on the furnishing of Form ‘C’. The Supreme Court clarified that when dealers who are making sales exclusively to the other State Governments (i.e. outside the State of Tamil Nadu), the said States would be deemed as registered dealers for the purposes of availing benefits of ITC.

 

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