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General Insurance Corporation Of India vs Commissioner Of Income-Tax, Bombay on 21 September, 1999

In General Insurance Corporation of India v. Commissioner of Income- Tax, the Supreme Court considered in an appeal arising out of a judgment of the High Court the issue as to whether a sum of `3 crores, being a provision for redemption of preference shares, was not liable to be added back in the total income of the assessee for AY 1977-78?. The Supreme Court held that a plain reading of rule 5(a) of the First Schedule made it clear that in order to attract the applicability of the provision the amount should firstly be an expenditure or allowance and secondly it should be one not admissible under the provisions of section 30 to 43A. The Supreme Court held that the sum of `3 crores in that case which was set apart as a provision for redemption of preference shares could not have been treated as an expenditure and hence could not have been added back under rule 5(a). In that context the Supreme Court held as follows:
Supreme Court of India Cites 20 - Cited by 55 - R C Lahoti - Full Document

General Manager, E.I.D. Parry (India) ... vs Presiding Officer, 2Nd Addl. Labour ... on 2 May, 1991

In the case of General Insurance Corporation of India vs. Addl. CIT in ITA No.3554/Mum/2011 dated 15/02/2012 the WP No. 25/11 dated 1-12-2011 this issue is also in favour of the assessee. Respectfully following the Hon‟ble Bombay High Court, we allow the issue in favour of assessee and dismissed the ground of revenue‟s appeal.
Supreme Court of India Cites 4 - Cited by 49 - R B Misra - Full Document
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