National Cooperative Development ... vs Assistant Commissioner Of Income Tax

insc-2025-1414 Supreme Court of India 10 December 2025 • CIVIL APPEAL No. 4612 OF 2014 • 19 min read
9 cases cited (0 SG, 9 foreign) Cited by 1 case

Practice Areas

Companies Act, 1956 Income Tax Act, 1961 law we are interpreting today was amended significantly by the Finance Act, 1995

Judges (2)

Atul S. Chandurkar Coram Pamidighantam Sri Narasimha Delivered

Parties (2)

Assistant Commissioner of Income Tax Respondent National Cooperative Development Corporation Appellant

Case Significance

National Cooperative Development ... vs Assistant Commissioner Of Income Tax is a Supreme Court of India decision dated December 10, 2025 (citation: insc-2025-1414). Tax appeals regarding eligibility for deduction under Section 36(1)(viii) of the Income Tax Act on income from dividends on redeemable preference shares, interest on short-term deposits, and service charges on Sugar Development Fund loans. The Supreme Court dismissed the appeals, holding these receipts were not 'derived from' the business of providing long-term finance under the strict statutory definition. The bench comprised Justices Atul S. Chandurkar and Pamidighantam Sri Narasimha. The judgment was delivered by Justice Pamidighantam Sri Narasimha.

This case has been cited by 1 subsequent judgment. The judgment references 9 case citations.

Summary

Tax appeals regarding eligibility for deduction under Section 36(1)(viii) of the Income Tax Act on income from dividends on redeemable preference shares, interest on short-term deposits, and service charges on Sugar Development Fund loans. The Supreme Court dismissed the appeals, holding these receipts were not 'derived from' the business of providing long-term finance under the strict statutory definition.

What was the outcome of National Cooperative Development ... vs Assistant Commissioner Of Income Tax?

Tax appeals regarding eligibility for deduction under Section 36(1)(viii) of the Income Tax Act on income from dividends on redeemable preference shares, interest on short-term deposits, and service c...

Statutes Cited

Companies Act, 1956
s 85
Income Tax Act, 1961
s 36
law we are interpreting today was amended significantly by the Finance Act, 1995

Cases Cited (9)

IN (9)
(1954) 2 SCC 563 (1978) 2 SCC 644 (1999) 4 SCC 197 (1999) 4 SCC 98 (2003) 5 SCC 590 (2009) 9 SCC 328 (2016) 6 SCC 747 (2021) 11 SCC 357 2025 INSC 1414

Cited By (1)

insc-2025-1414
National Cooperative Development ... vs Assistant Commissioner Of Income Tax

Judgment

Read the full judgment on the official India Courts portal.

Read on Indian Kanoon

Source: Indian Kanoon (insc-2025-1414)