Supreme Court Daily Digest [10 January 2026]

Jindal Equipment Leasing Consultancy Services Ltd v. Commissioner of Income Tax, Delhi–II, New Delhi; 2026 INSC 46- S.28 Income Tax Act - Amalgamation - Receipt Of Shares

Income Tax Act, 1961 - Section 28 - Receipt of shares of the amalgamated company in substitution of stock-in-trade can give rise to taxable business profits under Section 28- (Para 31) -The enquiry for the Court is whether, as a result of the amalgamation, the assessee has in fact realised a profit in the commercial sense. This assessment may turn on whether: (A) The old stock-in-trade has ceased to exist in the assessee’s books; (B) The shares received in the amalgamated company possess a definite and ascertainable value; and (C) The assessee, immediately upon allotment, is in a position to dispose of such shares and realise money- If these conditions are satisfied, the substitution bears the character of a commercial realisation and the profit may be taxed under Section 28. Where, however, the allotment of shares is merely a statutory substitution mandated by the scheme of amalgamation, without yielding an immediately realisable benefit, no income can be said to accrue or be received at that stage, and taxability arises only upon the eventual sale of the shares (Para 18)

Income Tax Act, 1961 - Section 260-A -Scope - Limits higher appellate interference to questions of law, while at the same time, permitting the Court to deal with necessary or incidental questions that arise, provided reasons are recorded and parties are heard -Merely because a specific substantial question of law was not framed, it cannot be concluded that prejudice was caused to the parties, if both parties had the opportunity to address the issues in dispute. (Para 9)

Income Tax Act, 1961 -Difference between a charging provision and an exemption provision: A provision that enables the levy of tax on a particular transaction is a charging provision. Only a transaction that is covered by a charging provision is taxable. Only if the transaction is taxable can there be an exemption. (Para 12.1)

Amalgamation - Amalgamation, in corporate law, signifies the statutory blending of two or more undertakings into one. It is distinct from winding up: while the transferor company ceases to exist as a separate corporate entity, its business, assets, and liabilities are absorbed into and continue within the transferee -The transferor company ceases to exist, and the transferee emerges with a blended corporate personality, inheriting all rights and liabilities. (Para 16) Companies Act, 2013 contains no express definition of amalgamation. Amalgamation – ordinarily effected through a scheme of compromise or arrangement sanctioned by the Court or Tribunal – is founded on agreement between shareholders and creditors, but its legal effect is statutory: upon sanction, all assets, rights, and liabilities of the transferor vest in the transferee by operation of law. In other words, amalgamation is more than a mere contractual transfer; it is a statutory process of substitution. (Para 16.1)

Shrikrishna v. State of Madhya Pradesh 2026 INSC 45 - IPC - Murder & Culpable Homicide

Indian Penal Code 1860 - Section 299,300- Culpable homicide is genus, the murder is its specie. The two ingredients namely that the infliction of bodily injury on the deceased was caused intentionally and secondly, that the injury was sufficient to cause death in the ordinary course of nature, are satisfied, the offence would become the offence of murder. However, there may be circumstances which may emerge from the operative facts and the evidence available in a given case that the offence would be one of culpable homicide not amounting to murder. (Para 5)

Summary: The Supreme Court upheld appellant's conviction under Section 304 Part II IPC, rejecting charges under Sections 147, 148, and 149 due to absence of common object. Considering the appellant's age (80+) and time already served (about six years three months), the Court reduced the sentence to period undergone and dismissed the appeal subject to this modification.

Ultratech Cement Ltd. v. State of Gujarat ; 2026 INSC 43- Gujarat Motor Vehicles Tax Act - Article 265 Constitution - Construction Equipment Vehicle

Gujarat Motor Vehicles Tax Act, 1958 ;Motor Vehicles Act, 1988 - Section 2(28) - Though the term motor vehicle is wide enough but it expressly excludes some of the motor vehicles which are of special type and have been adapted for use only in factory or in any other enclosed premises from its ambit - When the special type of vehicles meant to be used as construction equipment vehicle within the enclosed premises and as such ex-facie stands excluded from the definition of the motor vehicle as contained in Section 2 (28) – However, if any such kind of vehicles are found using roads, they would not be free from the rigors of Section 2 (28) of the Act and Section 3 of the Gujarat Tax Act and may also be subject to proceedings for seizure and penalty in accordance with the law. (Para 37-44)

Constitution of India - Article 265 & Seventh Schedule - Entry 57 of List II - State is competent to levy and collect tax on vehicles i.e., motor vehicles if they are suitable for use on roads. (Para 28) State tax Act cannot tax vehicles which are not suitable for being used on roads. (Para 31)

Bharat Pathania v. State of Himachal Pradesh - Criminal Cases Quashed - Husband Undertaking

Indian Penal Code 1860 - Sections 307, 323, 324, 452, 504, 506 - SC quashed criminal proceedings by invoking Article 142 powers by recording written undertaking that accused will look after his wife and child “nicely” and “not harm them in any manner whatsoever” - The commission of an offence inevitably implicate broader societal ramifications and invite a response grounded in deterrence. However, the exercise of judicial discretion must be guided by the circumstances of the case. Where a lawful resolution ensures the welfare of the wife and the child, the continuation of criminal proceedings may not always advance the ends of justice. In such cases, bringing the proceedings to a close may serve both individual and societal interests by encouraging responsibility and stability. (Para 4-6)