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Kerala Court September 1990 Judgments

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Sep 17 1990

Commissioner of Income-tax Vs. Nedungadi Bank Ltd.

Court: Kerala

Decided on: Sep-17-1990

Reported in: [1991]189ITR121(Ker)

K.S. Paripoornan, J. 1. At the instance of the Revenue, the following question of law has been referred by the Income-tax Appellate Tribunal (in short, 'the Tribunal') for the decision of this court:'Whether, on the facts and in the circumstances of the case, the rediscounting charges and the commission received on purchase of inland bills were not includible in the chargeable interest ?'2. The respondent is a banking company. We are concerned with the assessment years 1977-78 and 1978-79. While completing the assessments for the above two assessment years for which the accounting periods ended on December 31, 1976 and December 31, 1977, respectively, the rediscounting charges paid to the Industrial Development Bank of India, amounting to Rs. 2,05,258 and Rs. 3,20,378, respectively, for the above two assessment years were not allowed as deductions from the gross receipts on the ground that they were only application of interest after receipt and not a diversion before accrual. Similarl...


Sep 10 1990

Commissioner of Income-tax Vs. Travancore Titanium Products Ltd. (No. ...

Court: Kerala

Decided on: Sep-10-1990

Reported in: [1991]189ITR458(Ker)

K.S. Paripoornan, J.1. At the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following three questions of law for the decision of this court:'1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition of an amount of Rs. 3,14,377 being ex gratia payment made in excess of the statutory limit of 20% bonus and in violation of Section 36(1)(ii) ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing a deduction of Rs. 375 out of Rs. 1,025 for the assessment year 1977-78 ? 3. Whether, on the facts and in the circumstances of the case, and also in view of the facts averred in ground No. 3 in the appeal memo before the Income-tax Appellate Tribunal, the Tribunal was correct in holding that the claim for an amount of Rs. 7,725 if at all admissible relates to the accounting year ending December 31, 1977, relevant for the assessment year 1978-79?' 2. The respondent...


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