Court : Gujarat
Reported in : [1977]108ITR181(Guj)
..... in order to appreciate the contentions urged before us it is necessary to notice that under section 4 of the companies (profits) surtax act, 1964, there shall be charged on every company for every assessment year commencing on and from the first day of april, 1964, a tax (in the act referred to as the surtax) in respect of so much of its chargeable profits of the previous year or previous years, as the case may be, as exceed the statutory deduction, at the rate or rates specified in the third schedule. ..... it may be pointed out that under the companies (profits) surtax act, 1964, section 18 provides that section 256 of the income-tax act, 1961, applies to proceedings under the companies (profits) surtax act, 1964. 13. ..... the question arose whether under the provisions of the companies (profits) surtax act, 1964, in computing the capital employed for the purpose of surtax under the act, moneys borrowed by the assessee-company from the bank of baroda were includible in the total amount of capital in accordance with rule 1,clause (v), of the second schedule to the act. ..... . qualified for inclusion in computation of its capital for the purposes of surtax chargeable under the companies (profits) surtax act, 1964 ..... the agreement of december 1, 1961, was not modified it has not examined the question of law as to whether the repayment of the loan was to be made within a period of seven years as contemplated by clause (v) of rule 1 of the second schedule of the companies (profits) surtax act, 1964 .....
Tag this Judgment!Court : Gujarat
Reported in : (1994)119CTR(Guj)448; [1994]208ITR515(Guj)
..... at the instance of the revenue, the income-tax appellate tribunal, ahmedabad bench 'a', has referred the following questions for our opinion under section 18 of the companies (profits) surtax act, 1964 (hereinafter referred to as 'the surtax act'), read with section 256(1) of the income-tax act, 1961 (hereinafter referred to as 'the income-tax act') : '1. ..... whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was right in law in holding that under rule 4 of the second schedule to the companies (profits) surtax act, the proportionate capital is to be reduced only in respect of income not includible as per chapter iii of the income-tax act, without including the deduction allowed under sections 80k, 80m and 80j ?' 2. ..... 20,79,050, should be excluded while computing chargeable profits under rule 1(viii) of the first schedule to the surtax act, 1964. ..... 20,79,050, should be excluded while computing chargeable profits under rule 1(viii) of the first schedule to the surtax act, 1964 2. ..... : [1977]106itr399(kar) wherein it is held that the reliefs allowed under section 80-i (priority industry) and section 80j (newly established industrial undertaking) of the income-tax act, 1961, were not 'income, profits and gains not includible in the total income' of the company under rule 4 of schedule ii to the surtax act and would not go to diminish the capital of the company to be computed for the purposes of the surtax act. .....
Tag this Judgment!Court : Gujarat
Reported in : [1995]211ITR889(Guj)
..... has referred the following question for our opinion under section 18 of the companies (profits) surtax act, 1964, read with section 256(1) of the income-tax act, 1961 : 'whether, on the facts and in the circumstances of the case and scheme of the surtax act, the tribunal was justified in law in rejecting the claim of the appellant for deduction of interest charged under section 217(1a) and section 139(8) of the income-tax act, 1961, as part of 'income-tax in computing net chargeable ..... the aforesaid question arises in the background of the fact that for the assessment year 1979-80, the assessee (kashiram textile mills private limited), inter alia, claimed that in computing chargeable profits under the companies (profits) surtax act, 1964 (hereinafter referred to as 'the surtax act'), deduction of interest payable under section 217(1a) and section 139 of the income-tax act should be reduced as provided under rule 2 of the first schedule to the surtax act. ..... section 4 of the surtax act provides that, subject to the provisions of the act, on every company a tax in respect of so much of its chargeable profits of the previous year as exceed the statutory deduction shall be charged at the rates specified in the third schedule. ..... the phrase 'chargeable profits' is defined under section 2(5) of the surtax act to mean that the total income of an assessee computed under the income-tax act, 1961, for any previous year and adjusted in accordance with the provisions of the first schedule. .....
Tag this Judgment!Court : Gujarat
Reported in : (1994)118CTR(Guj)466; [1994]206ITR699(Guj)
..... the income-tax appellate tribunal, ahmedabad bench, has referred for the opinion of the high court, the following questions under the provisions of section 18 of the companies (profits) surtax act, 1964 (hereinafter referred to as 'the act'), read with section 256(1) of the income-tax act, 1961 : '1. ..... first day on april, 1976, any deposit with the industrial development bank of india established under the industrial development bank of india act, 1964 (18 of 1964), under any such scheme as the central government may, by notification in the official gazette frame in this behalf, then, the surcharge on income-tax payable by the company for the assessment year commencing on the first day of april, 1977, - (i) in a case where the amount of deposit so made is equal to or exceeds the ..... the chargeable profits under the surtax act ultimately came to be computed at rs. ..... 9,23,283 in lieu of surcharge on income-tax was not deductible for computing the chargeable profits under the surtax act. ..... 9,23,283 in lieu of surcharge on income-tax was not deductible for computing the chargeable profits under the surtax act ?' 2. ..... under section 4 of the act, it is, inter alia, provided that there shall be charged on every company a tax referred to as the surtax in respect of so much of its chargeable profits of the previous years or years, as the case may be, as exceeded the statutory deduction at the rate or rates specified in the third schedule. .....
Tag this Judgment!Court : Gujarat
Reported in : [1992]198ITR650(Guj)
..... of assessment proceedings, under section 6(2) of the companies (profits) surtax act, 1964, for the assessment year 1970-71, the assessee claimed that the two loans qualified to be included in the capital of the company for the purpose of surtax. ..... officer accepted the claim of the assessee and, while computing the capital of the assessee-company under the second schedule to the act for the purpose of arriving at the statutory deduction, included the outstanding amount of rs. ..... he also pointed out that the capital assets of the assessee-company had increased after the assessee obtained the said two loans and thus there could be no doubt that the moneys borrowed by the assessee-company from the bank were utilised for the purpose of creation of ..... the tribunal rejected the contention raised on behalf of the assessee-company that there was a subsequent oral agreement between the assessee-company and the bank under which the loans were made repayable beyond the period ..... the board of directors of the assessee-company passed a resolution at its meeting held on july 30, 1964, deciding to borrow the term loan ..... subject to the other provisions contained in this schedule, the capital of the company shall be the aggregate of the amounts, as on the first day of the previous year relevant to the assessment year, ..... advanced to the assessee-company on november 27, 1964. ..... the terms and conditions on which the said amount was advanced by the bank to the assessee-company was executed on november 24, 1964. .....
Tag this Judgment!Court : Gujarat
Reported in : [1995]211ITR788(Guj)
..... the companies (profits) surtax act, 1964 ..... after discussing in detail the contentions raised by the parties, this court in the case of alembic chemical works (supra) had observed that any income falling under chapter vi-a of the it act, since that chapter deals with deductions, is includible, that is, is capable of being included in the total income but by virtue of the special provisions relating to deductions in chapter vi-a, is taken out and ..... the second schedule of the rules for computing capital of a company for the purposes of surtax contained in the second schedule are reproduced below : '1. ..... wherein we have arrived at the conclusion that, in computing the chargeable profits, the net income by way of dividend which is a component of the total income computed under the it act, is required to be excluded and not the gross income by way ..... holding that the assessee's claim that the entire amount of the debentures issued to the public should be considered for the purpose of computation of the capital under the second schedule to the surtax act. ..... the surtax act. ..... that deductions allowed to the assessee under chapter vi-a of the it act are not income, profits and gains not includible in the total income as contemplated by r ..... reducing the capital in cases of purchase by the company of its own debentures which is not barred under the provisions of the companies act, 1956. ..... of debentures issued to the public is required to be treated as capital under second schedule to the surtax, 1964 ?' 2. .....
Tag this Judgment!Court : Gujarat
Reported in : [1994]210ITR972(Guj)
..... whether, on the facts and in the circumstances of the case, the tribunal was right in law in holding that the surtax payable under the companies (profits) surtax act, 1964, was not deductible while computing the chargeable profits under the first schedule to the companies (profits) surtax act, 1964?' 2. ..... 74,693 deposited with the industrial development bank of india in lieu of surcharge on income-tax under the finance act, 1984, was not deductible from the chargeable profits computed under the first schedule to the companies (profits) surtax act, 1964? 2. ..... the income-tax appellate tribunal, ahmedabad bench 'c', has referred for the opinion of this court the following questions under section 18 of the companies (profits) surtax act read with section 256(1) of the income-tax act, 1961 : '1. ..... the tribunal was, therefore, right in holding that the surtax payable under the said act was not deductible while computing the chargeable profits under the first schedule to the said act. ..... 2, it would appear that the tax authorities rightly rejected the assessee's claim for deduction of the amount of surtax while computing the chargeable profits. ..... therefore, no question of deduction under rule 2(i) of the rules for computing the chargeable profits contained in the first schedule to the act can arise. ..... it will be noticed that there is no provision for reducing the amount of surtax in rule 2 of the first schedule. ..... rule 2(1) only authorises a deduction of the income-tax payable by the company. .....
Tag this Judgment!Court : Gujarat
Reported in : [1995]217ITR196(Guj)
..... the income-tax appellate tribunal, ahmedabad bench 'c', has referred for the opinion of the high court the following questions under the provisions of section 18 of the companies (profits) surtax act, 1964 (hereinafter referred to as 'the act'), read with section 256(1) of the income-tax act, 1961 : '1. ..... 40,94,438 under the provisions of rule 1 of the second schedule to the companies (profits) surtax act, 1964? 2. ..... the authorities have found that the assessee has not furnished any figures to show that had the assessee made proper provision towards depreciation as per the income-tax rules, the company's distributable profits would have been much less than the amount of dividend declared in any of the years from calendar year 1970 to 1975. ..... since the assessee had failed to furnish any figures which would show that the distributable profits of the company would have been much less than the amount of dividends actually declared in various years, if appropriate provisions towards depreciation allowable under the rules had been made, we do not find any reason to take a different ..... : [1978]112itr215(bom) the bombay high court has, inter alia, held that where the depreciation actually allowed in the assessment exceeds the depreciation provided in the books of the assessee-company, the amount of excess is to be deducted from the general reserves for the purpose of including the reserves in computing the capital for the purposes of surtax. .....
Tag this Judgment!Court : Gujarat
Reported in : [1994]210ITR448(Guj)
..... the companies (profits) surtax act, 1964 r/w ..... schedule of the surtax act, 1964 ?' 2. ..... cit : [1981]132itr559(sc) ordinarily an appropriation to gratuity reserve will have to be regarded as a provision made for a contingent liability, for, under a scheme framed by a company the liability to pay gratuity to its employees on determination of employment arises only when the employment of the employee is determined by death, incapacity, retirement or resignation - an event (cessation of employment) certain to happen in the service ..... to any scientific basis, such appropriation would also be a provision intended to meet a known liability, though a contingent one, for, the expression 'liability' occurring in clause 7(1) (a) of part iii of the sixth schedule to the companies act includes any expenditure contracted for and arising under a contingent liability. ..... preferred an appeal before the tribunal and the tribunal held that the gratuity reserve was includible in computing the capital of the company for the purpose of surtax. 3. ..... sum so appropriated is shown to be in excess of the sum required to meet the estimated liability, it is only the excess that will have to be regarded as a reserve under clause 7(2) of part iii to the sixth schedule to the companies act. ..... disagreeing with the surtax officer and allowing the appeal of the assessee, directed the surtax officer to include the amount of gratuity reserve as part of the capital to be computed for the purpose of second schedule of the act. .....
Tag this Judgment!Court : Gujarat
Reported in : AIR1994Guj153
..... paid or made satisfactory provision for payment of all existing liabilities under this act, 1947 (21 of 1947), the indian income-tax act, 1922 (11 of 1922), the wealth-tax act, 1957 (27 of 1957), the expenditure-tax act, 1957 (29 of j957), the gift-tax act, 1958 (18 of 1958), the super profits tax act, 1963 (14 of 1963) and the companies (profits) surtax act, 1964 (7 of 1964) or (b) the registration of the document will not prejudicially affect the recovery ..... district for determining the true market value of such property and proper duty payable on the instrument if the officer or as the case may be, persons referred to in section 32 of the act, has reason to believe that the consideration set forth in the instrument does not approximate to the market value of the property or the market value of the property which is subject matter of ..... if yes, then the further question to be considered would be whether the parties intended to effect the transaction of mortgage by deposit of title deeds which required registration under the provisions of the registration act, 1908 in other words, the question to be examined and answered is whether deed dated december 9, 1974 is an instrument of mortgage by deposit of title deeds or merely a memorandum recording the ..... and, therefore, approached dena bank, which is a corporate body and a nationalised bank under the provisions of banking companies (acquisition and transfer of undertakings) act, 1970 (hereinafter referred to as 'dena bank' for short). .....
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