Court : Karnataka
Reported in : [1979]118ITR291(KAR); [1979]118ITR291(Karn)
..... the tribunal is right in law in holding that the sums representing the subsidy received from the government for purposes of industrial housing constitute 'reserves' within the meaning of rule 1(iii) of the second schedule to the companies (profits) surtax act, 1964 (ii) whether, on the facts and in the circumstances of the case, the tribunal is right in law in holding that the sum under the head 'reserves for bad and doubtful debts' constitutes 'reserves' within the meaning ..... 18 of the companies (profits) surtax act, 1964 (hereinafter referred to as 'the act'), read with s ..... 4, provides that subject to the provisions contained in the act, there shall be a charge for every assessment year commencing on and from the 1st 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 of the act. ..... 'subject to the provisions contained in that schedule, the capital of a company shall be the aggregate of the amounts, as on the first day of the previous year relevant to the assessment year, of - (i) its paid-up share capital; (ii) its reserves, if any, created under the proviso (b) to clause (vib) of sub-section (2) of section 10 of the indian income-tax act, 1922 (11 of 1922), or under sub-section (3) of section 34 of the income-tax act, 1961 (43 of 1961); (iii) its other reserves as reduced by .....
Tag this Judgment!Court : Karnataka
Reported in : [1971]80ITR571(KAR); [1971]80ITR571(Karn)
..... is a reference under section 18 of the companies (profit) surtax act, 1964, hereinafter called 'the act' read with section 256(1) of the income-tax act, 1961.2. ..... representing super profits tax reserve was not to be considered in computing the assessee's capital for the purpose of the companies (profits) surtax act, 1964 ?' 3 ..... representing excess provision for depreciation was not to be considered in computing the assessee's capital for the purpose of the companies (profits) surtax act, 1964 6. ..... representing dividend reserve was not to be considered in computing the assessee's capital for the purpose of the companies (profits) surtax act, 1964 ? 5. ..... representing development rebate reserve, was not to be considered in computing the assessee's capital for the purpose of the companies (profit) surtax act, 1964 4. ..... representing loan redemption reserve was not to be considered in computing the assessee's capital for the purpose of the companies (profits) surtax act, 1964 ? 3. ..... representing plaint modernisation and rehabilitation reserve was not to be considered in computing the assessee's capital for the purpose of the companies (profits) surtax act, 1964 2. ..... shown under the different heads in the balance-sheet of the assesses-company are as on march 31, 1963, it is not possible for the board of the directors of any company to make the appropriations out of the profits of any year before the close of the year of accounting. ..... is assessable to surtax under the act for the assessment year 1964-65. .....
Tag this Judgment!Court : Karnataka
Reported in : [2006]285ITR196(KAR); [2006]285ITR196(Karn)
..... (ii) whether, on the facts the interest under section 7c of the companies (profits) surtax act, 1964, was leviable for the relevant assessment year in the case of the applicant?2. ..... while completing the assessment, the ao charged interest under section 7c of the companies (profits) surtax act, 1964 (hereinafter referred to as 'the act') among other things in all a sum of rs. ..... under these circumstances, as noticed by us earlier, on the application filed by the assessee, the tribunal has under section 256(1) of the it act, 1961 referred the questions set out hereinbelow for our opinion:(i) whether, on the facts and in the circumstances of the case, the tribunal was justified in upholding the levy of interest under section 7c of the companies (profits) surtax act, 1964? ..... own estimate (including revised estimate), and the advance surtax so paid is less than eighty-three and one-third per cent of the assessed surtax, simple interest at the rate of fifteen per cent per annum from the first day of april next following the said financial year up to the date of the regular assessment shall be payable by the company upon the amount by which the advance surtax so paid falls short of the assessed tax.4. .....
Tag this Judgment!Court : Karnataka
Reported in : [1989]177ITR51(KAR); [1989]177ITR51(Karn); 1989(1)KarLJ259
..... reference arises under the companies (profits) surtax act, 1964. 2. ..... the income tax act 1961 (43 of 1961); (iii) its other reserves as ..... surtax is to be charged on the amount by which the chargeable profits exceed the amount of the statutory deduction and the second schedule to the companies (profits) surtax act provides for computing the capital of a company for the purposes of surtax which reads as follows: '(i) its paid up share capital; (ii) its reserves, if any, created under the proviso (b) to clause (vib) of sub-section (2) of section 10 of the indian income-tax act, 1022 (11 of 1923) or under sub-section (4) of section 32a or sub section (3) of section 34 of ..... of capital computation (2) whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal is right in law in holding that for the purpose of rule 3 of the second schedule to the companies (profits) surtax act, the date of filing of the return with the registrar of companies under section 103(2) of the companies act is the relevant date ?' 6. .....
Tag this Judgment!Court : Karnataka
Reported in : [1978]114ITR901(KAR); [1978]114ITR901(Karn)
..... arises out of a reference made by the income-tax appellate tribunal, bangalore bench, bangalore, under 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. ..... representing the investment in shares from which the assessee received no dividends, should not be excluded from the capital base under rule 2 of the second schedule of the companies (profits) surtax act, 1964 ?' 4. ..... section 4 of the act provides that subject to the provisions contained in this act, 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 ..... schedule of the act lays down the rules for computing the capital of a company for the purposes of surtax. ..... the relevant part of rule 2 of the second schedule which arises for consideration in this case reads as follows : 'where a company owns any assets the income from which in accordance with clause (iii) or clause (vi) of clause (viii) of rule 1 of the first schedule is required to be excluded from its total income in computing its chargeable profits, the amount of its capital as computed under rule 1 of this schedule shall be diminished by the cost of it of the said assets as on .....
Tag this Judgment!Court : Karnataka
Reported in : (1991)98CTR(Kar)114; [1992]194ITR77(KAR); [1992]194ITR77(Karn)
..... the assessee, instead of paying the surcharge on income-tax under the provisions of the companies (profit) surtax act, 1964 ('the act' for short), deposited the equivalent amount with prepared under the provision of the finance act, 1976. ..... the language of rule 2 of the first schedule to the surtax act also requires that the tax 'payable' by the company is to be reduced from the total income. ..... section 2(5) of the surtax act defines the term 'chargeable profits'. ..... the assessee required this deposit to be treated as payment of surcharge for the purpose of computing the chargeable profits under the provisions of the surtax act. ..... as per the second proviso to section 2(6) of the finance act, 1976, an assessee, being a company, may in lieu of payment of surcharge on income-tax at the rate specified in para e of part iii of the first schedule to the act, make a deposit under the scheme framed under sub-section (8) thereof. ..... in this connection, it is necessary to refer to the provisions of the surtax act. ..... that is to say, in the context of the finance act, 1976, the assessee, instead of paying the surtax, may deposit the amount with the industrial development bank of india, and on such deposit being made, the tax ceases to be payable. .....
Tag this Judgment!Court : Karnataka
Reported in : [1976]102ITR320(KAR); [1976]102ITR320(Karn); 1975(1)KarLJ481
..... 3447 and 3448 of 1973 the petitioner has questioned the notices issued by the income-tax officer under section 8 of the companies (profits) surtax act, 1964 (hereinafter referred to as 'the act'), in respect of assessment years 1969-70 and 1970-71. in w. p. no. ..... section 4 of the act which is the charging section provides that there shall be charged on every company for every assessment year commencing on and from the first day of april, 1964, a tax known as 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. ..... 1 prescribed by rule 5 of the rules framed under the act (which is the form to be used by the assessee to file his return under the act) it was stated under note 8 as follows : 'instances of income, profits and gains not includible in the total income as computed under the income-tax act, 1961, are agricultural income in india, and in the case of a non-resident company, its income accruing or arising outside india.' 9. ..... the act was passed in the year 1964 in order to impose a special tax on companies (other than those which have no share capital) on their excess profits, namely, the amount by which the total income of a company as reduced by certain types of income and certain sums and the income-tax and super-tax payable by it exceeds 10 per cent. .....
Tag this Judgment!Court : Karnataka
Reported in : [1989]179ITR129(KAR); [1989]179ITR129(Karn); 1989(3)KarLJ443
..... the income-tax officer rejected the claim of the assessee by applying explanation 1 to rule 2 of the second schedule to the companies (profits) surtax act, 1964 ('act' for short). ..... attributable to income for which deduction allowed under section 80-i for income-tax purposes should not be deducted from the capital for purposes of surtax assessment (2) whether, on the facts in the circumstances of the case, the appellate tribunal was right in holding that explanation 1 to rule 2 of the second schedule to the surtax act does not apply to the capital reserve created by the assessee by bringing into the books the value of land received as gift from ..... but, by referring to similar expressions such as 'book profits' and 'book debts' as understood by well-known authors and with reference to decisions, the conclusion we can draw is that book assets are assets owned and possessed in connection with the company's trade which are entered, or, commonly required to be entered in the books (see paget's law of banking, 9th edn ..... the tribunal also upheld the finding of the commissioner that the surtax officer was not justified in reducing the capital base with reference to income exempted under section 80-i of the act, and dismissed the appeal. 4. ..... the said explanation 1 reads as follows : 'a paid-up share capital or reserve brought into existence by creating or increasing (by revaluation or otherwise) any book asset is not capital for computing the capital of company for the purposes of this act.' 8. .....
Tag this Judgment!Court : Karnataka
Reported in : (1990)82CTR(Kar)260; [1991]187ITR436(KAR); [1991]187ITR436(Karn); 1990(3)KarLJ42
..... the companies (profits) surtax act, 1964 (hereinafter referred to as 'act'). ..... [1983] 140 itr 235, as follows : 'whatever might bqe the interpretation of that rule, so far as the language of rule 3 of the second schedule to the surtax act is concerned, both as a, matter of first impression and on the authorities we have earlier referred to, we have no doubt whatever that a mere capitalisation of the reserves and the issue of fully paid up bonus shares, subsequent ..... noticing the controversy, stated that the problem involved in the interpretation of rule 3 is only arithmetical, inasmuch as what is ultimately to be computed under the second schedule to the surtax act is the amount of tax and the reserves also is a necessary element that goes to make up the capital. ..... the bombay high court, while analyzing the provisions, took the view that, with reference to the definition of chargeable profits in section 2(5) of the act and section 2(8) of the act which refers to statutory deductions and stated that when a part of the amount standing to the credit of a general reserve is, during the course of the previous year, capitalised by issue of fully paid-up free bonus ..... learned counsel for the assessee contended that there is hardly any difference between rule 2 of the second schedule of the super profits tax act and the rule with which we are concerned and, therefore, what has been stated by the high court should be accepted by us, in that decision, their lordships took a view that, on the .....
Tag this Judgment!Court : Karnataka
Reported in : [1989]177ITR536(KAR); [1989]177ITR536(Karn)
s.r. rajasekhara murthy, j.1. the following two questions of law have been referred under section 256(1) of the income-tax act, 1961, by the income-tax appellate tribunal, bangalore bench, for the opinion of this court: '1. whether, on the facts and in the circumstances of the case, the tribunal was justified in holding that the surtax payable under the companies (profits) surtax act, 1964, was an inadmissible deduction in computing the total income of the applicant 2. whether, on the facts and in the circumstances of the case, the tribunal is right in law in holding that the assessee is entitled to the relief under section 80j without restricting it on time basis ?' 2. the first question is completely covered by the decision of this court in cit v. international instruments (p.) ltd. [1984] 144 itr 936 (itrcs. nos. 109 and 110 of 1979, dated 14-9-1983). in view of the said decision, we answer the first question in the affirmative and against the assessee. the second question is covered by the decision of this court in cit v. mysore petro chemical ltd. : [1984]145itr416(kar) [itrc no. 6 of 1983, dated 3-8-1983]. in view of the said decision, we answer the second question in the affirmative and against the revenue.
Tag this Judgment!