Court : Kolkata
Reported in : [1978]111ITR885(Cal)
..... the language of clause (ii) of rule 1 of the second schedule to the super profits tax act, 1963, and the language of clause (ii) of rule 2 of the second sche-dule of the companies (profits) surtax act, 1964, are more or less identical. ..... , the assessee, the effect of a provision made for taxation by a limited company on the computation of its capital for the purpose of the super profits tax act, 1963, and of the companies (profits) surtax act, 1964, has to be determined. ..... been laid out by the assessee as a provision for taxation and the assessee claimed that the said amount should either be treated as a reserve or as a deduction in arriving at the net cost of investments under the provisions of the companies (profits) surtax act, 1964, for the purpose of computation of the assessee's capital. ..... the second schedule of the companies (profits) surtax act, 1964, lays down rules for computing capital of a company for the purposes of this surtax. ..... ' for the assessment year 1964-65 ;'whether, on the facts and in the circumstances of the case, the tribunal was right in holding that in the computation of capital the company was not entitled to the benefit of deduction of 'provision for taxation' from its cost of investments in terms of clause (ii) of rule 2 of the second schedule of the companies (profits) surtax act, 1964 ?'5. .....
Tag this Judgment!Court : Kolkata
Reported in : [1980]122ITR490(Cal)
..... the tribunal was right in holding that portion of the profits and gains attributable to the assessee company's priority industry, which was deducted under section 80e of the income-tax act, 1961, in computing its total income in the assessments under the said income-tax act, could be said to be not includible in its total income within the meaning of rule 4 of the rules in the second schedule to the companies (profits) surtax act, 1964, and a proportionate reduction was liable to be made from ..... the capital base under the said rule in respect of such portion of the profits and gains of the assessee-company attributable to its priority industry ..... , on the facts and in the circumstances of the case, the tribunal was justified in holding that the omission to make a proportionate reduction of the capital base under rule 4 of the second schedule to the companies (profits) surtax act was a mistake apparent from the record in the original assessment proceedings and the income-tax officer had jurisdiction to make such proportionate reduction of the capital base by his subsequent order under section 13 of the said companies (profits) surtax act, 1964 ? 3. .....
Tag this Judgment!Court : Mumbai
Reported in : [1994]209ITR691(Bom)
..... income-tax act, 1961, read with section 18 of the companies (profits) surtax act, 1964, the income-tax appellate tribunal, at the instance of the revenue, has referred the following question of law to this court for opinion : 'whether, on the facts and in the circumstances of the case, the tribunal was right in law in computing the chargeable profits for purposes of the surtax act, by excluding the interest received from the indian branches of foreign banks as falling within the schedule to the companies (profits) surtax act, 1964 ?' ..... assessee claimed exclusion of the said amounts in the computation of its 'chargeable profits' under the companies (profits) surtax act, 1964. ..... such interest falls within clause (x) of rule 1 of the first schedule to the surtax act, 1964, or not is the point at issue. ..... in that case was also in regard to the exclusion of the amount of interest received by the assessee from a branch of a foreign bank in india in the computation of the chargeable profits for the purposes of the surtax act. ..... was held that the assessee was entitled to the exclusion of the amounts received by it from the indian branches of the two foreign banks in the computation of its 'chargeable profits' by virtue of clause (x) of rule 1 of the first schedule to the surtax act. ..... of the assessee is that the words 'any interest' appearing in clause (x) of rule 1 of the first schedule to the surtax act stand by themselves and are not subject to the condition appearing thereafter, viz. .....
Tag this Judgment!Court : Mumbai
Reported in : (1993)113CTR(Bom)149; [1993]204ITR483(Bom)
..... whether the tribunal erred in holding that in respect of the bonus shares issued by the applicant, the provisions of rule 3 of the second schedule to the companies (profits) surtax act, 1964, were not applicable and that accordingly, the capital as computed in accordance with rule 1 of the said schedule was not liable to be increased under the said rule ..... under rule 3 of the second schedule to the companies (profits) surtax act, 1964, 'where, after the first day of the previous year relevant to the assessment year, the capital of a company as computed in accordance with the foregoing rules of this schedule is increased by any amount during that previous year on account of increase of paid ..... are referred to us under section 256 (1) of the income-tax act, 1961, read with section 18 of the companies (profit) surtax act, 1964, at the instance of the department : '1. ..... companies (profits) surtax act, 1964, in the second schedule, rules are provided for computing the capital of a company for the purposes of surtax ..... , there was no increase or decrease in the capital of the company as computed under the companies (profits) surtax act, 1964. ..... fourth (sic) question, whether, on the facts and in the circumstances of the case, the appellate tribunal, was right in law in holding that rule 3 of the second schedule to the companies (profits) surtax act could not be invoked in the assessee-company's case by the surtax officer, having regard to the fact that it issued bonus shares of the amount of rs. .....
Tag this Judgment!Court : Mumbai
Reported in : [1999]236ITR968(Bom)
..... by this reference under section 256(1) of the income-tax act, 1961 (for short 'the act'), read with section 18 of the companies (profits) surtax act, 1964 (for short 'the surtax act'), the income-tax appellate tribunal, has referred the following two questions of law to this court for opinion one at the instance of the assessee and the other at the instance of the ..... on the facts and in the circumstances of the case, the tribunal was right in law in holding that the 'premium reserve deposit' account should be treated as a 'fund' within the meaning of rule 2(ii) of the second schedule to the companies (profits) surtax act, 1964, and in consequently directing the surtax officer to recompute the capital for the purpose of surtax assessment ? ..... and in the circumstances of the case, the tribunal was right in holding that the premium reserve deposit account could not be considered to be moneys borrowed within the meaning of rule 2 of the second schedule to the companies (profits) surtax act, 1964 ? ..... rule 2(ii) of the second schedule to the surtax act provides that where a company owns any assets the income from which in accordance with clause (iii), (vi) or (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 the second schedule shall be diminished by the cost to it of the said assets as on the first day of the previous year relevant to the assessment year in so .....
Tag this Judgment!Court : Delhi
Reported in : ILR1993Delhi1; [1992]197ITR655(Delhi)
..... the income-tax appellate tribunal has referred, under section 256(1) of the income-tax act, 1961, in relation to the companies (profits) surtax act, 1964 (hereinafter referred to as 'the said act'), the following question to this court : 'whether, on the facts and in the circumstances of the case, the income-tax tribunal was right in holding that rs. ..... . in vazir sultan's case : [1981]132itr559(sc) , the supreme court was concerned with the question as to what was the difference between 'reserve' and 'provision' for the purposes of the super profits tax act, 1963, or the companies (profits) surtax act, 1964 ..... due but is only a provision with regard to the sum that might become liable to be paid is 'other reserves' within the meaning of rule 1 of the second schedule and should be taken into account in computing the capital of the company for the purpose of the companies (profits) surtax act, 1964.' 20 ..... . for one thing, unlike the surtax act which makes a reference to the definition, the super profits tax act avoids the incorporation of the said definition and since the companies act was of 1956, this must be taken to be deliberate ..... . in that case, an amount had been transferred from the profit and loss appropriation account to the preference shares capital redemption reserve account which was created under section 80 of the companies act to meet the liability to repay capital covered by redeemable preference shares .....
Tag this Judgment!Court : Rajasthan
Reported in : [1997]227ITR97(Raj)
..... (see [1983] 142 itr 88), dated march 31, 1983, issued by the central government in exercise of the powers conferred by section 24aa of the companies (profits) surtax act, 1964, it has granted exemption from surtax in respect of foreign companies with whom the central government had entered into agreements for participation in the business of prospecting or for extraction of mineral oils. ..... merely on account of the fact that the assessee had paid the surtax when the foreign companies were exempted from paying the surtax, vide notification dated march 31, 1983, issued by the central government under section 24aa of the companies (profits) surtax act, 1964, without recording any finding that the surtax was actually payable by the assessee, we do not think that there was any error on the part of the income-tax appellate tribunal to have exempted ..... under the companies (profits) surtax act, 1964, and the amount of surtax wrongly paid was liable to ..... of income-tax, jodhpur, initiated proceedings under section 263 of the income-tax act, vide show-cause notice issued on march 21, 1988, for the following reasons :' (1) while income-tax perquisite value has been added in determining the income of the non-resident company, the surtax leviable on the foreign company which was payable by the oil and natural gas commission was not added. ..... (see [1983] 142 itr 88), dated march 31, 1983, the foreign company was not liable to surtax and there was no question of adding any perquisite on that account. .....
Tag this Judgment!Court : Kolkata
Reported in : [1985]154ITR323(Cal)
..... act, 1961?'2. ..... act, 1961, read with section 18 of the companies (profits) surtax act, 1964 : ' whether, on the facts and in the circumstances of the case, and on a correct interpretation of rule 1(viii) of the first schedule to the companies (profits) surtax act, 1964, in computing the chargeable profits under the said act and the rules made thereunder, the assessee-company deriving income by way of dividends from another indian company is entitled to the exclusion of the gross dividend amount received, unaffected by the provisions of sections 57, 80k, 80l and 80m of the income-tax ..... therefore, while computing the chargeable profits under the companies (profits) surtax act, 1964, a company deriving income by way of dividends from another indian company is entitled to the exclusion of the gross dividend received, unaffected by the provisions of sections 57 and 80m of the i.t. .....
Tag this Judgment!Court : Kolkata
Reported in : (1980)17CTR(Cal)133,[1981]127ITR86(Cal)
..... surtax officer treated the following two amounts as reserves and computed the capital of the assessee-company under the companies (profits) surtax act, 1964 ..... the balance-sheet of the company were reserves within the meaning of rule 1 of the second schedule to the companies (profits) surtax act, 1964?'2. ..... part of the directors in setting apart a sum from out of the mass of undistributed profits avowedly for the purpose of distribution as dividend would be destructive of making that amount a reserve; and(iv) having regard to the purpose of the rules framed for the purpose of computing the capital of the company for the purpose of the super profits tax act, the amount so set apart should be available to the assessee for the purpose of its ..... the tests laid down by the bombay high court are as follows :'(i) a mass of undistributed profits cannot automatically become a 'reserve' for the purpose of rule 1 of schedule ii of the super profits tax act, 1963, and somebody possessing the requisite authority must clearly indicate that the amount has been separated from the general mass of profit with a view to constitute it as a reserve ;(ii) it should be apparent from the surrounding circumstances that ..... act, 1963, it is to be seen whether the amount in question represents any profit earned by the assessee-company or any other amount available to it and not distributed as dividends and, lastly, whether there has been any decision by the authorities or directors to set apart the amount for any .....
Tag this Judgment!Court : Kolkata
Reported in : [1979]116ITR539(Cal)
..... under the companies (profits) surtax act, 1964, there is a charge of tax on the chargeable profits of the previous year in accordance with the rule set out in the third schedule to that act, 'chargeable profits' mean the total income of the assessee computed under the i.t. ..... in the context of the explanation introduced into the companies (profits) surtax act, 1964, it was urged in the instant reference before us that the item should have been excluded from computation of capital. ..... 'therefore, we have to consider this question whether in view of the explanation added to the companies (profits) surtax act, 1964, the provision forlabour retiring gratuity for rs. ..... the question that falls for our consideration in the instant case, however, is guided by the companies (profits) surtax act, 1964, and there has been an explanation added after rule 1 of the second schedule of that act. ..... 20,60,869 shown by the assessee in its accounts as ' provision for labour retiring gratuity', was a reserve so as to be eligible for inclusion in the capital computation under the second schedule to the companies (profits) surtax act, 1964?'6. ..... this reference arises from the assessment proceedings under the companies (profits) surtax act, 1964. ..... only on the net amount remaining after the adjustment of the statutory deduction against the chargeable profits surtax was imposed.4. .....
Tag this Judgment!