Court : Chennai
Reported in : [1998]230ITR173(Mad)
..... 1 of the second schedule to the companies (profits) surtax act, 1964, sinking fund could not be taken as a ..... 1 of the second schedule to the companies (profits) surtax act, 1964, sinking fund could not be taken as a ..... ii to the companies (profits) surtax act, 1964, this court held that 'the fact that the company could use the debenture redemption reserve fund till the redemption date was a ..... the second schedule to the companies (profits) surtax act, 1964, the tribunal was right in holding that the amount standing to the credit of debenture redemption sinking fund should be treated as 'reserve' only and not as 'provision' and, hence, should be taken as capital for levy of surtax ?' 2. ..... 6(2) of the companies (profits) surtax act, 1964, for the years 1974-75 ..... 18 of the companies (profits) surtax act, 1964 : 'whether, on the facts and in the circumstances of the case and having regard to ..... the debentures and with a view thereto, open an account in its books of accounts called 'debenture redemption sinking fund' and appropriate in every year during the continuance of this security from the net profits of the company before recommending the declaration of any dividend to its shareholders a sum of not less than one lakh of rupees for the year ending 30th june, 1960 and not less than two lakhs of rupees ..... computing the capital base as on 1st july, 1972, the first day of the previous year under the second schedule of the surtax act, the ito excluded the debenture redemption sinking fund of rs. .....
Tag this Judgment!Court : Chennai
Reported in : [1995]215ITR625(Mad)
..... : [1979]117itr354(mad) , a division bench of this court, while construing the scope of rule 2 of the second schedule to the companies (profits) surtax act, 1964, after an elaborate consideration, held as follows (at page 361) : 'when we look at the provisions in the act, we find that the legislature has been guided by a sense of reasonableness and that there has been no attempt made to clutch at all the profits made by a company and subject the same to a surtax under the act. ..... 8,81,684 being the cost of shares should not be excluded from the computation of capital for levy of surtax by applying rule 2 of the second schedule to the companies (profits) surtax act, 1964, for the assessment year 1972-73 ?' 4. ..... 2,69,534 being the cost of shares should not be excluded from the computation of capital for levy of surtax by applying rule 2 of the second schedule to the companies (profits) surtax act, 1964, for the assessment year 1969-70 ?' 3. ..... by virtue of rule 1(viii) of the first schedule to the companies (profits) surtax act, 1964, income by way of dividends from such shares is to be excluded while computing chargeable profits. ..... in the instant case, the general reserves which have not been taken into account in computing the assessee's capital under rule 1 far exceeded the cost of investment, there was no question of the capital of the company (for the purposes of the companies (profits) surtax act) being reduced by the cost of investment ......' 11. .....
Tag this Judgment!Court : Chennai
Reported in : [1999]239ITR132(Mad)
..... the appellate tribunal was right in holding that the capital should not be proportionately reduced in terms of rule 4 of the second schedule to the companies (profits) surtax act, 1964, consequent to the deductions allowed under chapter vi-a of the income-tax act, 1961, for the assessment years 1969-70, 1972-73 and 1973-74 ?2. ..... the instance of the revenue, the tribunal referred the following three questions of law for our consideration under section 256(1) of the income-tax act, 1961, read with section 18 of the companies (profits) surtax act, 1964, for the assessment years 1969-70, 1972-73 and 1973-74 :'1. ..... of the supreme court we are of the view that there is no infirmity in the order of the appellate tribunal holding that the capital should not be proportionately reduced in terms of rule 4 of the second schedule to the companies (profits) surtax act, 1964, consequent to the deductions allowed under chapter via of the income-tax act, 1961.5. ..... find any reason from any of the orders either for the inclusion or for the exclusion that the reserve for bad and doubtful debts as part of the capital under the provisions of the companies (profits) surtax act, 1964. ..... 1996]219itr388(sc) , held as under (headnote) :'that a clear finding of fact was reached by the tribunal that the bad debt reserve was created by the assessee-company out of the profit and loss account without reference to the outstanding sundry debtors and was not created with a view to meeting any anticipated liability. .....
Tag this Judgment!Court : Mumbai
Reported in : [1978]112ITR215(Bom)
..... whether, on the facts and in the circumstances of the case, for the purpose of computation of 'other reserve' under rule 1(iii) of the second schedule to the companies (profits surtax act, 1964, deduction for depreciation under the income-tax act for the assessment years 1964-65 and 1965-66 could be said to have been allowed to the assessee as on the respective first day of the previous year concerned, even though, factually, its income-tax assessments for the said assessment years ..... it is also laid down in this circular that the corresponding provisions of rule 1 of the second schedule to the companies (profits) surtax act, 1964, are identical to the provisions in the super profits tax act, and the above interpretation will hold good also for the purposes of computing the capital of a company under that act. ..... the rule makes it explicit that such other reserve shall be taken into consideration for the computation of the capital only in so far as the amounts credited to such reserves have not been allowed in computing the company's profits for the purposes of the act of 1922 or the act of 1961. ..... under section 4, which is a charging section of the act, surtax is leviable in respect of so much of the chargeable profits of the company 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. .....
Tag this Judgment!Court : Uttaranchal
Reported in : (2007)207CTR(Uttranchal)651; [2006]282ITR520(Uttaranchal)
..... is necessary and expedient in the public interest to make an exemption in respect of surtax in favour of foreign companies with whom the central government has entered into agreements for the association or participation of that government or any person authorised by that government in any business consisting of the prospecting for or extraction or production of mineral oils ;now, therefore, in exercise of the powers conferred by section 24aa of the companies (profits) surtax act, 1964 (7 of 1964), the central government hereby provides that no surtax shall be payable by such foreign ..... appeal is being reproduced as under:whether, on the facts and in the circumstances of the case, the learned income-tax appellate tribunal was legally correct to hold that the assessee was not liable to surtax under the companies (profits) surtax act, 1964, by virtue of exemption available under notification no. g.s.r. ..... (delhi) of 1992 (hereinafter referred to as 'the tribunal'), whereby the tribunal has held that the assessee was not liable to surtax under the companies (profits) surtax act, 1964, by virtue of exemption available under notification no. g.s.r. ..... section 24aa of the companies (profits) surtax act, 1964, reads as under: ..... dated march 31, 1983 see [1983] 142 itr 88, issued under section 24aa of the companies (profits) surtax act, 1964 (hereinafter referred to as 'the act').2. ..... dated march 31, 1983 see [1983] 142 itr 88, issued under section 24aa of the companies (profits) surtax act, 19643. .....
Tag this Judgment!Court : Kerala
Reported in : [1984]150ITR218(Ker)
..... amounts appropriated out of the profits and transferred to the reserve called ' reserve for ifc loan repayment': were created for a specific purpose and so were in the nature of a provision and so will not be taken into account for computing the capital of the company for the purpose of super profits tax for the assessment year 1963-64 and for computing the capital of the company for the purpose of the companies (profits) surtax act, 1964, for the years 1966-67 and ..... we hasten to add that this court laid down the test in, : [1973]92itr65(ker) , as to what constitutes ' other reserves ' for the purpose -of the companies (profits) surtax act, 1964, schedule ii, rule 1, on the basis of the earlier decisions of the supreme court in cit v. ..... we are concerned in these cases with the interpretation of the provisions of the super profits tax act for the year 1963-64 and with the companies (profits) surtax act, 1964, for the years 1966-67 and 1970-71. ..... moreover, the appellate tribunal adverted to the test as to what constitutes ' a reserve ' for the purpose of computation of capital under the companies (profits) surtax act, 1964, schedule ii, rule 1, as laid down by this court in the decision in cit v. ..... , : [1973]92itr65(ker) , a bench of this court had occasion to consider what is meant by the term ' reserves ' and what reserves can be taken into account in the computation of capital for the purpose of assessment under the companies (profits) surtax act, 1964, schedule ii, rule 1. .....
Tag this Judgment!Court : Chennai
Reported in : [1999]239ITR60(Mad)
..... took the view as below (headnote) :'the part of the profits of a company 'not includible in its total income' that is contemplated by rule 4 of the second schedule to the companies (profits) surtax act, 1964, is what is not includible under the provisions of section 10 of the income-tax act, 1961. ..... subsequently, a reassessment was made on january 31, 1977, under section 8(b) of the companies (profits) surtax act, 1964 (act no. ..... therefore, tax credits under section 280zb have no taint of 'income' and cannot be taken into account for purposes of diminishing the capital base under rule 4 of schedule ii to the companies (profits) surtax act, 1964. ..... the question whether the amount of tax credit certificate should be taken into account in computing the chargeable profit under the companies (profits) surtax act has not been concluded by any decision of a court. ..... charge of tax--subject to the provisions contained in this act, there shall be charged on every company for every assessment year commencing on and from the 1st day of april, 1964, a tax (in this 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.'7. .....
Tag this Judgment!Court : Mumbai
Reported in : [1986]160ITR716(Bom)
..... this is a reference under section 256(1) of the income-tax act, 1961, as applied to the companies (profits) surtax act, 1964 (referred to hereinafter as 'the surtax act'), by section 18 thereof. ..... of the liability of the assessee on account of gratuity determined on an actuarial calculation, and if there is such an excess, only to the extent of that excess will the amount be deemed to be a reserve and includible in computing the capital of the assessee company under rule 1 of the second schedule to the companies (profits) surtax act, 1964, and as far as the sum of rs. ..... 79,00,000 representing 'gratuity reserve' and 'debenture redemption reserve', respectively, were includible in computing the capital of the assessee company under rule 1 of the second schedule to the companies (profits) surtax act, 1964 ?'2. ..... it has been pointed out by the supreme court that the word 'reserve' has not been defined in the super profits tax act, 1963, or the surtax act, 1964. ..... the tribunal observed that under rule 1 of the second schedule to the surtax act, 'other reserves' made by the company were to be taken into account in computing its capital. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1986SC1938; (1986)58CTR(SC)188; [1986]161ITR733(SC); 1986(2)SCALE100; (1986)3SCC655; [1986]3SCR408
..... whether, on the facts and in the circumstances of the case, the tribunal was right in arriving at its decision by applying the principles laid down in the second schedule to the super profits tax act, 1963, instead of the provisions of the second schedule to the companies profits (surtax) act, 1964, for computation of capital of the assessee company for the assessment year 1964-65.2. ..... the assessment year involved is the year 1964-65 of which the relevant previous year ended on 30th september, 1963) for the purposes of assessment under the provisions of companies profits (surtax) act, 1964, a dispute arose between the assessee and the revenue with regard to the computation of 'standard deductions'. ..... commissioner of income tax : [1981]132itr559(sc) held that the expression 'reserve' in super profits tax act, 1963 and the companies profits (surtax) act, 1964 are in pari materia.6. ..... under both the acts reserves of the company were to be treated as its capital and the only difference was in the second schedule to the companies (profits) surtax act, 1964, an explanation had been added. ..... the tribunal was further of the view that all the three represented reserves for the purposes of assessment under the super profits tax act, 1963 and as the principle involved was the same as under the companies profits (surtax) act, 1964, the tribunal held that the accounts in question represented reserves under the latter act also. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1997SC3487; [1997]227ITR764(SC); JT1997(7)SC372; 1997(5)SCALE415; (1997)7SCC56; [1997]Supp3SCR140
..... however, for the purpose of computation of capital of a company under the companies; (profits) surtax act, 1964, items 5, 6 and 7 will not be treated ..... representing debenture redemption reserve was includible in computing the capital of the assessee-company for the purpose of companies (profits) surtax act, 1964.2. ..... 1981]132itr559(sc) , it was held that provision' and 'reserve' had not been defined under the companies (profits) surtax act ..... to be computed under rule 1 of the second schedule of the surtax act is the capital of the company and not its working capital ..... further to be noted that the surplus and unallocated balance in the profit and loss account has been specifically excluded from 'reserves' for computation of capital under the; surtax act ..... two concepts 'reserve' and 'provision' which are fairly well known in commercial accountancy and which are used under the companies act dealing with preparation of balance-sheets and profit and loss accounts, will have to be gathered from the meaning attached to them by the companies act itself ..... . explanation to rule 1 of the second schedule of the surtax act takes this principle to its logical conclusion by providing that, even a sinking fund, which has to be shown as a reserve in the prescribed form ..... of the amount fop utilisation as working capital of the company or for distribution of dividend cannot be a criterion for deciding' whether a particular amount retained from the profits of the company; will be treated as its reserve or not.23 .....
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