Court : Mumbai
Reported in : (1986)52CTR(Bom)254; [1986]160ITR723(Bom)
..... :'(i) whether, on the facts and in the circumstances of the case, the tribunal was right in holding that the 'debenture redemption reserve' and 'gratuity reserves' were 'other reserves' under rule 1 of the second schedule to the companies (profits) surtax act, 1964, and the same are to be taken into account in computing the capital of the assessee company for the assessment years 1968-69 and 1969-70 ? ..... these are two references on a case stated under section 256(1) of the income-tax act, 1961, as applied to surtax by section 18 of the companies (profits) surtax act, 1964 (referred to hereinafter as 'the surtax act'). ..... 11,71,504.90 on account of devaluation of the indian rupee on june 6, 1966, should have been allowed while computing the capital for the purpose of determining 'statutory deduction' under the companies (profits) surtax act, 1964, for the assessment years 1968-69 and 1969-70 ?'2. ..... 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. ..... the surtax act provides for the imposition of a special tax called surtax on profits of certain companies. .....
Tag this Judgment!Court : Mumbai
Reported in : (1984)41CTR(Bom)390; [1985]151ITR212(Bom)
..... in the reserve for tax contingency account as on november 4, 1964, was eligible for inclusion in the computation of its capital under the second schedule to the companies (profits) surtax act, 1964, for the assessment year 1966-67 ? ..... in the reservation for tax contingency account as on october 28, 1962, was eligible for inclusion in the computation of the capital of the company under the second schedule to the companies (profits) surtax act, 1964, for the assessment year 1964-65 ? ..... in the computation of capital under the second schedule to the companies (profits) surtax act, 1964, without giving any reasons. ..... case, the result would be that these amounts will have to be included in the computation of capital of the company under the second schedule to the companies (profits) surtax act, 1964.8. ..... , before whom the assessee-company preferred an appeal, held that the said amounts were provision for taxation and, therefore, could not be included in the computation of capital under the second schedule to the companies (profits) surtax act, 1964. ..... these amounts should be treated as a reserve for the purpose of capital computation under the second schedule to the companies (profits) surtax act, 1964.7. ..... should be excluded from the chargeable profits for the assessment year 1966-67 ?5 ..... 1969-70 filed by it), should be excluded from the chargeable profits for the assessment year 1966-67. ..... was held by the tribunal as an amount which should be included in the chargeable profits for the year 1966-67.4. .....
Tag this Judgment!Court : Mumbai
Reported in : [1992]195ITR622(Bom)
..... includible in the computation of capital in terms of rule 1 of the second schedule to the companies (profits) surtax act, 1964, for the assessment year 1965-66 (3) whether, on the facts and in the circumstances of the case, the taxation reserve in excess of the taxation liability for the relevant previous year constitutes a reserve includible in the computation of capital in terms of rule 1 of the second schedule to the companies (profits) surtax act, 1964, for the assessment year 1965-66 ?' 2. ..... 966 constitutes a reserve includible in the computation of capital in terms of rule 1 of the second schedule to the companies (profits) surtax act, 1964, for the assessment year 1965-66 (2) whether, on the facts and in the circumstances of the case, the dividend ..... in this departmental reference relating to the assessee's surtax assessment for the assessment year 1965-66, the tribunal has referred to this court the following three questions of law for opinion under section 256(1) of the income-tax act, 1961, as applied to surtax by section 18 of the companies (profits) surtax act, 1964 : '(1) whether, on the facts and in the circumstances of the case, the retirement ..... , as held by the supreme court, the dividend proposed and approved by the shareholders in a general meeting held subsequently does not relate back although if a reserve is created out of the profits of the year which, according to him, meant the previous year, the reserve so created will have to be treated as a provision. 4. .....
Tag this Judgment!Court : Mumbai
Reported in : 2000(3)BomCR131; [1999]240ITR288(Bom); 1999(3)MhLj522
..... section 18 of the companies (profits) surtax act, 1964, the income-tax appellate tribunal has referred the following question of law to this court for opinion at the instance of revenue;'whether, on the facts and in the circumstances of the case, the appellate tribunal was justified in law in holding that the reserve for doubtful debts and doubtful advances was a 'reserve' within the meaning of rule 1 of the second schedule of the companies (profits) surtax act, 1964 and was, therefore, ..... of the assessment of the assessee under the companies (profits) surtax act, 1964, it was contended by the assessee that these two amounts, though named as provision, were in fact reserves and were part of the capital of the assessee and, therefore, those amounts should not be deducted in the computation of the capital of the assessee-company for the purpose of surtax. ..... , therefore, justified in holding that the reserve for doubtful debts and doubtful advances was a reserve within the meaning of rule 1 of the second schedule of the companies (profits) surtax act, 1964, and, therefore, includible in the computation of capital for the purposes of the said act. ..... includible in the computation of the capital for the purpose of the said act?'2. .....
Tag this Judgment!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 : Chennai
Reported in : [1979]117ITR534(Mad)
..... 7,071 representing the premium deposits, unearned premium, provision for outstanding claims, provision for taxation, proposed dividends and balance in the profit and loss account, respectively, did not fall under rule 2(i) or rule 2(ii) of the second schedule to the companies (profits) surtax act, 1964 ?' 2. ..... 82,333 representing the premium deposits, unearned premium, provision for outstanding claims, provision fortaxation, proposed dividends and balance in the profit and loss account,respectively, did not fall under rule 2(i) or rule 2(ii) of the second scheduleto the companies (profits) surtax act, 1964 ? ..... the question that has been referred to us, arises in construing rule 2(ii) of the second schedule to the companies (profits) surtax act, 1964. ..... 6,42,524 representing the premium deposits, unearned premium, provision for outstanding claims, provision for taxation and proposed dividends respectively did not all under rule 2(i) of the second schedule to the companies (profits) surtax act, 1964? ..... she contended that the dividend is one of the items of liabilities in the form prescribed under the companies act and has, therefore, necessarily to be included for the purpose of computing the value of the reserve in determining the value of the capital assets under rule 1 of the second schedule. .....
Tag this Judgment!Court : Chennai
Reported in : (2003)185CTR(Mad)567; [2003]262ITR696(Mad)
..... it involves interpretation of clause (v) of rule 1 of the second schedule to the companies (profits) surtax act, 1964 (hereinafter referred to as 'the act'), which reads as under : 'any moneys borrowed by it from government or the industrial finance corporation of india or the industrial credit and investment corporation of india or any other financial institution which ..... arises under the provisions of the companies (profits) surtax act, 1964, and it relates to the assessment ..... and the punjab national bank were includible in the capital base in terms of clause (v) of rule 1 of the second schedule to the companies (profits) surtax act, 1964 ?'2. ..... to the tamil nadu industrial investment corporation limited as on july 1, 1971, was includible in the capital base as provided in clause (v) of rule 1 of the second schedule to the companies (profits) surtax act, 1964 ?2. ..... case held as under (headnote) :'the bank, by its letter dated april 3, 1963, had agreed to the postponement of the dates of repayment in instalments asked for by the company in its letter of march 19, 1963, provided that the entire loan was repaid before december 1, 1968 ; and the company, by its letter dated april 24, 1963, agreed to repay fully before december 1, 1968, in five instalments as stated in that letter. ..... 1963, and april 24, 1963, together, it was clear that there was an agreement between the bank and the company to modify the terms of the agreement of december 1, 1961, as regards repayment of the loan of rs. .....
Tag this Judgment!Court : Mumbai
Reported in : (1983)32CTR(Bom)313; [1983]142ITR525(Bom); [1983]12TAXMAN199(Bom)
..... the companies profits) surtax act, 1964 (referred to hereinafter as 'the companies surtax act'), ..... , 1963, constitutes a reserve as a contemplated in rule 1 of the second schedule to the companies (profits) surtax act, 1964 ?'2. ..... the capital of the assessee-company for the purposes of the companies (profit) surtax act. ..... said to have been retained by way of providing for a known liability but it was a provision merely for a contingent liability and hence it was liable to be included in the capital of the assessee-company for the purposes of the companies (profits) surtax act. ..... should be included in the capital of the company for the purposes of the companies (profits) surtax act. ..... the companies (profit) surtax act. ..... 's wages at the time of determination of his employment and the number of years of service put in by him and the liability accrues and enhances with the completion of every year of service; but the company can work out on an actuarial valuation its estimated liability (that is, discounted present value of the liability under the scheme on a scientific basis) and make a provision for such liability not all at once ..... iii of the sixth schedule to the companies act, 1956, includes any expenditure contracted for and arising under a contingent liability; but if the sum so appropriated is shown to be in excess of the sum required to meet the estimated liability (discounted present value on a ..... of the capital of the assessee-company for surtax purposes in terms of r. ..... the companies act. .....
Tag this Judgment!Court : Mumbai
Reported in : (1986)51CTR(Bom)50; [1986]160ITR712(Bom); [1986]24TAXMAN194(Bom)
..... of the companies (profits) surtax act, 1964, surtax was charged on every company for every assessment year commencing on and from april 1, 1964, in respect of so much of its profits as exceeded the statutory deduction at the rates specified in the third schedule to the said act. ..... at the instance of the revenue under section 256(1) of the income-tax act, 1961, read with section 18 of the companies (profits) surtax act, 1964. ..... january 1, 1969, constituted 'reserves' as contemplated under rule 1 of the second schedule to the companies (profits) surtax act, 1964 ?'2. ..... january 1, 1965, january 1, 1966, and january 1, 1967, constituted 'reserves' as contemplated under rule 1 of the second schedule to the companies (profits) surtax act, 1964 ? ..... for the moment, it is enough to say that it was held that an amount set aside out of profits and other surplus not designed to meet a liability, contingency, commitment or diminution in value of assets known to exist at the date of the balance-sheet was a reserve; a provision was that which was made to meet a ..... a scheme had been framed by the company before the supreme court by reason whereof there was a liability to pay gratuity to employees on the ..... 150itr484(bom) , considered the question of a reserve for doubtful debts in the light of the judgment in vazir sultan tobacco company's case : [1981]132itr559(sc) . ..... of the capital of the company computed in accordance with the provisions of the second schedule, or an amount of two hundred thousand rupees .....
Tag this Judgment!Court : Mumbai
Reported in : (1988)67CTR(Bom)221; [1988]173ITR136(Bom)
..... the question which came up for consideration before the learned single judge was the ambit and the scope of the powers of the income-tax officer under section 7 of the companies (profits) surtax act, 1964 ('the 1964 act'). ..... , the companies (profits) surtax act, 1964, and, therefore, no fault can be found with the income-tax officer ..... 1,26,29,182, being the amount of deductions to be made under chapter vi-a of the income-tax act, 1961 ('the 1961 act'), in computing the total income to which, according to the company, they were entitled under rule 4 of the second schedule to the companies (profits) surtax act.2. ..... 6,74,912.under section 4 of the 1964 act, every company is liable to pay for every assessment year commencing on and from april 1, 1964, surtax in respect of so much of its chargeable profits of the previous year or years, as the case may be, as exceed the statutory deduction, at the rate specified in the schedule to the act. ..... it is not possible to accept the submission of learned counsel because whether the explanation to rule 1 of the second schedule to the 1964 act made any difference to the decisions under the super profits tax act or not is a debatable question and it was not permissible for the income-tax officer to determine that question while passing the order of provisional ..... 'after the return was filed by the company under the 1964 act, the income-tax officer served a notice dated december 20, 1974, under section 7(2) declaring his intention to make a provisional .....
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