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 : [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 : [1977]106ITR399(KAR); [1977]106ITR399(Karn)
..... of 1973 and 1121, 2551 and 2552 of 1974, dated 13th september, 1974, by which the notices issued under sections 8/16 of the companies (profits) surtax act, 1964 (hereinafter referred to as 'the act') by the appellants, were quashed. ..... to pass such order under section 16(1) of the surtax act, 1964, as the circumstances of the case warrant, to enable the income-tax officer to diminish the capital proportionate to the deduction under chapter vi-a of the income-tax act, 1961, allowed in the income-tax assessment under rule 4 of the second schedule to the surtax act and work out your surtax liability for the assessment year 1971-72. ..... the income-tax assessment order that under chapter vi-a of the income-tax act, the income-tax officer while completing the assessment has allowed the following deductions, in all amounting to 3,45,282 : rs.80-i deduction in respect of profits of priority industries 2,14,24980-j deduction in respect of newly established undertakings 1,31,033---------3,45,282--------- therefore, under rule 4 of the second schedule to the surtax act, the income-tax officer should have proportionately reduced the capital base which ..... - under the act, surtax is charged on every company in respect of so much of its chargeable profits of the previous year as exceed the statutory deduction at the rate specified ..... the assessee invited our attention to the form prescribed in the surtax rules, 1964, in respect of the return of chargeable profits to be filed under section 5 of the act .....
Tag this Judgment!Court : Karnataka
Reported in : [1978]115ITR120(KAR); [1978]115ITR120(Karn); 1977(2)KarLJ86
..... charging provisions of these taxing statutes provide that there shall be charged on every company a tax at rates specified in their schedules for every assessment year in respect of so much of its 'chargeable profits' of the previous year as exceed what is styled the 'standard deduction' in the super profits tax act, 1963, and 'statutory deduction' in the corresponding successor legislation in the companies (profits) surtax act, 1964. ..... 17 of 1974 are references under section 18 of the companies (profits) surtax act, 1964, read with section 256(1) of the income-tax act, 1961, made by the income-tax appellate tribunal, bangalore bench, referring certain questions of law for the opinion of this ..... and 17 of 1974 relate to assessment years 1969-70, 1967-68, 1968-69, 1966-67 and 1965-66, respectively, and arise out of proceedings for assessment to surtax under the companies (profits) surtax act, 1964. ..... is necessary to record here that the revenue did not seek to support the order on the basis of rule 1(v) of the second schedule to the companies (profits) surtax act, 1964. 11. ..... ought perhaps to notice here another argument urged for the revenue before the tribunal based on the rule 1(v) of the second schedule to the companies (profits) surtax act, 1964. ..... 8, 9, 16 and 17 of 1974 raise the same proposition in the context of analogous provisions contained in the companies (profits) surtax act, 1964. ..... in proceedings for assessment to excess profits tax, the company contended that the sale 81. 1s. .....
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 : [1979]118ITR25(KAR); [1979]118ITR25(Karn)
..... the companies (profits) surtax act, 1964 (hereinafter referred to as 'the act'), ..... share capital redemption reserve' as at the beginning of the relevant accounting period should be included as part of the capital base under the second schedule to the companies (profits) surtax act, 1964 ? ..... act which is the charging section, surtax is levied on every company for every assessment year commencing on and from the 1st day of april, 1964, 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 or rates specified in the third schedule to the act ..... to the act sets out what the constituent elements of the capital base of a company for the purpose of levy of surtax are. ..... companies act gives the form of the balance-sheet which a company governed by that act ..... 1 of the second schedule to the act it is specifically provided that any amount standing to the credit of any account in the books of a company as on the first day of the previous year relevant to the assessment year which is of the nature of item (5), (6) or (7) under the heading 'reserves and surplus' or of any item under the heading 'current ..... for the purpose of this case reads as follows : 'its other reserves as reduced by the amounts credited to such reserves as have been allowed as a deduction in computing the income of the company for the purposes of the indian income-tax act, 1922 (11 of 1922), or the income-tax act, 1961, (43 of 1961).' 3. .....
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 : Karnataka
Reported in : (1981)23CTR(Kar)125; [1982]133ITR283(KAR); [1982]133ITR283(Karn)
..... the facts and circumstances which have given rise to the above question are : (i) the ito computed the capital base of the assessee, a private limited company, for the purpose of making assessment under the companies (profits) surtax act, 1964 (hereinafter referred to as 'the surtax act'), for the assessment year 1973-74, the relevant accounting year being the calendar year 1972, at rs. ..... appellate tribunal, banglore bench, has referred the following question for the opinion of this court : 'whether the tribunal was right in law in holding that tax credits under section 280zb of the income-tax act, 1961, issued to the assessee for the assessment year 1966-67 to 1970-71 were in the nature of income requiring reduction of capital by the application of rule 4 of the second schedule to the companies (profits) surtax act, 1964, for the assessment year 1973-74 ?' 2. ..... - in this section, `tax' means income - tax payable under this act and surtax, if any payable under the companies (profits) surtax act, 1964 (7 of 1964)... ..... (i) the companies (profits) surtax, as it is title indicates, is special law applicable to companies. ..... (iii) 'chargeable profits' of a company is required to be ascertained in accordance with the rules set out in the first schedule to the surtax act. ..... act having regard to any provision in that act, for the purpose of determining the capital base of the company under the second schedule of the surtax act, such income has to be taken into account in the manner provided in r .....
Tag this Judgment!Court : Karnataka
Reported in : (1984)39CTR(Kar)182; [1983]144ITR936(KAR); [1983]144ITR936(Karn); [1984]16TAXMAN282(Kar)
..... use for scientific research in the earlier years and full deduction under section 35 had bene given in those years (2) whether, on e fact and in the circumstances of the case, the tribunal was right in holding that surtax payable under the companies (profit) surtax act, 1964, was an inadmissible deduction in computing the total income of the assessee? ..... 2 namely, whether surtax payable under the companies profits (surtax) act, 1964 (hereinafter referred to as the 'surtax act') by the assesses company, is an admissible deduction in computing its business profits. ..... act undergoes a further process of computation under the surtax act to arrive at the chargeable profits, but none the less, the surtax remains ultimately a charge on the profits and gains of the companies. 19. ..... that levy is imposed as provided in the act on the chargeable profits of the company as computed under the provision of the surtax act. ..... according to sri sarangan, surtax is levied as a special tax on the profit and gains of certain companies referred to in the surtax act. ..... it is thus seen from the above provisions that the surtax levied on the chargeable profits under the surtax act is nothing but an additional tax on the profit and gains of the assessee business. ..... for purposes of arriving at the chargeable profits under the surtax act, the total income of an assessee computed under the i. t. .....
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.
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