Court : Supreme Court of India
Reported in : AIR1966SC619; [1966]59ITR243(SC); [1966]2SCR22
..... did enact the compulsory deposit scheme act, 1963, as a separate statute, but the does not mean that it had no power to incorporate it within the income-tax act, if the parliament ..... noticed that simultaneously with the introduction of the annuity deposit scheme, the personal rates of income-tax have been reduced ..... all companies and corporations and co-operative societies established by central, state or provincial acts are accordingly exempted from the operation of the annuity deposit scheme. ..... that the chapter relating to the annuity deposit scheme is closely related to the scheme of levy of income-tax. ..... provisions, apart from the machinery sections which are either supplementary to or fitted into, the scheme of the indian income-tax act, 1961, is that a person, with an income above a certain sum, may, if he so chooses and as an alternative to paying the full tax due on his income, make an annuity deposit and earn some present partial relief from taxation. ..... noticed that the scheme for the annuity deposits is in a sense not compulsory. ..... and cross references the legislature has thought it proper to enact within the indian income-tax act those provisions relating to annuity deposits and has conferred upon the income-tax officer power to assess and collect annuity deposits, and exercise of that power may not be cavilled at even by a purist in draftsmanship ..... income-tax act can reasonably contain provisions on incidental matters and the management of annuity deposit under the scheme is such .....
Tag this Judgment!Court : Karnataka
Reported in : [1968]67ITR150(KAR); [1968]67ITR150(Karn)
..... we should understand the word 'payable' occuring in section 4(3) of the compulsory deposit scheme act, 1963, as involving the concept that the deposit becomes payable only after the additional surcharge is quantified by an order of assessment ..... are asked to pronounce on the validity of paragraph 4 of the compulsory deposit (income-tax payers) scheme, 1963, made by the central government in exercise of the power conferred by section 5 of the compulsory deposit scheme act, 1963 (act no. ..... : he compulsory deposit scheme act, 1963 (act no. ..... ' and the context in which the word 'payable' occurs in that part of the constitution is not similar to that in which it occurs in section 4(3) of the compulsory deposit scheme act, so, we should not deduce from the observations of the supreme court a general enunciation that the word 'payable' in whatever context it occurs has reference to a stage which is reached when there is the ..... 1953 of the definition contained in that sub-section, we were asked to say that if income-tax is payable only after the ascertainment of the income or its assessment, additional surcharge to which section 4(3) of the compulsory deposit scheme act refers, similarly becomes payable only after the ascertainment of the income and determination of the additional surcharge. 23. ..... , the mechanical adoption of the, interpretation of the word 'payable' in the income-tax act for ascertaining its meaning in the compulsory deposit scheme act may not eliminate error or inaccuracy. 31. .....
Tag this Judgment!Court : Allahabad
Reported in : AIR1965All37; [1965]57ITR749(All)
..... lastly, it was contended that the compulsory deposit scheme act, 1963 which was, so to speak, in lieu of additional surcharge was violative of the principles laid down in article 19(l)(g) of the constitution, there is no force a this contention either as the compulsory deposit scheme now applies to those who are subject to additional surcharge and if an inducement is held out to them to make deposits regularly for which corresponding rebate from additional surcharge to be given, it cannot per se infringe ..... the compulsory deposit scheme applies to a well defined class and the finance act of 1963 cannot be said to place any restriction on the free exercise of any profession ..... inducement in making the compulsory deposit. ..... additional surcharge or additional tax which could have been levied under article 271 can be levied only on a particular class and not on the public in general, the argument is that in the finance act of 1963, which is the impugned provision, the salaried class of persons has been excluded from the application of the provisions for the levy of surcharge. ..... the charge of discrimination, therefore, cannot legitimately be levied against the finance act of 1963 in the matter of 'additional surcharge' as the classification is neither arbitrary nor capricious; it is a perfectly understandable, ..... head 'salaries' by implication will not be subjected to additional surcharge which came to be levied under the finance act of 1963 under section 2(a)(i) and (ii) for the first time. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1985)14ITD84(Pune.)
..... respectively, accruing to the assessee under the compulsory deposit scheme (income-tax payers) act, 1974 ('the cds act') [subject to relief under section sol of the income-tax act, 1961 ('the act')] is taxable.2. ..... in the wealth-tax, although the statute referred to compulsory deposit scheme as bank deposit, it was held in wto v. s.d. ..... the only distinguishable feature of compulsory deposit scheme of 1974 is that it does not give any such reduction in income or ..... in the compulsory deposit scheme, however, there is no reference to ..... how compulsory is the compulsory deposit in the past too taxing statutes had deposit schemes. ..... the compulsory deposit, as the scheme shows, is an investment to be compulsorily made with the government by ..... the taxpayer who has to pay compulsory deposit on advance tax basis under section 4 of cds act can also avoid payment by riling lower advance tax estimate if he feels that he would be better off even after facing the penal consequences, ..... there is no controversy that compulsory deposit if made does disable the taxpayer from utilising the same funds elsewhere but this is true of any deposit, statutory or contractual.lastly, ..... the interest of national economic development for compulsory deposit by certain classes of income-tax payers ..... , shri walvekar submitted that we should not allow the issue to be contended by looking into the genesis of compulsory deposit or the words of article 31. ..... compulsory deposit scheme of 1963 gave rebate on additional surcharge otherwise .....
Tag this Judgment!Court : Mumbai
Reported in : (1995)124CTR(Bom)343; [1995]215ITR30(Bom)
..... of the above provisions of the compulsory deposit scheme, 1963, it is clear that the amount standing to the credit of the assessee in the compulsory deposit scheme account falls within the expression 'property of every description movable or immovable' used in section 2(e) of the act. ..... compulsory deposit was made in this case by the assessee under the compulsory deposit scheme, 1963, and the scheme ..... in the course of assessment of the assessee under the wealth-tax act, 1957 ('the act'), for the assessment years 1976-77 and 1977-78 as the assessee claimed that the amount standing to his credit in the compulsory deposit scheme account was not an asset within the meaning of section 2(e) of the act and even if it was an asset, the value thereof could not be determined as per section 7 of the wealth-tax act. ..... position, there is no reason as to why the amount standing to the credit of the assessee under the compulsory deposit scheme account should not be treated as an 'asset' within the meaning of section 2(e) of the wealth-tax act, 1957. 6. ..... is whether the amount standing to the credit of the assessee in the compulsory deposit scheme account is an 'asset' within the meaning of the said clause or ..... that the amount standing to the credit of the assessee in the compulsory deposit scheme account was not includible in the net wealth of the assessee. ..... directed the wealth-tax officer to include the actuarial value of the compulsory deposit scheme account in the net wealth of the assessee. .....
Tag this Judgment!Court : Chennai
Reported in : [1977]110ITR778(Mad)
..... 1964, should be calculated from the gross additional surcharge on residual income before deducting the compulsory deposit paid under the compulsory deposit (income-tax payers) scheme, 1963?' 8. ..... calculated from the gross additional surcharge before deducting thecompulsory deposit on the ground that there was no reference at all to thecompulsory deposit in the income-tax act or in the finance act for thepurpose of calculation of tax and the deduction of compulsory deposit wasonly allowable under a separate enactment different from the income ..... of compulsory deposit in the income-tax act, ..... income from any particular source, the expression ' previous year ' in relation to that source of his income shall, for the purposes of making an assessment for any assessment year underthe income-tax act, 1961, mean the year ended on the 31st day of december, immediately preceding that assessment year, unless the assessee is permitted by the income-tax officer (the permission being subject to such conditions ..... regulation inserted section 294a conferring power on the central government, if it considered it necessary or expedient to do so, for avoiding any hardship or anomaly or removing any difficulty that may arise as a result of the application of the income-tax act to the union territory of pondicherry, to make by general or special order, an exemption reduction in rate or other modification in respect of the income-tax or super-tax in favour of any assessee or class of assessees or in regard to .....
Tag this Judgment!Court : Chennai
Reported in : [1998]229ITR813(Mad)
..... : [1995]215itr30(bom) , wherein the bombay high court had held that 'under the compulsory deposit scheme, 1963, the deposit in any year is repayable with interest thereon at any time after the expiry of five years from the end of the year in which the deposit had been made and that the amount standing to the credit of the assessee in the compulsory deposit scheme account falls within the expression 'property of every description movable or immovable' used in section 2(e) ..... an individual, has been making compulsory deposits under the compulsory deposit (income-tax payers) act, 1974 read with the compulsory deposit (income-tax payers) scheme, 1974. ..... 2) act, 1980, section 7a was inserted with retrospective effect from april 1, 1975, which states as under : 'for the purposes of exemption under section 5 of the wealth-tax act, 1957 (27 of 1957), the amount of compulsory deposit shall be deemed to be a deposit with a banking company to which the banking regulation act, 1949 (10 of ..... standing to the credit of an assessee in the compulsory deposit account should be treated as an 'asset' within the meaning of section 2(e) of the wealth-tax act, 1957. ..... similar view, holding that 'the whole of the amount standing to the credit of the assessee in that account would, therefore, form part of his assets within the meaning of section 2(e) of the wealth-tax act, 1957, and the question of discounting the value thereof does not arise for purposes of inclusion in the net wealth of the assessee'. 6. .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : [1980]124ITR438(MP)
..... (4) whether, on the facts and in the circumstances of the case, it is legal to determine the amount of penalty payable under section 271(l)(a) as a proportion of the * tax ' inclusive of the additional surcharge levied by virtue of the compulsory deposit scheme, 1963 ' 2. ..... the general observation in that case that '......penalty will not ordinarily be imposed unless the party obliged, eitheracted deliberately in defiance of law or was guilty of conduct, contumacious or dishonest, or acted in conscious disregard of its obligation ', cannot be applied in every case without reference to the words used by the legislature. ..... the exception is founded on the view that the acts prohibited by revenue statutes are not criminal in any real sense but are acts which ia the public interest are prohibited under a penalty ..... act, 1961, by 30th june, 1963. ..... act provide for imposition of penalty on contumacious or fraudulent ..... act, 1961, and it deals with burden of proof of concealment of ..... of orissa : [1972]83itr26(sc) did not deal with section 271(1)(a) of the act. ..... act, 1961, contains separate provisions for imposition of penalty and for punishing the assessee for criminal offences relating to tax ..... 971 was imposed on the assessee by the ito under section 271(l)(a) of the act. ..... act, 1961, at the instance of the assessee, referring for our answer the following questions of law :' (1) whether, on the facts and in the circumstances of the case, when interest under clause (iii) of the proviso to section 139 .....
Tag this Judgment!Court : Andhra Pradesh
Reported in : [1987]165ITR409(AP)
..... have challenged in this writ petition, the validity of section 10 of the compulsory deposit scheme (income-tax payers) act, 1974, on the ground that it is arbitrary, unjust and unconstitutional. ..... by act 38 of 1974, parliament has enacted the compulsory deposit scheme (income-tax payers) act, ..... this act, which has replaced the scheme of compulsory deposit earlier prevailing, directs the persons specified in section 3(2) of the act to make compulsory deposits for the assessment year commencing on april 1, 1975, and every subsequent assessment ..... section 10 says that if, in relation to an assessment year, any person who is liable to make a compulsory deposit has, without reasonable cause, failed to make the compulsory deposit within the time allowed or has made the compulsory deposit within such time, but the deposit so made falls short of the requisite amount and there is no reasonable cause for making such short payment, the income-tax officer may, by order in writing, direct that such person shall pay by way of penalty ..... writ petition, the provisions of the above act imposing the liability to pay the compulsory deposits are challenged. ..... fall under that specification of section 3(2) of the act and under the same, the petitioners are liable to make compulsory deposit. ..... so long as the validity of imposition of compulsory deposit is upheld, we cannot hold that the machinery provided by section 10 ..... : [1968]67itr150(kar) had upheld the then existing compulsory deposit scheme of the year 1963. .....
Tag this Judgment!Court : Kolkata
Reported in : [1993]204ITR842(Cal)
..... the introduction of section 7a in the compulsory deposit scheme act, granting exemption under section 5 of the 1957 act to the compulsory deposits is another indication of the intention of the legislature to treat the deposit as an asset and grant exemption because the deposits under the compulsory deposit scheme would not otherwise be entitled to any exemption under the wealth-tax act. ..... section 8(1) of the compulsory deposit scheme act provides as follows :'the amount of compulsory deposit made by or recovered from a depositor in any financial year shall be repayable in five equal annual instalments commencing from the expiry of two years from the end of that financial year, together with the interest due on the whole or, as the case may be, part of the amount of the compulsory deposit which has remained unpaid : provided that nothing in this section shall prevent earlier repayment of the deposit or any instalment ..... there was no provision in the annuity deposit scheme as in the compulsory deposit scheme act to credit a deposit to the name of the depositor. ..... assuming the right to receive the instalment in terms of the compulsory deposit scheme act is an annuity, a further question still remains as to whether the terms and conditions relating to such annuity preclude the commutation of any portion thereof into a lump sum grant ..... when an assessee deposited out of his income under the compulsory deposit scheme act, it remains invested in the bank and income is transferred into capital .....
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