Court : Gujarat
Reported in : [1978]114ITR913(Guj)
..... debentures and loan stock, and the law relating to these securities which is vastly different from that relating to share capital, will be dealt with in chapter 12, loan capital appears on the liabilities aside of the company's balance-sheet beneath share capital and reserves, but unlike share capital, it does represent ..... explanation to section 2(6a) - accumulated profits are therefore, profits which are so regarded in commercial practice, and capital raise, as defined in the income-tax act,. realization of appreciated value of the assets in commercial practice is regarded as realization of capital raise, and not of profits of the business. unless, therefore, ..... dividend. the plaintiff, lubbock, commenced a friendly action in a representative capacity against the banking company and moved for an injunction restraining the company from acting upon or carrying into effect the resolution and from dealing with or otherwise distributing the net balance as if it were income of the company. there .....
Tag this Judgment!Court : Gujarat
Reported in : [1978]112ITR577(Guj)
..... company. in that definition of 'dividend' the legislature had used the expressions 'distribution ' as well as 'payment' in the indian income-tax act, 1922, as it stood prior to the introduction of the finance act, 1956. with that background it is not possible to say that when the legislature has used the expression 'distributed' in clause (b) of ..... dividend within the meaning of section 23a. 11. it should be noted that clause (e) of section 2(6a) of the act and section 23a were both substituted simultaneously, for the original provisions by the finance act, 1955, with effect from 1st april, 1955. the object of both of the provisions is to prevent avoidance of tax by ..... the second proviso to paragraph d of part ii of the finance act, 1956, it intended to include 'paid' or 'payment'. by enacting clause (e) of section 2(6a) of the indian income-tax act, 1922, the legislature has created a fiction and has made the payments referred to in clause (e) .....
Tag this Judgment!Court : Gujarat
Reported in : [1976]104ITR744(Guj)
..... provisions corresponding to section 80e of the old chapter vi-a are found in section 80-i and section 80b(5) ..... about the correct interpretation of section 80e of the act as under : section 80e finds its place in old chapter vi-a which provided for 'deductions to be made in computing total income'. this chapter is now replaced by a new chapter bearing the same number and similar provisions, by finance(no. 2) act of 1967, with effect form april 1, 1968. ..... of the new chapter vi-a. the difference between the two provisions is not of any substance as it consists .....
Tag this Judgment!Court : Gujarat
Reported in : [1976]104ITR771(Guj)
..... hence 'total income' for the accounting period cannot be computed correctly without deducting even carried forward and current depreciation. 17. we have thus noticed that finance (no. 2) act of 1967 which substituted new chapter vi-a in place of the old one, and which also amended sub-section (2) of section 33, has made it clear, beyond any doubt ..... referred to us by the tribunal for our opinion arises out of the construction of section 80-i of the new chapter vi-a, which has replaced section 80e of the old chapter vi-a by finance (no. 2) act, 1967, with effect from april 1, 1968. since we have already decided the question as regards the deduction of ..... made in computing the total income. as already noted above, this new chapter vi-a has replaced the old chapter vi-a which contained corresponding section as regards deduction to be made in computing total income. this substitution came into force by virtue of finance (no. 2) act, 1967, with effect from april 1, 1968. substituted section 80-i .....
Tag this Judgment!Court : Gujarat
Reported in : [1978]114ITR237(Guj)
..... case : [1966]59itr767(sc) observed, after setting out the above observation of macnaghten j., as under : 'this decision, while holding that in the context of the finance act of 1939, there was no debt until the liability was quantified conceded that the expression 'debt' was wide enough to take in a liability...' 9. the supreme court ..... was not a debt. it was argued that even if there was liability on january 1, 1935, that liability did not become a debt within the meaning of the finance (no. 2) act, 1939. macnaghten j., in connection with this contention, observed as under see : [1966]59itr767(sc) : 'it is true that the word 'debt' may, in ..... of payment. none the less the vested and enforceable rights to receive such interest would accrue or arise only if the designated authorities under the land acquisition act ultimately determine that the assessee is entitled to enhanced or additional amount of compensation. till then it cannot be urged successfully that his right to interest has .....
Tag this Judgment!Court : Gujarat
Reported in : [1978]113ITR745(Guj)
..... at the rate of five thousand rupees per month for any period of his employment after the february 28, 1963.' 5. the following clause was substituted by the finance act, 1964, with effect from april 1,1964. '(iii) any expenditure incurred after february 29, 1964, which results directly or indirectly in the provision of any ..... : in the first place, the distinction in the matter of deductibility of expenses made by a company in the case of directors and employees before the finance act of 1964, or thereafter continues to prevail because in the ultimate analysis the legislature was making different provisions about the amount of expenses which would not be ..... is excessive or unreasonable having regard to the legitimate business needs of the company and the benefit derived by or accruing to it therefrom.' (iii) (omitted by finance act, 1968, with effect from 1-4-1969). 3. on behalf of the revenue it has been contended that having regard to the legislative history of the provision contained .....
Tag this Judgment!Court : Gujarat
Reported in : [1977]107ITR63(Guj)
..... from his gross total income, in accordance with and subject to the provisions of chapter vi-a, the deductions specified in sections 80c to 80u. section 80j provides for deduction in respect of profits and gains from newly established industrial undertakings or ships or hotel ..... of the two sections 84 and 80j are identical, it will be convenient to refer only to the provisions of section 80j. section 80j is one of the sections in chapter vi-a which deals with deductions to be made in computing total income. sections 80a provides that in computing the total income of an assessee, there shall be allowed ..... out hereinabove has been referred to us for our opinion. 4. it must be pointed out that the language of section 84 of the act as it stood up to the date of its detection by the finance (no. 2) act of 1967, which came into effect from april 1, 1968, was the same as the language of section 80j of the .....
Tag this Judgment!Court : Gujarat
Reported in : [1978]111ITR584(Guj)
..... that the properties came to be assigned to them by the arbitrator. 52. there is another aspect also from which the matter can be considered. chapter ix of the indian trusts, act, 1882, which covers sections 80 to 96, deals with certain obligations in the nature of trusts. section 94 provides for constructive trusts in cases ..... respective shares in the said joint family properties subject as regards the properties described in part ii of the schedule 'a' to the provisions of the baronetcy act which was then in force provided that the fourth defendant, that is, lady tanumati, was to take her share and interest in the said properties as a ..... of the bombay legislature relating to sir chinubhai madhavlal ranchhodlal baronetcy has been submitted. we may only note for the purposes of this judgment that by bombay act no. 8 of 1924, the baronetcy trust was created for settling certain properties and securities which were formerly the property of sir chinubhai madhavlal ranchhodlal, the first .....
Tag this Judgment!Court : Gujarat
Reported in : [1977]107ITR214(Guj)
..... these clear pronouncements of the supreme court, there is no doubt whatsoever that though penalty contemplated by section 271(1)(a) and other sections in chapter xxi of the income-tax act, 1961, can be imposed by income-tax officers as distinguished from regular criminal courts, the penalty proceedings before the income-tax authorities are quasi ..... to furnish an estimate of the advance tax payable by him in accordance with the provisions of sub-section (3a) of section 212 also attracts penalty. under chapter xxii dealing with offences and prosecutions, the words used are 'without reasonable cause or excuse' in respect of different offences set out in section 276, 276a ..... conclusion regarding the scope of section 106 of the indian evidence act. the full bench of the delhi high court in official liquidator, security & finance p. ltd. v. b. k. bedi : 10(1974)dlt181 was concerned with the provisions of section 454 of the companies act and particularly sub-section (5). section 454, sub-section (1 .....
Tag this Judgment!Court : Gujarat
Reported in : AIR1978Guj226; [1978]115ITR824(Guj)
..... committee have also made a few suggestions on this subject in chapter iii of their report. the board have carefully considered the points involved and their decisions thereon are given below : point (i) : under clause (a) of the ..... of revenue had put too rigid and restrictive an interpretation on this provision, which is not in accord with the spirit of the assurance given by the finance minister. it does not, therefore, surprise us that the assessing officers have also taken an unduly narrow view in the matter and the genuine businessmen have ..... and suggestions have been received by the board from associations and chambers of commerce regarding the manner in which the provisions of section 24 of the income-tax act, particularly those of explanation 2 to sub-section (1) thereof, are being interpreted and applied by the income-tax officers. the direct taxes administration enquiry .....
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