Court : Kolkata
Reported in : [1986]162ITR880(Cal)
r.n. pyne, j. 1. in this reference under section 256(1) of the income-tax act, 1961, which relates to the assessment year 1973-74, the following question of law has been referred to this court for its opinion: 'whether, on the facts and in the circumstances of the case, and ona correct interpretation of section 80b(5) of the income-tax act, 1961,defining the term 'gross total income', the assessee is entitled to reliefunder section 80m of the income-tax act, 1961, in respect of the gross amount of dividends from domestic companies and not in respect of the net amount of such dividends computed in accordance with the provisions of section 57 of the said act ?'2. in view of the provisions of section 80aa of the income-tax act, 1961, inserted by the finance (no. 2) act, 1980, with restrospective effect from april 1, 1968, we answer the question by saying that the assesste will not be entitled to relief under section 80m in respect of the gross amount of dividends but it will be entitled to relief under the said section only in respect of the net amount of such dividends computed in accordance with the provisions of section 57 of the income-tax act. the question is answered in the negative and in favour of the revenue. 3. there will be no order as to costs. ajit k. sengupta, j. 4. i agree.
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1984)10ITD542(Kol.)
..... amendment, is reproduced below : (4) where an order is made under sub-section (1) and the inspecting assistant commissioner exercises the powers or performs the functions of an income-tax officer in relation to any area, or persons or classes of persons, or incomes or classes of income, or cases or classes of cases, references in this act or in any rule made thereunder to the income-tax officer shall be construed as references to the inspecting assistant commissioner and any provision of this act requiring approval or sanction of the inspecting assistant commissioner shall not apply ..... .it is plain from the above sub-section that where the iac exercises the powers or ..... the assessment year 1978-79-against the order of the commissioner of even date 8-1-1982 under section 263 of the income-tax act, 1961 ('the act'), common issues are involved and, therefore, they are disposed of by this common order ..... 2) act, 1980 came into force and by that act section 80aa of the act was inserted in the act with retrospective effect from ..... the finance (no .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1983)3ITD359(Kol.)
..... and in the circumstances of the case, the learned commissioner of income-tax (appeals) erred in law and in fact in holding that deduction under section 80m should be on gross dividend and not on net dividend.shri bajoria, the learned departmental representative, referred to section 80aa and stated that the section was introduced by the finance (no. ..... before the commissioner (appeals) and urged that the ito should have allowed deduction under section 80m of the income-tax act, 1961 ('the act'), on the gross dividend of rs. ..... 1, 4 (sc), where interpreting the corresponding provision in section 12(2) of the indian income-tax act, 1922 which was ipsissima verba in the same terms as section 57(iii), bose j. ..... -where any deduction is required to be allowed under section 80m in respect of any income by way of dividend's from a domestic company which is included in the gross total income of the assessee, then, notwithstanding anything contained in that section, the deduction under that section shall be computed with reference to the income by way of such dividends as computed in accordance with the provisions of this act (before making any deduction under this chapter) and not with reference to the gross amount ..... act, 1980, with retrospective effect from 1-4-1968.the department has challenged the finding of the commissioner (appeals) on the ground that deduction allowed by the commissioner (appeals) is not in accordance with the provisions of section ..... 2) act, 1980, with ..... 2) act, 1980, with .....
Tag this Judgment!Court : Kolkata
Reported in : (1981)23CTR(Cal)180,[1983]139ITR763(Cal)
..... there, in course of his speech, the finance minister observed, inter alia, as follows :'the bill also seeks to insert a new section 80aa, in the income-tax act to clarify that the deductions admissible under various provisions of part g of chapter via will be available with reference to the net income from the specified sources after allowing for expenditure incurred for earning such income and not with reference to the gross amount of the income from the qualifying sources. ..... , on the facts and in the circumstances of the case, the tribunal was right in law in holding that the assessee is entitled to relief under section 80-i of the income-tax act, 1961, on the profits of the priority industry, before setting off the unabsorbed development rebate of the said priority industry itself ? ..... 2) act of 1980, by incorporating section 80aa which reads as follows:'80aa ..... 2) act, 1980, as we have set out hereinbefore ..... 2) act, 1980, understood the effect of the decision of the supreme court ..... 2) act of 1980, that is to say, prospectively ..... 2) act of 1980 and which reads as follows :'80ab ..... 2) bill of 1980 as introduced originally, which was substituted by insertion of new section 80aa. ..... 2) act of 1980, amending inserting section 80aa and section 80ab was passed in the manner, we have indicated before ..... 2) bill, 1980, in clauses 78, 79, 80 and 81 it was explained as follows [1980] 123 itr 166:'78 ..... clause 12 read as follows (see [1980] 123 itr 32):'12. ..... 2) bill of 1980, for the consideration of the lok sabha .....
Tag this Judgment!Court : Kolkata
Reported in : [1982]137ITR798(Cal)
..... be urged that in view of section 47 of the finance act, 1965, of england which is again more or less in similar lines with section 232 of the income & corporation taxes act, 1970, of england--sch. ..... sub-section (2) of section 47 of the finance act, 1965, of england, income under ..... the following preliminary statement :-- 'the essence of my proposals is that the income of all companies and of other bodies within the scope of the profits tax shall become liable to a new corporation tax and shall cease to be liable to income-tax and profits tax....a corporation tax will be charged at a flat rate on the total income of companies for each accounting period....companies will be required to deduct income-tax at the standard rate from dividends and other distributions of profits...and to ..... in the circumstances of the case, the tribunal was right in holding that the relief under section 91 of the income-tax act, 1961, was available to the assessee ? ..... assessment shall be charged in respect of any distribution made in the year on such sum as, after deduction of income-tax thereon at the standard rate, equals the amount or value of the distribution after any deduction of income-tax actually made; and, subject to any enactment to the contrary, the distribution shall be deemed for purposes of income tax to represent income, of an amount equal to that sum, on which income tax has been borne by deduction : provided that in the case of preference dividends the ..... judgment by us on july 24, 1980, in i.t. .....
Tag this Judgment!Court : Kolkata
Reported in : [1988]172ITR153(Cal)
..... appears that subsequent to the order of the tribunal which was passed on august 23, 1976, a new section 80aa was inserted in the income-tax act, 1961, by the finance (no. ..... on an application of the revenue under section 256(1) of the income-tax act, 1961, the tribunal has referred the following question as a question of law arising out of its order for the opinion of this court;'whether, on the facts and in the circumstances of the case, the tribunal was right in holding that the assessee was entitled to relief under section 80m of the income-tax act, 1961, on the gross amount of dividend received from domestic companies and not in respect of the ..... for the reasons as aforesaid, in view of the said section 80aa of the income-tax act, 1961, the question has to be answered in the negative and in favour of the ..... where any deduction is required to be allowed under section 80m in respect of any income by way of dividends from a domestic company which is included in the gross total income of the assessee, then, notwithstanding anything contained in that section, the deduction under that section shall be computed with reference to the income by way of such dividends as computed in accordance with the provisions of this act (before making any deduction under this chapter) and not with reference to the gross amount of such ..... 2), act, 1980, with retrospective effect from april 1, ..... 2) act, 1980, provides for savings in certain cases which are not attracted to the facts of the instant case .....
Tag this Judgment!Court : Kolkata
Reported in : [1987]166ITR646(Cal)
..... 's case : [1977]107itr816(all) , that the assessee who was engaged in the business of running a cold storage and who earned income by storing potatoes in the plant was an industrial company within the meaning of section 2(6)(d) of the finance act, 1968, and section 2(6)(c) of the finance act, 1969, as it was engaged in processing of goods. ..... in this case, a division bench of the allahabad high court held that storing of potatoes in a cold storage amounted to processing of goods within the meaning of section 2(7)(d) of the finance acts, 1966 and 1967, and an assessee earning income from storing potatoes in cold storage was taxable at the concessional rate prescribed under the said acts. ..... cit : [1979]119itr895(all) : in this case, the assessee, which was engaged in running a cold storage plant, claimed to be a priority industry within the meaning of section 80i of the income-tax act, 1961, on the ground that it was engaged in the activity of production of processed seed and as such was a priority industry within the meaning of the said section as also section 80b(7) read with item 28 of schedule vi to the said act. ..... the assessee in that case was held not to be entitled to relief under section 84(2)(iii) of the income-tax act, 1961, as an industrial undertaking engaged in the manufacture or production of articles, as its business consisted only of galvanizing of metals on behalf of its customers. ..... 's case : [1980]126itr66(cal) .5. ..... : [1980]126itr66(cal) . .....
Tag this Judgment!Court : Kolkata
Reported in : [1987]64STC312(Cal)
..... the said notification inter alia provides as follows :in exercise of the power conferred by section 4aa of the west bengal sales tax act, 1954 (west bengal act iv of 1954) (hereinafter referred to as the said act), the governor is pleased hereby to direct that no tax shall be payable by a dealer under the said act on sales of notified commodity or commodities manufactured, made or processed by him in a newly set up small-scale industrial unit, for three years from the date of commencement of his first sale ..... while the matter was pending before the assistant commissioner for grant of eligibility certificate the commercial tax officer, howrah charge, issued a notice dated 14th november, 1980, to the petitioner inter alia to the effect that the petitioner was liable to pay tax under the said act and the said commercial tax officer proposed to make an assessment under section 9(3) of the said act. ..... the fact that the petitioner-company has been paying sales tax on sales effected by it to the customer companies coupled with the fact that the petitioner-company is being held liable for income-tax on the profits earned by it on these transactions of sales, prima facie show that the agreements of sale with the customer companies were ordinary commercial transactions entered into in the usual course of business ..... the approved source has also been defined as government or industrial finance corporation of india or industrial credit and investment corporation limited or any banking .....
Tag this Judgment!Court : Kolkata
Reported in : (1986)56CTR(Cal)146,[1987]165ITR678(Cal)
..... in this reference under section 256(1) of the income-tax act, 1961, the following questions have been referred as questions of law arising out of the order of the tribunal for the opinion of this court:' (1) whether, on the facts and in the circumstances of the case, ..... we answer the question by stating that the fees paid to the registrar in connection with the increase of the authorised capital of the company is capital expenditure and deduction thereof is not allowable under section 37 of the income-tax act, 1961.7. ..... as a revenue loss having regard to the provisions of section 43a of the income-tax act, 1961 ? ..... the registrar of companies in connection with the increase of the authorised capital of the company is capital expenditure and, therefore, not allowable under section 37 of the income-tax act? ..... of the assets has to be determined in accordance with the income-tax act, 1961. ..... 2 by stating that under rule 19a(2)(i) of the income-tax rules, 1962, in determining the value of the assets for computation of the capital employed, if the assets are entitled to depreciation, their written down value would ..... a decision of this court in income-tax reference no. ..... the capital employed should mean the cost of acquisition (not written down value) of the assets and also the liabilities and the borrowed moneys for the purpose of relief under section 80j in respect of the assessee's deep sea fishing division ? ..... 2) act, 1980-- [1984] 124 itr 69, with retrospective effect ..... effected by the finance (no. .....
Tag this Judgment!Court : Kolkata
Reported in : (1986)56CTR(Cal)139,[1986]161ITR820(Cal)
..... the instance of the assessee is concerned, the same appears to be covered by section 35(2)(iv), which was amended by the finance act, 1980, with retrospective effect from 1st april, 1962. ..... facts and in the circumstances of the case, the tribunal was correct in holding that borrowed moneys should be included in the capital employed for the purpose of computing the relief under section 80j of the income-tax act, 1961, in respect of the new industrial undertaking?' 4. ..... on an application of the revenue also under section 256(1) of the income-tax act, 1961, the following questions have been referred, as questions of law arising out of the order of the tribunal, for the opinion of this ..... on an application of the assessee under section 256(1) of the income-tax act, 1961, the following questions have been referred, as questions of law arising out of the order of the tribunal, for the opinion of this ..... of medical expenses to the employees was not an expenditure resulting directly or indirectly in the provision of any benefit or amenity or perquisites to the employees within the meaning of section 40(a)(v) of the income-tax act, 1961 ? ..... holding is that if money has been deposited by the assessee out of its profits in an overdraft account from which all payments including income-tax are made, the fact that the said overdraft had a continued debit balance would make no difference to the presumption that the income-tax had, in fact, been paid out of the profits and not out of the borrowings.19. .....
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