Court : Gujarat
Reported in : [1964]54ITR241(Guj)
Shelat, C.J. 1. This is a reference under section 66(1) at the instance of the Commissioner of Income-tax, Gujarat. 2. By an indenture of trust dated July 28, 1945, one Bhailal Dajibhai Amin settled certain shares of the then market value of Rs. 2,50,000 and certain immovable properties situate at Virsad in District Kaira upon certain trust therein more particularly set out. By another indenture of trust dated August 2, 1945, he conveyed, transferred and assigned unto the trustees certain immovable properties belonging to him and situate at Baroda and certain shares and securities standing in his name of the then market value of Rs. 4,50,000 upon the same trust set out therein. Since both the trust deeds contain identical terms, it would be sufficient if the relevant terms of one of them were to be set out for the purpose of indicating the objects of the two trusts. Clause 5 of the trust deed relating to the Kaira properties provides that the trustees shall spend and apply the net bala...
Tag this Judgment!Court : Gujarat
Reported in : 1965CriLJ428
N.M. Miabhoy, J.1. This reference Is made under Section 438, Criminal Procedure Code, by the learned Second Extra Additional Sessions Judge, Surat, requesting this Court to quash, under Sections 215, Criminal Procedure Code, an order made by the learned Joint Civil Judge,. Junior Division, and Judicial Magistrate, First Class, Nawsari, committing the three opponents (1), Bhihhubhai Ranchhodji Desal (2) Dai padmavati Deyaramdas and (3) Lallubhai Laxmidas, to take their trial for various offences punishable under the Indian Penal Code. The reference came up for hearing before Bhagwati J. on nth of July 1963. The learned judge felt that the reference raised an important point of law, and therefore, referred the same for decision to a Division Bench.2. The facts are as follows: Survey No. 205 situated in the village Chekhad, Navsari Taluka, belongs to a temple known as the RadhaKrishna Pancha pipla Temple situated in the village Dhaman. That temple has been declared to be a public trust un...
Tag this Judgment!Court : Gujarat
Reported in : (1964)GLR229
Miabhoy, J.(1) This reference is made under Section 438, Criminal Procedure Code, by the learned Second Extra Additional Sessions Judge, Surat, requesting this Court to quash, under Section 215, Criminal Procedure Code, an order made by the learned joint Civil Judge, Junior Division, and Judicial Magistrate, First Class, Navsari, committing the three opponents (1), Bhikhubhai Ranchhodji Desai (2) Bai padmavati Deyaramdas and (3) Lallubhai Laxmidas, to take their trial for various offences punishable under the Indian Penal Code. The reference came up for hearing before Bhagwati J. on 11th of July 1963. The learned Judge felt that the reference raised an important point of law, and therefore, referred the same for decision to a Division Bench.(2) The facts are as follows: Survey No.205 situated in the village Chekhad, Navsari Taluka, belongs to a temple known as the Radha- Krishna Pancha Pipla Temple situated in the village Dhaman. That temple has been declared to be a public trust under...
Tag this Judgment!Court : Gujarat
Reported in : [1965]55ITR214(Guj)
J.M. Shelat, C.J.1. By a trust deed dated June 19, 1947, the assessee, Jayantilal Amratlal, settled 80 ordinary shares held by him in Messrs. Jayantilal Amratlal and Co. Ltd. upon trust, known as Jayantilal Amratlal Charitable Trust for the following objects, namely, 'For the relief of poor, for education, for medical relief, for advancement of religion, knowledge, commerce, health, safety or any other objects beneficial to mankind.' The trust deed was registered with the Charity Commissioner under the Bombay Trust Act (Act XXIX of 1950). Originally, as the recitals in the said deed of trust show, the trust fund consisted of the aforesaid 80 shares of the market value of Rs. 40,000. By his letter dated March 27, 1957, the settlor added to those 80 ordinary shares certain other shares held by him in other companies, bringing the total trust fund to about rupees three lakhs and a little more. Till the assessment year 1957-58, the income-tax department accepted the trust as a valid charit...
Tag this Judgment!Court : Gujarat
Reported in : [1964]53ITR420(Guj)
Bhagwati, J. 1. A short but interesting question of law arise on this reference. The question is whether loss incurred by a registered firm in speculative business is liable to be apportioned amongst the partners or is the registered firm entitled to carry it forward and to set it off against profit is speculative business during the subsequent years. The determination of the question depends primarily on the true interpretation to be put on the provisions of section 24 of the Income-tax Act, but certain other sections of the Act also require to be considered. In order to appreciate how the question arises, it is necessary to briefly recapitulate the facts as stated by the Tribunal in the statement of the case. The assessee is a firm consisting of three partners. The assessee was granted registration under section 26A for the assessment years 1958-59, 1959-60 and 1960-61, the corresponding previous years being Samvat years 2013, 2014 and 2015. The assessee during the accounting years, ...
Tag this Judgment!Court : Gujarat
Reported in : (1964)0GLR431; [1964]54ITR749(Guj)
Shelat, C.J. 1. This is a reference under section 27 of the Wealth-tax Act, XXVII of 1957. The relevant assessment years are 1957-1958 and 1958-59, and the relevant valuation dates are the 31st of December, 1956, and the 31st of December, 1957. 2. The two assessee are brothers and have been separately assessed as individuals. Amongst the other properties, the two assessees were possessed of 12 year National Savings Certificates and 10 year 3 1/2% Treasury Savings Certificates. The assessee, Harshad, had, at the relevant time, 12 year National Savings Certificates of the value of Rs. 25,000 in his own name and of Rs. 1,35,000 in some other name or names. He was also possessed of the year 3 1/2% Treasury Savings Deposit Certificates of the value of the Rs. 25,000 which stood in his name and other such certificates of the value of Rs. 1,00,000 which stood in other name or names. Likewise, the other assesee, Mahendra, was possessed of 12 years Post Officer National Savings Certificates of ...
Tag this Judgment!Court : Gujarat
Reported in : AIR1964Guj240; (1964)0GLR1061; [1964]53ITR393(Guj)
Bhagwati, J.1. A short but interesting question of law arises on this Reference made at the instance of the Commissioner of Wealth-tax under Section 27(1) of the Wealth Tax Act. The question is whether the annuity granted to the assessee by his deceased father by testamentary disposition is an annuity which. is exempt from computation of net wealth under Section 2(e)(iv) of the Act. Dr. Anklesaria the deceased father of the assessee died on 27th April 1954 having duly made testamentary disposition contained in three testamentary papers, one a will dated 8th May 1934, the other a draft deed of trust which did not bear any date but appeared to have been prepared in 1944 and the third a will dated 25th April 1944. Dr. Anklesaria had also executed during his life time a deed of trust dated 24th June 1937 tinder which a sum of Rs. 1,00,000/- had been transferred by him to the trustees for various purposes including giving of certain annuities to his sons, daughters and grand-children. Dr. A...
Tag this Judgment!Court : Gujarat
Reported in : [1965]55ITR171(Guj)
J.M. Shelat, C.J.1. This is a reference under section 66(1) of the Income-tax Act at the instance of the assessee-company. 2. The relevant assessment year is 1958-59 of which the previous year is the year ending 30th September, 1957. 3. The assessee-company, a private limited company, went in to voluntary liquidation on the 23rd of August, 1952. At the time of liquidation, the assessee-company had at its disposal rupees twenty-five lakhs, being its paid up capital, and Rs. 5,34,041, being the accumulated profits. Prior to the assessment year 1958-59, the liquidator had made the following distributions : Assessment year Amount distributedRs.1953-54 17,25,0001954-55 3,00,0001955-56 2,00,000----------------Total 22,25,000----------------4. However, it was only Rs. 50,500 out of the distribution made during the accounting year ending 30th of September, 1952, relevant to the assessment year 1953-54 that the income-tax department treated as dividend under section 2(6A) (c) of the Act, as it ...
Tag this Judgment!Court : Gujarat
Reported in : AIR1965Guj60; [1965]16STC329(Guj)
Bhagwati, J.(1) This Reference raises a question of vires of Section 26(3) of the Bombay Sales Tax Act,1953. The section has been challenged as beyond the legislative competence of the State Legislature on the ground that it purports to tax a transaction which is not a sale, by treating it as a sale. In order to appreciate how the question arises, it is necessary to state briefly the facts giving rise to the Reference. The opponents were until 27th November 1956, a partnership firm, and the firm carried on business as a dealer in mill stores. The firm was registered as a dealer under the Act and held Registration Certificate No.10-C-198. Quarterly returns of turnover of its sales were filed by the firm from time to time as required by the Act and the Rules framed under the Act. on the death of one of the partners, the firm was dissolved on 27th November 1956, but the surviving partners continued to submit quarterly returns in the name of the firm until 31st March 1957, since certain go...
Tag this Judgment!Court : Gujarat
Reported in : (1964)0GLR446; [1964]15STC367(Guj)
Shelat, C.J.1. This reference together with three other references arises out of similar, though not identical, facts and raises allied questions in the sense that the petitioners in all the four references carry on business as textile manufacturers and the sales in respect of which these references have arisen are sales not of textile goods manufactured by them, but of articles, such as old machinery, consumable stores, scrap and raw materials. There is, therefore, similarity in the questions that arise in respect of each of them and, therefore, we have thought it expedient to hear them together. In spite of the similarity and though we propose to dispose them of by a single judgment, we shall have to deal with them separately in the light of the facts of each of them. We will, therefore, take reference No. 34 of 1963 first as it is somewhat typical of the rest of them, an dispose of the rest in the light of the arguments and contentions advanced and the authorities cited at the Bar. ...
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