Circulating Capital - Law Dictionary Search Results
Home Dictionary Name: circulating capitalFixed capital and circulating capital
Fixed capital and circulating capital, fixed capital is something which the owner keeps in his possession but turns to profit; circulating capital, however, is turned over in the process of profit-making, Karanpura Development Co. Ltd. v. CIT, AIR 1962 SC 429 (433): 1962 3 SCR 368....
Circulating capital
Circulating capital, means capital employed in the trading operations of the business and the dealings with it comprise trading receipts and trading disbursements, while 'fixed capital' means capital not so employed in the business, though, it may used for the purposes of a manufacturing business, but does not constitute capital employed in the trading operations of business, Sutlej Cotton Mills Limited v. Commissioner of Income Tax, (1978) 4 SCC 358: (1979) 1 SCR 976: AIR 1979 SC 5 (9). [Income-tax Act (11 of 1922) s. 10 (1) (2)]...
Capital and revenue receipt
Capital and revenue receipt, distinction between revenue and capital in the law of income tax is fundamental. Tax is ordinarily not levied on capital profits; it is levied on income. It is well-settled that sale of stock-in-trade or circulating capital or rendering service in the course of trading results in a trading receipt; sale of assets which the assessee uses as fixed capital to enable him to carry on his business results in capital receipt, C.I.T. v. Maheshwari Devi Jute Mills Ltd., AIR 1965 SC 1974: (1965) 3 SCR 765: AIR 1965 SC 1974 (1976). [Income-tax Act, 1922, s. 4(1)]...
Fixed capital
Fixed capital, 'fixed capital' as what the owner turns to profit by keeping it in his own possession and 'circulating capital' as what he makes profit of by parting with it and letting it change masters, Sutlej Cotton Mills Ltd. v. Commissioner of Income Tax, AIR 1979 SC 5 (9): (1978) 4 SCC 358: (1979) 1 SCR 976....
Immobilise
Immobilise, means to make immobile, esp., to turn (movable property) into immovable property or to turn (circulating capital) into fixed capital, Black's Law Dictionary, 7th Edn., p. 752....
Money circulation scheme
Money circulation scheme, means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions. [Prize Chits and Money Circulation Scheme (Banning) Act, 1978, (43 of 1978), s. 2(c)]To be a money circulation scheme, a scheme must be for the making of quick or easy money on any event or contingency relative or applicable to the enrolment of the members into the scheme. The scheme has necessarily to be judged as a whole, both from the viewpoint of the promoters and also of the members, State of West Bengal v. Swapan Kumar Guha, AIR 1972 SC 949 (976). [Prize Chits and Money Circulation Schemes (Banning) Act, 1978 , s. 2(c)]...
Turnover
Turnover, in laws dealing with Sales Tax, 'turnover' includes tax in calculating the total turnover, there is nothing wrong in treating the tax as part of the turnover, because, 'turnover' means the amount of money which is turned over in the business, George Oakes (P) Ltd. v. State of Madras, AIR 1962 SC 1352.Turnover is defined to mean: 'the aggregate amount for which goods are bought or sold or supplied or distributed by a dealer either directly or through another on his own account or on account of others whether for cash or for deferred payment or for other valuable consideration, Joint Commercial Tax Officer v. Young Men's Association (Regd.), AIR 1970 SC 1212 (1215): (1970) 1 SCC 462: (1970) 3 SCR 680.Turnover means an aggregate amount for which goods are either bought by or sold by a dealer, whether for a cash or for deferred payment or other valuable consideration, State of Andhra Pradesh v. H. Abdul Bakhi and Brothers, AIR 1965 SC 531 (532): (1964) 7 SCR 664. [Hyderabad Gener...
Capital
Capital [fr. Capitalis; caput, Lat.]. The corpus of property of any description which may or may not be the source of a periodical or other return (fructus, produce or income). The word 'capital' when employed in Company Law is used in different senses. Nominal capital is the capital of a company so stated for the purposes of division into shares. It implies nothing more than that the company is possessed of money or assets of a stated value at the company's own valuation which may be, and often is, exaggerated or illusory. Working capital means the amount employable for the purposes of a company or any other undertaking or business. See ALTERATION OF CAPITAL, COMPANY, PROSPECTUS, DIRECTORS. In the Settled Land Act, 1925, capital money arising under the Act means capital money arising under the powers or provisions of that Act or Acts which it replaces, receivable for the purposes of a settlement and includes securities representing capital money. Elaborate provisions are contained in ...
capitalization
capitalization 1 : the act or process of capitalizing [ of earnings] 2 : a sum resulting from a process of capitalizing ;esp : paid-in capital at capital [inadequate ] 3 : total capital liabilities of a business including both equity capital and debt capital NOTE: Equity capital is considered a liability because the investors may recall some or all of it (as by redeeming stock). Inadequate capitalization of a business is considered by courts in cases dealing with equitable subordination of creditors or piercing the corporate veil. 4 : the total par value or the stated value of no-par issues of authorized capital stock ...
Circulate
To cause to pass from place to place or from person to person to spread as to circulate a report to circulate bills of credit...
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