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Search Results Judgments > Act:COMPANIES ACT, 1956 Section 260

Sep 25 2006

Commissioner of Income Tax, Mumbai Vs. General Insurance Corporation

  • Decided on : 25-Sep-2006

Court : Supreme Court of India

Reported in : (2006)205CTR(SC)280; [2006]286ITR232(SC); JT2006(12)SC265; 2006(9)SCALE514; (2006)8SCC117

... bonus shares is in the nature of capital expenditure.6. Learned Counsel for the appellant relying upon the commentary to the Companies Act by A. Ramaiya, Sixteenth Edition 2004, which occurs in the commentary to Section 81 of the Indian Companies Act, - 'When a company prospers and accumulates a large surplus it converts this surplus into capital and divides the capital among its members in proportion ... of the capital base of the company but only re-allocation of the existing funds. We, therefore, hold that the Learned CIT (Appeals) rightly decided this issue in favour of the assessee. This ground of appeal is therefore rejected.5. The revenue thereafter filed an appeal under Section 260A of the Income tax Act (for short 'the Act') before the High Court of ... Co. Ltd. v. CIT : [1988]174ITR689(AP) wherein it has been held that the issuance of bonus shares increases the issued and paid up capital of the company and the bonus shares of the company are directly connected with the acquisition of capital and an advantage of enduring nature. CONTENDS that the expenses incurred towards issue of bonus shares confers an ... acquisition of capital and an advantage of enduring nature. CONTENDS that the expenses incurred towards issue of bonus shares confers an enduring benefit to the company which has a resultant impact on the capital structure of the company and therefore, it should be regarded as the capital expenditure. Reliance has also been placed upon the judgments of this Court in Punjab ...

Jun 16 2011

National Insurance Co. Ltd. Vs. Commissioner of Income-tax, Kol-II And ...

  • Decided on : 16-Jun-2011

Court : Kolkata

... section 4A of the Companies Act, 1956 (1 of 1956); (iii) a State financial corporation established under section 3 or section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951(63 of 1951); and (iv) any other financial company; (5B) financial company means a company, other than a company referred to in sub-clause (i), (ii) or (iii) of clause (5A), being (i) a hire-purchase finance company ... section 51 of that Act) or a cooperative society engaged in carrying on the business of banking not being a co-operative society providing credit facilities to farmers or village artisans; (ii) a public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956); (iii) a State financial corporation established under section 3 or section 3A or an institution notified under section ... Act) or a cooperative society engaged in carrying on the business of banking not being a co-operative society providing credit facilities to farmers or village artisans; (ii) a public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956); (iii) a State financial corporation established under section 3 or section 3A or an institution notified under section 46 of the State Financial Corporations Act ...

Feb 10 2012

The Commissioner Of Income Tax Vs. MS New Ambadi Estates P. Ltd.

  • Decided on : 10-Feb-2012

Court : Chennai

... : Debentures distinguished from:(a) Shares. Although shares and debentures belong to the same genesis yet they have distinct and different characteristics. The Companies Act, 1956 deals with the issue of debentures in the same manner as it deals with the issue of shares, but the similarity ends ... Section 2(46) of the Companies Act to mean a share in the share capital of a company which in turn would mean that it would represent contribution of the shareholder towards the share capital of the company. On the other hand, a debenture is an instrument of debt executed by the company ... Clauses (b) and (c) of the resolution must be read harmoniously with clause (a). The word allotment has not been defined in the Companies Act. The meaning of the word allot or allotment will have to be gathered from the context in which those words are used. ... Section 43 (5) of the Income-Tax Act, 1961?3. The erstwhile company viz.,M/s New Ambadi Investments Private Limited, who was the assessee before the authorities below, was merged with M/s New Ambadi Estates Private Limited with effect from 01.04.2006. The said erstwhile company was a private limited company ... company was a private limited company carrying on the business of investments and the relevant assessment year is 1993-1994 and the corresponding accounting year ended on 31.03.1993. For the said assessment year, the assessee filed its return of income on 31.12.1993 admitting the loss of Rs.10,08,121/-. The said return was processed under Section ...

Mar 31 2004

Maharashtra Power Development Corpn. Ltd. Vs. Dabhol Power Company

  • Decided on : 31-Mar-2004

Court : Mumbai

Reported in : 2004(3)BomCR317; (2004)3CompLJ58(Bom); [2004]52SCL224(Bom)

... the agenda circulated for the AGM of 9th September, 2002 stated that he had been appointed as additional director under Section 260 of the Companies Act by the board. He would submit that though Section 260 of the Companies Act, 1956 authorises the appointment of the additional director but that is not authorised by articles; the Articles of Association do ... Section 397 of the Companies Act approached the Company Law Board with collateral motive.15. Before we consider the points that arise for our consideration, we shall advert to statutory provision contained in Section 397 and the few relevant decisions which through light on the subject of oppression within the meaning of Section 397.16. Section 397 of the Companies Act, 1956 reads thus--'397. Application to Company ... in Section 397 and the few relevant decisions which through light on the subject of oppression within the meaning of Section 397.16. Section 397 of the Companies Act, 1956 reads thus--'397. Application to Company Law Board for relief in cases of oppression.--(1) Any members of a company who complain that the affairs of the company [are ... company petition for diverse reliefs was filed by the petitioner under Sections 397, 402, 403 and 406 of the Companies Act, 1956. In view of the events that had taken place subsequently, the company petition was permitted to be amended. In the amended company petition the petitioner prayed that it be declared that the affairs of the Dabhol Power Company (for short 'the company ...

Apr 30 2008

Khojeste Mistree and Ors. Vs. Bombay Parsi Punchayet and Ors.

  • Decided on : 30-Apr-2008

Court : Mumbai

Reported in : 2008(5)ALLMR786; 2008(4)BomCR617

... the first proviso to Section 260 of the Companies Act, 1956 provides that an additional director shall hold office only up to the date of the next annual general meeting. That means an additional director of the company shall cease to be director of the company after the last date on which the annual meeting of the company should have been held under the companies Act. In other words, the ... Change Report is filed under Section 22 of the Bombay Public Trusts Act, 1950, the resignations cannot become effective, is untenable in law. The trustees who have resigned are not required to take any steps under Section 22 and the duty of the other trustees to do so. The provisions of Section 22 are similar to the provisions of the Companies Act, 1956 under which change in ... general meeting. That means an additional director of the company shall cease to be director of the company after the last date on which the annual meeting of the company should have been held under the companies Act. In other words, the co-option of an additional director in terms of the first proviso to Section 260 unless reappointed can only be up to the last date ... like filling up Form 32 and sending it to the Registrar were concerned, it was for the company to comply with them in conformity with the provisions of Section 302 or Section 303 of the Companies Act. Where there was delay or negligence on the part of the Company in intimating the Registrar about the date of resignation, the Director who had resigned could not ...

Apr 15 2010

Official Liquidator of Canbay Polyfilms Ltd. (in Liquidation) Vs. M.V. ...

  • Decided on : 15-Apr-2010

Court : Karnataka

Reported in : [2010]156CompCas229(Kar)

... J.1. This company application is filed by the official liquidator under Section 454(5) and (5A) of the Companies Act, 1956, read with Rule 132 of the Companies (Court) Rules, 1959 (hereinafter referred to as 'the Act and Rules'), inter alia, for taking cognisance of the offence committed by the accused in not complying with the requirement of provision of Section 454 of the Act and to try ... accused by producing such cogent, clinching and clear evidence. In the light of the provisions of Section 254 of the Code and more particularly Section 454 of the Act, the evidence in this case shows that respondent No. 5 is additional director under the provisions of Section 260 of the Act, the period of additional director is up to the next annual general meeting. Exhibit P2 ... of the Companies (Court) Rules, 1959.11. In addition to this, he also submitted that respondents Nos. 4 and 5 apart from filing the statement of affairs have admittedly attended the meeting as and when the official liquidator has called for. He further submitted that respondent No. 5 appointed as the additional director under the provisions of Section 260 of the Act and ... provisions of Section 260 of the Act and there is no evidence to show that respondent No. 5 has been continued thereafter. In this regard, he further submitted that respondents Nos. 4 and 5 have also shown a reasonable excuse for the delay in filing the statement of affairs apart from the fact that they never participated in the affairs of the company, ...

Sep 14 2000

The Director of Income Tax Vs. Shardaben Bhagubhai Mafatlal Public Cha ...

  • Decided on : 14-Sep-2000

Court : Mumbai

Reported in : (2001)1BOMLR744; (2000)164CTR(Bom)97; 2001(2)MhLj695

... the forms or modes specified in sub-section (5) of section 11 continue to remain so invested or deposited after the 30th day of November, 1983; or (iii) any shares in a Company (not being Government Company as defined in section 617 of the Companies Act, 1956 [1 of 1956), or a Corporation established by or under a Central, State or Provincial Act] are held by the trust or institution ... law arise in this Appeal under Section 260-A of the Income Tax Act.(1) Whether the assessee Trust was assessable as an individual and consequently entitled to deduction under Section 80-L of the Act? (2) Whether the assessee-Trust violated Section 13(1)(d) of the Act in the Assessment Year 1993-94 by not disinvesting the shares of nongovernmental Companies by 31st March, 1993? FACTS ... a Company (not being Government Company as defined in section 617 of the Companies Act, 1956 [1 of 1956), or a Corporation established by or under a Central, State or Provincial Act] are held by the trust or institution after the 30th day of November, 1983; Proviso - (iia) any asset, not being an investment or deposit in any of the forms or modes specified in sub-section (5) of Section ... .P. and not as an individual. He relied upon section 2(31) of the Income Tax Act. He con-tended that section 2(31) defines a person to include an individual, a Hindu undivided family, a Company, a firm, an A.O.P. or a body of individuals whether incorporated or not. He contended that section 80-L did not apply to an A.O ...

Jan 23 2006

The Commissioner of Income Tax Vs. Idhayam Publications Limited

  • Decided on : 23-Jan-2006

Court : Chennai

Reported in : [2006]285ITR221(Mad)

... , J.1. The present appeal is filed under Section 260-A of the Income Tax Act, 1961 by the Revenue, in I.T.A. Nos. 1187/Mds/1998 dated 13.07.2004, passed by the Income Tax Appellate Tribunal, Madras 'B' Bench ... unsecured loan from directors' in the Balance Sheet. As per the Companies Act, under Companies (Acceptance of Deposit) Rules 1975, under Rule 2(b)(ix), deposit does not include any amount received from a Director or a share holder of a Private Limited Company. Therefore the transaction between the appellant and the Director cum Share ... case, the Tribunal was right in law in deleting the penalty levied under Section 271D of the Income Tax Act, even though the Supreme Court held that Section 269SS is constitutionally valid in law?2. The assessee is running a company in the name of M/s. Idhayam Publications Private Limited for publication of ... company in the name of M/s. Idhayam Publications Private Limited for publication of books. The relevant assessment year is 1992-93. In the assessment proceeding, the Assessing Officer noted that the assessee had accepted a cash loan of Rs. 2,94,000/- from M/s. Manian Creations, a sister concern, in violation of the provisions of Section 269SS of the Act ... Income Tax rejected the contention and was of the view that there was a clear violation of provisions of Section 271D and levied a penalty of Rs. 2,94,000/- under Section 271D of the Act.3. Aggrieved by the order, the assessee filed an appeal to the Commissioner of Income Tax (Appeals). The ...

Jan 28 2005

M. Janardhana Rao Vs. Joint Commissioner of Income Tax

  • Decided on : 28-Jan-2005

Court : Supreme Court of India

Reported in : (2005)4CompLJ23(SC); (2005)193CTR(SC)585; [2005]273ITR50(SC); JT2005(2)SC402; 2005(1)MhLj1142; 2005MPLJ401(SC); (2005)2SCC324

... the firms were sold pursuant to an order passed by the High Court by invoking provisions of Section 583(4)(a) of the Companies Act, 1956 (in short 'the Companies Act'). The Revenue Authorities were of the view that the amount received by way of consideration after ... Section 260A are in pari materia with various sub-sections of Section 100 CPC. The provisions are Section 260A(1), 260A(2)(c), 260A(3), 260A(4) of the Act corresponding to Section 100(1), 100(3), 100(4) and 100(5) of CPC.11. Various essentials as culled out from the relevant provisions of the Act are as follows:Under Section 260A(2)(c) the appeal under Section ... Act.10. Some of the provisions of Section 260A are in pari materia with various sub-sections of Section 100 CPC. The provisions are Section 260A(1), 260A(2)(c), 260A(3), 260A(4) of the Act corresponding to Section 100(1), 100(3), 100(4) and 100(5) of CPC.11. Various essentials as culled out from the relevant provisions of the Act are as follows:Under Section ... the Section, save as otherwise provided in the Act.10. Some of the provisions of Section 260A are in pari materia with various sub-sections of Section 100 CPC. The provisions are Section 260A(1), 260A(2)(c), 260A(3), 260A(4) of the Act corresponding to Section 100(1 ... section'.8. This Section was inserted by Finance (No. 2) Act, 1998 (21 of 1998) w.e.f. 1.10.1998.9. The Section was operative when the High Court took up the matter for admission. Certain changes were introduced in the Section by Finance Act, ...

Apr 07 2005

Commissioner of Income Tax Vs. Dwarkadhish Financial Services

  • Decided on : 07-Apr-2005

Court : Delhi

Reported in : (2005)197CTR(Del)202

... companies incorporated under the Companies Act and incorporation of a company under the Companies Act requires certain documentary formalities. These formalities were gone through which warranted the incorporation of above share subscribers companies by the Registrar of Companies. Thus, there should be no dispute about their identities. The affidavits from the directors of all the share applicant companies had also been filed. The share applicant companies ... , we condone the delay in refiling the appeal.2. CM is disposed of. ITA 225 of 20053. The challenge in this appeal under Section 260A of the IT Act (hereinafter referred to as Act) is to the order passed by the Tribunal, dt. 26th Feb., 2002, in relation to asst. yr. 1997-98, inter alia, on the following ... company, copies of the board of directors resolution approving such transactions as well as cheque number, branch and address of the bank through which the investment was made. Based upon this, the Tribunal recorded its finding as under :'From various documents mentioned above, it is clear that all the 7 share applicants were companies incorporated under the Companies Act and incorporation of a company ... but their creditworthiness as well as genuineness of the transaction. We, thereforee, hold that the addition in respect of share application money received from the above 7 companies was a genuine share application money and the addition sustained by the CIT(A) in this respect is not justified and the same is deleted.'6. We ...

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