Court : Gujarat
Decided on : Aug-02-1982
Reported in : (1983)33CTR(Guj)268; 143ITR473(Guj)
..... or manager, banker or trustee for the holders of debentures of the company do not hold office or place of profit for which consent of the company by a special resolution is necessary. in the instant case, we find that mr. gautam sarabhai was a managing director of the assessee-company. section 2(26) of the companies act, which defines 'managing director', reads as under : '2 ..... or more' and the portion referred to above governs both the cls. (a) and (b). we have examined the history of the enactment of the above provision. in the indian companies act of 1913, the corresponding provision was contained in s. 86e. there also, an exception was carved out in the case of managing director or manager or a legal or technical ..... year. ordinarily, we would not have permitted the revenue to raise the contention for the first time that there was non-compliance with the provisions of s. 314 of the companies act and, therefore, the liability to pay remuneration to mr. gautam sarabhai had not accrued; but even if we were to permit the revenue to raise this contention, having regard to ..... of the remuneration paid to mr. gautam sarabhai because it had contraband or not followed or not complied with the provisions of s. 314 of the companies act. the only ground on which the assessee-company's claim was rejected was that since the resolution sanctioning remuneration was passed in the subsequent year, the liability to pay remuneration could not be said to .....Tag this Judgment!
Court : Gujarat
Decided on : Jun-22-1982
Reported in : (1983)32CTR(Guj)268; 138ITR437(Guj)
..... 1969-70, the year of account being the calendar year 1968. the assessee held 297 redeemable preference shares in m/s. universal corporation private ltd., a company incorporated under the companies act (hereinafter referred to as the 'company'). the face value of each of these preference shares was rs. 1,000 and, therefore, the total face value of these shares came to rs. 2 ..... preference shares are a hybrid form shares and debentures, incorporating features of both, and being closer to the latter than other preference shares, but from the legal ..... vol. i of palmer's company law (22nd edn.) under the caption 'redeemable preference shares'. 'from the financial point of view, redeemable ..... accede to the submission that the holder of a redeemable preference share is in a position of creditor once the company decides to redeem the shares. it may be that redeemable preference shares have some features which are common with the debentures but legally they are shares. in this connection we may usefully refer to the following commentary at p. 356 of .....Tag this Judgment!