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Judgment Search Results Home > Cases Phrase: debentures companies act Court: income tax appellate tribunal itat mumbai Year: 2003 Page 1 of about 7 results (0.059 seconds)

Nov 18 2003 (TRI)

Fisons Plc Vs. Dy. Commissioner of Income Tax,

Court : Income Tax Appellate Tribunal ITAT Mumbai

Decided on : Nov-18-2003

Reported in : (2004)91ITD450(Mum.)

..... the following reasons: as per the requirements of section 195 of the income tax act (the act), the assessee-company's income from any source, including capital gains arising on the sale of the shares and debentures of rallis, included in the impugned assessment, was subject to deduction of tax ..... the cit(a) erred in upholding disallowance of uk (sic) 430 being expenses incurred in connection with sale of the shares and debentures of rallis. the expenses are in the nature of payment to anz international merchant banking, on account of reimbursing them for travelling ..... advance tax on, inter alia, the subject capital gains, as advance tax payable as computed in the manner laid down in section 209 of the act ..... at source. as such, the assessee-company was not required to make any payment of ..... , after taking into account the tax deductible at source, will work out to a 'nil' figure. in terms of sections 234b and 234c, interest thereunder is leviable only in a case where the assessee is liable to pay advance tax but has failed to pay such tax or has deferred payment thereof, as the case may be. as the assessee-company .....

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Jan 23 2003 (TRI)

J.T. Holdings Pvt. Ltd. Vs. the Ito

Court : Income Tax Appellate Tribunal ITAT Mumbai

Decided on : Jan-23-2003

Reported in : (2004)89ITD569(Mum.)

..... redeemable on the expiry of 10 years from the date of allotment. the offer opened on 10-12-1991 and under it, every member of the company was offered 1 debenture for every 20 equity share held by him. it was also stated in the letter of offer that the warrant holders will have a right on the expiry of 24 ..... . 10,00,000/- being the sale proceeds of detachable warrant of reliance industries ltd. under section 28 of the act.6. the learned cit(a) in his order has stated that the debentures alongwith the detachable warrants were issued to the assessee company by m/s reliance industries ltd. the said detachable warrants entitled the assessee to apply for the equity shares of ..... or profession.5. regarding the contention of the assessee company that the detachable warrant did not have any cost, the ao has stated that m/s reliance industries ltd had issued the debenture certificates alongwith the detachable warrant (sic) since the paid up value of ..... assessee has treated the debentures as stock in trade, therefore, the same is a trading asset for the assessee; hence the consideration received by the company on sale of detachable warrant was a trading receipt. therefore, the ao taxed the sale proceeds of detachable warrant of rs. 10,00,000/- under the provisions of section 28 of the act as income from business .....

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Oct 17 2003 (TRI)

The Jt. C.i.T., Special Range-13 Vs. Tata Finance Ltd.

Court : Income Tax Appellate Tribunal ITAT Mumbai

Decided on : Oct-17-2003

Reported in : (2004)91ITD9(Mum.)

..... which are specifically excluded from the provisions of section 2(7). since interest on debentures, bonds, etc. is not specifically excluded from the provisions of section 2(7), it is liable to tax under section 2(7) of the interest tax act.2. the assessee is a resident indian company. it filed its return of chargeable interest under section 7(1) of the ..... in ascertaining the character of the interest received on debentures, would not be out of context. banks are bound by the banking regulation act, 1949, in the matter of maintaining the balance-sheet and in the balance-sheet, in accordance with section 29 of the said act, and the third schedule thereto, banking companies have to make investments to the prescribed percentage and enter ..... the same under the head "investments", even though (sic) are other heads in the balance-sheet like advances and loans, etc. where banks show debentures under the head "investments', the debentures are in the nature of securities interest on ..... . bhardwaj, cit and ors.', (2003) 259 itr 295. in this case, the assessee was a company incorporated under the companies act, 1956. it was promoted by the rbi, icici, uti, sbi, idbi, etc. it was an investment company as defined under section 2(5b)(ii) of the interest tax act, 1974, as it then stood. it was a dealer in money market instruments such as .....

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Jun 30 2003 (TRI)

Deputy Commissioner of Income Tax Vs. Abu Dhabi Commercial Bank Ltd.

Court : Income Tax Appellate Tribunal ITAT Mumbai

Decided on : Jun-30-2003

Reported in : (2004)83TTJ(Mum.)345

..... of sub-section (28b) of section 2 which defines interest on securities including inter alia 'interest on debentures or other securities for money issued by' amongst others 'a company', concluded that since interest on debentures is nothing but interest on securities which is different from loans and advances, the same cannot be exigible ..... (2001) 73 ttj (all) 930 : (2001) 79 itd 56 (all), have consistently taken the view that interest on debentures will however not be covered by section 2(7) of the act and, accordingly, not be exigible to interest-tax. in coming to this conclusion various benches of the tribunal have taken the view ..... will not ipso facto bring the interest thereon in the ambit of section 2(7) of the act. if that was a reason enough for coverage by section 2(7), the interest on debentures, which are also admittedly in the nature of a usance promissory note, could not have been treated ..... and the factual matrix of the case as also the applicable legal position deliberated upon.14. we find that section 2(7) of the interest-tax act, 1974 defines interest as "interest on loans and advances made in india and includes-- (a) commitment charges on unutilised portion of any credit sanctioned ..... (a) concluded that "since commercial paper is equated with a promissory note, which falls within the ambit of section 2(7) of the interest-tax act, the return coming out of commercial papers has to be subjected to interest-tax." 13. shri sonde, learned advocate, appeared for the assessee, and .....

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Apr 23 2003 (TRI)

Mafatlal Holdings Ltd. Vs. Additional Commissioner of

Court : Income Tax Appellate Tribunal ITAT Mumbai

Decided on : Apr-23-2003

Reported in : (2004)85TTJ(Mum.)821

..... transfer of shares. according to the cit(a), since the shares were not duly transferred in the name of the purchaser by executing paper transfer deed as required under the companies act, the transaction cannot be considered as a valid transaction. to support his contention, the learned cit(a) placed his reliance on number of decisions. according to the learned counsel, these ..... governments, states, dominion, sovereigns, municipalities or public authorities or bodies or any company corporation, forum or person whether incorporated or established in india or elsewhere. thus, the main object clause of the company is to carry on business of finance and ..... . 28th feb., 2001, for the asst. yr. 1998-99. the assessee is a company belonging to the mafatlal group. the main objects of the company are to carry on the business of an investment company and to invest in and acquire and hold, sell or otherwise deal in shares, stocks, debentures, debenture-stocks, bonds, units, obligation and securities issued or guaranteed by indian or foreign .....

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Jan 03 2003 (TRI)

industrial Development Bank of Vs. the Dcit, Spl. Range-36

Court : Income Tax Appellate Tribunal ITAT Mumbai

Decided on : Jan-03-2003

Reported in : (2004)91ITD34(Mum.)

..... on the assessee investing in its own bonds. though there is a prohibition under section 77 of the companies act on buy-back of shares of a company, there is no such bar in law on the assessee investing in its own bonds. even in the companies act, by virtue of section 77(a), inserted by an amendment bough about in 1999, buy-back of ..... shares by a company is now permitted.moreover, the instant transaction is not a buy-back by a company. also, under section 54e, the assessee is not in control of the fund ..... be a connection between the expenditure and the business of the assessee; that the business of the present assessee is give loans to industries by way of contribution to shares, debentures, etc.; that the assistance given by the assessee is not on account of any business necessity, but a voluntary assistance given by the assessee to other agencies; that the amount ..... exemption. the explanation below section 54e(1) provides that investment can be made in any of the assets specified in clause (e), of such bonds issued by any public sector company, as the central government may by notification specified in this behalf. vide notification dated 13.4.1987, the government specified the three years industrial development bank of india capital bonds .....

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May 08 2003 (TRI)

Asia Investment Ltd. Vs. Dcit, Spl. Rg. 5

Court : Income Tax Appellate Tribunal ITAT Mumbai

Decided on : May-08-2003

Reported in : (2004)90ITD630(Mum.)

..... of claim of expenses. the addition was confirmed.5. on behalf of the assessee id. a.r. shri h.p. manajani submitted that the assessee is an investment company holding shares of various companies. m/s. gabriel india ltd. offered partly convertible debenture, however, the company had insufficient funds to avail this attractive offer, therefore, sought help for arrangement of finance so that the ..... public are not substantially interested then the tax is to be charged either @ 50% or @45%. for charging to tax two columns are referred in finance act, first column (i) consists of trading company of investment company. the second column (ii) consists "any other case". he has stressed that the legislature has not used the word" and" not but used the word "or ..... applied and in any other case the rate of tax is to be applied at 45%. the finance (no.2) act also defines "investment company" as follows. "investment company" mean a company whose gross total income (as defined in section 80b of the income tax act) consists of mainly of income which is chargeable under the head "income from house property", "capital gains" and "income ..... of tax by the revenue authorities was only on the reason of clubbing the income of "trading activity"and "investment activity".if we carefully examine the relevant provisions of finance act, then it can be observed that there is not provision or any indication to determine the composition of total income by adopting the collective method i.e. by clubbing the .....

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