Court : Karnataka
Decided on : Mar-15-1963
Reported in : AIR1964Kant173; AIR1964Mys173; (1964)1MysLJ1
..... the court below has taken an erroneous view of the law. when a 'private company' is converted into a 'public company', there is no change in the legal personality of the company in question, 'private company'' is defined in section 3(iii) of the indian companies act, 1956, as follows:' private company' means a company which, by its articles,(a) restricts the right to transfer its shares, if ..... (a) of section 31 makes it clear that even when the articles of a company are altered, the company continues to be the same. now we may notice section 38 of the companies act. it reads:'notwithstanding anything in the memorandum or articles of a company, no member of the company shall be bound by an alteration made in the memorandum or articles after the date ..... (ii) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased; and(c) prohibits any invitation to the public to subscribe for any share is, or debentures of, the company: provided that where two or more persons hold one or more shares in a ..... company jointly, they shall, for the purposes of this definition, be treated as a single member.' section 44 of that .....Tag this Judgment!
Court : Karnataka
Decided on : Mar-02-1963
Reported in : 52ITR915(KAR); 52ITR915(Karn)
..... the registrar, cost of preparing preliminary agreements, valuer's fees when assets are acquired, cost of preparing and printing share certificates, letters of allotment, debenture, trust deed, etc. as such expenditure is a non-recurring nature it is not charged to the first year's revenue account but is ..... from the members; (2) subscription levied for the introduction of assistants; and (3) fees levied for agreeing to put the names of certain companies to on the quotation list. their lordship came to the conclusion that the income realised from all these sources was realised during the course of the ..... 15. sri bhat, the learned counsel for the assessee, tried to take support from the decision of the supreme court in hoshiarpur electric supply company v. commissioner of income-tax. therein the assessee, which had installed machinery for generation of electricity and had laid mains and distributing lines for ..... is a receipt in the course of the appellant's business and was rightly subjected to tax as a revenue receipt...... .........when a new company is formed it has to incur certain initial expenditure before the business is started. such preliminary expenses include registration charges, fees and stamp duty ..... . that residue in the ordinary course should have been credited to the reserve fund of the company. it must go to augment the reserve. 13. the word 'income' is not defined in the income-tax act. as to the true meaning of that word, there is considerable controversy. as early as .....Tag this Judgment!