Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : May-10-1982
Reported in : (1982)2ITD181(Kol.)
..... not create any charge on the profit of the assessee. he also referred to schedule ii to the act, the companies act, 1956 and clause 7 of part iii of schedule vi to the companies act, 1956 and stated that if these provisions are taken into consideration, the debenture stock redemption fund was only a reserve, and therefore, the ito was justified in not excluding the ..... . the next question is whether notwithstanding the use of the expression 'reserve', the amounts to the credit of the debenture stock redemption reserve constitutes really a reserve. part iii (the interpretation clauses of schedule vi of the companies act) of schedule vi of the companies act throws some light on the matter. rule 7(1)(&) says that the expression 'reserve' shall not include any amount ..... paragraphs 7 and 8 of his order as follows : 7. one of the questions that arises is whether the debenture stock redemption reserve is in effect a 'sinking fund' as appearing in the form of balance sheet under schedule vi to the companies act, 1956 and whether it is thus coming under item 7 under the head 'reserves and surplus' on the liabilities ..... ) the 'reserve' as appearing in the balance sheet is in accordance with the requirements of part i of schedule vi of the companies act, 1956. (viii) the 'reserve' has been created by carving out a part of the surplus fund of the assessee. (ix) the debenture stock account would be reduced, as and when the payment is made, and ultimately the balance in .....Tag this Judgment!
Court : Kolkata
Decided on : Feb-22-1982
Reported in : (1982)29CTR(Cal)46,136ITR98(Cal)
..... thereof; and.....'4. while filing its original surtax return for the assessment year 1965-66, on 30th september, 1965, the assessee-company had not included the mortgage debentures of rs. 20 lakhs in its computation of capital. however, in a revised return this sum was included as a permissible deduction ..... the state bank for financing its capital project of penicillin division. the dispute before the tribunal was whether such debentures could be included in the computation of the assessee-company's capital for the purpose, of its surtax assessment for the assessment year 1965-66. this question has to ..... august, 1962, the tribunal was right in holding that the said debentures should be included in capital under clause (iv) of rule 1 of the second schedule to the companies (profits) surtax act, 1964 ?'2. the assessee is a company. it carries on business in the manufacture and sale of pharmaceutical goods ..... a company for the purpose of surtax assessment as provided under clause (iv) of rule 1 of schedule ii to the c.(p.)s.t. act, 1964, was not circumscribed by any condition whatsoever and so it would be unreasonable to include in the computation of capital only such debentures as ..... be resolved in the background of rule 1, clauses (iv) and (v) of schedule ii to the c.(p.)s.t. act, 1964, as it stood at the relevant time. the said provision was as follows :'(iv) its debentures .....Tag this Judgment!
Court : Kolkata
Decided on : Jun-02-1982
Reported in : 58CompCas772(Cal)
..... impose limitation upon the power and function of the committee of management. therefore, in not complying with the requirements of section 293 of the companies act, nor in not obtaining any prior sanction or leave before entering into the transaction in question, in our opinion, the committee of management ..... to be performed by the committee of management appointed by the court. in this connection, reference was made to section 161 of the companies act which enjoins filing of certain returns indicating the names of the directors, etc., or section 169, which also enjoined calling of extraordinary general ..... in that case, it was held that a mortgage debenture made by a railway company in the form given in schedule 'c' of the companies clauses consolidation act, 1845, did not give the debenture holder a specific charge upon the surplus lands of the company or the proceeds of the sale of them so as ..... to entitle them for an order for a receiver of the sale moneys or interim rents. the ' undertaking' of a railway company ..... which was pledged in a mortgage was a going concern created by an act .....Tag this Judgment!
Court : Kolkata
Decided on : Jul-19-1982
Reported in : 141ITR45(Cal)
..... market rate or bank rate of interest goes up or down. there was an additional factor in this case that the debentures were convertible debentures. the debenture-holder had an option to convert the debentures into equity shares of the company. a convertible debenture of a company whose share price is very high is likely to have a market value much higher than its face value. the ..... has been contended that the cost of acquisition of the shares could not be anything more than the amount of the loan represented by the debentures. it has been contended that by the issue of the debentures the company in effect obtained a loan from the assessee and the loan was also secured by a floating charge on the properties and assets of ..... is, the date of acquisition of the shares. 16. it was contended on behalf of the revenue that the debentures were nothing more than an acknowledgement of the indebtedness of the company to the debenture-holders and by converting the debentures into shares the company had in effect written off its loan account and issued shares in lieu thereof to the assessee. reliance has been ..... because the transactions does not come within section 55(2) of the i.t. act, 1961. it is contended that special modes of computation have been laid down for the purpose of computing the cost of acquisition of shares in a company. the transaction of conversion of debentures into shares and then sale of such shares does not come under any of the .....Tag this Judgment!
Court : Kolkata
Decided on : Oct-12-1982
Reported in : 59CompCas46(Cal)
..... ...... notice of a board meeting need not, unless the articles otherwise provide, specify the nature of the business to be transacted. ' 120. reference was also made to buckley on the companies acts, 12th edition, at page 886, where the following passage occurs :' every member of the board ought no doubt, in the absence of special circumstances, to have sufficient notice of each ..... company, the liquidator claimed a declaration that the issue of the debentures was invalid and should be set aside.64. it was held by the english court of appeal that there being no suggestion of fraud, that the ..... for the purpose of this paragraph, be treated as a single member ;(b) an invitation to the public to subscribe for any shares in, or debentures of, the company is hereby prohibited ;(c) the right of transfer of shares of the company shall be restricted in the manner, hereinafter in these articles provided. 34. subject to the provision of section 111 of the ..... five who and there then appointed themselves directors. this meeting was described in the minutes as a board meeting. at a subsequent meeting; the seal of the company was affixed to the debentures. the articles of the company provided that no director should vote in respect of any contract or arrangement in which he might be interested. in the winding up of the .....Tag this Judgment!
Court : Kolkata
Decided on : Jun-22-1982
Reported in : 56CompCas103(Cal)
..... , of every director, the managing agent, if any, the secretaries and treasurers, if any, and the manager, if any '. 7. in view of the provisions of section 173 of the companies act, the petitioner is not entitled to any notice under section 173. apart from that, factually, it had been the case of defendant no. 1 as made out in the affidavit ..... removal as a director of defendant no. 1. the meeting held and the resolutions passed on may 14, 1982, were contrary to and in violation of the provisions of the companies act as also the articles of association of defendant no. 1. according to the petitioner, no effect whatsoever had been given to the resolution inasmuch as the petitioner had been attending ..... meetings were concerned. mr. sinha's submission is that by virtue of section 9 any provision made in the articles of association which is contrary to the provisions of the companies act shall be void. that submission of mr. sinha is also unacceptable inasmuch as the opening words of section 9 provides ' save as otherwise expressly provided in the ..... or any class of debenture holders, of a company, in like manner as they apply with respect to general meetings of the company.' 14. pursuant to such provision this particular company in its articles of association under article 40 provides in the manner following :' the provisions contained under sections 171 to 186 of the act shall not apply to the company.'15. under those circumstances, as .....Tag this Judgment!
Court : Kolkata
Decided on : Feb-19-1982
Reported in : (1983)ILLJ374Cal
..... is not required that the authority to be 'state' should be created by a statute or under a statute. juristic personality coming into existence by registration of the companies act and societies registration act, government company or any other organisation so registered can be agency or instrumentality of the government if the relevant fact on being considered it is found that they are agency ..... (praga tools corporation v. c.a. imanuel) 1969-ii l.l.j. 749, it has been held by the supreme court that the tools corporation is a company incorporated under the indian companies act. at the material time the union government and the government of andhra pradesh between them held 56 per cent and 32 per cent of its shares respectively and ..... in (s.t. corporation of india v. commercial tax officer air 1963 sc 1811, it has been held by the majority that the state trading corporation, a company registered under the indian companies act, 1956 is not a citizen within the meaning of article 19 of the constitution and cannot ask for the enforcement of fundamental rights granted to citizens under the ..... investment in a particular type of security or shares, if such investment exceeds rs. 10 lakhs. issue of debentures. acquisition, construction or sale of vessels involving an amount exceeding rs. 10 lakhs. voluntary winding up of the company. any important matter relating to the company's establishment. any other matter which in his opinion involves an important issue of general policy. no action .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-30-1982
Reported in : (1983)35CTR(Cal)244,147ITR392(Cal)
..... tax and not so taxable in the hands of the assessee. up to a time the total income of the company was deposited into one banking account and out of that mixed fund its management expenses and interest on debentures were paid. later, a separate banking account was opened and the profits under the two heads were segregated. ..... ., were also deposited. out of this composite fund all expenses were met. while computing the aggregate income for the purpose of section 11 of the i.t. act, 1961, the voluntary contributions were not taken into account and the rest of the income was set off against the entire expenditure incurred in respect of which exemption was ..... .14. the assessee claimed deduction of the said sums of rs. 5,000 and rs. 35,000 under section 10(2)(xv) of the indian i.t. act, 1922.15. the matter was finally disposed of in the supreme court. the supreme court laid down that one of the principles of distinction between a capital and ..... ito as to the proportion the same was upheld.9. the assessee further contended that interest paid was an allowable deduction under section 36 of the i.t. act, 1961, being interest paid on capital borrowed for the purpose of business which included the payment of income-tax on the income of the business. on the authority ..... 1. this consolidated reference under section 256(1) of the i.t. act, 1961, relates to assessment years 1965-66, 1966-67 and 1968-69, the correspondingprevious years ending respectively on the 30th september, of the calendar years 1964, .....Tag this Judgment!