Court : Kolkata
Decided on : Apr-12-1960
Reported in : AIR1960Cal764
..... security constituted by the trust deed became enforceable, that on 7-8-1958 they served upon the company the requisite statutory notice under section 434 of the indian companies act and that in spite of the notice the company failed and neglected to pay the dues of the debenture-holders. the appellants presented this winding up petition on 15-9-1958. they contend that the ..... were brought into existence by the company with a view to defeat and delay the claim of ..... the appellants as trustees for the debenture holders are creditors of the company, having regard to the provisions of sub-section (2) of section 439 of the indian companies act. now, there is a very serious dispute between sitaram bhartia and the appellants on the question whether the debentures were issued without any consideration and whether the debentures and the debenture trust deed are fictitious documents and .....Tag this Judgment!
Court : Punjab and Haryana
Decided on : Sep-14-1960
Reported in : AIR1961P& H451
..... property against the compensation payable to him; (e) by transfer of shares or debentures in any company or corporation; (f) in such other form as may be prescribed. (2) for the purpose of payment of compensation under this act the central government may, by rules, provide for all or any of the ..... and disposal of the compensation pool. right of disposal of the compensation pool is there but it is subject to the provisions of the act, and the act says that the rules shall be framed under ,sections 8 and 40. the central government cannot override and by-pass section 8(2) ..... , compensation may be paid to different classes of displaced persons; (c) the valuation of all property, shares and debentures to be transferred to displaced persons; (d) any other matter which is to be, or may be, prescribed'. 14. section 14(2) of the ..... of the property transferred against the amount of compensation; * * * * * * * *' 15a. in exercise of the powers conferred by section 40 of the act, detailed rules have been framed by the central government and they are called the displaced persons (compensation and rehabilitation) rules, 1955, and are divided into various chapters ..... the latest instructions, this is synonymous with khasra number'. 5. in contravention of the provisions of the displaced persons (compensation and rehabilitation) act, 19s4, hereinafter called the act, and without framing any rules with regard to this class of displaced persons, the central government, according to the petitioner, on the .....Tag this Judgment!
Court : Guwahati
Decided on : Mar-22-1960
Reported in : 42ITR672(Gauhati)
..... to the case of commissioners of inland revenue v. fishers executors. therein a limited company resolved that part of its undivided profits should be capitalised and distributed as a bonus and created and issued five per cent. debenture stock to its ordinary shareholders in satisfaction of such bonus, the shareholders having no ..... gains accrued or arose or were received by the trustees under section of the indian income-tax act and the trustees were not liable to be assessed to income-tax in respect of the debentures. it was observed by their lordships of the privy council that the personal motive or purpose of ..... of law has been referred to us by income-tax appellate tribunal, calcutta bench, calcutta, under section 66(1) of the indian income-tax act (hereinafter called 'the act' for opinion :'whether on the facts and in the circumstances of the case and upon the construction of the terms of the lease dated march 3 ..... the conclusion that the character of the payment has to be determined from the document and the surrounding circumstances. section 105 of the transfer of property act defines a lease of immoveable property as 'a transfer of a right to enjoy such property, made for a certain time, express or implied, ..... from realisation or conversion of securities may be so assessable where what is done is not merely a realisation or change of investment, but an act done in what is truly the carrying on, or carrying out, of a business.'...we have in this case an agreement made in the ordinary .....Tag this Judgment!
Court : Guwahati
Decided on : Mar-22-1960
..... the case of commissioners of inland revenue v. fishers executors. therein a limited company resolved that part of its undivided profits should be capitalised and distributed as a bonus and created and issued five per cent. debenture stock to its ordinary shareholders in satisfaction of such bonus, the shareholders having no ..... gains accrued or arose or were received by the trustees under section of the indian income-tax act and the trustees were not liable to be assessed to income-tax in respect of the debentures. it was observed by their lordships of the privy council that the personal motive or purpose of ..... question of law has been referred to us by income-tax appellate tribunal, calcutta bench, calcutta, under section 66(1) of the indian income-tax act (hereinafter called "the act" for opinion :"whether on the facts and in the circumstances of the case and upon the construction of the terms of the lease dated march ..... the conclusion that the character of the payment has to be determined from the document and the surrounding circumstances. section 105 of the transfer of property act defines a lease of immoveable property as "a transfer of a right to enjoy such property, made for a certain time, express or implied, ..... from realisation or conversion of securities may be so assessable where what is done is not merely a realisation or change of investment, but an act done in what is truly the carrying on, or carrying out, of a business."...we have in this case an agreement made in the .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Feb-17-1960
Reported in : AIR1960SC738; (1960)62BOMLR567; 30CompCas261(SC); 38ITR601(SC); (1960)IIMLJ101(SC); 3SCR38
..... of money and with the consent of a it resolved to reduce the share capital by rupees 50 lacks by the company taking over rupees 50 lacs worth of shares and issuing to a debentures of the face value of rupees 50 lacs carrying interest at 5%. the income-tax appellate tribunal and the high ..... court held that the interest on debentures was not an allowable expenditure under s. 12(2) of the act. this court, on appeal, was of the opinion that the transaction was of a commercial nature from the point of ..... has also held that if the managing agency commission or a part thereof is foregone in the interest of the managed company, it would be allowed as an expenditure under section 10(2)(xv) of the act. we allow the amount foregone under section 10(2)(xv).' 2. against this order, at the instance of the ..... absence of a suggestion of a fraud this is not relevant at all for giving effect to the provisions of section 12(2) of the income-tax act. most commercial transactions are entered into for the mutual benefit of both sides, or at any rate each side hopes to gain something for itself. the test ..... the high court of bombay. it arises out of a reference by the income-tax appellate tribunal under section 66(1) of the indian income-tax act (hereinafter termed the act). the appellant in this appeal is the commissioner of income-tax and the respondent is a partnership firm which, by an agreement dated september 23, .....Tag this Judgment!
Court : Kolkata
Decided on : Jul-08-1960
Reported in : AIR1961Cal443,65CWN69
..... . monoram paul, nirmalabala poddar, kalyani paul and anupama kundu each holding 50 shares aggregating 200 shares. 7. the applicants have applied under sections 397, 398, 402 and 403 of the companies act, 1956, for the reliefs mentioned in the petition with notice to central government as required, 8. it is significant that none of the director respondents have affirmed any affidavit in ..... (b) that a material change (not being a change brought about by, or in the interests of, any creditors including debenture holders, or any class of shareholders, of the company) has taken place in the management or control of the company, whether by an alteration in its board of directors, or of its managing agents or secretaries and treasurers, or in the constitution ..... confirm the proceedings of the previous board meetings and the committee meetings and it is their responsibility to prepare the balance-sheet for the year 1955 as contemplated under the companies act. it is stated in the solicitor's letter under reference that you have already received instructions from the central government for the preparation of the balance-sheet for the year ..... annual general meeting vacated his office at the latest on the last date on which that annual general meeting could have been called' as required by section 166 of the companies act, 1956 and cannot continue in office thereafter on the ground that the meeting has not in fact been called. 38. the respondents' case is that they are validly appointed .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-07-1960
Reported in : AIR1961Cal666,31CompCas287(Cal),65CWN99
..... that the reserve bank has no objection tothe alteration, this court cannot grant this application for confirmation. it is to be noted that under section 17 of the companies act, 1956,the petitioner company had the right to present a petition for confirmation of an alteration provided the conditions laid down in that sectionhad been fulfilled. what section 49c has done is ..... authorities, government and defence loan and to deposit or lend any such money or other monies of the company either with. or without security or otherwise as the company deem expedient. to raise money by issuing debentures charged upon all or any of the company's property both present and future and to purchase redeem or pay off any such securities. (c) to ..... without security and to discount, buy, sell, deal in bills of exchange, hundies, promissory notes, shares of joint stock companies and other transferable instruments. to buy, sell or otherwise deal in bullions, jewels, government promissory notes, municipal and port trust debentures, war bonds, defence certificates, post office cash certificates and like securities,' it is not necessary to set out the ..... . (b) to borrow on interest or otherwise and either with or without security from any person or persons, local authorities, government. to raise money by issuing debentures charged uponall or any of the company's property both present and future and to purchase redeem or pay off any such securities. 3. (c) as stated above.' 5. after this an application was .....Tag this Judgment!
Court : Kerala
Decided on : Jan-01-1960
Reported in : AIR1960Ker253; 38ITR533(Ker)
..... income-tax, redeemable in three successive years at one lakh every year, 'to be utilised towards the working capital of the company.'the debentures were fully subscribed, and the subscriptions were received between august 24, and november 27, 1950. in issuing the debentures, expenses, by way of stamp paper for the relative trust deed, or underwriting commission, and of registration and lawyer's ..... it had no doubt in its mind as to the nature of the borrowing, which was to furnish the 'working capital' of the company; the expenses for raising the loan were not, therefore, claimed as an allowance under the act, before the income-tax officer. a distinction between share capital and borrowed capit'al' was attempted by finlay, q. c. in his ..... character as such capital itself.the question therefore resolves itself to whether, the sum of three lakhs of rupees raised by debenture is a capital receipt or a revenue receipt, though the term 'capital expenditure' is not defined in the act, as observed by shah, j. in in re, tata iron & steel co. ltd., (1875-83) 1 tax cas 125 the words ..... capital expenditure 'make the meaning of the expression elastic in its application to the facts of each case.' capital may be subscribed or borrowed, and as for the latter, the act itself makes allowance for interest payable in respect of it. a borrowing of capital has to be distinguished from securing mete temporary or day to day accommodation, or from banking .....Tag this Judgment!
Court : Chennai
Decided on : Nov-09-1960
Reported in : 41ITR552(Mad)
..... 000. in 1944-45 the assessee decided to launch upon real business and obtained the permission of the controller of capital issues for the issue of shares and debentures. the controller, however, imposed, imposed a condition that any sum in excess of a certain amount received by the assessee should be invested in government securities ..... allowance is due under sub-section (2) of section 10 shall be reduced correspondingly.'the position thus was that even in the case of a banking company there was no express statutory provision for any apportionment of interest payments before explanation (b) was added to section 8 in 1956. nor was there any ..... the appellant says, and says with truth, that there are many cases in the working of the act where it is necessary to make apportionments, and he instances as one the case where a non-resident company carries on business both in england and abroad and its accounts have to be dissected in order to ..... claimed that since the money raised had to be invested in government securities by reason of the condition imposed by the controller the debenture interest paid should be deducted under section 8. the income-tax authorities disallowed the claim on the ground that the object of issuing the ..... debentures was not to invest the money in securities, but to employ it in the assessees business and that the condition imposed by the .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-18-1960
Reported in : AIR1963Cal64,1963CriLJ156
..... calcutta national bank ltd. with effect from the 1st june, 1950. on 29-12-50 the reserve bank under section 35 of the banking companies act issued a directive authorising one of its officers to inspect the business of the calcutta national bank ltd. k. d. rao was the officer who ..... bank including power to make investments by loans or otherwise of the company's funds and he was to exercise the powers, authorities and discretions, of the company except only such powers as was required by the indian companies act to be exercised by the board of directors or by the share- ..... sold these shares or debentures at half price or less to some other subsidiary companies, and by these transactions between 1946 and 1951 the directors caused wrongful loss to the bank to the tune of rs ..... committed and wrongful loss had been caused to the calcutta national bank ltd. it was mentioned there that from 1946 the company started buying shares and debentures of the subsidiary companies at the face value or at a premium, and that after sometime, on occasion even on the next day the bank ..... bank ltd. financed a large number of subsidiary or sister concerns and in this appeal we are particularly concerned with one of them, namely, india construction company ltd. other subsidiary concerns were indian investment corporation ltd., chemical industries of india ltd., farmers' corporation of bengal ltd., united india investment co. ltd .....Tag this Judgment!