Court : Kerala
Decided on : Oct-01-1982
Reported in : 58CompCas543(Ker)
..... with justification, be equated to the assignment of the shares themselves. it is not as though the simple process of a transfer of shares, and the concomitant procedure under the companies act and under the articles of association in relation to such transfer of shares, were not known either to p.k. mohammed or to the second defendant who is party no ..... . b-26 share register. according to the court below, due to that circumstance, the plaintiffs could not be treated as parties to the contract and to the provisions of the companies act or the articles in ext. b-8.15. even on the hypothesis that the sale was, therefore, defective on the ground that no notice was issued to the second-plaintiff ..... of the testator, judged by the surrounding circumstances, was that the plaintiff should do his best to get back all moneys sunk by the testator in these companies, whether in the form of shares, debentures or loans, and that he should be entitled to receive one-fifth of the whole amount which he succeeded in so recovering.'21. the term 'net profits ..... ' occurring in the codicil referred to above were considered by the learned judge and he observed (at p. 413 of  1 ch):' what can a gift of 'net profits' in a limited company .....Tag this Judgment!
Court : Delhi
Decided on : Feb-26-1982
Reported in : 137ITR816(Delhi)
..... in a particular manner we think not. 18. in smith v. law guarantee and trust society ltd.  2 ch 569 , a debenture trust deed executed by a company provided that the trustees should appropriate the proceeds of the realisation of the securities firstly towards interest and then towards interest and then towards principal. ..... .  2 ch 569 . their lordships have also not omitted to bear in mind the provisions of ss. 60 and 61 of the indian contract act, though these were not relied on in argument as applicable to the case.' 20.the madras high court applied this rule in chidambaram chettiar v. cit [1960 ..... from whom distinct debts are due makes a payment but neither he nor the creditor makes any apportionment. according to s. 60 of the indian contract act, if the debtor or the circumstances do not indicate the appropriation, the creditor is entitled to do so. this right only terminates when the creditor has ..... chronologically mr. wadhera, for the revenue, relying on the rule in clayton's case  1 mer. 572, and s. 61 of the indian contract act, so contended. 15. section 61 provides that where neither party makes any appropriation the payment shall be applied in discharge of the debts in order of time. ..... then to the question of appropriation of payments to the amounts due, it is necessary to examine ss. 59, 60 and 61 of the indian contract act, 1872. the question posed is whether the first item on the debit side of the account has to be discharged or reduced by the first item on .....Tag this Judgment!
Court : Delhi
Decided on : Feb-26-1982
Reported in : ILR1982Delhi121; 136ITR816(Delhi)
..... a particular manner? we think not. (17) in smith v. law guarantee and trust society ltd., (1904) 2 ch. 569, a debenture trust deed executed by a company provided that the trustees should appropriate the proceeds of the realisation of the securities firstly towards interest and then towards principal. the ..... law guarantee and trust society ltd. : their lordships have also not omitted to bear in mind the provisions of ss.60 and 61 of the indian contract act, though these were not relied on in argument as applicable to the case.'the madras high court applied this rule in chidambaram chettiar v. commissioner of income ..... from whom distinct debts are due makes a payment but neither he nor the creditor makes any apportionment. according to section 68 of the indian contract act, if the debtor or the circumstances do not indicate the appropriation, the creditor is entitled to do so. this right only terminates when the creditor ..... chronologically mr. wadhera for the revenue, relying on the rule in clayton's case, 1814 all e.r.i and section 61 of the indian contract act, so contended. (14) section 61 provides that where neither party makes any appropriation the payment shall be applied in discharge of the debts in order of ..... to the question of appropriation of payments to the amounts due, it is necessary to examine sections 59, 60 and 61 of the indian contract act, 1872. the question posed is whether the first item on the debit side of the account has to be discharged or reduced by the first item .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-12-1982
Reported in : (1983)32CTR(Bom)306; 145ITR793(Bom); 12TAXMAN178(Bom)
..... as underwriting commission paid to the underwriters on an issue of rs. 7 lakhs preference shares of rs. 100 each and the company claimed to deduct this amount as expenses under s. 9(2)(ix) of the indian i.t. act, 1918. macleod c.j. in that case had taken the view that if the cost of raising the original capital cannot ..... the head 'salaries'. relying on that decision, the learned counsel for the assessee has contended that overseas employees of the assessee-company did not have any income chargeable to indian income-tax under chap. iv a of the i.t. act, 1961 or, in other words, income chargeable under the head 'salaries' in their case was nil, and, therefore, by virtue of ..... the amount obtained by the issue of debentures is capital employed within the meaning of the rule, but this does not give us any guidance in interpreting the words 'capital expenditure' occurring in section 10(2)(xv) of the act. in our opinion, the bombay high court was wrong in relying on texas land and mortgage company v. holtham. but we do not ..... say that the tata iron and steel co.'s case  1 itc 125 (bom) was wrongly decided obtaining capital by issue of shares is different from obtaining loan by debentures.'14. the reasoning of .....Tag this Judgment!
Court : Mumbai
Decided on : Feb-09-1982
Reported in : (1982)30CTR(Bom)226; 137ITR83(Bom); 11TAXMAN155(Bom)
..... members. the trustees for the time being shall under the direction of the general committee act in legal proceedings, effect insurances, invest money, execute mortgages and all deeds to be entered into on behalf of the club, sign any debentures, the issue and form of which may be directed by the general committee and generally ..... even if there was any escapement, such an escapement was not on account of the failure of the club to file a return under s. 14 of the act.11. in the view which we have taken, all the notices dated 11th october, 1970, and 17th march, 1979, impugned in this petition are quashed. rule ..... as to the ownership of the property of an unincorporated members' club. only such wealth as belongs to the assessee can be brought to tax under the act and unless it is shown that the property of the club belongs to the trustees, it will be difficult to accept the argument that the club will ..... assessed for the purpose of income-tax as an association of persons, an association of persons not being a taxable entity contemplated by s. 3 of the act, the club was not liable to any assessment to wealth-tax. apart from this ground, another ground which has been raised in the petition to challenge the ..... that the club had addressed a letter on 31st december, 1967, to the ito pointing out that the act applied only to an individual or an huf or a company and that the status of the petitioner was that of an association of persons and, in the circumstances, the petitioner-club was not liable .....Tag this Judgment!
Court : Chennai
Decided on : Nov-09-1982
Reported in : (1983)35CTR(Mad)150; 140ITR705(Mad)
..... deduction in respect of a sum of rs. 25,920 being the aggregate of stamp duty, registration charges, lawyers' fees, and other miscellaneous expenses, in connection with the issue of debentures secured on its fixed assets. this claim for deduction of rs. 25,920, however, was disallowed. there were other disallowances too in the assessment. the assessment was carried in ..... arisen in the present reference. 7. the assessee is a newspaper publisher having in its labour force as well as staff a number of employees. year after year, the company was making appropriate provision in the balance-sheet towards its possible gratuity liability for its workmen. since gratuity was payable only on retirement or on certain other eventualities the assessee ..... interference on questions of law, the tribunal is constituted the final authority on facts and the penultimate authority on law touching the assessment and other proceedings under the i.t. act. the primary purpose of the stature is to levy and collect the income-tax. this is based on the cardinal principle, which has been incorporated as a veritable constitutional ..... the tribunal has jurisdiction to try and determine important questions, whether on fact or on law, which relates to the assessment of the assessee and there was nothing in this act which restricts the tribunal to determining those questions which have been raised before the departmental authorities. it is in this particular passage that the supreme court have rendered a comprehensive .....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 : 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 : 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!
Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Decided on : Apr-30-1982
Reported in : (1984)8ITD354(Ahd.)
..... and instructions issued by the rbi as also the state government from time to time. in order to meet the resources of finance for the business, the assessee-company had resorted to floating of debentures, borrowings from banks and deposits from public at interest. the bye-laws also permit the assessee to buy and sell securities. the assessee-bank submitted its return ..... and in the statement accompanying it, the assessee had shown business income of rs. 15,10,632, which was claimed as exempt under section 80p of the income-tax act, 1961 ('the act'). it, however, submitted a revised statement disclosing therein income from property at rs. 17,322. the balance income of rs. 2,74,20,362, which was showr. as business ..... not been convicted of any offence involving moral turpitude, or if convicted a period of four years should have elapsed since his release, (e) firms, companies, associations, trusts or societies registered under the societies registration act, 1960, provided that they hold agricultural land and borrow loan from the bank, (f) any statutory body or any body corporate established under any law for ..... the bank or such other higher limit as may be sanctioned by the registrar. provided further that the total amount due on debentures and outstanding at any time should not exceed the limit prescribed in section 119 of the act. according to the revenue, the mode of raising funds do not include the normal business of banking, i.e., receiving of deposits .....Tag this Judgment!