9911796707
TMI Blog1992 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, in all six questions are before us. These questions are : 1. Assessee's appeal (assessment year 1966-67) : "Whether having regard to the different provisions of the Companies (Profits) Surtax Act of 1964, the assessment made under section 6 of the Act for the assessment year 1966-67 on December 21, 1972, beyond the period of four years from the end of the assessment year in question is valid in law ?" 2. Revenue's appeals (assessment years 1966-67 and 1967-68) : "(1) Whether, on the facts and in the circumstances of the case, the balance as on the first day of the accounting year in the account styled as 'foreign taxation reserve' is includible in computing the capital ? (2) Whether, on the facts and in the circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpleted only on August 20, 1970. The surtax assessment was completed within less, than two years of the completion of the income-tax assessment. This was held to be within a reasonable time and was not barred by limitation. In the present case the return under the Companies (Profits) Surtax Act was filed on September 29, 1966, the income-tax assessment for the same year was made on December 8, 1971, while the assessment order under the Companies (Profits) Surtax Act was made on December 21, 1971, within a few days of the income-tax assessment. This assessment is made within 15 days of the income-tax assessment. It is undoubtedly made within a reasonable time. Hence this question, which is raised at the instance of the assessee, is answered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. The question is answered accordingly. Question No. 3 : Once again it is an accepted position that in view of the ratio of the judgment in Vazir Sultan Tobacco Co. Ltd. v. CIT [1981] 132 ITR 559 (SC), the question must be answered in the affirmative and in favour of the Revenue. The question is answered accordingly. Question No. 4 : In respect of the reserve for doubtful debts, the Tribunal has found that the balance in this account stood at Rs. 4,00,000 as on September 1, 1964, as well as on September 1, 1965. The account styled as reserve for doubtful debts appeared right from the accounting year 1939-40 and went on increasing gradually. The amounts were credited to this account on an ad hoc basis and had no relation with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken into account in computing the capital under rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. In the present case, the assessee owns shares in Ganga Bridge Construction Company and Vikhroli Metal Fabricators Ltd. During one of the relevant assessment years it earned dividend in respect of some of these shares. Under rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, where a company owns, inter alia, such shares, the amount of its capital as computed under rule 1 shall be diminished by the cost to it of the said assets, in so far as such cost exceeds the aggregate of any moneys borrowed and remaining outstanding and the amount of "any fund, any surplus and any such reserve" as is not to be ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
