9911796707
TMI Blog1978 (7) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... was delivered by GOPALAN NAMBIYAR. C.J.--The assessee is a limited company, the shares of which are owned by the Government of Kerala. For expansion of the capacity of the company, financial assistance was promised by the Government of India and by the Government of Kerala. In the budget for the year 1969-70, the Government of Kerala provided for Rs. 10.5 lakhs under " 96 Capital Outlay " and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utlay noticed earlier. The chargeable period for the purpose of this revision is the year ended December 31, 1972. For the purpose of levy of surtax it became necessary to determine the capital base at the beginning of the accounting year relevant to the assessment year with reference to the provisions of rule (1), sub-rule (v), of Schedule II of the Companies (Profits) Surtax Act, 1964. The compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd not to return the amount borrowed. The statutory provisions may usefully be seen. Section 4 of the Companies (Profits) Surtax Act, 1964, reads : " 4. Charge of tax.--Subject to the provisions contained in this Act, there shall be charged on every company for every assessment year commencing on and from the 1st day of April, 1964, a tax (in this Act referred to as the surtax) in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .. (v) any moneys borrowed by it from Government or the Industrial Finance Corporation of India or the Industrial Credit and Investment corporation of India or any other financial institution which the Central Government may notify in this behalf in the Official Gazette or any banking institution (not being a financial institution notified as aforesaid) or any person in a country outside India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sub-rule (v) of rule I of Schedule II of the Companies (Profits) Surtax Act, 1964 ? " In view of the facts noticed earlier, we answer the question in the affirmative, i.e., in favour of the revenue against the assesse. We make no order as to costs. A copy of this judgment under the seal of the court and the signature of the Registrar will be communicated to the Tribunal. - - TaxTM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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