9911796707
TMI Blog1978 (10) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... ng and share speculation. 3. The learned representative for the assessee, on the other hand submitted that the assessee's case is covered by s. 40A(c)(ii) of the Act which defines an investment company. the assessee has satisfied the necessary conditions and in such a case the AAC was justified in allowing the appeal of the assessee. He filed the balance sheet as on 30th Sept,., 1975. On the asset side of the balance sheet the investments amount to Rs. 29,95,249 as against the total of the balance sheet at Rs. 32,10,565. This, therefore, shows that the company is an investment company. Simply because it has carried the share dealing business also, it does not mean that the company is not an investment company. 4. We have given our tho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling or speculation business. But its main activities should be by way of investments in the categories specified in the definition of the investment company. In our opinion, the company has satisfied all the requirements or conditions of an investment company. This being the position, the AAC was justified in holding that the company was an investment company and it was entitled to the deduction of the expenses etc. 5. In the result, the departmental appeal stands dismissed. APPENDIX I IN THE OFFICE OF THE APPELLATE ASSISTANT COMMISSIONER OF INCOME TAX 'G' RANGE, CALCUTTA . Appeal No. 224/C-II/ 76-77 Date of Order : 6th June, 1977 Instituted on the 11th Oct., 1976 from the Order of the ITO of ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Nos. 3A(i) 3B(i). 2. The contention of the A/R. is correct. From the facts of the case I find that the main business of the company was by way of share sale and interest receipt by providing finances. Hence the company should have been treated as a financial company which enjoyed exemption with regard to disallowance of 15 per cent of expenditure by way of interest in respect of any deposit received by it. Under the circumstances, the disallowance of Rs. 13,425 is deleted. 3. In the result, the appeal is allowed. Sd/-(T.K. Das) AAC, Range-C, Calcutta. APPENDIX 2 PAN : 11-046-CZ-6748 Date of Order : 31st Aug., 1976. CAL/C II (I) . INCOME TAX DEPARTMENT Comp. District ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Source . . Dividend Rs. 500 . Less : Under. s. 80M Rs. 300 . . Rs. 200 Rs.200 Total Income : . Rs. 14,526 Rounded off : . Rs. 14,530 Allow credit for tax deducted at source on interest Rs.22,543 and on dividend Rs. 136 Assessed Under. s 143(3) as above. . Sd. . (A.K. Chanda) . ITO 'I' Ward, Comp. Dist. II/Calcutta. Tax Calculation . . IT @ 65 per cent on Rs. 14,530 Rs. 9,442 SC @ 5 per cent on Rs. 9,442 Rs. 472 . . Rs. 9,914 . Less : TDS Rs.22,679 . Refundable Rs.12,765 . ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
