Cape brandy syndicate vs inland revenue

By including milk powder in the Third Schedule legislature clearly showed that milk powder is either luxury, or unessential or socially undesirable goods. As Subba Rao, J.

The result was that the assessee was put to a great hardship, inasmuch as he was Cape brandy syndicate vs inland revenue the relief altogether. Nothing is to be read in, nothing is to be implied. So long as the debt is good, the assessee does not incur any loss and, therefore, question of allowing any deduction in respect of a debt which has not become bad, does not arise.

From my reading of the said section the tax, which is called, the share transfer tax, is chargeable on the value of every disposal of shares in a land based company on or after October 19, There is no equity about a Tax. By importing a fiction the legislature has armed the assessing authority to deal with a firm which though it existed at one time has since discontinued its business.

We may mention here that the literal rule of interpretation is not only followed by Judges and lawyers, but it is also followed by the lay man in his ordinary life.

A disposal of a chargeable asset shall be deemed to take place - a where there is an agreement in writing or otherwise for the disposal of the chargeable asset, on the date of such agreement; b where there is no agreement, on the date of delivery of the chargeable asset to the acquirer: Before we proceed to explain the said provision, we intend to remind ourselves of the first or the basic principles of interpretation of a fiscal legislation.

In this case, there is a formal reference to a third judge to ascertain his opinion. A subsidiary question is whether the director known as Kishori Lal Sahni was an employee or held an office in the company and thus falling within the chargeable category of section 5 2 b of the Act.

The imposition of such a liability is in keeping with the general scheme of the Act, the various provisions of which show that the assessment of a dissolved firm is within the clear intendment of the statute. The reasons for that finding by the local committee may not have been explained in the manner the courts hand down decisions.

Consequently, it has to be held that assessee must demonstrate, prima facie, that debt had become bad before it was written off. It deals primarily with gains and profits from business or employment. Any ambiguity will also be interpreted in favour of the subject. The modern concept of an independent board of Securex was tenuous at best in this transaction.

The requirement on the part of the assessee to prove that the debt has really become bad will only annex an obligation which is not spelt out in the so-called clear provisions of the amendment brought out w.

This was done in section 5, which provided as follows: The court held further that unless there was a provision expressly empowering the assessing authority to assess a dissolved firm in respect of its turnover before its dissolution or unless such a power could be gathered by necessary implication from the other provisions of the Act the assessment proceeding against the dissolved firm was not maintainable.

It is not disputed that the legislature is competent to make laws both prospectively and retrospectively. Appeal allowed, Cartwright and Judson JJ. The Minister of National Revenue Respondent.

Whether the three judges sit at the same time or at different times - two at one time and the third hearing the matter later on a difference of opinion - does not make- much difference.

An accretion to capital does not become income merely because the original capital was invested in the hope and expectation that it would rise in value; if it does so rise, its realization does not make it income.

The original purpose of its promoters was to erect a mill for the dehydration of alfalfa, but this was abandoned by August But it came into force on October 19, through a deeming provision.

In that case, the assessee had posted entries in the profit and loss account and had made corresponding entries in the bad debt reserve, account.

When dividend is declared, it is declared from the income, profit and gain of the industrial undertaking itself. The positive tests to which he refers as being derived from the decided cases as indicative of an adventure in the nature of trade are: The fact that the assessee had not taken steps by way of legal proceedings against the debtor would not automatically justify the finding that he was not entitled to write off the amount of bad debt.

The mischief, if any, related to the year in which debt was established to have become bad and also written off as irrecoverable in the accounts for that previous year. It is true that under rules 39 and 39 1A the responsibility for the payment of tax has been provided.Cape Brandy Syndicate v.

Inland Revenue Commissioners, [() 1 KB 64 at p. 71]. Since then there have been several Supreme Court Judgments, which have ruled that in interpreting a taxing statute, equitable considerations are entirely out of place. Commissioner of Income Tax - III Vs.

M/s. Calcutta Knitwears, Ludhiana [Civil Appeal No. of Special Leave Petition (C.) No of ]. 4 Case References Cape Brandy Syndicate v. Inland Revenue Commissioners () 1 KB 64 Commissioner for Inland Revenue v.

Lo & Lo () 1 WLR Cape Brandy Syndicate v. Inland Revenue Commissioner: Excerpt: lord evershed m. r. we have had an opportunity of considering this case since the conclusion of the arguments and having reached a clear conclusion upon it, we have thought that there would be no point in reserving our billsimas.com question raised by the summons is.

Ā«From the CourtsĀ» ACIT, Circle 1 Noida vs M/s Jubilant Enpro P Ltd. Plot NoA Sector 16 A Noida Priyatam Plaschem Pvt. Ltd vs. ITO (ITAT Delhi). Reliance was placed on a decision in the case of Commissioner of Income-Tax vs. Messrs. E.V. Miller () 11 DLR (S.C.).

The Revenue filed reference application under section 66 (i) of the Act formulating the afore-mentioned question of law which was answered in the affirmative by the High Court.

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Cape brandy syndicate vs inland revenue
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