Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Income-tax Versus Brihan Maharashtra Sugar Syndicate Ltd.

IT REFERENCE NO.567 OF 1976 - Dated:- 4-10-1989 - S. J. BHARUCHA AND T.D. SUGLA., JJ.. JUDGMENT Sugla J. Two questions of law in this reference at the instance of the department are- '1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing as a deduction the payment of bonus made to the agricultural staff and workers in the computation of the total income of the assessee-company for the assessment years 1962-63 to 1966-67? 2. Whether, on the fact .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2. The assessee-company owns a sugar mill. It also owns sugar farms and grows sugarcane. Its business is that of manufacture of sugar involving activities which are partly agricultural and partly non-agricultural. The proceedings relate to assessment years 1962-63 to 1966-67 (both inclusive). The assessee, inter alia, claimed deduction in respect of bonus, amount of provident fund contribution and gratuity paid to agricultural staff and workmen. It also claimed deduction in respect of gratuity .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. The AAC confirmed the disallowances made by the ITO before the Tribunal, the assessee relied on this Court's decisions in CIT v. Maharashtra sugar Mills Ltd. [1968] 68 ITR 512 , Walchandnagar Industries Ltd. v. CIT [1970] 76 ITR 478 , and the Madhya Pradesh High Court decision in CIT v. Bhopal Sugar Industries Ltd. [1970] 78 ITR 209 , and stated that it had to pay bonus, provident fund and gratuity to the agricultural staff and workmen not in the capacity of an agriculturist but in its cap .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arcane in the hands of the assessee was taken to be the cost of growing sugarcane as well as all other expenses incurred in connection therewith. Income arising from such an activity was treated as agricultural income and was liable to agricultural income-tax. A part of that expenditure could not also be allowed as deduction while computing the assessee-company's business income. As regards the decisions relied upon by the Tribunal, Shri Jetley stated that the expenses involved in those case .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tated that the agricultural staff and workmen were not entitled to bonus as such. In this case they were entitled to bonus only because the assessee was not merely an agriculturist but was also an industrialist. In support of the proposition, Shri Inamdar reiterated his reliance on the Supreme Court decision in the case of Harinagar Cane Farm v. State of Bihar [1963] I ILJ 692, and the Madras High Court decision in Thiru Arooram Sugars Ltd. v. Industrial Tribunal [1970] II ILJ 249. He argued tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ill which owns a farm and cultivates sugarcane is an industry and is, therefore, liable to pay bonus to its agricultural staff. The Tribunal has, on that basis, given a finding in paragraph 4 of its order to the effect, viz., that the assessee-company constitutes an industry, for that reason the workers were entitled to bonus, and as such the claim of the assessee to deduct amounts paid as bonus even to the agricultural staff and workmen was an allowable expenditure. Accordingly, we are in agree .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tuity paid to the agricultural staff. No decision has been brought to our notice where it has been held that these payments were also made by the assessee-company in the capacity of owner of industry and not as owner of agricultural farm. It is true that the Tribunal has followed the Madhya Pradesh High Court decision in the case of Bhopal Sugar Industries Ltd. (supra) in which there are observations which suggest that expenses of this type could also be allowed as deduction against business inc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Notification: Absolute Exemption from IGST on inter-State supplies of goods

Notification: CGST Rate Schedule u/s 9(1) - notifying rates of CGST @ 2.5%, 6%, 9%, 14%, 1.5% and 0.125% on Supply of Goods

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Forum: REGISTRETION

Forum: On what Value tax to be deducted at source (TDS)

Highlight: IGST Rate Schedule u/s 5(1) - notifying rates of IGST @ 5%, 12%, 18%, 28%, 3% and 0.25% on supply of goods. - Notification no. 1/2017 as amended vide notification dated 22-9-2017

Notification: IGST Rate Schedule u/s 5(1) - notifying rates of IGST @ 5%, 12%, 18%, 28%, 3% and 0.25% on supply of goods.

Highlight: National Advisory Committee on Accounting Standards - Tenure of the NACAS extended from one year to two years

Notification: National Advisory Committee on Accounting Standards

Forum: Duty Drawback- Urgent

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force - "subsidiary company" or "subsidiary"

Highlight: Restriction on number of layers for certain classes of holding companies - More than two layers of subsidiaries not allowed subject to certain exceptions.

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version