TMI Blog2002 (7) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... ed - - - - - Dated:- 5-7-2002 - Judge(s) : S. SANKARASUBBAN., K. PADMANABHAN NAIR. JUDGMENT The judgment of the court was delivered by S. SANKARASUBBAN J.-This appeal has been filed by the Commissioner of Income-tax, Cochin, under section 260A of the Income-tax Act, 1961 (here inafter referred to as "the Act"), against the order passed by the Income-tax Appellate Tribunal, Cochin Bench, Cochin, in I.T.A. No. 115/Coch of 1993 dated January 13, 1999. The assessment year in question is 1990-91. The appellant is a private limited company engaged in manufacturing and sale of ortho pedic appliances like compression bandages, fixation bandages, etc. In the return of income filed, the assessee returned an income of Rs. 1,50,730. In the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 (hereafter in this section referred to as the relevant previous year), is less than thirty per cent. of its book profit, the total income of such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to thirty per cent. of such book profit. (1A) Every assessee, being a company, shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act, 1956 (1 of 1956)". Sub-section (1A) of the Act says that every assessee, being a company, shall, for the purpose of this section, prepare its profit and loss account for the relevant previous year in accordance with the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es pay some tax. This does not seem to have helped and is being withdrawn. I now propose to introduce a provision whereby every company will have to pay a 'minimum corporate tax' on the profits declared by it in its own accounts. Under this new provision, a company will pay tax on at least 30 per cent. of its book profits. In other words, a domestic widely held company will pay tax of at least 15 per cent. of its book profit. This measure will yield a revenue gain of approximately Rs. 75 crores". Section 115J of the Act broadly makes applicable to the assertible depreciation at the rates prescribed in Schedule VI. Thus, this provision is incorporated in the Act. Section 355 of the Companies Act cannot be made applicable in such cases. We ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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