TMI Blog1997 (3) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... fect from April 1, 1978. The entire asset was taken over by the domestic company, Malayalam Plantations (India) Ltd. For the assessment year 1979-80, by order dated August 25, 1984, the Inspecting Assistant Commissioner (Special), Trichur, completed the assessment in respect of Harrisons Malayalam Ltd., fixing a total agricultural income of Rs. 2,73,52,670. Thereafter, the Inspecting Assistant Commissioner, Ernakulam, in exercise of his powers under section 36 of the Act, revised the assessment and fixed the net income at Rs. 2,75,58,360. Notice was then issued by the Commissioner of Agrl. Income-tax under section 34 of the Kerala Agricultural Income-tax Act, 1950, proposing to revise the assessment by adding back the inadmissible deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, is not finding of the Commissioner that the bonus payment constitutes capital expenditure forming part of consideration for acquiring the assets by the assessee arbitrary and without any material or basis. 3. Whether, on the facts and in the circumstances of the case, was the Commissioner right in holding that the sales tax arrears of 1967-68 to 1972-73 paid by the assessee during the relevant accounting year is not allowable because the same is capital expenditure constituting consideration for acquisition of assets by the assessee? 4. Whether, on the facts and circumstances of the case, was the Commissioner right in holding that the estate valuation fee amounting to Rs. 16,390 was wrongly allowed in the original assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deemed to have carried on its business for and on behalf of the Indian company and, accordingly, the profits and losses of the transferor company for the period commencing from the transfer date shall belong to the Indian company and shall be available to the Indian company for disposition in any manner including the declaration of any dividend by the Indian company after the transfer date." Since employees of the transferor company are to continue in service without any interruption in their service and on terms no less favourable than what they were enjoying, bonus could not have been denied to them. It is also pointed out that since the profits made by the foreign company with effect from the date of transfer is to be treated as the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for and on behalf of the Indian company. Clause (7) refers to the continuity of service of the employees of the transferor company on the same terms. The bonus for the financial year 1977-78 was paid by the transferor company in 1978-79 which is the accounting period relevant for the assessment proceedings in this case. There is no case for the Revenue that such amount was not paid by the transferor company. When such amount is paid towards bonus due to the employees, such payment also shall be taken into consideration for the purpose of computing profits and losses of the transferor company for the period commencing from the transfer date. Going by the provisions contained under clause (8), it is only the profits and losses of the transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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