TMI Blog1964 (3) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... cases to which the Act will not apply. The relevant portion of that section reads as follows :- The provisions of this Act shall not apply to- (d) any company established with the object of carrying on an industrial undertaking in India ..... Provided that the exemption granted by clause (d) shall apply to any such company as is referred to therein only for a period of five successive assessment years commencing with the assessment year next following the date on which the company is established, which period shall, in the case of a company established before the commencement of this Act, be computed in accordance with this Act from the date of its establishment as if this Act had been in force on and from the date of its est ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. if the date on which the company was established is the date of its registration, the 8th November 1951, then the first assessment year next following that date will be the assessment year 1952-53 and the five assess-that years for which exemption is provided will be 1952-53 to 1956-57, both years inclusive. What the legislature has done is to give a tax holiday to companies entitled to exemption under Section 45(d) of the Act for a period of five successive assessment year next following the date of their registration and that exemption, so far as we can see, has nothing to do with the effectuation or otherwise of the object with which those companies were formed. 7. Section 2(d) of the Wealth-tax Act, 1957, defines the expression ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the corresponding valuation date of every individual, Hindu undivided family, and company at the rate or rates specified in the schedule. An actual liability to pay an amount by way of tax is not what is material. Tax is chargeable for every financial year commencing on and from the 1st April 1957 even though on the application of the charge no financial liability accrues to the assessee. 10.-11. The third and the last contention urged on behalf of the assessee is based on the definition of valuation date occurring in Section 2(q) of the Act that definition is : 'valuation date' in relation to any year for which an assessment is to be made under this Act, means the last day of the previous year as defined in Claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 45(d). All that is necessary Is to find out the date of registration and the financial year next following. In this case the date of registration was the 8th November 1951 and the financial year next following 1952-53. It must follow that the five years in respect of which the exemption is available are 1952-53 to 1956-57, both years inclusive. 12. In the light of what is stated above we must hold that the exemption from tax granted to the assessee under Section 45(d) of the Act for the assessment years 1957-58, 1958-59 and 1959-60 was not rightly granted and answer the question referred against the assessee and in favour of the department. We do so; but in the circumstances of the case without any order as to costs. 13. A copy o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
