| Citation(s) |
|---|
| 1981 SLG 1365 1981 SLD 1365 1981 PTD 265 |
Supreme Court of India
Civil Appeals Nos. 2501 to 2504 of 1972, decided in 3rd May,1979. (Appeals from the judgments and orders dated 5thFebruary 1970 and 25th/26-02-1971 of the Bombay High Courtin 1. T. R. Nos. 85 of 1963 and 87 of 1963)
N. L. UNTWALIA AND E. S. VENKATARAMIAH, JJ
V. S. Desai, Senior Advocate (Dinesh Vyas, K. J. John and Shri Narain, Advocate with him for Appellant. Hardyal Hardy, Senior Advocate (Champat Rai B. B. Tawekley and Miss A. Subhashini, Advocates with him)
Civil Appeals Nos. 2501 to 2504 of 1972, decided in 3rd May,1979. (Appeals from the judgments and orders dated 5thFebruary 1970 and 25th/26-02-1971 of the Bombay High Courtin 1. T. R. Nos. 85 of 1963 and 87 of 1963)
N. L. UNTWALIA AND E. S. VENKATARAMIAH, JJ
V. S. Desai, Senior Advocate (Dinesh Vyas, K. J. John and Shri Narain, Advocate with him for Appellant. Hardyal Hardy, Senior Advocate (Champat Rai B. B. Tawekley and Miss A. Subhashini, Advocates with him)
SASSOON J. DAVID & CO. P. LTDVsCOMMISSIONER OF INCOME TAX, BOMBAY
Law: Income Tax Act, 1922
Section: 10(2)(xv),66(1),66(2),10,137(a)
Law: Income Tax Act, 1961
Section: 37
Income-tax Act (XI of 1922)-- -- S. 10 (2) (xv)-Business expenditure-Appellant. Company neither dissolved nor its business undertaking sold by transfer of its shares to another and continuing to exist as a business entity even after such transfer-Transferees although gaining control of Company yet neither transferor nor transferees deriving any direct benefit out of payment of retrenchment compensation to employees-Payment also not alleged by Department to be excessive nor substantial reduction in wage bill in future years as a consequence of retrenchment disputed-Too late, held, to treat expenditure incurred by Management in paying reasonable sums by way of gratuity, bonus, retrenchment compensation for termination of service as not business expenditure-[Sassoon J. David & Co. P. Ltd. v. C. I. T. (1972) 85 I T R 83 and Sassoon J David & Co. P. Ltd. v. C.I. T. (1975) 98 I T R 50 partly reversed]. C. I. T. v. Chandulal Keshaval & Co. (1960) 38 I T R 601 (S C) and I. R. C. v. Pairic Thomson Ltd. (In Liquidation) (1956) 37 T C 145 rel. C. I. T. v. Laxmi Cement Distributors P. Ltd. (1976) 104 I T R 711 (Guj.) C. I. T. v. Fairdeal Corporation P. Ltd. (1977) 108 I T R 280 (Bom.) and C.I. T. v. PatetCotton Co. P. Ltd. (1977) 108 I T R 846 (Bum.) approved. Gordon Woodroffe Leather Mfg. Co. v. C. I.-T. (1962) 44 I T R 551 (S C) discussed. Sassoon J. David & Co. P. Ltd. v. C. I.-T. (1972) 85 1 T R 83 and Sassoon J. David & Co. P. Ltd. v. C. I.-T. (1975) 98 I T R 50 partly reversed. Eastern Investments Ltd. v. C. I. T. (1951) 20 I T R I (S C) and Usher's Wiltshire Brewery Ltd. v. Bruce (1914) 6 T C 399 (H L) ref. JUDGMENT VENKATARAMIAH, J.---Since these appeals by certificate involve a common question of law, we find it convenient to dispose them of by this common judgment. Civil Appeal No. 2501 of 1972 is filed against the judgment of the High Court of Bombay in Income-tax Reference No. 58 of 1963 and Civil Appeals Nos. 2502-2504 of 1972 are filed against the judgment of that High Court in Income-tax Reference No. 87 of 1965. The assessee, Messrs Sassoon J. David & Co. (Pvt). Ltd. (hereinafter referred to as "the Company"), is the appellant in all these cases and the…
Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492