| Citation(s) |
|---|
| 2000 SLG 198 2000 SLD 198 2000 PTD 427 (1998) 232 ITR 608 |
Madras High Court
T. C. Nos.317 and 318 of 1983 (References Nos.147 and 148 of 1983), decision dated: 10-04-1996.
K. A. THANIKKACHALAM AND N. V. BALASUBRAMANIAN, JJ
C.V. Rajan for the Commissioner. P.P.S. Janarthana Raja for the Assessee.
T. C. Nos.317 and 318 of 1983 (References Nos.147 and 148 of 1983), decision dated: 10-04-1996.
K. A. THANIKKACHALAM AND N. V. BALASUBRAMANIAN, JJ
C.V. Rajan for the Commissioner. P.P.S. Janarthana Raja for the Assessee.
COMMISSIONER OF IncomE tax
VS
AMALGAMATIONS LIMITED
Law: Income Tax Act, 1961
Section: 91
(a) Income-tax-----Business---Loss---Investment---Organised course of activity in holding investments amounted to business---Interest income and guarantee commission assessable as business income ---Assessee entitled to set off and carry forward loss---Indian Income Tax Act, 1961. (b) Income-tax--- ---Business expenditure---Estate. duty ---Interest on fixed deposit for paying estate duty----Deductible---Indian Income Tax Act, 1961. (c) Income-tax--- ----Total income---Inclusions---Income front property ---Includible in total income of assessee. (d) Income-tax--- ----Dividend--Grossing up---Foreign dividend---Foreign dividend to be grossed up for income-tax purposes---Indian Income Tax Act, 1961. Held (i) that the assessee-company had a systematic or organised course of activity in the matter of holding of investments; and hence there was a business activity in the matter of holding of investments. CIT v. Amalgamations (P.) Ltd. (1977) 108 ITR 895 (Mad.) fol. (ii) that the income from property No. 24, Edward Elliots Road, Madras, should be computed for inclusion in the assessees total income. CIT v. Amalgamations (P.) Ltd. (1977) 108 ITR 895 (Mad.) and CIT v. Amalgamations Ltd. (1995) 214 ITR 399 (Mad.) fol. (iii) that the assessee-company was making an investment and looking for the dividend and hence there Was a business activity in the matter of holding of investments. Therefore, the interest receivable on such investments should also be assessable under the head "Business income". CIT v. Amalgamations (P.) Ltd. (1977) 108 ITR 895 (Mad.) fol. (iv) that the interest amount being the interest on the money taken from the fixed deposits for paying estate duty, it should be allowed as deduction. CIT v. Amalgamations (P.) Ltd. (1995) 214 ITR 399 (Mad.) fol. (v) that the assessee was entitled to set off of carry forward losses of the earlier years against the income of the assessment year 1978-79. CIT v. Amalgamations Ltd. (1995) 214 ITR 399 (Mad.) fol. (vi) that in respect of foreign dividend having regard to the provision under section 91 of the Income Tax Act, 1961, providing for double income- tax relief, the gross dividend alone should be regarded as having…
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