Law:

Section:

JUDGMENT Banerjee, J.-These references, under section 27(1) of the Wealth-tax Act, have been made in circumstances hereinafter related. The assessee is a sterling company, incorporated under the English Companies Act, and has its registered office in London. Admittedly, the assessee is not resident in India, within the meaning of Explanation 2 to section 6 of the Wealth-tax Act. It is well-known that the assessee is the owner of an undertaking running tramways, in Calcutta and its suburbs, for public transportation. The Government of West Bengal became desirous of acquiring the undertaking of the assessee and pursuant thereto entered into an agreement with the assessee, on September 30, 1951, under which the assessee was allowed to carry on the undertaking till January 1, 1972, (described as the "purchase date"), subject, inter alia, to the following conditions: "2. (1) The company shall continue to carry on the undertaking until the purchase date in accordance with this agreement and any statutory powers granted or to be granted to or empowering the company in that behalf. (2) Except as otherwise specifically provided in this agreement nothing herein shall be deemed to restrict the financial and administrative powers of the company or to restrict the right of the company to carry on its undertaking until the purchase date in the ordinary course of business. (3) The company shall exercise due care and economy in the management and administration of the undertaking and shall take all such steps as shall be reasonably practicable to work the undertaking to the best advantage of the parties to this agreement. . . . 4. (1) The company shall apply its revenues in the manner following, that is to say : (a)firstly, paying all expenses of managing, maintaining and working the undertaking, including debenture interest; (b)secondly, paying all Indian and United Kingdom taxes payable by the company; (c)thirdly, setting aside in each accounting year in a renewals and replacements reserve account the sum of eighty thousand pounds sterling or such greater sum as the directors of the company for the time being may in consultation with the Government consider necessary in 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