The Commissioner Of Income Tax vs Jai Bharath Mills Pvt Ltd on 23 October, 2010

[Cites 1, Cited by 3]

Karnataka High Court

The Commissioner Of Income Tax vs Jai Bharath Mills Pvt Ltd on 23 October, 2010

Bench: Manjula Chellur, K.Govindarajulu

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of ii:1:_~'- E-km. are 21%:-2*\,rz.1:'21 1.-I} :z1'1d<:.=rst.z.1m;1 zmci » {:iz:j{':idr;? 'th.é'ciQzii.1*<>vc*1':~sj; 2:: the ab<.3\~'t'. ::s2.:i{:1 2'1pp€:z1}s. #9,, 'By reading fS('.(L"fi()I1S 4 anci {:3 W e::}1ar;..§ing Se(.'.%'.§()z.1 zmr'i "_<i.7~:§r1_1'.is-;i.<};} s(:c1'1'(m w oi' {he z'u':'t', (3112:: §":z".1.<s 10 .'5f?."i("11}«' L"'<'a11s.~;;i.1"2.z<:

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12. A€T(30FdiI1§§ 10 tht? iea1r.z1ec.i (é<31111se1 'i§21'*' 1111::

;'esp01'1cier1t+21sscsst=0, 111 v1c.=w :11 1.11:: facti f..I"i2%.§:v""§'s«'§£i§:'.";2'?' ' f"i1'1E11'EC(f Apex Cc1s"p(11";1111011 CE'1.2.-1.1'gcd Mix _1:111"'=.Lh1;:. 'i2'j1t,c1"<lr's';éV' received by {he send C01'p0r211;'=;0:1 _;521£d"«_E33?'1:.§'1€. p19é:§;;->111 1'<3:~3po11der1t;~a.ssessc*e it w0111I.d 1'11{1i(4;3tcfI,h£1t'. §j:l13:;t.A1'é>sp<>1*1di%:'119%1 assessee is r1e1'i,.her 21. (.'I"{Tdi[ ir1'E;'1:1'C1z1é11.()n Vr1:1__r°aT .Eb211'1_(:c11'111pz1.11.};. '1'."11e1"<:~fo1"e, when 011:rf§g=:..', it fis '1<..r(11'. 'e3,_& c1"editi 1'r1s1'i£"1.1E§r')11, au1.0111at1'ca11y it will 1101 a£ i,1'i.11Ci _.--,t.'1V1c_ j~.d€%i"i.niEio1'1 of 1115.211 (tompa11y arad. 1t';t:11{?--c'=. 1.154' f'i:1'.<'.+.'I.f o1'ci€é.'1'.1j:--£i}1éa55essi12g 211.1{.1'1.o1'11 y <~cmﬁ1?me¢1 by 135- r;f;*11;{.1'11;.g_1'* 'by "113 c1z"de1' dam 29.3.2006 12213 to be gror1.f1'1f:rf'1e_d, _ 'V V1113. }{eV"11117'1.1";.c:r Ejrought to 01.11" noiicge cer1,ai11 i'2'ac'£'s to ;51.;bs%;1:r1i.:1aLé~..E'1is 5-3t2:m(.§ why the I'E?F5p()I'1d("3I1'L.-£1.85-£?SSt"3(? is 11111 " .11é'1Z:Ie {<1 };1.;31_y'~1;é1§< 011 11111 1'mc1°c-351' itildttl' '£116 1-'X131. 1'.c.=.., €111? 1'11:11'1'1 b1;£?_~:iI'1€=SS é~1{§1'.1"v'it},r c)I'1I1c 1"esp0mt§(?11t--ass;css<3:e: was 1101'. lI3O1']E'}7 1.1e1:1;:1;:-xg; The Ma21§11.;.;11.'a<s1.1?2'.1 F1*1'12'1:'1(*:=% £\}i)€_'>{ (i(3'1'p1'>r2.z1_15.111 3221' "'._s-$11111' [.<3.(:}'11'1ic':aI re;-1.51111 was: 1201 c:':";¥'i'11lr:;'d to }€1'1<::i 1'1'1111'1cy to _ 1:1-~:-:1 either Cz3r}<>1'1 I,-i1niéc;::{i 0;" Elajltmfzz-1} I--ioéeh i.h:é1'e1"(3r<;éE :':1(3:'1<3y= was :'0L1'[:<:ci {.1'1I"(.)1.I;,'§1'1 the I"(?S:3].)(}§'}dC'§'i'§.-~£1SS€'SStfC to the :~ia£s<':'<%:r"

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FE132.1:'1C:€: A}.)ex C<>':'1iJc:mi_'ic):";. "I.'lT1c*1'<:f.'<3re¢ it ";§'__('>i.1i§i ':':£_TIVm211:'"{:.'-«* Q ' e:.ioL1ble t.a2<;2:1i0I1 Vi,-'hiCT1'} not p(?I'i.1'IiSS'i'b}i? in 1-:'«3.w. '--}j-Ié;jvi'i'<17'€: ﬁe requc%st,€:d for cfismissz;-:1 01' the Ap;;>eé::l.

14. Secticm 2(5A} of the Ad' =€'_! €f,i 13638 (iiecﬁi,'i:r1:s1vi5E.L1t.§z'>:'1 and ctlassiﬁes 4 types of (:1"¥;r€I'ii". in-.§tit.;1.1:'z.i'ot_1s,viii; L1.£}.dC3'Z (5/X} "Credit: 1'11s1'nL2t,i'ct}"' u {I} 5':1'}_Ej:=:1'11{3i_.rT1.g ""C}Ofi"z})€1'%'t:V~....I.5 which the-* AVV £§3~{£_R'i']1g'a, %€gLE.3E1i,iC)I'] Act, }949 {ID of (i11(.tEm':1iI1g any bank 0;' Vbiilﬂiiliéi Ci1':..:§jii'1,L.:i:.io1T1 1.x:§.'erre.d L0 in sc<:I.ion 9;' 2.11:3. ACE] pub}.i<:r finaxicia} ir1stEEuI':ior1 as defirmcii 'V . sec>1'E«:.>11 4%; of the C(}§1}}.'}£1I"§§€'.§'a' Ad. 1955 ':={: of lE35%:%}:

2:. St..=.21t'.<3 E*"im'1:1('ti21.1 C()1"§."}OI"£1ii()I1 «V @st,ab§ishg~.c.§ urxcier 55t°%Cf1i()IT1 3 or section BA

6)!" 2111 i.E.if:%i§{.1l'£i()I1 m">11'fE<:c1 z,:1'1<Ett;' 5-s<*:1t'i(>:':

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Act, 1951{63 sf E9533): and \kW 'mkfx {iv} may <>§.E':m" ﬁrzzaticéiaxi c:{.>1'1'1'pz,a.1'1}.:":

(2') is {:i.§.:'} ;-"aw ram 2:;§§.:>E.§<*:.:%:3§a% 1:2 %';'.h:;>. 3%-.=:;-;g.i3"

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4' {(1)} E§:.1i;3}e(.:£, 10 thcs p1'c'>\»'isi.(>;::-2 of 1,E'1i:'.~: Am, i.};1e1."c:* shah be aflargeci {>11 evr31'j,,:-' s£:hed.1.11.¢.c:}.._ bzmkz for evc::"j;,»* assessme:1t', }»*§=a1* <:c)n11nr::r1(:i1T1g":)Vt":~.._ '~ or 2'1f'i'£?:' the {.121}? 0fAp1'iL 29725, a t.£1><;_}"§'i.1"f;§1_i:'& : " :_. AC1. zwsferrecﬁ M; as i:*;i.ere;~s1.~L.;-xx in re$§1s{3'Lt..:'x p§fi'§$s cha1*g€:23.b1€: i2'71£.«:?:'e$£ of thc vp'1'&";\;A'-i<.3'u..1.:':3~'_y€:14r'a.%" f.1'§L;*._f_ rage of sews; percrc-rnit. :§.{ s:;'a;1.x;:}"1. iii';z1aﬁe:1bE:{=~--._ ini'.<31'es1:

{P£"0vic1cd that E}/}'e:vL.L>;V:E'T1~%Lf.c% 21$'. \.?s'hic:*?1 tax shall be <_:harged. _ ir_1'«.respeéi~.._of_x3an};

chargeable i1'2i(ér<r_:§i'L _ac"__L?1'Lgi1".1,§I_I_{" "€J I'v.'E.ii'§SiI1§__§ aﬁcr Kim: 31" day of 1\/IamrI1.;' V1993 :s1'1::-?s.i1.'E3§:v 1'1%;1'ee amd 2.: half p¢r«?é:¢n--3_ of §j;:LECh:i1:'1{c;ft3S1..] """ AV{V{i2)Ni3f%;.¢vii'hsi.ar1difig"a'f1y't:hi;r1g cmztained E3: 'I,s::bwsveCi11i€jp_VA {i_1)"-__bL:i' 'su1q§ec1. to til/1<-2 0't.hvr ;«)r.0visio1"is (>"f' i {here shzzii be ('*11ar;;::c1 on V_Vcre.d.i--1 i'ns1'E%,L11'.iQn for every assessmem.

13763? com;m.r:;:1«a.':vi1'1g on and from the 18* day of _ Ap1ii 1;'--..V1992._ §12i'e:'e:rst~1;21x in respect of has iI1T.a'?1"<*S%. of '{.I1t'* p1"evi0us _}}c,z1r 2.1%. t;?';e;': t.I;"12'c:L*; p€}."{'€1]T. of such c:ha1*ggez1b§{% i:11 e r£:st.:} . [P1'c)vir:§mc'§ 1'h2.1II {he 1*a1,(;* at whid: =1I1§=L.?1'€55?U Lax siézaii be vfr1211'g.geci in 2'£*sp<;=.::'1.. 01' £1E'i}=' ::ha1*g<--:a.b1.c i1'11(-:1°e:;s*1'; z1ccru;i1'1g 01' arisirlg after the 31*-T5' (12223: of ?.\/§;1;";'§":._ IQEZ4'? s.ei'1;1.i.§ be t'wc> ;'>e:'(:%«:%;2'£. oi ssuch <;?h.argea?:)1e 1'.1'1f.eres'L}"

Eﬁectien 5 0? the A<:t'{ r<:*2it:i$ .2-1&3 Lmder:

[Scope of chargeable interest.

5. "'Subje<.:i {.0 the pE'()ViSi(i)f'1S the ehargeabie i11't'.eresi. 511' 211%.}? p1'e.vio_1..:..<=: 2.:

Credii ir1sE.i'Luii.()1"2 shail be'Ji.'}Aive"E.(}{,zi.i' z1z,'n»:3Tjif'11i inieresi [£)1'E'1<-31" 81:11"; i:1'11e i*<_*:¢s17._A_Aiii? :I'C;2:_1 1'1:--:a advallces zzmcicr E0 0t}'ier'4--.c§reciii.'~i.11e1.iu.1teief1e '{v€);f}a.:f any c0--ope1'ative society .r;§f1g;{:1ggecIV "in '&c'i:;1.§'i'yif'1:g on the business of1}g1r11i§32'g§.'A§§(:rrf't:.i;1g 01" a'11"iSi'§ég tn: the Credit i1'e1ssiii5§':--i=i"()31 in 1.11:; 1' yeah} Pr0yide(:I U32] :1113?._ °1'e1a£1'()n 1:;

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Karnataka High Court

The Commissioner Of Income Tax vs Jai Bharath Mills Pvt Ltd on 23 October, 2010

Bench: Manjula Chellur, K.Govindarajulu