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1 - 10 of 18 (0.32 seconds)Section 80I in The Income Tax Act, 1961 [Entire Act]
Section 80J in The Income Tax Act, 1961 [Entire Act]
The Income Tax Act, 1961
Cambay Electric Supply Industrial Co. ... vs The Commissioner Of Income Tax, ... on 11 April, 1978
19. The requirement of section 80E of the Act are : (i) determination of the profits attributable to the priority industry, (ii) a sum calculated at eight per cent, from such profits is liable to be deducted in arriving at the total income of the assessee. The deduction is not calculated at eight per cent. of the income, but it is calculated at eight per cent. of the profits and gains of the business. According to the assessee, eight per cent. deduction should be given on profits earned by the new industrial undertaking before deducting the amounts paid by way of bonus and commission to its directors. The section had to be so constructed as to effectuate the object of the Legislature. The manner in which the benefits are contemplated under section 80E of the Act is clearly chalked out in the decision of the Supreme Court in the case of Cambay Electric Supply Industrial Co. Ltd. v. CIT [1978] 113 ITR 84.
Distributors (Baroda) Pvt. Ltd vs Union Of India And Two Ors on 1 July, 1985
This decision was relied on by the Supreme Court in the subsequent decision rendered in the case of Distributors (Baroda) P. Ltd. v. Union of India [1985] 155 ITR 120.
Commissioner Of Income-Tax, Mysore vs Balanoor Tea And Rubber Co. Ltd. on 31 May, 1972
"Reference was also made by counsel for the assessee to the decisions of the Mysore High Court in the case of CIT v. Balanoor Tea and Rubber Co. Ltd. [1974] 93 ITR 115. In our view that decision has nothing whatever to do with the question posed before us. In that case the question was whether the loss incurred by an assessee in non-priority business could be set off against the profits and gains made by the assessee in the priority business while computing the eight per cent. deduction under section 80E and the High Court upheld the Tribunal's view that, for the purpose of allowing a deduction under section 80E, the words 'such profits' occurring in that section mean 'the profits and gains attributable to an activity as specified in the Fifth Schedule of the Act' and, therefore, the deduction was required to be worked out without reference to the loss incurred in non-priority business. The decision was rendered on the language of section 80E(1), but it cannot avail the assessee on the point raised in the appeal."
C.I.T. (Central), Madras vs Canara Workshops (P) Ltd., Kodialball, ... on 15 July, 1986
The above two decisions were referred to in the subsequent decision of the Supreme Court in the case of CIT v. Canara Workshops P. Ltd. [1986] 161 ITR 320. In the above-said three decisions of the Supreme Court, it was clearly held that the benefit under section 80E is exigible on the net profits of the new industrial undertaking and not on the gross profit. That is in the present case the benefit under section 80E of the Act is available only after deduction of bonus and commission payable to the director. The reasons given by the Tribunal in order to support its view are totally outside the purview of what is stated in section 80E of the Act. Since the reasons given by the Tribunal are extraneous to the provisions contained in section 80E of the Act, we are unable to agree with the conclusion arrived at by the Tribunal that the benefits under section 80E of the Act would be available on the profit of the new industrial undertaking before deduction of the bonus and commission payments made to its directors. Accordingly, we answer the questions referred to us for the assessment years 1967-68 and 1968-69 in the negative and in favour of the Revenue. The question referred to us for the assessment year 1969-70 does not arise out of the order of the Tribunal. Therefore, we are not answering the same. No costs. Counsel's fee is fixed at Rs. 1,000.
Section 256 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax vs India Radiators Ltd. on 7 January, 1976
10. After the enactment of the Payment of Bonus Act, 1965, bonus paid to an employee is part of his salary or wages. Payment of bonus is no longer considered as a share of profits or gift or bounty given by an employer at his sweet will and pleasure. The employee by reason of his contribution or participation in the business of the employer is considered to be entitled to payment of the same though the exact amount payable depends on various circumstances. (See CIT v. Indian Radiators Ltd. ).