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1 - 10 of 16 (0.55 seconds)The Companies Act, 1956
Section 30 in The Income Tax Act, 1961 [Entire Act]
Section 80I in The Income Tax Act, 1961 [Entire Act]
Section 37 in The Income Tax Act, 1961 [Entire Act]
Section 32 in The Income Tax Act, 1961 [Entire Act]
Dalmia Cement (Bharat) Ltd., New Delhi vs Their Workmen And Anr. on 17 March, 1960
The Tribunal in assessment year 1992-93 has recorded a finding that such a step taken by the company was purely for business considerations. In the year under appeal, there are no distinguishing facts. In fact, by providing a facility to the employees in the year 1992-93, the assessee-company was duty bound to provide the same facility to them in the year under appeal. Their Lordships of the Supreme Court in the case of Dalmia Cement (Bharat) Ltd. (supra) have laid down that when there is a continued and uninterrupted practice for providing a privilege to the employees, such practice ripens into a condition of service and that there should not be a departure from such practice without lawful reasons.
Alembic Chemical Works Co., Ltd vs The Workmen on 15 December, 1960
In the case of Alembic Chemical Works Co. Ltd. v. The Workmen , it has been held that the State Government should facilitate the providing of better amenities to the employees and that in construing the provisions of a welfare legislation, Courts should adopt a beneficent rule of construction. In the present case, the assessee has provided benefit to its employees. In deciding the issue whether the action of the company for the benefit of the employees was for business considerations or not, the principle of beneficial rule of construction should be preferred than the interpretation which goes against the welfare of the employees. In my considered view, the action of the company in providing interest-free loans to the employees for acquisition of shares of assessee-company for meeting the guidelines issued by the Ministry of Finance, Department of Economic Affairs was a prudent decision backed by business considerations. Any expenditure laid out or incurred by the assessee for purposes of business is allowable as a deduction in computing the profits and gains of the business. Therefore, assuming for arguments sake that assessee has utilized the borrowed money for providing the same to the employees for the purpose of acquisition of shares, since the amounts have been utilized purely for business considerations, no disallowance is warranted. As pointed out earlier, the view that money has been advanced to the employees purely for business considerations is supported by the view taken by this Bench in assessee's own case for the assessment year 1992-93 and followed in assessment years 1993-94 and 1994-95. Therefore, such a view is bound to be followed unless such a view is established to be perverse or arbitrary.
Section 77 in The Companies Act, 1956 [Entire Act]
Shankar Theatres vs Commissioner Of Income-Tax, Vidarbha ... on 13 January, 1983
The assessee pleaded that these funds had been set off against the loan advanced to the employees. The Assessing Officer took the view that the assessee had utilized its own funds to purchase its own shares/debentures and the names of the employees had been used as a conduit to cover the real facts. It is not the assessee's business to purchase its own shares in its own name or in the names of its employees and, therefore, funds amounting to Rs. 2.76 crores were not utilized for business purposes. Relying on the decisions in 121 ITR 475 (sic), Shankar Theatres v. CIT and CIT v. H.R. Sugar Factory (P.) Ltd. , the Assessing Officer disallowed the proportionate interest of Rs. 49.68 lakhs computed at the rate of 18 per cent out of interest claimed under Section 36(1)(iii).