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1 - 5 of 5 (0.55 seconds)Travancore Titanium Products Ltd vs Commissioner Of Income-Tax, Kerala on 17 January, 1966
5. Mr. D.S. Patwalia, learned counsel for the Revenue, pointed that the decision of the Kerala High Court in Travancore Titanium Products Ltd.'s case (supra) had been rendered in the context of Companies (Profits) Surtax Act, 1964, and was of no help to the assessee. He further pointed that although the High Court has held that the amount received towards allotment of shares cannot be treated as borrowed capital, but at the same time it has also been held that it cannot be considered as a paid-up capital of the company.
The Companies (Profits) Surtax Act, 1964
The Companies Act, 1956
The Commissioner Of Income-Tax vs M/S.Henkel Spic India Ltd on 16 December, 2003
6. We have gone through the judgment of the Madras High Court in Henkel Spic India Ltd.'s case (supra) and are of the view that the same is not applicable. In that case, the company had received application money between 29th Jan., 1992 and 3rd Feb., 1992. However, permission for issue of shares was granted from March to July, 1992. The AO held that the amount of interest on the application money which had accrued prior to 31st March, 1992 (the close of the financial year relevant to assessment year), was liable to be taxed under the head "Income from other sources," in asst. yr. 1992-93. The assessee, on the other hand, claimed that the said interest had accrued in the subsequent year when the allotment process had been completed in all respects. It was only then that the application money kept in the separate bank account was capable of being regarded as belonging to the assessee. Thus, the issue involved in the said case was totally different.
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