2000 PLP 2796 (PTD)
COMMISSIONER OF INCOME-TAX Versus AMALGAMATIONS LTD.
| Citation | 2000 PLP 2796 (PTD) |
| Forum / Court | 236 I T R 430 |
| Bench Members | N/A |
| Parties | COMMISSIONER OF INCOME-TAX Versus AMALGAMATIONS LTD. |
| Primary Law | (b) Income-tax, (a) Income-tax |
Q1: What are the key laws and sections cited in 2000 PLP 2796 (PTD)?
This judgment primarily cites: (b) Income-tax, (a) Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2000 PLP 2796 (PTD)?
The case was heard and decided by the 236 I T R 430 bench comprising: N/A.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2000 PLP 2796 (PTD) (COMMISSIONER OF INCOME-TAX Versus AMALGAMATIONS LTD.). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Guarantee commission assessable as business income
Expenditure incurred on legal expenses, urban land tax, property tax, interest, loss and depreciation
Deductible-- Indian Income Tax Act, 1961, Ss.28, 32 &
37. Held, that, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the guarantee commission should be assessed to tax as business income and the expenses incurred on items of depreciation, legal expenses, payment of urban land tax, property tax, interest and loss under section 32, constitute deduction under section 37(1) of the Income Tax Act, 1961. CIT v. Amalgamations (P.) Ltd. (1977) 108 ITR 895 (Mad.) fol.
Dividend received from foreign country
Indian Income Tax Act, 1961. In the case of dividend received from foreign country the gross dividend income was assessable. A.F.W. Low v. CIT (1995) 211 ITR 213 (Mad.) fol. C. V. Rajan for the Commissioner.
Judgment & Decree
N. V. BALASUBRAMANIAN, J.
At the instance of the Revenue, the Appellate Tribunal has stated a case and referred the following questions of law under section 256(1) of the Income Tax Act, 1961, for the opinion of this Court for the assessment year 1979-80: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the guarantee commission should be assessed to tax as business income and the expenses incurred on items of depreciation, legal expenses, payment of urban land tax, property tax, interest and loss under section 32, constitute deduction under section 37(1) of the Income-tax Act? (2) Whether the Tribunal was right in holding that only the net dividend income after deduction of tax deducted at source from abroad, should be brought to tax and not the gross dividend?" Mr. P. P. S. Janarthana Raja, learned counsel for the assessee, has undertaken to file Vakalat on February 26, 1977, and at the time of hearing he has stated that he will file Vakalat within a period of one week. Recording the said undertaking, learned counsel for the assessee is directed to file vakalat within one week. In so far as the first question is concerned, Mr. C. V. Rajan, learned counsel for the Revenue, has fairly stated that the issue raised in this question is covered against the Revenue by the decision of this Court in the assessee's own case in CIT v. Amalgamations (P.) Ltd. (1977) 108 ITR 895, wherein this Court has held that the guarantee commission and the miscellaneous income received should be assessed under the head "Business". Following the decision of this Court rendered in the-assessee's own case, we answer the first question referred to us in the affirmative and against the Revenue. In so far as the second question is concerned, the point that arises is whether the gross dividend income should be brought to tax or the net dividend after deduction of tax deducted at source from abroad should be brought to tax. This Court in A. F. W. Low v. CIT (1995) 211 ITR 213, has held that only the gross dividend income that should be brought to tax. Mr. P.P.S. Janarthana Raja, fairly concedes that the above decision would fully apply to the facts of the present case, Hence, the view of the Appellate Tribunal that the net dividend should be brought to tax is not sustainable in law. Following the decision in A. F. W. Low v. CIT (1995) 211 ITR 213 (Mad), we answer the second question in the negative and in favour of the Revenue. There will be no order as to costs. M. B. A. /4136/FC Order accordingly.