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Initializing Secure Chambers
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Initializing Secure Chambers
Citation: 1971 PTD 815
Court: Bombay High Court
Year: 1968
Decision Date: 1968-01-29
Parties: BANK OF INDIA LTD. vs COMMISSIONER OF INCOME-TAX, BOMBAY CITY II
Case cited as 1971 PTD 815
Court Name: Bombay High Court Judge(s): Abhyankar, Vimadalal Title: BANK OF INDIA LTD. vs COMMISSIONER OF INCOME-TAX, BOMBAY CITY II Case No.: Income-tax Reference No. 89 of 1962 Date of Judgment:1968-01-29 Reported As: 1971 PTD 815 Result: N/A JUDGMENT JUDGMENT VIMADALAL, J.---This is an income-tax reference under sec--petition 66 of the Indian Income-tax Act, 1922, at the instance of the applicant-bank, which raises an interesting question- with regard to the construction of Explanation (i) to Paragraph D of Part II of the First Schedule to the Finance Acts of 1956, 1957 and 1958. The reference relates to the income-tax assessments of the applicant- bank for the assessm ent years 1956-57, 1957-58 and 1958-59, the corresponding previous years being the English calendar years commencing on 1st January 1955, 1st January 1956 and 1st January 1957. The applicant-bank had received as premium on issue of shares in the years prior to the year 1955, an aggregate sum of Rs. 2 crores which stood credited as part of an account called "reserve fund and other reserves account". In the year 1956, a sum of Rs. 50 lakhs was transferred from the said amount of Rs. 2 crores to the bonus shares' account, as the applicant-bank had issued bonus shares in that year. Under the Finance Act, 1956, super tax was levied at the rate of 6 annas and 9 pies in the rupee of the total income of every company. The said Act, however, gave a rebate in respect of super tax to those companies which declared…
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