MADURAI DISTRICT CENTRAL CO-OPERATIVE BANK LTD., MADURAI vs THIRD — 1972 PTD 429

Citation: 1972 PTD 429

Court: Madras High Court

Year: 1971

Decision Date: 1971-12-31

Parties: MADURAI DISTRICT CENTRAL CO-OPERATIVE BANK LTD., MADURAI vs THIRD JUDGMENT

Headnotes

Case cited as 1972 PTD 429

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title:MADURAI DISTRICT CENTRAL CO-OPERATIVE BANK LTD., MADURAI vs THIRD JUDGMENT Reported As: 1972 PTD 429 Result: petition is dismissed Judgment JUDGMENT VEERASWAMI, J,------This is a petition to quash an order of the Third Income-tax Officer, Madurai-2. The order related to the assessment year 1903-64. The petitioner, The Madurai District Central Co-operative Bank Limited, was assessed to income-tax and super tax which amounted to Rs. 23,845.47. The tax was computed on a total taxable income of Rs. 51,763, while actually, the income taken for purposes of rate amounted to Rs. 9,48,335. Applying the Finance Act, 1963, the residual income was determiner) at Rs. 5,39,386. There is no dispute that the computation of the residual income was strictly in terms of section 2(8) of the Act. The additional surcharge leviable on the residual income was fixed at Rs. 52,828.60, the total tax payable by the petitioner thus amounting to Rs. 76,674.07. The contention for the petitioner is that the provision relating to the additional surcharge levied on the residual income is not valid, inasmuch as it goes beyond the taxable income computed for purposes of income-tax. The point is also put slightly in a different way, viz., the Finance Act cannot validly subject to additional surcharge an income, which, under the provisions of the Income-tax Act, was exempt and not liable to charge. Section 4 of the Income-tax Act…

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