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Initializing Secure Chambers
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Initializing Secure Chambers
Citation: 1971 PTD 535
Court: Bombay High Court
Year: 1970
Decision Date: 1970-12-31
Parties: SINDHU HOCHTIEF (INDIA) LTD. vs COMMISSIONER OF WEALTH TAX, BOMBAY JUDGMENT
Case cited as 1971 PTD 535
Court Name: Bombay High Court Judge(s): V. S. Desai, S. P. Kotwal Title:SINDHU HOCHTIEF (INDIA) LTD. vs COMMISSIONER OF WEALTH TAX, BOMBAY JUDGMENT Reported As: 1971 PTD 535 Result: accordingly answer Judgment JUDGMENT KOTVAL, C. J.-This reference raises a rather substantial question as to the interpretation of the provisions of section 5(2) of the Wealth Tax Act, 1957. The question arises upon these facts : The assessee is Messrs Sindhu Hochtief (India) Ltd. Who, inter alia, carry on the business of construction work. They had entered into a contract with the Government of India for the construction of the Port of Kandla and for that purpose there was a written contract, the material clauses of which were as follows: Clause 2 of the conditions of the contract was: "The person... Whose tender may be accepted , . . . Shall within thirty days of the receipt by him of the notification of the acceptance of his tender, deposit as security for the due fulfilment of the contract, an amount in cash or Government securities endorsed to the President of Indict of value equivalent of 2-- % of the value of the work as per his tender rates, into any branch of the reserve Bank of India or the Imperial Bank of India . . . . ." The opening part of clause 9(1) was: "(1) In order that the work may be carried out efficiently, expeditiously and economically, advance payments may be granted to the contractor after he has furnished a security deposit under clause 2. These advances will be…
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