JAY SHREE TEA & INDUSTRIES LTD. vs FIRST ADDITIONAL INCOME-TAX OFFICER, — 1971 PTD 952

Citation: 1971 PTD 952

Court: Madras High Court

Year: 1970

Decision Date: 1970-12-31

Parties: JAY SHREE TEA & INDUSTRIES LTD. vs FIRST ADDITIONAL INCOME-TAX OFFICER, JUDGMENT

Headnotes

Case cited as 1971 PTD 952

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title:JAY SHREE TEA & INDUSTRIES LTD. vs FIRST ADDITIONAL INCOME-TAX OFFICER, JUDGMENT Reported As: 1971 PTD 952 Result: petition is dismissed Judgment JUDGMENT VEERASWAMI, J.------The short point raised by the petitioner Is whether advance Income-tar, paid can properly be adjusted towards the tax, so it is said, referable to capital gains. The capital gains were made by the transferor of the petitioner. Originally, the assessment on the petitioner included capital gains, but, on appeal, they were eliminated on the view that the petitioner only succeeded to the business of the transferor, and not to its capital gains. This was on a construction of section 26(2), in the light of a judgment of the Supreme Court. Subsequent to the appellate order, the Income-tax Officer adjusted the advance tax paid by the transferor towards the tax due on its capital gains. Reference is made to section 18-A and it is contended that, particularly in view of subsections (11) and (12), the advance tax paid can only be adjusted towards tax levied on income, and not capital gains. The advance tax contemplated by section 18-A is no doubt calculated on the income of the previous year exclusive of capital gains. But it does not follow from it that once the advance tax is paid, it cannot be adjusted towards income-tax levied on the total income, including capital gains. Capital gains constitute but a head of income and just like…

Read the full judgment on Al Wakeelo — Pakistan's AI-powered legal research platform.