EASTERN INVESTMENTS LIMITED Vs. T COMR OF INCOME TAX WEST BENGAL BMP
LAWS(SC)-1951-5-7
SUPREME COURT OF INDIA (FROM: CALCUTTA)
Decided on May 04,1951

EASTERN INVESTMENTS LIMITED Appellant
VERSUS
T. Comr. of Income tax West Bengal BMP Respondents


Referred Judgements :-

FARMER V. SCOTTISH NORTH AMERICAN TRUST LTD. [REFERRED]
BRITISH INSULATED AND HELSBY CABLES LTD. V ATHERTON [REFERRED]



Cited Judgements :-

INDIA CEMENTS LIMITED VS. COMMISSIONER OF INCOME TAX MADRAS [LAWS(SC)-1965-12-5] [FOLLOWED]
COMMISSIONER OF INCOME TAX CENTRAL CALCUTTA IN BOTH THE APPEALS VS. AMALGAMATED DEVELOPMENT LTA IN BOTH THE APPEALS [LAWS(SC)-1967-3-21] [APPLIED]
PATEL J R AND SONS PRIVATE LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(GJH)-1962-10-15] [REFERRED TO]
PATEL C J AND COMPANY VS. COMMISSIONER OF INCOME TAX [LAWS(GJH)-1985-6-14] [REFERRED TO]
RAJA RAM KUMAR BHARGAVA VS. COMMISSIONER OF INCOME TAX [LAWS(ALL)-1962-2-18] [REFERRED TO]
J K COTTON SPG AND WVG MILLS COMPANY LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(ALL)-1966-4-11] [REFERRED TO]
J K COMMERCIAL CORPORATION LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(ALL)-1968-10-5] [REFERRED TO]
MADHAV PD JATIA VS. COMMISSIONER OF INCOME TAX [LAWS(ALL)-1971-9-16] [REFERRED TO]
ABBAS WAZIR P LTD VS. COMMISSIONER OF INCOME TAX [LAWS(ALL)-2003-9-236] [REFERRED TO]
MERCANTILE EXPRESS CO PRIVATE LTD VS. COMMISSIONER OF INCOME TAX CALCUTTA [LAWS(CAL)-1960-12-7] [REFERRED TO]
MADANLAL SOHANLAL VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1961-3-29] [REFERRED TO]
BURLAP DEALERS LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1962-1-22] [REFERRED TO]
RAJASTHAN INVESTMENT LTD VS. COMMISSIONER OF INCOME TAX CENTRAL [LAWS(CAL)-1965-2-15] [REFERRED TO]
CALCUTTA LANDING AND SHIPPING CO LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1967-1-14] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. NAWN ESTATES PVT LTD [LAWS(CAL)-1968-2-20] [REFERRED TO]
TARULATA SHYAM VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1971-2-31] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. EDWARD KEVENTER PRIVATE LTD [LAWS(CAL)-1971-6-5] [REFERRED TO]
SUDHIR CHATTERJEE AND CO P LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1973-11-15] [REFERRED TO]
STEEL CONTAINERS LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1974-11-5] [REFERRED TO]
REFORM FLOUR MILLS PVT LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1976-3-25] [REFERRED TO]
J K STEEL AND INDUSTRIES LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1976-6-6] [REFERRED TO]
BANCHHANIDHI ONKARMAL VS. COMMISSIONER OF INCOME-TAX [LAWS(ORI)-1964-12-15] [REFERRED TO]
NEWTON STUDIOS LTD VS. COMMISSIONER OF INCOME TAX MADRAS [LAWS(MAD)-1955-4-24] [REFERRED TO]
ADDITIONAL COMMISSIONER OF INCOME-TAX M P BHOPAL VS. KUBER SINGH BHAGWANDAS [LAWS(MPH)-1978-10-14] [REFERRED TO]
RUSSEL PROPERTIES P LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1981-6-17] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. CENTRAL INDIA MACHINERY MANUFACTURING CO LTD [LAWS(MPH)-1983-8-2] [REFERRED TO]
K MAHESH VS. COMMISSIONER OF INCOME-TAX MADRAS [LAWS(MAD)-1967-9-20] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. DEVARAJ S [LAWS(MAD)-1968-9-1] [REFERRED TO]
COMMISSIONER OF INCOME TAX WEST BENGAL VS. ROYAL CALCUTTA TURF CLUB [LAWS(SC)-1960-11-4] [FOLLOWED]
BENGAL AND ASSAM INVESTORS LIMITED VS. COMMISSIONER OF INCOME TAX WEST BENGAL CALCUTTA [LAWS(SC)-1960-11-14] [REFERRED]
COMMISSIONER OF INCOME TAX BOMBAY NORTH VS. CHANDULAL KESHAVLAL AND CO PETIAD [LAWS(SC)-1960-2-20] [RELIED ON]
STATE OF MADRAS VS. G J COELHO [LAWS(SC)-1964-4-40] [REFERRED]
COMMINISSIONER AT INCOME TAX MADRAS VS. CHARI AND CHARI LIMITED [LAWS(SC)-1965-4-31] [RELIED ON]
SWADESHI COTTON MILLS COMPANY LIMITED VS. COMMISSIONER OF INCOME TAX UP NO 1 [LAWS(SC)-1966-9-31] [REFERRED TO]
SETH R DALMIA VS. COMMISSIONER OF INCOME TAX DELHI NEW DELHI [LAWS(SC)-1977-9-13] [FOLLOWED]
COMMISSIONER OF INCOME TAX WEST BENGAL III CALCUTTA COMMISSIONER OF INCOME TAX WEST BENGAL III CALCUTTA VS. RAJENDRA PRASAD MOODY CALCUTTA:RAGHUNANDAN PRASAD MOODY CALCUTTA [LAWS(SC)-1978-10-13] [REFERRED TO APPA RAO V. C. I. T.,]
PADMAVATI JAIKRISHNA VS. ADDITIONAL COMMISSIONER OF INCOME TAX GUJARAT AHMEDABAD [LAWS(SC)-1987-4-45] [RELIED ON]
VENKATA SATYANARAYANA RICE MILL CONTRACTORS CO VS. COMMISSIONER OF INCOME TAX A R II [LAWS(SC)-1996-10-176] [RELIED ON]
COMMISSIONER OF INCOME TAX MADRAS AMALGAMATION PRIVATE LIMITED VS. AMALGAMATION PRIVATE LIMITED :COMMISSIONER OF INCOME TAX MADRAS [LAWS(SC)-1997-4-52] [RELIED ON]
S A BUILDERS LTD VS. COMMISSIONER OF INCOME TAX [LAWS(SC)-2006-12-54] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. MADAN LAL JAIN [LAWS(DLH)-1981-4-27] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. HARJIVANDAS VITHALDAS [LAWS(GJH)-1965-10-17] [REFERRED TO]
INDIAN TRADING CORPORATION VS. COMMISSIONER OF INCOME TAX [LAWS(GAU)-1995-2-31] [REFERRED TO]
RANI J SARALA DEVI VS. COMMISSIONER OF INCOME TAX [LAWS(APH)-1961-12-18] [REFERRED TO]
SRI ANNAPURNA COTTON MILLS LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1962-12-1] [REFERRED TO]
COMMISSIONER OF INCOME-TAX MADRAS VS. STAR TILE WORKS LTD [LAWS(KER)-1959-2-13] [REFERRED TO]
MAKESH K VS. COMMISSIONER OF INCOME TAX [LAWS(MAD)-1967-9-11] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. THOMAS LESLIE MARTIN [LAWS(CAL)-1986-6-25] [REFERRED TO]
COMMISSIONER OF INCOME-TAX KERALA ERNAKULAM VS. TRAVANCORE SUGARS AND CHEMICALS LTD [LAWS(KER)-1968-4-12] [REFERRED TO]
SOUTH ARCOT ELECTRICITY DISTRIBUTION COMPANY LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(MAD)-1973-4-28] [REFERRED TO]
PLANTATION CORPORATION OF KERALA VS. COMMISSIONER OF AGRICULTURAL INCOME TAX [LAWS(KER)-1968-8-20] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. AMALGAMATIONS P LIMITED [LAWS(MAD)-1976-3-62] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. NEW SAVAN SUGAR AND GUR REFINING CO LTD [LAWS(CAL)-1989-4-43] [REFERRED TO]
WATERFALL ESTATES LIMITED VS. COMMISSIONER OF INCOME TAX NO 2 [LAWS(MAD)-1980-1-34] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. MOTOR INDUSTRIES COMPANY LIMITED [LAWS(KAR)-1996-1-3] [REFERRED TO (SC) : TC 41R.491,]
BHURIBEN LALLUBHAI VS. COMMISSIONER OF INCOME TAX BOMBAY NORTH [LAWS(BOM)-1955-4-2] [REFERRED TO]
BAI BHURIBEN LALLUBHAI VS. COMMISSIONER OF INCOME TAX [LAWS(BOM)-1955-4-12] [REFERRED TO]
CALICO DYEING AND PRINTING WORKS VS. COMMISSIONER OF INCOME TAX [LAWS(BOM)-1958-3-18] [REFERRED TO: (1951) 20 ITR 1 :.]
CATALYSTS AND CHEMICALS INDIA WEST ASIA LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(KER)-1987-2-54] [REFERRED TO]
Consolidated Fibres and Chemicals LTD VS. Commissioner of Income tax [LAWS(CAL)-2004-9-64] [REFERRED TO]
PLANTATION CORPORATION OF KERALA LIMITED VS. COMMISSIONER OF AGRICULTURAL INCOME TAX [LAWS(KER)-1992-11-17] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. NIRMAL COMMERCIAL LIMITED [LAWS(BOM)-1994-4-25] [REFERRED TO (SC),]
COMMISSIONER OF INCOME TAX VS. DYNAVISION LTD [LAWS(MAD)-2002-12-196] [REFERRED TO]
DANESH A IRANI VS. COMMISSIONER OF INCOME TAX [LAWS(BOM)-2010-8-243] [REFERRED TO]
MAHARAJADHIRAJ SIR KAMESHWAR SINGH VS. COMMISSIONER OF INCOME TAX [LAWS(PAT)-1957-4-17] [REFERRED TO]
SIR KAMESHWAR SINGH VS. COMMR OF INCOME TAX [LAWS(PAT)-1957-4-14] [REFERRED TO]
KAMESHWAR SINGH VS. COMMISSIONER OF INCOME TAX [LAWS(PAT)-1959-7-8] [REFERRED TO]
JAMSHEDPUR MOTOR ACCESSORIES STORES VS. COMMISSIONER OF INCOME TAX [LAWS(PAT)-1973-4-12] [REFERRED TO]
B P JAIN VS. COMMISSIONER OF INCOME TAX [LAWS(PAT)-1973-9-8] [REFERRED TO]
KASHIRAM RADHAKISHAN VS. COMMISSIONER OF INCOME TAX [LAWS(RAJ)-1985-1-74] [REFERRED TO]
RAO NARAIN SINGH VS. COMMISSIONER OF INCOME TAX [LAWS(RAJ)-2001-4-135] [REFERRED TO]
ADDITIONAL COMMISSIONER OF INCOME TAX VS. RAJASTHAN SPINNING AND WEAVING MILLS LTD [LAWS(RAJ)-2003-10-31] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. ROCKMAN CYCLE INDUSTRIES PVT LTD [LAWS(P&H)-2011-2-18] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. EKL APPLIANCES LTD [LAWS(DLH)-2012-3-604] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. ORACLE INDIA (P) LTD [LAWS(DLH)-2011-3-394] [REFERRED TO]
COMMISSIONER OF INCOME TAX, GAUHATI-II VS. WILLIAMSON TEA (ASSAM) LTD. [LAWS(GAU)-2013-5-21] [REFERRED TO]
COMMISSIONER CENTRAL EXCISE VS. ULTRATECH CEMENT LTD. [LAWS(BOM)-2010-10-252] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. RAJASTHAN SPG. AND WVG. MILLS LTD. [LAWS(RAJ)-2004-9-69] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. WIPRO LTD. [LAWS(KAR)-2013-8-281] [REFERRED TO]
COCA COLA INDIA PVT. LTD VS. COMMISSIONER OF CENTRAL EXCISE [LAWS(BOM)-2009-8-231] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. ROCKMAN CYCLE INDUSTRIES (P) LTD. [LAWS(P&H)-2009-8-177] [REFERRED TO]
IN RE: MAHANAGAR TELEPHONE NIGAM LTD. VS. STATE [LAWS(AR)-2006-9-2] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. DISCOVERY COMMUNICATION INDIA [LAWS(DLH)-2014-11-293] [REFERRED TO]
LML LTD. VS. JOINT COMMISSIONER OF INCOME TAX [LAWS(IT)-2014-5-112] [REFERRED TO]
KIRBY BUILDING SYSTEMS INDIA LTD. VS. ADDL. CIT [LAWS(IT)-2014-7-25] [REFERRED TO]
UNITED BREWERIES LTD. VS. ASSISTANT COMMISSIONER OF INCOME TAX [LAWS(KAR)-2014-6-230] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. SAMSUNG INDIA ELECTRONICS LTD. [LAWS(DLH)-2012-9-521] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. ALPS WINE SHOP (P) LTD. [LAWS(DLH)-2000-1-100] [REFERRED TO]
STAR TILE WORKS LTD. VS. COMMISSIONER OF INCOME TAX, MADRAS [LAWS(KER)-1959-2-36] [REFERRED TO]
SEVEN ARTS FILMS VS. ASSISTANT COMMISSIONER OF INCOME TAX [LAWS(MAD)-2015-7-348] [REFERRED TO]
INDIAN TRADING CORPN. VS. COMMISSIONER OF INCOME TAX [LAWS(GAU)-1995-2-40] [REFERRED TO]
VODAFONE SOUTH LTD. VS. COMMISSIONER OF INCOME TAX [LAWS(DLH)-2015-9-410] [REFERRED TO]
PRINCIPAL COMMISSIONER OF INCOME TAX VS. SESA RESOURCES LTD. [LAWS(BOM)-2017-8-179] [REFERRED TO]
B. NANJI & CO VS. DY COMMISSIONER OF INCOME TAX [LAWS(GJH)-2020-1-214] [REFERRED TO]
PRINCIPAL COMMISSIONER OF INCOME TAX GANDHINAGAR VS. TUDOR INDIA PRIVATE LIMITED [LAWS(GJH)-2019-8-161] [REFERRED TO]


JUDGEMENT

- (1.)This is an assessee's appeal from a judgment of the H. C. at Calcutta delivered on a reference made to it u/s. 66 (1), Income-tax Act.
(2.)The question submitted for the H. C.'s opinion was as follows :
"Whether in the circumstances of this case, the interest paid by the assessee on debentures was incurred solely for the purpose of making or earning such incomes, profits or gains which are assessable under sub-s. 1 of S. 12."

(3.)The assessee is a private limited co. which was incorporated on 3-1-1927. It is an investment co. known as the Eastern Investments Ltd. The objects set out in the Memo. of Assocn. are to buy. sell and otherwise deal with shares, securities, bonds and so forth generally. The co. was originally formed for acquiring, holding and otherwise dealing with shares and Government securities which had previously belonged to one Lord Cable. The share capital of the Co. at the date of its incorporation was 250 lacs and consisted partly of preference shares and partly of ordinary shares. Of these Lord Cable held the majority including the 50,000 ordinary shares of the face value of Rs. 50,00,000 with which we are here concerned. The rest of the share capital was held by the nominees of the late Lord Cable
;


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