KARNATAKA SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION LIMITED Vs. COMMISSIONER OF INCOME TAX BANGLORE
SUPREME COURT OF INDIA
KARNATAKA SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION LIMITED
COMMISSIONER OF INCOME TAX,BANGALORE
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Ruma Pal, J. -
(1.)All these, appeals are disposed of by this common Judgment.
(2.)The assessees who are in appeal before us are companies who have been subjected to imposition, of tax on 30% of their book profits in accordance with Section 115-J (1) of the Income tax Act, 1961 (referred to as the 'Act'.)
(3.)Section 115-J is in Chapter XII-B of the Act which is entitled Special Provisions Relating to Certain Companies. It was inserted by the Finance Act, 1987 with effect, from the Assessment Year 1988-89 and remained in operation till the Assessment Year 1990-91. The relevant extract of Section 115-J reads as follows :
" 115-J. (1) Notwithstanding anything contained in any other provision of this Act, where in the case of an assessee being a company other than a company engaged in the business of generation or distribution of electricity, the total income, as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after, the 1st day of April, 1988 but before the 1st day of April. 1991 (hereinafter in this section referred to as the relevant previous year, is less than thirty per cent of its book profit the total income of such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to thirty per cent of such book profit.
(1A). Every assessee, being a company, shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI to the Com-panics Act, 1956.
(Z) Nothing contained in sub-Section (1) shall affect the determination of the amounts in relation to the relevant previous year to be carried forward to the subsequent year or years under the provisions of sub-Section (2) of Section 32 or sub-Section (3) of Section 32-A or Clause (ii) of sub-Section (1) of Section 72 or Section 73 or Section 74 or sub-Section (3) of Section 74-A or sub-Section (3) of Section 80-J."
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