COMMISSIONER OF INCOME TAX Vs. NATIONAL CEMENT MINES AND INDUSTRIES LTD
HIGH COURT OF CALCUTTA
COMMISSIONER OF INCOME-TAX
NATIONAL CEMENT MINES AND INDUSTRIES LTD.
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Deb, J. -
(1.)This is a reference under Section 66(1) of the Indian Income-tax Act, 1922. The assessee is a company. The assessment year is 1948-49. The previous year ended on May 31, 1947.
(2.)In the accounting year, the assessee sold at a profit its mining rights including its rights under a sub-lease to a 100% subsidiary company, Karkata Collieries Ltd. The Income-tax Officer has brought the surplus to tax by rejecting the contentions of the assessee that the assessment should be made under Section 12B of the Indian Income-tax Act, 1922, and that the said surplus should be exempted under the fourth proviso to that section.
(3.)There was also an excess on realisation over the written down value of the plant, machinery and the buildings transferred by the assessee to the said subsidiary company in the same accounting year. The excess, brought to tax by the Income-tax Officer, has been reduced to Rs. 10,171 by the Appellate Assistant Commissioner.
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