SOUTH INDIA SHIPPING CORPORATION LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AS the scope and ambit of s. 80-K of the INCOME TAX Act, 1961 (hereinafter referred to as the Act) arises in all the above petitions filed by the same assessee, it is convenient to dispose them of together by a common judgment. AS the facts are practically the same in all the petitions, it is sufficient to narrate the facts in W.P. No. 1636 of 1971.

(2.) THE South India Shipping Corporation Limited, the petitioner in all the Writ petitions is a public limited company, hereinafter referred to as the Company, which commenced its business on 20th July, 1964. It placed orders for and obtained delivery of five similar dry cargo bulk carriers between November, 1965 and December 1966 all of which, since respective dates of purchases, are engaged in the international tramping trade carrying bulk dry cargoes from and to the various ports of the world.

(3.) THE official year of the company is the calendar year. THE company distributed dividends for the various calendar years as under :- |---------------|------------------------|------------| | Calendar year | Rate of dividend | Amount | |---------------|------------------------|------------| | 1967 | 6 per cent paid-up | 6.00 lakhs.| | | capital of Rs. 1 crore.| | |---------------|------------------------|------------| | 1968 | 7.5 per cent""| 7.50 "| |---------------|------------------------|------------| | 1969 | 7.5 per cent""| 7.50" * | |---------------|------------------------|------------|