HYDERABAD ASBESTOS CEMENT PRODUCTS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE two reference cases have been placed before a Full Bench by a Division Bench of this court in view of the contention raised by the learned counsel for the assessee that certain observations by a Division Bench of this court in Vazir Sultan Tobacco Co. Ltd. v. Commissioner of Income-tax, run counter to the decision of the Supreme Court in Kesoram Industries and Cotton Mills Ltd. v. Commissioner of Wealth-tax, and also that the view expressed by this court in the said Bench decision is in conflict with the views of other High Courts in Nagammal Mills Ltd. v. Commissioner of Income-tax, , Commissioner of Income-tax v. Indian Steel Rolling Mills Ltd., , Commissioner of Income-tax v. Periakaramalai Tea and Produce Co. Ltd., and Commissioner of Income-tax v. Security Printers of India (P.) Ltd., .

(2.) R.C. No. 34 of 1973 has been referred to this court under Section 19 of the Super Profits Tax Act, 1963, read with Section 256(1) of the Income-tax Act, 1961, for opinion on the question :

(3.) THE Super Profits Tax Act, 1963 (Act 14of 1963), was enacted by Parliament with a view to levy a tax referred to in the Act as "super profits tax" in respect of the chargeable profits of every company in respect of the previous year or previous years, as the case may be, exceeding the standard deduction, at the rate or rates specified in the Third Schedule to the Act. This Act remained in force only for one year when it was repealed by the Companies (Profits) Sur-tax Act, 1964 In this context it may be noted that with a view to tax the excess profits earned by the companies during the Second World War, the Excess Profits Tax Act, 15 of 1940, was enacted which was repealed by the Business Profits Tax Act, 1947. Again in 1963, the Super Profits Tax Act was enacted which remained in force only for the assessment year 1963-64 arid the Act now in force is the Companies (Profits) Sur-tax Act, 1964.