1993 (6) TMI 23

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....pital in the concern ? (2) Whether the Income-tax Appellate Tribunal erred in law in holding that aggregate funds of the trust invested in the concern did not exceed five per cent. of the capital of that concern ? (3) If reply to either question No. 1 or question No. 2 is against the assessee, whether the assessee was entitled to urge before the Appellate Tribunal that the Appellate Assistant Commissioner erred in holding that deficit of Rs. 2,739 in the assessment year 1971-72 and of Rs. 5,881 in the assessment year 1972-73 incurred by the assessee in school section should not be available as set off against the other income while computing the total income though such point was not urged before the Appellate Assistant Commissioner ?....

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....ibunal and the question should be reframed as stated above. It is not disputed that, if it is held that the capital of the concern under section 13(4) would not include reserves, then the aggregate funds of the trust invested in the trust did exceed five per cent. of the capital of that concern. Therefore, what we have to consider first is as to whether the word "capital" as employed in section 13(4) would include reserves. The assessee had invested its funds with Messrs. C. Doctor and Company Private Limited and Mehta Corporation Private Limited. Now, in a case of a company, capital would ordinarily mean share capital. Sections 85 and 86 of the Companies Act make that position clear. If shares are issued at a premium, then the amount of....