1964 (3) TMI 130

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....Act, 1957. That section specifies certain cases to which the Act will not apply. The relevant portion of that section reads as follows :- "The provisions of this Act shall not apply to- (d) any company established with the object of carrying on an industrial undertaking in India ..... Provided that the exemption granted by clause (d) shall apply to any such company as is referred to therein only for a period of five successive assessment years commencing with the assessment year next following the date on which the company is established, which period shall, in the case of a company established before the commencement of this Act, be computed in accordance with this Act from the date of its establishment as if this Act had been i....

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....equent to the date of incorporation, a stage at which the company was capable of going into production. 6. if the date on which the company was established is the date of its registration, the 8th November 1951, then the first assessment year next following that date will be the assessment year 1952-53 and the five assess-that years for which exemption is provided will be 1952-53 to 1956-57, both years inclusive. What the legislature has done is to give a tax holiday to companies entitled to exemption under Section 45(d) of the Act for a period of five successive assessment year next following the date of their registration and that exemption, so far as we can see, has nothing to do with the effectuation or otherwise of the object with whi....

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....financial year com- (sic) on and from the first day of April, 1957, a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family, and company at the rate or rates specified in the schedule." An actual liability to pay an amount by way of tax is not what is material. Tax is "chargeable" for every financial year commencing on and from the 1st April 1957 even though on the application of the charge no financial liability accrues to the assessee. 10.-11. The third and the last contention urged on behalf of the assessee is based on the definition of valuation date "occurring in Section 2(q) of the Act that definition is : " ....