1978 (7) TMI 103

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....J.--The assessee is a limited company, the shares of which are owned by the Government of Kerala. For expansion of the capacity of the company, financial assistance was promised by the Government of India and by the Government of Kerala. In the budget for the year 1969-70, the Government of Kerala provided for Rs. 10.5 lakhs under " 96 Capital Outlay " and another Rs. 10.5 lakhs under Loans and Ad....

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....riod for the purpose of this revision is the year ended December 31, 1972. For the purpose of levy of surtax it became necessary to determine the capital base at the beginning of the accounting year relevant to the assessment year with reference to the provisions of rule (1), sub-rule (v), of Schedule II of the Companies (Profits) Surtax Act, 1964. The company claimed that Rs. 26.5 lakhs received ....

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.... The statutory provisions may usefully be seen. Section 4 of the Companies (Profits) Surtax Act, 1964, reads : " 4. Charge of tax.--Subject to the provisions contained in this Act, there shall be charged on every company for every assessment year commencing on and from the 1st day of April, 1964, a tax (in this Act referred to as the surtax) in respect of so much of its chargeable profits of th....

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.... Government or the Industrial Finance Corporation of India or the Industrial Credit and Investment corporation of India or any other financial institution which the Central Government may notify in this behalf in the Official Gazette or any banking institution (not being a financial institution notified as aforesaid) or any person in a country outside India : Provided that such moneys are borro....