Extract
Brij Narain Singh VS. Adya Prasad (Dead) & Ors
The Judgement Information System CASE NO.: Appeal (civil) 5420-5423 of 2002PETITIONER: Malayala Manorama Co. Ltd.RESPONDENT: Commissioner of Income Tax,Trivandrum DATE OF JUDGMENT: 10/04/2008BENCH: Ashok Bhan & Dalveer Bhandari JUDGMENT: J U D G M E N T Dalveer Bhandari, J.These appeals are directed against the judgment passed by a Division Bench of the Kerala High Court at Ernakulam on 13th November, 2001 whereby the High Court has decided Income Tax Reference Nos.245, 259, 289 and 293 of 1999 by a common judgment.The main question which arose for consideration before the Court below was: Whether in respect of a company consistently charging depreciation in its books of account at the rates prescribed in the Income-tax Rules, the Income Tax Officer has jurisdiction under section 115J of the Income Tax Act, 1961 to rework net profits by substituting the rates prescribed in Schedule XIV of the Companies Act, 1956?The concept of a minimum tax on zero tax companies was introduced under section 80VVA of the Income Tax Act, 1961 (hereinafter referred to as the 1961 Act) when a ceiling was placed on allowances by the Finance Act, 1983 with effect from the Assessment Year 1984-85. However, the allowances unabsorbed, because of the restriction imposed by the ceiling, were carried forward, so that they could be absorbed in a later year, if adequate profits are available. Section 80VVA was dropped from the statute by the Finance Act, 1987, with effect from A.Y. 1988-89, when r...
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