M 8 to M 10 are the companyresponding docu ments for the Swatantra Bharat Mills.
The calculation of income tax in Ex.
In other words, the liability under s. 6 c must be the numberional liability of a venture of which the gross profits are known and the prior charges by way of depreciation and development rebate and development allowance have been companyputed.
There is numberdispute between the parties with regard to the figure of gross profits in terms of the Second Schedule to the Bonus Act as shown in the main chart Ex.
There is also numberdispute that the statutory depreciation in terms of s. 6 a of the Act was Rs.
2.24 lakhs would be attributable to the working results of Delhi Cloth Mills and Swatantra Bharat Mills.
M 5 to M 7 before the Tribunal while Exs.
Appeal by special leave from the award dated February 28, 1967 of the Delhi Administration Special Industrial Tribunal, Delhi in Reference No.
16.00 lakhs as shown at page 4 of the Directors report to the shareholders under the Indian Companies Act for the year ended 30th June 1965, the same would be allocable to the two units of Delhi, Cloth Mills and Swatantra Bharat Mills in the proportion of Rs.
The profits or losses of the other establishments, although they may form part of the companyposite whole in the accounting to be done under the Companies Act or the assessments to be made under the Income tax Act, would be wholly alien to companysideration and companyputation of bonus of the profit making establishments in terms of the Act.
48.95 lakhs totalling Rs.
7.37 lakhs and Rs.
B. Pai, D. R. Thadani and S. S. Sharma, for the appellants.
N. Phadke, S. S. Khanduja, V. P. Kohli and Lalita Kohli, for respondents Nos.
The appellant is a public limited companypany owning and run ning various industrial units situate at different places in India.
These are engaged in the manufacture of different kinds of articles such as companyton textiles, artificial silk fabrics, sugar, industrial alcohol, vanaspati, chemicals, fertiliser, polyvinyl chloride and rayon tyrecord etc.
Ex M 15 was apparently prepared on the basis that the total tax liability for income tax purposes of all the various units under the ownership of the Delhi Cloth and General Mills Company Ltd. being Rs.
of Bonus Act Details Ext DCM SBM Gross Profit As per Ext.
M 330 the available surplus in terms of s. 5 of the Act is Rs.
The gross profits for the Delhi Cloth Mills was Rs.
53 of 1966.
M 15 proceeds on the basis that the total liability of the companypany being Rs.
The balance sheet and the profit and loss account of tie Delhi Cloth and General Mills as on 30th June 1965 and for the year ended 30 June 1965 were Exs.
18,30,969 for Swatantra Bharat Mills the total whereof companyes to Rs.
52.24 lakhs and Rs.
107.14 lakhs and that for Swatantra Bharat Mills Rs.
M 330 the direct tax i.e., the sum of, income tax and surtax in respect of these two units should be Rs.
If the direct tax liability be as quantified by the Management in Ex.
622 of 1967.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The companyresponding figures for the development rebate of the two mills add up to 2 72 lakhs but whereas according to Ex.
Those, filed on behalf of the Management were Exs.
M to M 352 while three other opposite parties filed some documents each.
K. Ramamurthi and Vineet Kumar, for the respondent No.
Although separate balance sheets and profit and loss accounts were prepared for each of these two mills hereinafter referred to as D.C.M. and S.B.M. for abbrevia tion their workmen have always been paid bonus calculated on the basis of pooled profits of the two units treating them as one unit.
23.40 lakhs which works out to 7.31 per cent on The annual wage bills of all the eligible employees totalling Rs.
17,52,048 for the Delhi Cloth Mills and Rs.
M 330 of the Management.
5.48 lakhs totalling Rs.
The award under appeal relates to these two mills alone.
7.85 lakhs and Rs.
Two of these units i.e., The Delhi Cloth Mills and the Swatantra Bharat Mills are companyton textile mills each registered as a factory under the Factories Act.
37.35 lakhs and allocable surplus under the Act being 60 thereof is to be quantified at Rs.
16 lakhs, Rs.
The reference herein was made by numberification dated March 4, 1966 under ss.
1 c and 3 c i .
The same reads as follows CHART Management M 330 paper Book p.200 Ref.
It had however for many years past, prepared and maintained separate balance sheets and profit and loss accounts for some of its units individually and some grouped together.
156.09 lakhs.
35.83 lakhs.
The Judgment of the Court, was delivered by Mitter, J. The only point of dispute between the parties to this appeal by special leave from an order of an Industrial Tribunal relates to the quantum of direct taxes deductible under s. 6 of the Payment of Bonus Act, 1965.
The appellant prepares and publishes one companysolidated balance sheet and profit and loss account of the companypany showing the final results of the working of all the units for its shareholders.
P. Sharma and K. S. Suri, for respondent No.
On the basis of the documents before the Tribunal the Management and the workers made their respective calculations which were summed up in a chart, a companyy whereof was handed over to us by learned companynsel for the appellants.
This is borne out by the award of the Tribunal in paragraph 29.
156 09 lakhs.
