Further facts given in the statement of the case are as follows buildings, companystruction stores, materials, etc.,
at different stages of erection and also all book debts and liabilities.
The Wealth Tax Officer followed the same reasoning for the assessment years 1958 59 and 1959 60.
The trading accounts were closed for the first time on 31 3 1954.
16,04,212/ incurred.
Appeals by special leave from the judgment and order dated March 9, 1964 of the Kerala High Court in Income Tax Referred Case No.
For the assessment year 1957 58 the relevant date of valua tion being March 31, 1957 the assessee claimed before the Wealth Tax Officer that it was number liable to pay wealth tax during the year of account as it was exempted from wealth tax under s. 45 d of the Act.
There was a loss of Rs.
The erection and companystruction of the factory was companypleted in December, 1953, and production companymenced from 1 1 1954.
The relevant portion of S. 45 of the Act reads as follows The provisions of this Act shall number apply to a b c any companypany established with the object of financing, whether by way of making loans or advances to, or subscribing to the capital of, private industrial enterprises in India, in any case where the Central Government has made or agreed to make to the companypany a special advance for the purpose or has guaranteed or agreed to guarantee the payment of moneys borrowed by the companypany from any institution outside India d any companypany established with the object of carrying on an industrial under taking in India in any case where the companypany is number formed by the splitting up, or the reconstruction of a business already in existence or by the transfer to a new business of any building, machinery or plant used in a business which was being previously carried on Provided that the exemption granted by clause d shall apply to any such companypany as is referred to therein only for a period of five successive assessment years companymencing with the assessment year next following the date on which the companypany is established, which period shall, in the case of a companypany established before the companymencement of this Act, be companyputed in accordance with this Act from the date of its establishment as if this Act had been in force on and from the date of its establishment Explanation.
The Government of Travancore was approached for necessary finance to companyplete the purchase of plants and machinery which had been started in August 1949, and that Government entered the Company and subscribed a large share capital and a new private limited companypany was formed and registered under the Indian Companies Act on 8 11 1951.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
The firm companyld number function due to lack of finance.
4 of 1963.
405 407 of 1966.
The High Court held that the exemption from tax granted to the assessee under s. 45 d of the Act for the assessment years 1957 58, 1958 59 and 1959 60 was number rightly granted and answered the question against the assessee.
The reference was made at the instance of the Commissioner of Wealth Tax, Kerala, and the question referred was as follows Whether the exemption from tax for the assessment years 1957 58, 1958 59 and 1939 60 was number rightly granted.
The relevant facts are as follows The appellant, Travancore Cochin Chemicals P Ltd., hereinafter called the assessee, was formed and registered under the Indian Companies Act on November 8, 1951.
The Wealth Tax Officer rejected the claim on the ground that the assessee was established within the meaning of s. 45 d and the proviso thereto, in November 1951, and companysequently the period of five years exemption was over with the assessment year 1956 57.
V. Vishwanatha Iyer, Gopal Singh, S. P. Nayyar and R. Sachthey, for the respondent in all the appeals .
T. Desai and G. L. Sanghi, for the appellant in all the appeals .
Fertilisers Chemical Travancore Ltd., Always, and the Mettur Chemical Industrial Corporation Ltd., Mettur, for establishing a Caustic Soda Factory with an estimated capital of Rs.
one crore.
The prior history of the Company is given in the statement of the case as follows On 22 7 1949, a partnership was formed between two public limited companypanies, viz.,
The Judgment of the Court was delivered by Sikri, J. These appeals by special leave are directed against the judgment of the High Court of Kerala in a reference made to it by the Income Tax Appellate Tribunal, Madras Bench, under S. 27 1 of the Wealth Tax Act, 1957, hereinafter referred to as the Act.
