NOSTALGIA
Reproduction
of the Tenth News Letter of the Association written by
Shri J. Gopalkrishnan, President (1969-1971)
The
Mysore State Chartered Accountants' Association
No.
15-16, Ramakrishna Buildings, Narasimharaja Road, Bangalore
- 2.
| PRESIDENT'S
LETTER No. 10. |
1st
May, 1970 |
"
Applying the priciples laid down by the Supreme Court
(*) to the facts of the instant reference it seems to
us that expenses incurred for conducting proceedings before
the Incometax authorities may not be apparently related
to the assessee's trading activities but may be justifiably
necessary for increasing the assessee's net profits or
for the carrying on the business with large funds, at
the disposal of the assessee. From this point of view
these expenses are expenses `for the purpose of the business'
in the wider sense the Supreme Court has understood this
expression."
"Here
the expenses were incurred for saving, preserving, or
protecting a portion of the income arising out of the
assessee's business in other words these expenses enabled
the assessee to make its legitimate profits. They were,
therefore, laid out wholly and exclusively for the assessee's
business."
"For
reasons stated in this judgement our answer to the question
framed is that the Tribunal was correct in holding that
the sum of Rs. 16,000/- paid by the assessee as professional
fees to its tax consultants was an admissible deduction
under Section 10(2) (XV) of the Indian Income tax Act
1922."
- C.I.T. v. Calcutta Landing and Shipping Co. Ltd., A.I.R.
1969 Cal. 171.
(*) (a)C.I.T. Kerala v. Malayalam Plantations Ltd. 53
I.T.R. 140 ; (b) Sree Meenakshi Mills Ltd., v. C.I.T.
Madras 63 I.T.R. 207.
......Ramakrishna
Ramnath Firm, Kamptee v. G. Lakshmi Narasimhan, I. T.
O. Nagpur (A. I. R. 1970 Bom. 30-31)
My
Dear Friend,
Just
and faithful to each other" - What does this phrase
remind you about - Surely, about the partnerships. In
every partnership deed of which you are the author, you
write : "The Partners shall be just and faithful
to each other. They shall always act in the best interests
of the firm". I touch up this clause and write :
"The professional men shall be just and faithful
to each other. They shall always act in the best interests
of the profession". Let us cultivate the "just
and faithful" clause, as part of the philosophy of
our profession, and reap rich rewards by consolidating
our gains.
SEMINAR
ON INTERNAL CONTROL & INTERNAL AUDIT: This Seminar
organised on 11th and 12th April 1970 under the auspices
of the Southern India Regional Council attracted large
number of delegates from all the Southern States. Your
Association hosted a Dinner on the night of 11th April
to the Delegates, Number of members of your Association
participated at the deliberations at the technical sessions.
Your Association has acknowledged the opportunity allowed
to it to be of some useful service in the conduct of the
Seminar. Some fresh topics of current interest, like (a)
Operational auditing and (b) Electronic Data processing
system and internal control in relation thereto, were
discussed with verve and vivacity. Members desirous of
seeking excellent reading material on "Operational
Auditing" are requested to read the article on this
topic by Sri H. B. Dhondy, published in "The Chartered
Accountant" August 1969, (Page 107).
MINUTES
OF DISCUSSION WITH THE COMMISSIONER OF INCOMETAX ON 22nd
APRIL 1970 : The Executive Committee of the Association
met the Commissioner of Incometax in Mysore, Bangalore,
on 22nd April 1970 and discussed matters on tax - policy
and tax - administration. The Minutes relating thereto
are being forwarded to every member. The members are requested
to bring to the notice of the Association any problems
confronting them so that the Association may take up the
same, after due consideration.
STUDY
CIRCLE MEETING : There was no study circle meeting
on Second Saturday for the month of April, on 11th as
there was Seminar on Internal Control and Internal Audit,
scheduled to be held on that day. However, thanks to the
prompt acceptance to address the members on "TAXATION
OF TRUSTS" by Sri S.G. Keshava Murthy, a very valued
member of the Association, a meeting was held on 18th
April, 1970. The meeting was well attended. Sri S. G.
Keshava Murthy discussed the taxation of trusts in the
light of the proposed amendments in the Finance Bill,
1970. The discussion that followed his address was lively
and interesting.
The
programme for the months of MAY to AUGUST is as under
:
| Month |
Date
|
Speaker |
Subject
|
| May
1970 |
9-5-1970 |
S.
Krishnaswamy, Shimoga |
Section
9 & 10 of E.D. Act, 1953 |
| June
1970 |
13-6-1970 |
N.
C. Krishnan, Madras |
Practical
Tax Planning |
| July
1970 |
11-7-1970 |
N.
Sivaramakrishnan, Bhadravathi |
(To
be announced) |
| Aug
1970 |
8-8-1970 |
A.
Akhilandam, Bangalore |
Return
on Capital |
The
meeting begin at 5 p.m. All the members are requested
to attend punctually and enrich the discussions.
The
Association has a programme to arrange for adhoc lectures
on Company Law and Computers. But any such programme will
depend for its success on the measure of interest and
enthusiasm evinced by the members. May I therefore take
the liberty to request information from those members
who are desirous of participating at those lectures.
All
the the meetings are open for the members and their students
undergoing
training. Please encourae your students to attend the
meetings and join the discussions.
RESULT
OF ESSAY COMPETITION : NATIONALISATION OF INDIAN BANK
: A CRITICAL STUDY : Only three entries were received.
The names of the entrants are :
Sriyuts
:
The
entries have been judged by : (1) Sri J. J. Madan and
2) Sri. J. Gopalakrishnan. The results will be made known
in the next letter. The candidates will also be individually
intimated.
The
Association thanks the candidates for their participation.
NEW
MEMBERS : We welcome the following new members and
wish them years of useful service :
| |
Sriyuts
: |
Enrolment
No. |
| 1. |
L.
Vijayakumar, Bangalore |
9970 |
| 2. |
N.A.
Narasimhan, Bangalore |
4207 |
| 3. |
N.Sivaramakrishnan,
Bhadravathi |
5804 |
| 4. |
Nissar
Oasha, Bangalore |
10897 |
Sri
N. Sivaramakrishnan from Bhadravathi is the Cost Accounts
Officer of the Mysore Iron and Steel Limited. He participated
at the Seminar on Internal Control and Internal Audit
and acted as the Rapporteur at the First Technical Session,
in which Sriyuts L.S. Krishnamurthy and V. B. Bhat, valued
members of the Association, presented their papers. Sri
N. Sivaramakrishnan will be addressing us at the study
circle meeting for the month of July (on 11th July, to
be precise)
Sri
Nissar Pasha, who has recently qualified as a Chartered
Accountant was among the first fifty rank students at
the Final Examination held in November 1969. We welcome
this rank student into our fold.
ABOUT
CHARTERED ACCOUNTANT STUDENTS : According to the list
of rank students up to 50th) published by the Institute
the following hail from Mysore State and we are really
proud of them :
| |
|
|
Roll
No. |
Rank
|
| Intermediate
: |
1. |
M.P.
Mehta, Bangalore |
2885 |
6
|
| |
2. |
A.
Dinakar, Mangalore |
1229 |
34 |
| |
3. |
C.N.
Hanchinmani, Belgaum |
2872 |
36 |
|
|
|
|
|
|
| Final
: |
1. |
Nisar
Pasha, Bangalore |
374 |
41 |
| |
2. |
Chandrashekharan,
Bangalore |
491 |
44 |
| |
3. |
S.G.
Godkhindi, Belgaum |
346 |
47 |
We
wish all the C.A. students take this as an inspiring example
for registering laudable success.
THINK IT OVER : "Law is good but justice is better
and here it is not even the question of Rule of law but
of a Rule of practice. Practice is but
the
hand maiden of law and cannot be allowed to over-ride
the latter and be her jealous mistress. The High Court
is indeed the palladium of justice and its stream must
remain unfettered (A.I.R. 1969 Cal. 287).
IN LIGHTER VEIN : "In the matter of taxation, the
assessee has no choice if the tax imposed has authority
of law as the Instant case.
The
taxing authorities remind me of the French lady who consulted
her fowls as to whether they would rather be boiled or
roasted" (A.I.R. 1969 Goa. 35)
MIND TICKER : The Chartered Accountants are experts in
tacking problems of any dimension or variety. According
to them, there is no problem for which there is no answer.
Here is a mind tickler for these experts. According to
me, there is at least one problem, for which there is
no solution. Can you guess what that is ?
Wishing you all mid-summer night's dream.
Yours
in service,
