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[2007] 291 ITR 436 (BOM.) HIGH COURT OF BOMBAY Commissioner of Income-tax v. Jamnalal Sons Ltd. J.P. DEVADHAR AND B.P. DHARMADHIKARI, JJ. ITA NOS. 35, 36, 104, 105 AND 106 OF 1995 APRIL 20, 2007 Section 104 of the Income-tax Act, 1961 - Additional Income-tax on undistributed profits â–  The Assessing Officer, in the assessment order, had held that the assessee was not an industrial company and as the assessee-company had not declared and distributed dividend, the assessee was liable to pay additional income-tax under section 104(1)(a ). The Tribunal held that the assessee was an industrial company. It further held that even if the assessee was treated as not an industrial company, it did not have sufficient funds to declare dividends in view of the future liabilities of the company. As the reference application filed by the revenue under section 256(1) had been dismissed, the revenue filed an application under section 256(2). Held that the activities of the assessee-company were carried out at Wardha, Bombay and Adilabad. It was not in dispute that the assessee at its Adilabad unit was running a ginning and pressing factory which constituted a manufacturing activity. The Commissioner (Appeals) as well as the Tribunal had noticed that in the assessment year 1983-84, the total income generated from the activities at all the three places was Rs. 6,15,41,875 out of which Rs. 5,93,75,040 was from the unit where the manufacturing activity was carried on by the assessee. It was further held that the total expenditure at the said unit was far greater than the expenditure under the various heads either at Wardha or at Bombay. Thus, the finding given by the Tribunal that the assessee was an industrial company was based on the findings of fact. No question of law arose out of the order passed by the Tribunal. [Assessment year 1983-84] JUDGMENT J.P. Devadhar, J.-Heard learned counsel for the respective parties. 2. All these applications filed by the Revenue under section 256(2) of the Income-tax Act, 1961 were admitted on the following questions of law : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in upholding the…

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