Law:

Section:

Section 104 of the Income-tax Act, 1961 (Corresponding to section 23A of the Indian Income-tax Act, 1922) - Additional income-tax on undistributed profits of certain companies - Assessment year 1939-40 - Whether where ITO had completed original assessment of assessee under section 23(4) of 1922 Act and his successor-in-office thereafter found that assessee had distributed less than sixty per cent of its assessable income, proceedings under section 23A of 1922 Act could be initiated by successor-in-office to ITO - Held, yes - Whether 1922 Act lays down no period of limitation for order made by an ITO under section 23A of 1922 Act - Held, yes Section 37(1) of the Income-tax Act, 1961 (Corresponding to section 10(2)(xii) of the Indian Income-tax Act, 1922) - Business expenditure - Allowability of - Assessment year 1939-40 - ITO passed order under section 23A of 1922 Act against assessee-company - Proceedings were subsequently instituted against managing director of company under Chapter VIII of 1922 Act, and were subsequently compounded upon payment of certain sum - Whether payment of composition amount could not be said to have been made wholly and exclusively for purpose of business and, hence, it was not allowable as business expenditure - Held, yes Words and phrases: Words 'assessable income' as occurring in section 23A of Indian Income-tax Act, 1922 FACTS The assessee, a private limited company, held its annual general meeting on 13-4-1939, and on 7-9-1939. It filed a return in respect of the assessment year 1939-40 disclosing an assessable income of Rs. 42,510. The statement of the company's income was however not accepted by the ITO, and as the company did not produce its account books when required to do so, the ITO acted under section 23(4) of the 1922 Act and determined the sum payable by the assessee. That assessment order was made on 29-6-1942. Thereafter, on 16-9-1944, the ITO's successor-in-office being of opinion that the assessee had in respect of the year in question distributed less than sixty per cent of its assessable income, made with the previous approval of the IAC an order under section 23A of the 1922 Act. Proceedings were subsequently…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492