Law:

Section:

Section 104 of the Income-tax Act, 1961 (corresponding to section 23A(1), of the Indian Income-tax Act, 1922) - Additional income-tax on undistributed profits of certain companies - Assessment year 1956-57 - Assessee claimed that in view of company's requirements for rehabilitation, distribution of dividends on preference shares only should be considered sufficient and reasonable - ITO rejected claim and levied super tax under section 23A(1) of 1922 Act - Tribunal found that company had a big relhabilitation programme and had acquired new machinery in preceding year as well as in year under consideration, and fund was required to take a cash credit for business requirements - Tribunal also observed that it was for that rehabilitation programme that permission was granted by Commissioner under section 23A(3) of 1922 Act for preceding year but could not be granted for year under consideration as application under section 23A(3) of 1922 Act was belated - On these facts, Tribunal upheld distribution of dividends actually distributed and accordingly, cancelled super tax levied under section 23A(1) of 1922 Act - Whether on materials before it, conclusion or order of Tribunal could not be characterised as erroneous - Held, yes Section 153 read with section 104 of the Income-tax Act, 1961 (corresponding to section 34(3) read with section 23A(1) of Indian Income-tax Act, 1922 ) - Assessment - Time limit for completion of - Assessment year 1956-57 - Whether order under section 23A of 1922 Act after its amendment by Finance Act, 1955 is not an order of assessment to which period of limitation prescribed by section 34(3) of 1922 Act applies - Held, yes FACTS Against the distributable profit computed by the ITO, the assessee-company had declared less dividends, i.e., on preference shares only. Before the ITO, it pleaded that in the preceding year the Commissioner had not insisted upon full distribution in view of the requirements of the company for rehabilitation. The rehabilitation programme had continued during the year under consideration and it was urged that for the same reason the distribution of dividends actually made should be considered to be sufficient and…

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