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PETITIONER: THE COMMISSIONER OF INCOME TAX,BOMBAY
Vs.
RESPONDENT: THE ELPHINSTONE SPINNING ANDWEAVING MILLS LTD.
DATE OF JUDGMENT: 04/05/1960
BENCH: HIDAYATULLAH, M. BENCH: HIDAYATULLAH, M. DAS, S.K. KAPUR, J.L.
CITATION: 1960 AIR 1016 CITATOR INFO : R 1960 SC1022 (6) R 1960 SC1182 (8) D 1961 SC 699 (8) R 1968 SC 623 (26) R 1975 SC1282 (17) R 1979 SC1495 (12) RF 1989 SC 516 (40)
ACT: Income-tax-Assessee incurring loss but paying dividends- Additional income-tax, liability to pay-Construction of taxing statute-Income-tax Act, 1922 (XI of 1922), s. 3- Finance Act, 1951 (23 Of 1951), First Schedule, Paragraph B.
HEADNOTE: The assesses had made profits during the assessment year 1951-52 but after deduction of the depreciation allowance it was found to have incurred a loss for income-tax purposes. In the same year the assesses declared dividends. The Income-tax Officer treated this amount as ’excess dividend’ and levied additional income-tax as provided in paragraph B of Part I of the First Schedule to the Indian Finance Act, 1951. The assesses contended that inasmuch as there was no income at all which was 954 taxable the words " on the total income " in paragraph B did not apply to it and no additional income-tax could be levied. The appellant, relying on the proviso to paragraph B, conte...