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PETITIONER: THE COMMISSIONER OF INCOME-TAX,BOMBAY
Vs.
RESPONDENT: THE JALGAON ELECTRICITY SUPPLY CO.,LTD.
DATE OF JUDGMENT: 04/05/1960
BENCH: HIDAYATULLAH, M. BENCH: HIDAYATULLAH, M. DAS, S.K. KAPUR, J.L.
CITATION: 1960 AIR 1182 CITATOR INFO : D 1961 SC 699 (8) R 1968 SC 623 (27)
ACT: Additional Income-tax- If could be levied on excess dividends, when there are profits in the preceding years- Manner of calculation of tax-Indian Finance Act, 1949 and 1950, Para. B,of Part 1 of First Schedule.
HEADNOTE: After making all allowances and deductions, the income of the assesses company was finally assessed for the years 1949-50 881 and 1950-51 at Rs. 3,423 and Rs. 3,312 respectively. The assesses company had declared dividends of Rs. 46,024 and Rs. 56,326 for the above two years. Though no profits were brought forward from the previous years, the income-tax officer applied the proviso to para. B of Part 1 of the Third and First Schedules of the Finance Act, 1949 and 195o, assessed the difference in each year to additional income- tax and charged income-tax at the rate of annas 5 in the rupee on the amounts for the two assessment years. The High Court held that though excess dividends were, in fact, paid, the absence of profits from previous years rendered the Finance Act unworkable in this case. The question was if the second proviso ...