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PETITIONER: THE COMMISSIONER OF INCOME-TAX,BOMBAY CITY, BOMBAY
Vs.
RESPONDENT: BIPINCHANDRA MAGANLAL AND CO. LTD.,BOMBAY
DATE OF JUDGMENT: 17/11/1960
BENCH: SHAH, J.C. BENCH: SHAH, J.C. DAS, S.K. HIDAYATULLAH, M.
CITATION: 1961 AIR 1040 1961 SCR (2) 493 CITATOR INFO : R 1965 SC1977 (11) RF 1966 SC 870 (11) R 1973 SC1034 (21) F 1977 SC 560 (7) R 1978 SC1099 (4,7)
ACT: Income-tax-Profit and assessable income-Difference between -Smallness of profit--How determined-Indian Income-tax Act, 1922 (11 of 1922), SS. 10 (2) (VII) second proviso, 66(1).
HEADNOTE: The respondent company purchased certain machinery for Rs. 89,000 and sold it for the same value, but in the books of account the written down value of the machinery was shown in the year of account as Rs. 73,392. The Income Tax Officer in computing the assessable income of the company added the difference, i.e. Rs. 15,608, between the actual value and the written down value to the profit of the company. The Income Tax Officer also passed an order under S. 23A of the Income Tax Act, and directed that the undistributed portion of the assessable income, shall be deemed to have been distributed amongst the shareholders as dividend. Appeals against the order of the Income-tax Officer proved unsuccessful and the Appellate Tribunal referred the followi...