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PETITIONER: MESSRS. DHANDHANIA KEDIA & CO.
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX
DATE OF JUDGMENT: 17/10/1958
BENCH: AIYYAR, T.L. VENKATARAMA BENCH: AIYYAR, T.L. VENKATARAMA GAJENDRAGADKAR, P.B. SARKAR, A.K.
CITATION: 1959 AIR 219 1959 SCR Supl. (1) 204 CITATOR INFO : R 1965 SC1358 (21) RF 1966 SC1285 (7) R 1966 SC1481 (7)
ACT: Income-tax-Dividend, tax on-Distribution of accumulated profits of previous years-" Previous years", meaning of- lndian Income-Tax Act, 192-2 (XI Of 1922), ss. 2(6A)(c) and 2(ii).
HEADNOTE: The appellant, a resident of the once independent State of Udaipur, held 266 shares in the Mewar Industries Ltd., a company registered in that State. There was no law in the State of Udaipur imposing tax on income and it was on April 1, 1950that for the first time the residents of Rajasthan, in which the State had merged, became liable to pay such a tax. On January 18, 1950, the Company went into liquidation and on April 22, 1950, -the liquidator distributed a portion of the assets among the shareholders, the appellant receiving a sum of Rs. 26,000. This sum represented the undistributed profits of the company which had accrued during the six accounting years preceding the liquidation. The income-tax authorities included this sum in the taxable income of the ...