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PETITIONER: RAJPUTANA AGENCIES LTD.
Vs.
RESPONDENT: COMMISSIONER OF I. T., BOMBAY
DATE OF JUDGMENT: 09/10/1958
BENCH: GAJENDRAGADKAR, P.B. BENCH: GAJENDRAGADKAR, P.B. AIYYAR, T.L. VENKATARAMA SARKAR, A.K.
CITATION: 1959 AIR 265 1959 SCR Supl. (1) 142 CITATOR INFO : D 1960 SC1016 (18) D 1966 SC 279 (4)
ACT: Income-tax-Assessment of company-Declaration of dividend in excess of statutory limit-Additional income-tax-Computation" Rate applicable to the total income of the company ", Meaning of --Indian Finance Act, 1951, First Schedule Para. B, proviso (ii), explanation (ii)(b).
HEADNOTE: The assessee, a private limited company in Saurashtra, was assessed for the assessment year 1952-53 on a total income of Rs. 26,385. It was assessable at the rate of four annas per rupee but in view of the provisions of the Part B States (Taxation Concession) Order, 1950, it was actually assessed at the rate of sixteen pies per rupee. The assessee had declared dividend of Rs. 30,000 out of which Rs. 15,159 was found to be excess dividend. On this excess dividend the assessee was liable to pay additional income-tax and the dispute was regarding the rate at which tax was to be computed. Clause (ii) of the proviso to para. B of Part. I of the First Schedule to the Finance Act, 1951, which applied to the case, pro...