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PETITIONER: THE COMMISSIONER OF INCOME-TAX,BOMBAY CITY
Vs.
RESPONDENT: THE KHATAU MAKANJI SPINNING ANDWEAVING CO. LTD., BOMBAY.
DATE OF JUDGMENT: 04/05/1960
BENCH: HIDAYATULLAH, M. BENCH: HIDAYATULLAH, M. DAS, S.K. KAPUR, J.L.
CITATION: 1960 AIR 1022 CITATOR INFO : D 1961 SC 699 (8) D 1981 SC1562 (17)
ACT: lncome-tax-Additional Income-tax-Total income-Method of computing-Indian Income-tax Act, 1922 (II of 1922), S. 3-The Indian Finance Act, 1953 (XIV of 1953).
HEADNOTE: The Income-tax Officer found that in the assessment year 1953-54 the respondent assessee-company had declared excess dividends amounting to Rs. 1,87,691 and he levied additional income-tax on it at 5 annas in the rupee after deducting incometax borne by the profits of the previous year at 4 annas per rupee, a surcharge of 5 per cent. less rebate of one anna in the rupee as allowed by the Finance Act, 1953. The Income-tax Tribunal held that the excess dividends were deemed to be paid out of undistributed profits of the earlier year ending June 30, 1951 on which a rebate of one anna in the rupee was given in the assessment year 1952-53. It further observed that additional income-tax was also a tax on income, and that the Finance Act could say that the tax would be payable on the income of any year preceding the previous year. The Tribunal, however, referred three question...