MATHER AND CO PRIVATE LIMITED Vs. INCOME TAX OFFICER
HIGH COURT OF KERALA
MATHER AND CO. (PRIVATE) LTD.
INCOME-TAX OFFICER, COMPANIES CIRCLE, ERNAKULAM.
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(1.) By this writ petition filed under Art.226 of the Constitution the petitioner seeks to quash Ext. P 6 evidencing the proceedings taken by the Income tax Officer, Companies Circle, Ernakulam in purported exercise of his powers under S.154(1)(a) of the Income Tax Act, 1961 amending an earlier order dated 14-5-1964 passed against the petitioner for the assessment year 1957-58 under S.23A of the Indian Income tax Act, 1922 by rectifying a mistake stated to be apparent from the record.
(2.) The petitioner is a private limited company whose business consists mainly of undertaking and executing works contracts. It was also running a cashewnut factory till October 1956. For the assessment year 1957-58 it was assessed to income tax on a total income of Rs. 99125 as per the assessment order evidenced by Ext. P 1 dated 31-12-1957. Proceedings were thereafter initiated against the petitioner by the Income tax Officer, Ernakulam under S.23A of the Indian Income Tax Act, 1922 on the ground that in respect of the assessment year 1957-58 it had been found out that the company had not declared the prescribed minimum dividend in accordance with the provisions of the aforesaid Section. By the order Ext. P 2 dated the 14th May 1964 a super tax of Rs. 8413-62 was levied against the petitioner under S.23A. It is seen from Ext. P 2 that super tax at 37% was levied on Rs. 9226 which amount represented the difference between 60% of the distributable surplus and the sum actually distributed by the company by way of dividend.
(3.) The petitioner preferred an appeal to the Appellate Assistant Commissioner of Income Tax, Trivandrum questioning the validity of the order (Ext. P 2) passed under S.23A on various grounds. The Appellate Assistant Commissioner by his order Ext. P 3 dated the 27th November 1964, rejected the petitioner's contentions and confirmed the order passed by the Income Tax Officer under S.23A.;
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