Shah, J. - (1.) The Income Tax Appellate Tribunal, Bombay Bench "A" referred under S. 66(1) of the Indian Income Tax Act, 1922 - hereinafter referred to as the Act - the following question: "Whether the sum of Rs. 15608 should have been included in the assessee Company's "profit" for the purpose of determining whether the payment of a larger dividend than that declared by it would be unreasonable -
(2.) The High Court answered the question in the negative. Against the order of the High Court, with special leave under Art. 136 of the Constitution, this appeal is preferred.
(3.) M/s. Bipinchandra Maganlal and Co., Ltd. - hereinafter referred to as the Company - is registered under the Indian Companies Act. The Company is one in which the public are not substantially interested within the meaning of S. 23A Explanation of the Act. Its paid-up capital at the material time was Rs. 20,800 made up as follows: 20 shares of Rs. 50 each fully paid up and 1980 shares of Rs. 50 each, Rs. 10 being paid up per share.;