COMMISSIONER OF INCOME TAX BOMBAY CITY BOMBAY Vs. BIPINCHANDRA MAGANLAL AND CO LTD
LAWS(SC)-1960-11-6
SUPREME COURT OF INDIA (FROM: BOMBAY)
Decided on November 17,1960

COMMISSIONER OF INCOME TAX,BOMBAY Appellant
VERSUS
BIPINCHANDRA MAGANLAL AND COMPANY LIMITED BOMBAY Respondents





Cited Judgements :-

DELHI FARMING AND CONSTRUCTION PRIVATE LIMITED VS. COMMISSIONER OF INCOME TAX DELHI [LAWS(SC)-2003-3-38] [REFFERED TO]
COMMISSIONER OF INCOME TAX DELHI 1 NEW DELHI VS. DELHI CATTLE BREEDING G FARMS PRIVATE LIMITED [LAWS(DLH)-2001-5-107] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. VIRAMGAM MILLS COMPANY LIMITED [LAWS(GJH)-1961-4-10] [REFERRED]
COMMISSIONER OF INCOME TAX CALCUTTA VS. ASSOCIATED CLOTHIERS LTD [LAWS(CAL)-1963-2-25] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. SUDHIR CHATTERJEE AND CO P LTD [LAWS(CAL)-1967-2-20] [REFERRED TO]
COMMISSIONER OF WEALTH TAX CENTRAL VS. RADHA DEBI M NOPANY [LAWS(CAL)-1969-7-25] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. JASRUP BAIJNATH BAHETY AND SONS PVT LTD [LAWS(CAL)-1970-8-13] [REFERRED TO]
SUDHIR CHATTERJEE AND CO P LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1973-11-15] [REFERRED TO]
BANGA LUXMI HOSIERY MILLS PRIVATE LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1974-7-32] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. JALAN INVESTMENT P LTD [LAWS(CAL)-1975-3-4] [REFERRED TO]
COOCH BEHAR TRADING CO PVT LTD VS. COMMISSIONER OF INCOME TAX CENTRAL [LAWS(CAL)-1975-6-2] [REFERRED TO]
REFORM FLOUR MILLS P LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1975-6-26] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. N GUIN AND CO P LTD [LAWS(CAL)-1978-5-16] [REFERRED TO]
INDIA JUTE CO LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1980-12-26] [REFERRED TO]
COMMISSIONER OF INCOME TAX MADRAS VS. URMILA RAMESH [LAWS(SC)-1998-1-105] [FOLLOWED]
COMMISSIONER OF INCOME TAX VS. ASSOCIATED DRUG CO P LIMITED [LAWS(MAD)-1965-3-14] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. MECCANO FLOORINGS P LIMITED [LAWS(MAD)-1972-12-17] [REFERRED TO]
VICTORY MOTOR TRANSPORT NILGIRIS 1956 PRIVATE LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(MAD)-1973-3-44] [REFERRED TO]
FACTORS P LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(MAD)-1974-7-2] [REFERRED TO]
STEEL ROLLING MILLS OF HINDUSTHAN P LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1988-12-26] [REFERRED TO (SC)]
COMMISSIONER OF INCOME TAX VS. AMALGAMATIONS P LIMITED [LAWS(MAD)-1976-4-1] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. SANGAM MOTELS PRIVATE LIMITED [LAWS(KAR)-1992-10-6] [REFERRED TO]
GANESH PROPERTIES PVT LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1989-5-28] [REFERRED TO]
PADINJAREKKARA PUNNEN KURIEN AND SONS PRIVATE LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(KER)-1971-12-18] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. ETHIRAJ V L ESTATE OF [LAWS(MAD)-1979-12-2] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. KOTHARI PLANTATIONS AND INDUSTRIES LTD [LAWS(CAL)-1993-4-42] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. V RAMAKRISHNA SONS LTD [LAWS(MAD)-1992-1-58] [REFERRED TO]
COMMISSIONER OF INCOME TAX WEST BENGAL VS. JALAN INVESTMENT PRIVATE LIMITED [LAWS(SC)-1967-5-14] [REFERRED]
COMMISSIONER OF INCOME TAX MADRAS VS. URMILA RAMESH [LAWS(SC)-1997-2-209] [REFERRED TO]
COMMISSIONER OF INCOME TAX WEST BENGAL VS. GANGADHAR BANERJEE AND CO PRIVATE LIMITED [LAWS(SC)-1965-3-27] [REFFERD TO]
COMMISSIONER OF INCOME TAX CENTRAL CALCUTTA VS. MOON MILLS LIMITED [LAWS(SC)-1965-10-36] [REFERRED]
HIRALAL RATTANLAL VS. STATE OF UTTAR PRADESH [LAWS(SC)-1972-10-13] [FOLLOWED]
P K BADIANI VS. COMMISSIONER OF INCOME TAX BOMBAY [LAWS(SC)-1976-9-45] [FOLLOWED]
COMMISSIONER OF INCOME TAX GUJARAT VS. ARTEX MANUFACTURING CO [LAWS(SC)-1997-7-79] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. GOODWILL INDIA LIMITED [LAWS(DLH)-1984-9-45] [REFERRED]
PHARMED PRIVATE LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(BOM)-1989-10-5] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. BAGCHI R N [LAWS(PAT)-1968-7-23] [REFERRED TO]
CIT VS. ECE INDUSTRIES LTD. [LAWS(DLH)-2010-12-342] [REFERRED TO]
D. MAHESH KUMAR VS. STATE OF TELANGANA [LAWS(APH)-2016-11-7] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. BIBHUTI BHUSAN DUTT [LAWS(CAL)-1962-2-38] [REFERRED]
ASHISH SAINI VS. STATE OF UTTARAKHAND [LAWS(UTN)-2019-7-74] [REFERRED TO]
MANISH KUMAR VS. UNION OF INDIA [LAWS(SC)-2021-1-34] [REFERRED TO]
UNION OF INDIA VS. VKC FOOTSTEPS INDIA PVT LTD [LAWS(SC)-2021-9-43] [REFERRED TO]


JUDGEMENT

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.
;


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