Santosh Hegde, J. - (1.) This appeal arises from the judgment and order of the High Court of Karnataka dated 13-12-1989 made in I.T.R.C. No. 21/82.
(2.) The following question was referred to the High Court for its opinion under S. 256(1) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'): "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the provision of S. 104 of the Income-tax Act, 1961 was applicable to the instant case for the assessment year 1975-76 -
(3.) The facts leading to the above said reference are as follows: The respondent-Company is a trading company in which the public are not substantially interested. The assessing authority assessed the income of the Company for the assessment year 1975-76 at Rs.6,27,430/- holding that the Company did not distribute any dividend to its shareholders. The Income-tax Officer initiated proceedings under S. 104 of the Act, demanding additional income-tax of Rs. 31,434/-.;