R.K.Gulati, J. - (1.) This reference relates to the assessment year 1959-60 with the relevant previous year ending on March 31, 1958.
(2.) M/s. Jaswant Sugar Mills Ltd., Meerut (hereinafter referred to as "the respondent"), is a limited company. The Income-tax Officer passed an order under Section 23A of the Indian Income-tax Act, 1922 (hereinafter called as "the Act"), on the ground that the assessee was not a company in which the public were substantially interested. It ought to have distributed out of its profits for this year Rs. 4,80,990 being 45% of the distributable income. As against this, it distributed only Rs. 3,55,000. There was thus a deficit of Rs. 1,25,990 for which the assessee had no satisfactory explanation. Accordingly, he levied additional super-tax of Rs. 2,64,130
(3.) The assessee was aggrieved and appealed to the Appellate Assistant Commissioner but the Appellate Assistant Commissioner did not accept the assessee's contention that the Income-tax Officer wrongly invoked Section 23A of the Act. He, therefore, confirmed the assessment on the legal issue but allowed some relief on the quantum of tax and the income liable to tax under Section 23A of the Act.;