JUDGEMENT

Dipak Kumar Sen, J. - (1.)This reference is at the instance of Messrs. Panama Private Ltd., Calcutta, the assessee. The question called for from the Tribunal under Section 66(2) of the Indian Income-tax Act, 1922, is as follows : "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the provisions of Section 23A of the Income-tax Act were applicable for the year ? "
(2.)The matter arises out of an order passed by the Income-tax Officer under Section 23A of the Indian Income-tax Act, 1922, in the assessment year 1961-62, the relevant previous year ending on 30th September, 1960. It is found that in the said assessment year the distributable surplus available to the assessee within the meaning of Section 23A was Rs. 2,45,793. It is further found that dividend aggregating to Rs. 1,06,950 has been distributed and this amount was less than the statutory percentage and the dividend which ought to have been distributed was Rs. 1,59,765. Accordingly, the Income-tax Officer levied an additional super-tax on the balance of the distributable surplus.
(3.)The assessee, being aggrieved by this order of the Income-tax Officer, preferred an appeal to the Appellate Assistant Commissioner. It was contended by the assessee before the Appellate Assistant Commissioner that if the demands under Section 23A of the Indian Income-tax Act in respect of earlier years were taken into account the available surplus would be only Rs. 1,20,649 and not the figure as worked out by the Income-tax Officer. It was also argued that tax under Section 23A should be levied only after deducting the sum of Rs. 1,01,113 which represented the liability under the said Section 23A for the earlier years. Such contentions were rejected by the Appellate Assistant Commissioner who upheld the order of the Income-tax Officer.
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