Sen, J. - (1.) This reference is at the instance of the Commissioner of Income-tax, West Bengal-I, Calcutta. Under Section 66(1) of the Indian I.T. Act, 1922, the Tribunal has drawn up a case and referred the following question: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that there was no occasion to impose any additional super-tax under Section23A of the Indian Income-tax Act, 1922?"
(2.) The facts found are, inter alia, that in the assessment year 1960-61, M. M. Press (P.) Ltd., the assessee, was assessed on a total income of Rs. 68,619 on which tax payable was Rs. 30,879. Distributable surplus in the hands of the assessee was, therefore, Rs. 37,740. The assessee declared dividend of Rs. 15,625 within the statutory period after the close of the relevant accounting year.
(3.) The ITO held that the assessee not having declared dividend to the extent of Rs. 24,531, i.e., sixty-five per cent. of the distributable surplus, were liable to be proceeded against under Section 23A of the Indian I.T. Act, 1922, and initiated proceedings thereunder.;