COMMISSIONER OF INCOME TAX Vs. SULEMAN AND COMPANY LIMITED

JUDGEMENT

(1.) IN this reference by the Tribunal at Bombay the question for our decision is :

(2.) THE assessee is a private limited company which at one time was dealing in cotton, but in the year of account, Samvat year 2013, the finding is that it was carrying on the business of dealing in and holding of investments as its main business. It is also not in dispute that it is a company to which the provisions of S. 23A apply.

(3.) THE assessee did not distribute any dividend in the year of account and the ITO passed an order under S. 23A in respect of the whole of the profit. In doing so, the ITO added back Rs. 68,583, the difference between the cost and the market value of the shares. He merely stated :