KHAITAN CORPORATION P LTD Vs. COMMISSIONER OF INCOME TAX CENTRAL

JUDGEMENT

(1.) In this reference under Section 256(2) of the I.T. Act, 1961, the following questions have been referred to this court as directed by this court :

(2.) Whether, on the facts and in the circumstances of the case, the sum of Rs. 3,30,000 assessed as income from undisclosed sources in the hands of the assessee-company for the assessment year 1961-62 constituted its commercial profits available for distribution as dividend ?

(3.) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the liability of the penalties imposed under Sections 271(1)(a) and 221(1) of the Income-tax Act, 1961, for the assessment year 1961-62 on the assessee-company should not be taken into consideration in determining the reasonableness of the distribution of any dividend ?