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1966 (10) TMI 30 - SC - Income TaxWhether, on the facts of this case, an order under section 23A for the assessment year 1949-50 was validly made in the case of this company to which the provisions of the Public Companies (Limitation of Dividends) Ordinance, 1948, applied on the date of the annual general meeting but to which the Act replacing the Ordinance ceased to apply within the period of 6 months referred to in section 23A(1) ? Held that:- In the first place, the repeal of the Ordinance under section 13 of the 1949 Act is immaterial, for, as we have already stated, section 23A has created a fiction of distribution of the undistributed income as dividend and the section further states that it would be deemed as if it was distributed on the date of the annual general meeting. Since the notional distribution contemplated by section 23A of the Act is as if the notional distribution took place at the date of the annual general meeting, it is the law which prevailed as on the date of the annual general meeting which has to be taken into account in considering the issue as to the legal validity of the order made by the Income-tax Officer. In the second place, Mr. S. T. Desai is not right in his contention that the effect of section 13 of the 1949 Act is to obliterate the Ordinance completely from the statute book. Appeal dismissed.
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