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1965 (3) TMI 20 - SC - Income TaxWhether on the facts and in the circumstances of the case any larger dividend than that declared by the company could reasonably be distributed within the meaning of section 23A of the Indian Income-tax Act, 1922 and the application of section 23A of the Indian Income-tax Act was in accordance with law ? Held that:- The High Court correctly held that the Tribunal went wrong in taking into consideration the past profits instead of the past losses, the taxation reserves without consideration of the past liabilities for taxation, and the profits for the year in question disclosed in the balance-sheet, ignoring the actual tax assessed for that year. It came to the conclusion that, having regard to the smallness of the profits, the order of the Income-tax Officer was not justified. In the result, it answered both parts of the question referred to it in the negative. Appeal dismissed.
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