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2006 (7) TMI 129 - HC - Income TaxProvision of section 115-O - additional income-tax - appellant tried to contend that since the additional tax was only on part of the income which relates to declaration of dividend there could not be any mechanism provided for segregation of such income, as such distribution of profit would also include agricultural income. We are unable to appreciate such contention of the appellants. If a tea company has a net income of Rs. 100, Rs. 40 would be liable to income-tax at the prescribed rate and the assessee would be assessed accordingly. By virtue of section 115-O if the company declares Rs. 50 for distribution amongst the shareholders it would have a proportionate liability. - in case the company decides to distribute a part of the income, company would be charged on Rs. 40 for income-tax and on Rs. 50 for additional income-tax on proportionate basis – held that provision of section 115-O is constitutional
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