Section 104 - Omitted - Income-tax Act, 1961

104. 17 [****] *************** NOTES:- 1. Substituted vide Section 23 of the Finance Act, 1964 w.e.f. 01-04-1964 before it was read as, sub-section (2) and of sections 105, 106 and 107 2. Inserted vide Section 23 of the Finance Act, 1964 w.e.f. 01-04-1964 3. Substituted vide Section 30 of the Finance Act, 1965 w.e.f. 01-04-1965 before it was read as, super-tax 4. Omitted vide Section 30 of the Finance Act, 1965 w.e.f. 01-04-1965 before it was read as, and 5. Substituted vide Section 30 of the Finance Act, 1965 w.e.f. 01-04-1965 before it was read as, (b) thirty-seven per cent. in the case of any other company 6. Substituted vide Section 20 of the Finance Act, 1966 w.e.f. 01-04-1966 before it was read as, on the distributable income as reduced by (i) the amount of dividends actually distributed, and 7. Omitted vide Section 20 of the Finance Act, 1966 w.e.f. 01-04-1966 before it was read as, (ii) any expenditure actually incurred bona fide for the purposes of the business, but not deducted in computing the income chargeable under the head Profits and gains of business or profession being (a) a bonus or gratuity paid to an employee, (b) legal charges, (c) any such expenditure as is referred to in clause (c) of section 40, (d) any expenditure claimed as a revenue expenditure but not allowed to be deducted as such and not resulting in the creation of an asset or enhancement in the value of an existing asset. 8. Substituted vide Section 20 of the Finance Act, 1966 w.e.f. 01-04-1966 before it was read as, wholly or mainly 9. Inserted vide Section 20 of the Finance Act, 1966 w.e.f. 01-04-1966 10. Inserted vide Section 20 of the Finance Act, 1966 w.e.f. 01-04-1966 11. Substituted vide Third Schedule of the Finance (No. 2) Act, 1967 w.e.f. 01-04-1968 before it was read as, included in its total income for the relevant previous year 12. Inserted vide Section 12 of the Finance Act, 1973 w.e.f. 01-04-1974 13. Inserted vide Section 12 of the Finance Act, 1973 w.e.f. 01-04-1974 14. Inserted vide Section 12 of the Finance Act, 1973 w.e.f. 01-04-1974 15. Substituted vide Section 27 of the Taxation Laws (Amendment) Act, 1975 w.e.f. 01-04-1976 before it was read as, (4) Without prejudice to the provisions of section 108, nothing contained in this section shall apply to- (a) an Indian company whose business consists 8 [ mainly in the construction of ships or ] in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power; (b) an Indian company, the value of whose capital assets, being machinery or plant (other than office appliances or road transport vehicles), as shown in its books on the last date of the relevant previous year is fifty lakhs of rupees or more. 9 [ (c) a company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India. ] Explanation .- For the purposes of clause (a) of this sub-section, the business of a company shall be deemed to consist mainly in 10 [ the construction of ships or in ] the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, if the income attributable to any of the aforesaid activities 11 [ included in its gross total income for the relevant previous year ] is not less than fifty-one per cent. of such total income ] 16. Substituted vide Section 20 of the Finance (No. 2) Act, 1977 w.e.f. 01-04-1978 before it was read as, 15 [ (4) Without prejudice to the provisions of section 108, nothing contained in this section shall apply to a company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India. ] 17. Omitted vide Section 41 of the Finance Act, 1987 w.e.f. 01-04-1988 before it was read as, D. Additional super-tax on undistributed profits Super-tax on undistributed income of certain companies 104. (1) Subject to the provisions of 1 [ this section and of sections 105, 106, 107 and 107A ] , where the Income-tax Officer is satisfied that in respect of any previous year the profits and gains distributed as dividends by any company within the twelve months immediately following the expiry of that previous year are less than the statutory percentage of the distributable income of the company of that previous year, the Income-tax Officer shall make an order in writing that the company shall, apart from the sum determined as payable by it on the basis of the assessment under section 143 or section 144, be liable to pay 3 [ income tax ] at the rate of (a) fifty per cent, in the case of an investment company, 4 [****] 5 [ (b) thirty seven per cent. in the case of a trading company, and (c) twenty five per cent. in the case of any other company ] , 6 [ on the distributable income as reduced by the amount of dividends actually distributed, if any 12 [ , within the said period of twelve months ]] 7 [****] (2) The Income-tax Officer shall not make an order under sub-section (1) if he is satisfied (i) that, having regard to the losses incurred by the company in earlier years or to the smallness of the profits made in the previous year, the payment of a dividend or a larger dividend than that declared 13 [ within the period of twelve months referred to in sub-section (1) ] would be unreasonable; or (ii) that the payment of a dividend or a larger dividend than that declared 14 [ within the period of twelve months referred to in sub-section (1) ] would not have resulted in a benefit to the revenue; or (iii) that at least seventy-five per cent of the share capital of the company is throughout the previous year beneficially held by an institution or fund established in India for a charitable purpose the income from dividend whereof is exempt under section 11. 2 [ (3) If the Central Government is of opinion that it is necessary or expedient in the public interest so to do, it may, by notification in the Official Gazette and subject to such conditions as may be specified therein, exempt any class of companies to which the provisions of this section apply from the operation of this section. 16 [ (4) Without prejudice to the provisions of section 108, nothing contained in this section shall apply to - (a) an Indian company whose business consists mainly in the construction of ships or in the manufacture of processing of goods or in mining or in the generation or distribution of electricity or any other form of power; (b) a company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India. Explanation : For the purposes of clause (a) of this sub-section, the business of a company shall be deemed to consist mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, if the income attributable to any of the aforesaid activities included in its gross total income for the relevant previous year is not less than fifty-one per cent. of such total income. ]