1990 (11) TMI 38
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....-81, the Income-tax Officer passed an order under section 104 of the Income-tax Act, 1961, holding that additional tax under section 104 should be levied because the petitioner-company had not distributed the requisite dividend. The Income-tax Officer did not accept the contention of the assessee that the dividend was not distributed with a view to build up sufficient reserve for further developme....
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....th no success. An application under section 256(1) was filed seeking reference of the following questions to this court : " 1. Whether, on the facts and circumstances of the case and on true and correct interpretation of section 104 of the Income-tax Act, 1961, the Tribunal was right in law in upholding the levy of tax on undistributed dividend of Rs. 59,008 ? 2. Whether, on the facts and circum....
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....on raised was that because of business exigencies, namely, future expansion of the business, the board of directors considered that it should not distribute dividend and that is a good ground for not passing an order under section 104. There can be no dispute with the legal propositions but a question arises whether, in the instant case, there was any expansion programme of the assessee-company. T....