TMI Blog1986 (1) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Tribunal Cochin Bench, has referred the following question to this court under section 256(1)of the Income-tax Act: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that for the assessment year 1973-74, a larger dividend could have been declared and, therefore, the provisions of section 104 of the Income-tax Act, 1961, were applicable and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble income and the dividend actually paid as additional tax under section 104 of the Act. In appeal at the instance of the assessee, the Appellate Assistant Commissioner took the view that the capital gains received do not form part of the commercial profits of the assessee-company and cannot, therefore, be taken into account in arriving at its distributable income for the purpose of levy of add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al assets other than short-term capital assets ". If such losses as are referred to in clause (d) are deductible from the gross income, there cannot be any doubt that the capital gains received form part of the gross total income of the company within the meaning of section 109 of the Act. Section 104 mandates the Income-tax Officer to make an order in writing that the company shall be liable to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s than 60% of the assessable income of the previous year, as reduced by the amount of income-tax and super-tax payable by the assessee in respect thereof, and that it would not be unreasonable to distribute a larger dividend than that declared, he has no option but to pass an order that the undistributed portion of the assessable income of the assessee of the previous year, as computed for income- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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