COMMISSIONER OF INCOME-TAX, CITY I, BOMBAY vs KORES (INDIA) (PRIVATE) — 1971 PTD 221

Citation: 1971 PTD 221

Court: Bombay High Court

Year: 1970

Decision Date: 1970-12-31

Parties: COMMISSIONER OF INCOME-TAX, CITY I, BOMBAY vs KORES (INDIA) (PRIVATE) JUDGMENT

Headnotes

Case cited as 1971 PTD 221

Judgment Text

Court Name: Bombay High Court Judge(s): V. S. Desai, S. P. Kotwal Title:COMMISSIONER OF INCOME-TAX, CITY I, BOMBAY vs KORES (INDIA) (PRIVATE) JUDGMENT Reported As: 1971 PTD 221 Result: N/A Judgment JUDGMENT KOTVAL, C. J.-The short question which arises in this reference is whether the proviso to section 23- A(1) prior to its amendment by the Finance Act of 1955 applies to the assessee during the two assessm ent years 1953-54 and 1954-55. It is not in dispute that section 23-A applied to the respondent-- company, Messrs Kores (India) Private Ltd. Accordingly, it did distribute, by way of dividend, more than 60 % of its assess--able income for the previous years, corresponding to the assessment years in question 1953-54 and 1954-55. The Department, however, felt that the proviso to subsection (1) of section 23-A applied and 100 % of its assessable income in both the years should have been distributed. Originally the paid-up capital of the company was Rs. 50.000, but in 1950, it issued bonus shares worth Rs. 3,50,000 and in 1951, further bonus shares worth Rs. 1,00,000. "Thus during the said assessm ent years its paid-up share capital stood at Rs. 5,00,000. In applying the proviso the ratio between a company's capital and its "reserves representing accumulations of past profits" has to be determined (the fixed assets of this company being less than the capital). Before the Tribunal and the tax authorities there was a dispute as to both These items, viz., what was the…

Read the full judgment on Al Wakeelo — Pakistan's AI-powered legal research platform.