COMMISSIONER OF INCOME-TAX, MADRAS vs SUNDARAM INDUSTRIES — 1971 PTD 759

Citation: 1971 PTD 759

Court: Madras High Court

Year: 1970

Decision Date: 1970-12-31

Parties: COMMISSIONER OF INCOME-TAX, MADRAS vs SUNDARAM INDUSTRIES JUDGMENT

Headnotes

Case cited as 1971 PTD 759

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title:COMMISSIONER OF INCOME-TAX, MADRAS vs SUNDARAM INDUSTRIES JUDGMENT Reported As: 1971 PTD 759 Result: answered accordingly Judgment JUDGMENT RAMAPRASADA RAG, J.---This tax case has came up at the instance of the Commissioner of Income-tax as applicant under section 66(1) of the Indian Income-tax Act, 1922. The respondent is a private limited company. The assessment year in question is 1955-56. By a resolution passed at its general meeting held on December 31, 1954, the company distributed 60 Y. Of its profits as dividend as envisaged in section 23-A of the Act as it then stood. The accounting year of the company ended with May 3 1, 1954. The distribution was so effected in accordance with the letter and procedure as was in force on the date of distribution which but for the supervening amendment of section 23-A by the Finance Acts of 1955 and 1956, appears to be in order. We shall refer to the scope and effect of the Finance Acts as above presently. For the respondent, the assessm ent for the years 1955-56 was originally completed on February 17, 1956, on a total income of Rs. 2,58,168. After the amendments to section 23-A were made during the subsequent years, which according to the revenue were retroactively operative, the income-tax Officer initiated proceedings under section 34 of the Act on the foot that the percentage adopted by the assessee for declaring dividends was not in accord with the…

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