https://www.taxtmi.com/caselaws?id=49559 A charging provision based on a statutory fiction could not be applied unless the foundational facts for that fiction existed. The proviso treated excess dividend as deemed to come out of undistributed profits of preceding years, with tax then computed by the prescribed method. Because no undistributed profits of earlier years were available at all, the legal fiction failed and the computation mechanism could not operate. The provision could not be expanded by altering its language or by assuming liability first and testing applicability later. The company was therefore not liable to additional income-tax on the excess dividend, and the answer was in favour of the assessee. en-us Wed, 04 May 1960 00:00:00 +0530 Mon, 16 Jan 2017 14:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49559 A charging provision based on a statutory fiction could not be applied unless the foundational facts for that fiction existed. The proviso treated excess dividend as deemed to come out of undistributed profits of preceding years, with tax then computed by the prescribed method. Because no undistributed profits of earlier years were available at all, the legal fiction failed and the computation mechanism could not operate. The provision could not be expanded by altering its language or by assuming liability first and testing applicability later. The company was therefore not liable to additional income-tax on the excess dividend, and the answer was in favour of the assessee. Case-Laws Income Tax Wed, 04 May 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49559