https://www.taxtmi.com/caselaws?id=49560 Income-tax under the statutory scheme is levied only on the total income of the previous year, while the annual Finance Act fixes the rate within that framework. The impugned proviso deemed excess dividends to arise out of undistributed profits of earlier years, but it did not also bring those profits into the total income of the relevant year. As a result, the charge operated outside the statutory basis for income-tax, because the amount taxed was not part of the assessed year's total income. The additional income-tax on excess dividends was therefore not validly charged, and the referred question was answered in the negative. en-us Wed, 04 May 1960 00:00:00 +0530 Tue, 02 Sep 2014 20:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49560 Income-tax under the statutory scheme is levied only on the total income of the previous year, while the annual Finance Act fixes the rate within that framework. The impugned proviso deemed excess dividends to arise out of undistributed profits of earlier years, but it did not also bring those profits into the total income of the relevant year. As a result, the charge operated outside the statutory basis for income-tax, because the amount taxed was not part of the assessed year's total income. The additional income-tax on excess dividends was therefore not validly charged, and the referred question was answered in the negative. Case-Laws Income Tax Wed, 04 May 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49560