Omitted

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....sp;w.e.f. 01-04-1965 before it was read as, "(b) thirty-seven per cent. in the case of any other company" 6.  Substituted vide Section 20 of the Finance Act, 1966 w.e.f. 01-04-1966 before it was read as, "on the distributable income as reduced by- (i) the amount of dividends actually distributed, and" 7.  Omitted vide Section 20 of the Finance Act, 1966 w.e.f. 01-04-1966 before it was read as, "(ii) any expenditure actually incurred bona fide for the purposes of the business, but not deducted in computing the income chargeable under the head "Profits and gains of business or profession" being- (a) a bonus or gratuity paid to an employee, (b) legal charges, (c) any such expenditure as i....

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.... assets, being machinery or plant (other than office appliances or road transport vehicles), as shown in its books on the last date of the relevant previous year is fifty lakhs of rupees or more. 9[(c) a company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India.] Explanation.- For the purposes of clause (a) of this sub-section, the business of a company shall be deemed to consist mainly in 10[the construction of ships or in] the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, if the income attributable to any of the aforesaid activities 11[included in its gros....

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....ng company, and (c) twenty five per cent. in the case of any other company], 6[on the distributable income as reduced by the amount of dividends actually distributed, if any 12[, within the said period of twelve months]] 7[****] (2) The Income-tax Officer shall not make an order under sub-section (1) if he is satisfied- (i) that, having regard to the losses incurred by the company in earlier years or to the smallness of the profits made in the previous year, the payment of a dividend or a larger dividend than that declared 13[within the period of twelve months referred to in sub-section (1)] would be unreasonable; or (ii) that the payment of a dividend or a larger dividend than that declared 14[within the period of twelve month....