2013 (12) TMI 1208

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....spondent : R. S. Agrawal ORDER We have heard Shri Shambhu Chopra, learned counsel for the income tax department. Shri R.S. Agrawal appears for the respondent assessee. These two reference application Nos.1270 & 1271/DEL of 1989 arises out of ITA No.4835 and 4836/Del of 1986 for the assessment year 1982-83 and 1983-84. The Income Tax Appellate Tribunal has raised the following questions of....

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....961?" So far as first question in both the references namely R.A. No.1270 and 1271/DEL of 1989 are concerned, we find that the question is covered by the judgment of Bombay High Court in Commissioner of Income Tax v. HICO Products Pvt. Ltd., (1993) 201 ITR 567. In a similar situation the Bombay High Court considered the provisions of Section 40A (5) (a) and (c) of the Income Tax Act, 1961 and h....

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....urt distinguished the judgment of Kerala High Court in Travancore Rayons Ltd. v. CIT, (1986) 162 ITR 732 and the Punjab and Haryana High Court in CIT v. Amritsar Rayon and Silk Mills (P) Ltd., (1989) 179 ITR 292. The Gujarat High Court had taken the view that the Legislature has laid down an upper limit or ceiling of Rs.72,000/- on the permissible expenditure, which may comprise any of the four he....

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....ube Co. Pvt. Ltd. v. CIT, (1992) 194 ITR 102 (SC) and CIT v. Mysore Electrical Industries Ltd., (1971) 80 ITR 566 (SC) it was held that on the first day of the computation period there was only a recommendation by the directors to declare a dividend. The actual declaration was yet to follow, after the decision of the general body at the annual general meeting. The dividend proposed by the Board of....