Undistributed Profits in P.E. Not Taxable Income Under Income-tax Act; Actual Income Required for Taxation.

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....Obviously, the undistributed share of profit reflected in the books of P.E. cannot be said to partake the character of income under the provisions of the Income-tax Act. It is settled position that accounting entries are not determinative of taxability under the Income-tax Act and further only the real income can be brought to the charge of tax. - AT....