1990 (11) TMI 38

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....ect of the assessment year 1980-81, the Income-tax Officer passed an order under section 104 of the Income-tax Act, 1961, holding that additional tax under section 104 should be levied because the petitioner-company had not distributed the requisite dividend. The Income-tax Officer did not accept the contention of the assessee that the dividend was not distributed with a view to build up sufficien....

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....eal to the Tribunal also met with no success. An application under section 256(1) was filed seeking reference of the following questions to this court : " 1. Whether, on the facts and circumstances of the case and on true and correct interpretation of section 104 of the Income-tax Act, 1961, the Tribunal was right in law in upholding the levy of tax on undistributed dividend of Rs. 59,008 ? ....

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.... was not distributed. The only contention raised was that because of business exigencies, namely, future expansion of the business, the board of directors considered that it should not distribute dividend and that is a good ground for not passing an order under section 104. There can be no dispute with the legal propositions but a question arises whether, in the instant case, there was any expansi....