1983 (2) TMI 6

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....e assessee has filed this petition under s. 256(2) of the I.T. Act, 1961, for a direction to the Tribunal to refer the following two questions for the opinion of this court : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in upholding the order of the Income-tax Officer under section 104 of the Income-tax Act, 1961 ? and 2. Whether the Tribunal was rig....

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.... higher dividend, that it had taken loans from the Tamil Nadu Industrial Investment Corporation Ltd. to the extent of 18.25 lakhs of rupees and interest was payable along with the principal in yearly instalments for which provision had to be made and that reserves had to be conserved as a matter of commercial prudence. The ITO refused to accept the assessee's stand. On appeal, the Commissioner of ....

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....te reserve, totalling Rs. 10 lakhs, cannot be taken into account for the purpose of deciding whether, in the assessment year, the assessee was in a position to declare a larger dividend. The Tribunal considered the rival contentions and ultimately found that as on March 31, 1976, as against the paid-up capital of Rs. 10 lakhs, the assessee's reserves and surplus were as much as Rs. 22,23,824 compr....