1975 (12) TMI 13

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....this reference under section 66(1) of the Indian Income-tax Act, 1922 : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Income-tax Officer had no jurisdiction to invoke section 23A of the Indian Income-tax Act, 1922, for the second time? 2. If the answer to question No. (1) be in the negative, then whether the Tribunal was right in h....

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....other years would be dropped which was confirmed by the Income-tax Officer in his letter dated December 10, 1962, in the following terms : "The dividends proposed as per your letter under reference for declaration on 14th December, 1962, in respect of the assessment year 1955-56 and the year 1958-59 are in order. Please confirm that ...... the amounts of dividends as proposed were actually decl....

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.... passed an order against the assessee. The appeals filed by the assessee were dismissed by the Appellate Assistant Commissioner, but the second appeals filed by the assessee are allowed by the Tribunal. The findings of the Tribunal are that in the earlier proceedings the Income-tax Officer was satisfied that the statutory percentage applicable was 90% and the proceedings for all those years wer....

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.... this section. This section is a penal provision and it does not even indicate that they have such powers. Further, section 23A says that the Income-tax Officer shall make "an order" and not that he shall make as many orders as he likes. It is elementary that the Income-tax Officer is bound to drop the proceedings where no super-tax is payable by the assessee and in this case it has been done by t....