1975 (5) TMI 9

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....n Income-tax Act, 1922, the question referred is as follows : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that it would be unreasonable to require the company to distribute any dividend in respect of the previous year ended March 31, 1958, and setting aside the order under section 23A(1) of the Indian Income-tax Act, 1922, levying additional s....

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....account arrear taxes for the assessment years 1955-56 and 1956-57. It was contended that such arrears amounted to Rs. 52,450. The Appellate Assistant Commissioner rejected the assessee's contention as regards the arrear taxes and observed that for the assessment year 1955-56, no tax was found to be payable as a result of the Tribunal's order and for the assessment year 1956-57, the tax payable as ....

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....t appears from the accounts which were audited on the 25th September, 1959, that the assessee did in fact pay a sum of Rs. 52,450 on account of income-tax for the earlier assessment years and there was a note in the balance-sheet recording such payment with a further note that the matter was under appeal. The appeals in respect of the said assessment years 1955-56 and 1956-57 were disposed of on t....

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....or set aside. In that view of the matter the money had gone out of the till of the company and was not available to be distributed by way of dividend and there could be no question of declaration of a dividend on the basis of a possibility of an assessment order being set aside on appeal in favour of the assessee. This is the only point which has been canvassed on behalf of the revenue in this ....