1984 (5) TMI 72

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....gainst the order dated 28-11-1981 of the Commissioner (Appeals), by which he confirmed the order under section 104 of the Income-tax Act, 1961 ('the Act'), passed by the ITO demanding additional tax of Rs. 5,658 from the assessee. 2. The assessee is a limited company in which the public are not substantially interested. The ITO found that the distributable income for the assessment year 1976-77....

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....et price. If this is done, then there will be no amount left which could be distributed as dividend. Shri Roy Alphonso, the learned representative for the department, on the other hand, supported the order of the Commissioner (Appeals). 5. We have considered the contentions of both the parties as well as the facts on record. The assessee is a wholly owned subsidiary of Madhusudan Ltd. It took o....

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....be adequate to replace the asset when it becomes unserviceable. That replacement cost would naturally be the prevalent market price in the year in which the assets become unworkable. The price paid by the previous owner several years back would no longer be sufficient to replace the asset because of the inflationary trend of our economy which is a well-known fact. Hence, we hold that the directors....