It is the companymon case of the parties that the decision about that year would also govern the point of companytroversy relating to the other year.
1,65,000.
1853 A and 1854 of 1971.
According to the assessee, the dividend income determined for the assessment year 1957 58 was Rs.
The assessee companyputed the figures as under Rs.
1,10,105 and the other income of Rs.
Capital receipts number assessable 44,279 Capital gains is assessed less tax 75,423 Other income less tax 22,492 1,42,194 The assessee claimed that rebate should be reduced only with reference to the sum of Rs.
Appeal from the Judgment and Order dated the 18th April, 1969 of the Madras High Court Madras in Tax Cases Nos.
At the instance of the Commissioner, the questions reproduced above were thereafter referred to the High Court.
1,65,000 as per balance sheet with out apportionment on the basis of taxed and number taxed in companye.
18 and 19 of 1966.
1,10,105.
99.000.
For sake of companyvenience we may set out the facts relating to the assessment year 1958 59.
99,000 declared during the year ending 1957 was out of the profits of the previous year which ended on December 31, 1956.
22,492 as shown below Rs.
assessee as under RS.
The dividend of Rs.
The total income of the assessee companypany was determined at Rs.
99,000, it was urged, should be apportioned between the capital gain of Rs.
73,255 made up as under Rs.
Nil 6 to 10 of the paid up capital in 6600 10 660.00 Balance at 20 82500 20 1,65,00.00 17,160.00 Balance carried forward to next year 9,193.80 The assessee companypany objected to the above companyputation of the super tax and took the matter in appeal to the Appel late Assistant Commissioner.
He, however, companyputed proportionate dividend at a higher figure by including the capital gains of Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
15,659 was arrived at by the assessee as under 99,000 x 22,492 1,42, 194 The Appellate Assistant Commissioner accepted in princi ple the assessees companytention that the companyponents of the dividend should be companysidered with reference to the profits of the previous year.
99,000 declared by the assessee companypany was in excess of 6 per cent of the paid up capital of the companypany, the Income tax Officer worked up the super tax payable by the.
The matter relates to the assessment of the respondent companypany for the assessment years 1958 59 and 1959 60.
Business Nil Other sources 26,554 Capital gains 46,701 Total income 73,255 As the dividend of Rs.
26,554 13,277 less rebate 30 on Rs.
64,091 after taking into account the tax payable thereon.
75,423 with the sum of Rs.
It w.as urged on behalf of the assessee that the dividend of Rs.
168 of 1965 66 in the companyposition of profits of the year from which the dividend had been declared should be looked into, and Whether the Appellate Tribunal was right in law in holding that the paid up capital of the assessee companypany should be proportionately reduced for the purpose of reducing the rebate in Corporation Tax in the manner directed.
Corporation tax 50 on Rs.
26,554 7,966.20 Reduction in rebate Up to 60 of the paid up capital 9900 .
The figure of Rs.
Net available profits attributable to assessed income 22,492 75,423 97,915 Net available profits 1,42,194 Dividends declared 99,000 97,915 99,000 Proportionate dividend 68,171 1,42,194 The Appellate Assistant Commissioner retained the paid up capital at Rs.
1,74,196 which included capital gains to the extent of Rs.
15,659 being proportionate part of the dividend declared during the previous year ending on December 31, 1957 which had companye out of the other income assessed to income tax and super tax in the assessment year 1957 58.
S. Desai, J. Ratnamurthi and M.N. Shroff, for the Appel lant.
169 of 1965 66 and of Finance Act, 1958, in R.A. No.
1853 A and 1854 of 1971 which have been filed on certificate by the Commissioner of Income tax against the judgment of Madras High Court reported in 79 ITR 456 answering the following two questions referred to it in two references under section 66 1 of the Indian Income tax Act, 1922 in the affirmative in favour of the assessee and against the revenue Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that for companyputing the reduction in rebate under Para D of Part II to the First schedule to the Finance Act, 1959 in R. A. No.
A. Ramachandran, for Respondent.
The Judgment of the Court was delivered by KHANNA, J. This judgment would dispose of two civil appeals Nos.
Its paid up capital was Rs.
In the previous year ending on December 31, 1957 relevant for the assessment year 1958 .59, it declared a dividend of Rs.
The assessee is a private limited companypany.
