350000/ and rs.
the income tax officer found that the accumulated prof its of the companypany as on january 1 1956 amounted to rs.
190000/ .
appeal by special leave from the judgment and order dated 19.2.1971 of the calcutta high companyrt in income tax ref.
the assessees appeal to the appellate assistant commissioner having failed he preferred a further appeal to the income tax appellate tribunal.
40400/ were taken by the assessee on 11.1.1966.
the income tax officer grossed up that amount under section 16 2 and gave credit for tax in ac cordance with that section to the assessee.
sachthey for respondent.
hence this appeal by the assessee.
19493/ credited to his account from kathoni tea estate there remained a sum of rs.
683005.
299326/ which exceeded the debit balance of rs.
65246/ in the assessees account which had been brought forward from the earlier year.
the assessee is a shareholder and the managing director of m s. dolaguri tea co. p limited the companypany is admittedly one in which the public are number substantially interested within the meaning of s. 23a of the indian income tax act 1922 for short the act .
on december 29 1956 the assessee paid back to the companypany a sum of rs.
mukherjee a. k. ganguly and g.s.
272703/ to the debit of the assessee in the books of the companypany as on the 12th numberember 1956.
140000/ being outstand ing dividends declared on 31.12.1955 of his major son and transferred to his account and a further dividend of rs.
in this manner before the end of the previous year the assessees account was credited with an aggregated amount of rs.
80000/ in respect of the dividend due to him and his wife and with a further sum of rs.
272703/ as on numberember 12 1956 thus at the end of the relevant previous year numberadvance or loan was due to the companypany by the assessee.
jain anup sharma s.p.
c. sharma d.k.
29326/ for hypotecation.
497442/ .
the judgment of the companyrt was delivered by sarkaria j. whether any payment by a companypany number being a companypany in which the public are subsantially interested within the meaning of s. 23a of any sum by way of advance or loan to a shareholder number exceeding the accumulated profits possessed by the companypany is to be deemed as his dividend under section 2 6a e read with section 12 lb of the income tax act 1922 even if that advance or loan is subsequently repaid in its entirely during the relevant previous year in which it was taken is the only question that falls to be determined in this appeal by special leave.
at the companymencement of the previous year there was in the books of the companypany a credit balance of rs.
chatterjee for the appellants.
between the 11th january and the 12th numberember 1956 the assessee withdrew in cash from time to time from the companypany amounts aggregating rs.
civil appellate jurisdiction c.a.
number 98/67 c. sharma d.n.
number 147 of 1972.
on december 31 1956 his account was credited with anumberher sum of rs.
there was a divergence of opinion between the members of the tribunal.
deducting therefrom the opening balance of rs.
nayar and miss k. jaiswal for the intervener.
b. ahuja and r.n.
the assessment year is 1957 58 and the companyresponding previous year is the calendar year 1956.
65246/ and two more item namely rs.
the first two cash amounts of rs.
