The Income Tax Officer rejected the companytention of the assessee and determined a sum of Rs.
36,546.17 np.
was due to him by the companypany.
From the Judgment and Order dated 18 1 1972 of the Kerala High Court in I.T.R. No.
6,900 as a provision for dividend had to be adjusted against the balance of Rs.
1,050 only, and that amount alone companyld be companysidered as dividend under section 2 6A e .
The Appellate Assistant Commissioner dismissed an appeal filed by the assessee.
But on a reference application filed by the aggrieved party it is open to the number applicant who is number aggrieved by the result of the appeal, to ask for a reference of those questions of law which arise on its submissions negatived in appeal by the Appellate Tribunal.
18,950.98 np.
951 A B, C CIVIL APPELLATE JURISDICTION Civil Appeal No.
11,000 and Rs.
He arrived at this figure by including the current profits of the companypany for the account year ending March 31, 1959.
If the application is rejected by the Appellate Tribunal, it is the applicant thus refused who is entitled to apply to the High Court.
Thereafter, the Income Tax Officer came to know that the assessee had been withdrawing moneys from the companypany, and in the belief that those amounts were liable to be treated as dividend under section 2 6A e of the Indian Income Tax Act, 1922, he reopened the assessment by virtue of section 147 of the Income Tax Act, 1961.
25,107.22np.
The accounts showed that as on March 31, 1958 a sum of Rs.
2099 of 1972.
And number, the present appeal by the Revenue.
The application has to be filed within a prescribed period of limitation.
The assessee was originally assessed for the assessment year 1959 60 the relevant previous year being the year ended March 31, 1959 on a total income of Rs.
In the assessment proceedings which followed, the assessee claimed that the accumulated profits of the companypany amounted to Rs.
11,000 as a provision for tax and of Rs.
The Judgment of the Court was delivered by PATHAK, J. This is an appeal by certificate under section 261 of the Income Tax Act, 1961 against the judgment of the High Court of Kerala interpreting the words accumulated profits in section 2 6A e of the Indian Income Tax Act, 1922.
The Income Tax Appellate Tribunal, in second appeal, upheld the claim of the assessee that the words accumulated profits in section 2 6A e companyld number be companystrued as including current profits, but it rejected the companytention that the two sums of Rs.
B. Ahuja and Miss A. Subhashini for the Appellant.
The figure was worked out on the basis that a sum of Rs.
18,950 in the Profit Loss Account.
Nemo for the Respondent.
43,407.
The assessee is the Managing Director of a private limited companypany called R. K. V. Motors Timber P Limited.
The companypany maintains an accounts pertaining to him in its books.
His drawings increased, and as on March 31, 1959 the total amount due by him stood at Rs.
In January, 1959 for the first time he became indebted to the companypany in the sum of Rs.
3,757.04 np.
88/1969.
