The Income tax Officer, Special Investigation Circle B, Ahmedabad in exercise of the power under s. 35 10 of the Indian Income tax Act, 1922, passed an order withdrawing the rebate, granted in respect of each of the six assessment years 1948 49 to 1953 54 and demanded payment of tax on the amount of the rebate.
In respect of each liquidator issued an income tax refund that the amount was distributed out of accumulated profits of earlier years.
Appeal from the judgment and order dated January 16, 17, 1961 of the Gujarat High Court in Special Civil Application No.
The appellant then applied to the High Court of Bombay for writs quashing the orders of the Income tax Officer and the numberice of demand and directing the Income tax Officer to withdraw and cancel the order and numberice of demand.
D. Karkhanis, T. A. Ramachandran, 0.
233 of 1960.
2,15,232/ as dividend for the year ending December 31, 1956.
C. Mathur, Ravinder Narain and J. B. Dadachanii, for the appellant.
Power to withdraw rebate was in that case held exercisable within four years from the end of the financial year in which the amount of rebate was availed of it was number held that the power was exercisable in respect of rebate granted only in respect of four years before April, 1956.
The petition was dismissed by the High Court.
The Judgment of the Court was delivered by Shah, J. The appellants Company registered under the Indian Companies Act, 1913 was assessed in the assessment years 1948 49 to 1953 54 in respect of the profits earned in its business, and was allowed rebate under the appropriate provisions companytained in the Schedules to the relevant Finance Acts on the undistributed profits of the previous years.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Any declaration of 1 1963 Supp.
On December 31, 1956 at an annual general meeting of the shareholders the Company declared an aggregate sum of Rs.
But a declaration prior to April 1, 1952, would be beyond the power of the Income tax Officer to recall.
On October 20 21, 1957 the liquidator distributed to the shareholders thereafter on February 21 22, 1958 July 27, 1959 the liquidator distributed to the shareholders.
With certificate granted by the High Court, this appeal has been preferred.
V. Viswanatha Sastri, R. Ganapathy Iyer, B. R. G. A char and R. N. Sachthey, for the respondents.
871 of 1964.
Thereafter a special resolution was passed for voluntary winding up of the Company with effect from October 1, 1957, and for appointing a liquidator to wind up the affairs of the Company.
