1989 (8) TMI 7 - HC - Income Tax

Summary

The High Court of Calcutta remanded the case to the Tribunal to determine if a larger dividend could have been distributed by the assessee-company after creating statutory reserves as required by the Companies Act. The Tribunal failed to examine the accounts to assess the possibility of distributing a larger dividend. The case is sent back to the Tribunal for further review. The assessee-company is ordered to pay costs of the reference.