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Issues:
1. Interpretation of provisions of Income-tax Act, 1961 regarding withdrawal of income-tax rebate based on dividends declared by the company. 2. Determination of requirements of Para. F of Part I of the First Schedule to the Finance Act, 1965 in proceedings under section 154. 3. Identification of a mistake apparent from the record in the withdrawal of income-tax rebate under specific provisions of the Finance Act, 1965. 4. Justification of the company being classified as one in which the public are substantially interested. 5. Validity of relying on the assessment order for 1964-65 to determine the company's status for the 1965-66 assessment. Analysis: The High Court of Rajasthan addressed various questions referred by the Income-tax Appellate Tribunal regarding the interpretation of provisions under the Income-tax Act, 1961 and the Finance Act, 1965. The case involved a dispute over the withdrawal of income-tax rebate based on dividends declared by the company. The court examined whether the withdrawal of the rebate was in line with the provisions of sections 4 and 5 of the Income-tax Act, 1961. The court determined that the withdrawal of the rebate was not opposed to the mentioned provisions, thus resolving the first issue. Regarding the second issue, the court affirmed that the requirements of Para. F of Part I of the First Schedule to the Finance Act, 1965 could be determined in proceedings under section 154. This decision provided clarity on the procedural aspect of addressing such requirements during assessments or rectifications. Moving on to the third issue, the court identified a mistake apparent from the record in the withdrawal of the income-tax rebate under specific provisions of the Finance Act, 1965. The court upheld the Tribunal's decision that there was indeed a mistake in the calculation of the rebate amount, leading to a reduction in the allowable relief. Concerning the fourth and fifth issues, the court justified the classification of the company as one in which the public are substantially interested. The court supported the Tribunal's reliance on the assessment order for 1964-65 to determine the company's status for the 1965-66 assessment, emphasizing the continuity of the company's status as being of public interest. In conclusion, the court provided detailed explanations and interpretations of the relevant legal provisions to address the issues raised in the case. The judgment clarified the application of the law in determining income-tax rebates, company classifications, and procedural aspects of assessments under the Income-tax and Finance Acts.
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