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Issues:
1. Whether the applicant-company was a company not substantially interested to section 23A of the Indian Income-tax Act, 1922? 2. Whether the Tribunal was justified in preventing the applicant-company from re-agitating its status as a public company? 3. Whether the sum of Rs. 19,43,322 was available for distribution by the assessee-company under section 23A? 4. Whether the assessee-company was required to distribute 100% or only 60% of the distributable profits? Analysis: Issue 1 & 2: The applicant admitted in an application under s. 23A(3) that it was not a company substantially interested by the public. The Commissioner directed the company to distribute Rs. 3,25,000 as dividend due to concealed profits. The Board of Revenue upheld this decision, reducing concealed profits to Rs. 19,43,222. The Supreme Court affirmed that the company had to distribute the entire income. The Tribunal rightly relied on the admission by the company, preventing re-agitation of its status. Issue 3: The Supreme Court determined that the concealed profits available to the assessee were Rs. 19,43,222. This amount was deemed available for distribution under section 23A, as established by the findings of the Supreme Court, binding the assessee. Issue 4: The Supreme Court's decision in the matter under section 23A(3) concluded that the assessee had to distribute 100% of the profits. Despite arguments regarding the treatment of concealed profits and tax liabilities, the Court held that the company was liable to distribute the entire distributable profits, as determined in the previous proceedings under section 23A. In conclusion, the High Court held that the applicant was not a company substantially interested, the concealed profits were available for distribution, and the company was required to distribute 100% of the distributable profits. The decision of the Supreme Court in previous proceedings under section 23A was binding, precluding further investigation. The Department was awarded costs of Rs. 250.
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