"One-third of the distributable profits" should be read as "one-third of the net profits of the company". - Income Tax - 1041/CBDT

INSTRUCTION NO. 1041/CBDT Dated : February 25, 1977 Section(s) Referred: 37(1) Statute: Income - Tax Act, 1961 Reference is invited to Board's Instruction No. 875* (F. No. 204/33/75-ITA.II), dated 5th September, 1975 on the above subject. In this connection, it is stated that the words "one-third of the distributable profits" used in para 1 of the said instruction, should be read as "one-third of the net profits of the company.