1966 (10) TMI 2

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..... cle 1(4), Bombay, computed the respondent-company's total income for the assessment year 1952-53 at Rs. 23,596 and brought that amount to tax. The respondent-company had, however, distributed Rs. 2,66,788 as dividend in the previous year. The Income-tax Officer, by his order dated the 27th July, 1955, levied an additional tax on the excess dividend declared by the respondent-company and ordered th .....

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..... t for rectification. By his order dated the 2nd November, 1957, the Income-tax Officer declined to accede to the request. He stated that the assessment for the year 1952-53 was completed along time back and before the judgment in the case of Khatau Makanji Spinning & Weaving Co. Ltd. was pronounced by the Bombay High Court. Against the order passed by the Income-tax Officer, the respondent compa .....

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..... Court granted the application. There is no doubt that, in view of the judgment of this court in Commissioner of Income-tax v. Khatau Makanji Spinning & Weaving Co. Ltd., the levy of an additional tax was illegal. It was urged, however, before the High Court that no application for rectification under section 35 of the Income-tax Act was presented by the respondent-company, and, therefore, the com .....

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